HMS Networks Strengthens Its Market Position
HMS Networks AB (publ) is a leading global provider of industrial information and communication technology solutions. The company has announced a significant reorganization into three divisions aimed at fostering growth and improving service delivery to various customer segments.
Why the Organizational Change?
The adjustment in structure comes after HMS operated a matrix organization since 2017. Initially, this model involved dedicated business units focusing on product development while market units managed sales and marketing. However, as HMS expanded through organic growth and strategic acquisitions like Red Lion Controls and PEAK-System, the necessity for a more customer-centered approach became apparent.
The Three New Divisions Explained
The newly established divisions will allow HMS to concentrate on distinct customer groups, ensuring a tailored and cohesive offering. This strategic realignment is expected to enhance accountability and foster the potential for cross-selling across products and services.
Industrial Data Solutions (IDS)
The IDS division will focus on solutions that connect, secure, diagnose, and visualize data in diverse industrial applications. Red Lion®, Ewon®, and N-tron® are a few of the primary brands that will cater to machine builders, system integrators, and end-users in industrial automation. Alexander Hess will guide this division, leveraging his expertise as the current SVP Information Centric at HMS.
Industrial Network Technologies (INT)
INT will specialize in communication, control, and security technologies for industrial devices, mainly featuring the Anybus® brand. This division aims to support device manufacturers within the industrial automation space, and it will be led by Bartek S. Candell, the current SVP Control Centric.
New Industries (NI)
The New Industries division will address the communication needs for niche applications outside of traditional industrial automation, including sectors like Building Automation and Vehicle Communication. Brands such as Intesis®, Ixxat®, PEAK-System®, and Owasys® will play significant roles under this division. Senior management will report directly to CEO Staffan Dahlström, ensuring strategic alignment with company goals.
Implementation Timeline and Expectations
The restructured organization is set to take effect on January 1, 2025. This transition also marks the commencement of segment reporting for HMS, allowing for greater transparency in performance metrics starting in the first quarter of 2025.
Financial Considerations
The organizational restructuring will impact approximately 40 roles, primarily within the management and sales segments. With the integration of PEAK-System and the divestment of MB Connect Line, HMS anticipates employing over 1,100 people by the beginning of 2025. This realignment is expected to generate annual savings of around 40 MSEK, effective from the start of the year, with anticipated restructuring costs of 25 MSEK affecting the fourth quarter of the preceding year.
Conclusion and Key Contact Information
Staffan Dahlström, CEO of HMS Networks, remarked on the significance of this move, stating, "Our matrix organization has served us well, but as we continue to grow larger and broaden our product lines, this change is critical for enhancing customer focus and accountability. This new structure will facilitate better cross-selling opportunities as we promote collaboration across divisions." For those seeking further details, please reach out to:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 69 83
Frequently Asked Questions
What prompted HMS Networks to reorganize?
The reorganization is a response to growth and recent acquisitions, aiming to enhance customer focus and better utilize cross-selling opportunities.
What are the three divisions of HMS Networks?
The three divisions are Industrial Data Solutions (IDS), Industrial Network Technologies (INT), and New Industries (NI), each with distinct product offerings and target customers.
How will this restructuring affect employees?
The restructuring will impact approximately 40 positions within the management, sales, and marketing departments, while creating better growth opportunities for the remaining workforce.
When will the new structure take effect?
The new organizational structure will be implemented on January 1, 2025, alongside segment reporting.
What savings does HMS expect from this change?
HMS expects to achieve annual savings of 40 MSEK from the restructuring, with full impact materializing in January 2025.
