Siemens Digital Industries Software’s chief in Southeast Asia, Alex Teo, outlines what true digital transformation entails—a holistic approach to people, processes, and technology—which Siemens is well-positioned to support across startups to enterprises.

In 2025, just as it was in 2024, the manufacturing landscape will develop at a rapid pace, presenting both challenges and opportunities for the industry. As products, manufacturing processes, and supply chains become more complex, companies face mounting pressure to accelerate innovation while meeting sustainability goals and addressing skilled workforce shortages.

Companies are scrambling to keep up, and Siemens Digital Industries Software MD and VP in Southeast Asia, Alex Teo observed, “In most cases, digital transformation lacks a well-thought-out plan. Companies adopt fragmented solutions like a PLM (product lifecycle management), or MES (manufacturing execution system), or supply chain software solutions.

Alex Teo, Siemens Digital Industries Software MD and VP in Southeast Asia

“When solutions are conceived in silos, they create data silos and processes that are not connected to each other.” Alex opined that this defeats the purpose of digital transformation which is actually to ensure all the moving parts are aligned and “digitally threaded” together so that there can be a seamless flow of data and information across an organization’s different systems and applications.

A consistent data model facilitates this data flow across Siemens’ portfolio of software solutions, by offering a common data structure and definition that captures relationships and information needed for design, simulation, manufacturing, and even post-user experiences.

Overcoming learning challenges: Industrial AI to the rescue

Another common pitfall companies face when they rush digital transformation and deploy point solutions is resistance from employees.” I think that is actually one of the biggest issues; a lack of consensus about what to do, especially when companies buy solutions in a fragmented manner,” Alex pointed out.

One of the ways Siemens approaches this is by creating a pipeline of talents skilled in their solutions via university programs, and also readying avenues for customers and partners to learn, test, and adopt their solutions.

Alex shared, “We understand that adoption of our tool is very important because we are transforming into a software-as-a-service organization. So, the ability for us to ensure that users adopt our solutions becomes very important.”

This has meant investing in an online, self-paced learning platform that is packaged with purchased Siemens software. The learning curriculum is flexible and adaptable to a customer organization’s internal processes, and can feature AI-created avatars or trainers, giving instructions in the customer’s preferred language.

The Foundation: Industrial AI and comprehensive digital twins

A highly anticipated industrial copilot use case had come to life last year during an exhibition in Hannover, Germany. Siemens had collaborated with Schaeffler, a large manufacturing company to demonstrate how the AI-powered Industrial Copilot can augment Siemens’ industrial automation engineering and operation solutions using natural language.

Schaeffler uses the AI-based assistant “Siemens Industrial Copilot” to generate codes for programmable logic controllers in production machines. Photo: Schaeffler

Alex also admitted that Siemens is “big on simulations” and that a comprehensive digital twin construction comprising products and production processes, is the technological foundation of a successful digital transformation.

“The digital twin is a digital replica of a product or process, and you could see it represented as a model in an immersive CAD, or computer-aided design, software.”

Alex explained that a collaboration with Sony has enabled them to take 3D designing capability to the next level with Siemens NX Immersive Designer software, and Sony hardware – an extended reality headset with ring controller.

“In fact I would say we can execute all the way to the far right, because after designing and testing the product in simulated environments, we are the only company in the world right now that has the full ability to realize it by building it using automated technologies.” – Alex Teo

Ultimately, it changes the way that products are designed and tested as designers can interact with the digital simulation of a product, in a more realistic 3D environment, thanks to the consistent data model. The same will hold true for operators and technicians with digital twins of production processes in a virtual factory or shop floor.

Alex commented, “We have the Siemens data model comprising the bill of materials (BOM), bill of processes (BOP), and more. This makes us the first company to be able to execute from the left all the way to the right.”

All this data is significant as it can produce insights earlier in the product lifecycle – as early as the product design phase – where it is easier and less costly to act on.

“In fact I would say we can execute all the way to the far right, because after designing and testing the product in simulated environments, we are the only company in the world right now that has the full ability to realize it by building it using automated technologies,” Alex pointed out.

True Digital Transformation means a holistic strategy

The benefits of organization-wide data sharing is being amplified with the Siemens Xcelerator platform. Since it was first introduced in 2019, the Siemens Xcelerator platform has evolved from merely providing a portfolio of engineering software by Siemens Digital Industries Software, to offering IoT-enabled hardware and digital services by certified third-parties.

Alex described that it provides a plug-and-play type of experience and customers can leverage the pre-built frameworks and functionalities without having to start from scratch. Besides integrating with the broader ecosystem of Siemens partners, services, and support, it can accelerate a company’s digital transformation journey, and is also incredibly instrumental in helping startups like ION Mobility and VinFast, to crank out products and services in the least amount of time and at lower-than-usual cost.

ION Mobility’s CEO & Founder James Chan when he unveiled Singapore’s first electric motorcycle.

For 2025, companies have to dig their heels in and work to not only navigate evolving regulations, competition, and product development cycles; they have to refocus and renew their approach towards digital transformation – point solutions can provide isolated benefits but true digital transformation requires a patience, time, and a comprehensive strategy that addresses not only technology and processes, but also people.

The Siemens VP observed a lot of pressure on SMEs to navigate a landscape that will become more competitive as larger players enter this region due to geopolitical factors. Alex strongly believes that true digital transformation and AI can give smaller players the edge they need to solve the skills gap they currently experience.