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ABB Way Forward

The ABB Way Forward is our strategy focused on value creation

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Following our Purpose and leveraging our strong  positions in Electrification, Robotics, Motion and Automation, we aim to create superior value for all our stakeholders. With our Purpose at its core, the way we operate – the ABB Way – is our lever to implement our strategy. By pushing the boundaries of technology and embedding sustainability in everything we do, our people drive the performance of our market-leading and empowered businesses to new levels. Together with our common values, strong brand and governance framework, the ABB Way will be leading us to become a more focused, successful, value-creating company.













Our four Business Areas

Electrification, Industrial Automation, Motion and Robotics & Discrete Automation: discover how our Business Areas divided into 18 leading Divisions push the boundaries of technology driving innovation for a more productive, sustainable future. 

Electrification
 

Writing the future of safe, smart and sustainable electrification.

ABB's Electrification business offers a wide-ranging portfolio of products, digital solutions and services, from substation to socket, enabling safe, smart and sustainable electrification. 

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Industrial Automation

 
Writing the future of safe and smart operations.

ABB's Industrial Automation business offers a broad range of solutions for process and hybrid industries, including industry-specific integrated automation, electrification and digital solutions, control technologies, software and advanced services, as well as measurement & analytics, and marine and turbocharging offerings.

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Motion



Writing the future of smart motion.

ABB's Motion business is the largest supplier of drives and motors, globally. We provide customers with the complete range of electrical motors, generators, drives and services, as well as mechanical power transmission products and integrated digital powertrain solutions.

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Robotics & Discrete Automation
 
Writing the future of flexible manufacturing and smart machines.

ABB's Robotics & Discrete Automation business provides value-added solutions in robotics, machine and factory automation. Our integrated automation solutions, our application expertise across a wide scope of industries and our global presence deliver tangible customer value. 

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Our operating model – the ABB Way

The "glue" that connects the Group.
The ABB Way represents the common framework under which we operate.

With our company Purpose at its core, the ABB Way empowers our Divisions with full ownership and accountability for their strategies, performance and resources, while serving as the “glue” that holds our Group together. The ABB Way consists of two parts;
“how” we will operate and create superior value in the future, namely with our Business model, People & culture, Brand and Governance, and our Purpose, “why” our company exists.

The ABB Way provides standardized policies, processes and systems, including portfolio, performance and risk management as well as internal control and compliance.

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ABB Way

Decentralized business model – businesses have full authority and accountability for operating decisions.
Our Divisions are the highest operational level in ABB, that is how we get high speed in value creating business decisions close to customers. 
Business Areas focus on governance and steering, performance and portfolio management of their Divisions.
Corporate focuses on portfolio evolution, capital allocation performance management, common policies and our brand.

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ABB decentralized business model

Our priorities

To implement our ABB Way Forward, we are focusing on six priorities.

Market leadership

Market leadership is key to the long-term success of our Divisions. We aim to maintain or strengthen a no. 1 or no. 2 position in all markets by providing our customers with leading products, systems and solutions. Market leadership helps to improve profitability, drive superior returns and enable growth opportunities for our people. 

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Technology & digital

Our world-class technology and domain-led digital capabilities are deeply embedded in our DNA. Maintaining and improving our innovation, technology and digital leadership is a strategic priority across Divisions. Pushing the boundaries of technology and digital enables us to help our customers attain new levels of performance and clearly differentiate ABB’s offering.

People

We believe our people are the most critical ingredient to our long-term success. A culture of diversity, inclusion and equal opportunity is critical to our business success and makes us stronger. Relying on our people’s unique attitude, experience and domain expertise, we push the boundaries of technology to drive performance, shape new business models and find new ways of working that make our customers, partners and society better off.

Portfolio management

Through active portfolio management we systematically evolve our portfolio at all levels of the organization to reinforce our Divisions’ market leadership by investing in growth, M&A activities and portfolio consolidation. On the one hand, we continuously question whether we are the best owner of our Divisions; on the other, we steer our businesses in line with their respective strategic mandates. Lastly, we actively pursue synergetic acquisition opportunities to fill white-spots and steer our overall portfolio mix towards high-growth sectors.

Sustainability

At ABB, we have always taken a sustainable approach to business. Sustainability is a key part of our company Purpose and of the value that we create for all of our stakeholders.
At ABB, we believe that sustainable development means progress towards a healthier and more prosperous world for future generations. This means balancing the needs of society, the environment and economy. To achieve this, we act and embed this approach to business across our value chain, creating superior value for all of our stakeholders.
As we push the boundaries of technology, we support our customers to preserve resources and enable a low-carbon society. We act with integrity and transparency at the core of our governance and we promote social progress for our people and communities around the world.

Also referred to as The Quiraing or Cuith-Raing is a landslip on the eastern face of Meall na Suiramach, the northernmost summit of the Trotternish or Tròndairnis (Scottish Gaelic) on the Isle of Skye, Scotland. 

Taken in dramatic December weather, the stormy ephemeral light opens and beams of short lived godrays radiate down over the spiked land formation called The Cleat, Loch Cleat, and Loch Leum na Luirginn below. The highest ridge to the right is called Dun Dubh, and the interesting craggy dinosaur back - shark fin formation on the lower right is called Cnoc a Mheirlich.
Financial performance

By pairing our strategic priorities with a continuous improvement mindset, we will deliver improved performance in line with our financial framework: 

  • 3 - 5% average annual revenue growth through economic cycle
  • 13 - 16% operational EBITA margin
    - Electrification: 15 - 19%
    - Industrial Automation: 12 - 16%
    - Motion: 15 - 19%
    - Robotics & Discrete Automation: 13 - 17%
  • ~100% cash conversion
  • 15 - 20% ROCE
  • EPS growth > revenue growth
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                                                                                                     Our previous strategy events