KONE's "Rise" Strategy: Elevating the Future of Urban Mobility
September 20, 2024, 7:28 am
KONE Corporation is taking a bold leap into the future. On September 19, 2024, the global leader in the elevator and escalator industry unveiled its ambitious strategy for 2025-2030, aptly named "Rise." This initiative aims to reshape the landscape of urban mobility, focusing on employee and customer experience, sustainability, and innovation. The company is not just looking to keep pace; it aims to set the pace.
KONE's strategy revolves around four key shifts. First, it plans to accelerate digital transformation. This is not just about adopting new technologies; it’s about fundamentally changing how KONE delivers its services. Imagine a world where elevators and escalators are not just machines but smart systems that anticipate needs and enhance user experience.
Second, KONE intends to drive modernization. The company recognizes that the elevator and escalator market is evolving. By modernizing its offerings, KONE hopes to tap into new growth opportunities. This is akin to upgrading an old highway to a smart road, where every vehicle communicates with the infrastructure for optimal travel.
The third shift focuses on winning the residential segment. This is the largest segment in the industry, and KONE aims to lead it. By enhancing residential solutions, KONE is positioning itself as a household name, much like how a trusted brand of appliances becomes synonymous with quality and reliability.
Finally, KONE is committed to cutting carbon emissions. In a world increasingly concerned about climate change, this move is not just smart; it’s essential. By prioritizing sustainability, KONE aims to create customer value while differentiating itself from competitors. It’s like planting a tree that not only provides shade but also fruits for future generations.
At the heart of KONE's strategy is its people. The company aspires to be the easiest organization to work for and with. This is a refreshing approach in an industry often bogged down by bureaucracy. By prioritizing employee satisfaction, KONE is betting on a happier workforce leading to better customer service. It’s a simple equation: happy employees equal happy customers.
KONE's ambition is clear. It aims to be the number one choice for both employees and customers. The company is setting high standards, not just for itself but for the entire industry. The megatrends of urbanization, technological advancement, and sustainability are reshaping the market. KONE is ready to embrace these changes, viewing them as opportunities rather than obstacles.
Financially, KONE is aiming for growth that outpaces the market. The company has set long-term targets, including an EBIT margin of 16%. This is a bold goal, but KONE believes it can achieve it through improved working capital rotation and mid-single-digit sales growth by 2027. These targets reflect a commitment to profitability while also focusing on sustainable practices.
The new strategy will officially kick off on January 1, 2025. This timeline allows KONE to prepare its workforce and operations for the changes ahead. It’s a strategic move, ensuring that the company is not just reacting to market trends but proactively shaping them.
KONE's purpose is to shape the future of cities. This mission is more than just a tagline; it’s a guiding principle. The company moves two billion people daily, making their journeys safe, convenient, and reliable. This is no small feat. It requires constant innovation and a commitment to excellence.
In 2023, KONE reported annual sales of EUR 11.0 billion and employed over 60,000 people across more than 60 countries. This global presence gives KONE a unique perspective on urban mobility challenges and opportunities. It’s like having a front-row seat to the evolution of cities worldwide.
As KONE embarks on this new journey, it faces challenges. The elevator and escalator industry is competitive. New players are emerging, and customer expectations are rising. However, KONE's focus on digitalization, sustainability, and employee engagement positions it well for success.
In conclusion, KONE's "Rise" strategy is a bold vision for the future. It’s about more than just elevators and escalators; it’s about creating a seamless urban experience. By prioritizing digital transformation, modernization, residential solutions, and sustainability, KONE is setting the stage for a new era in urban mobility. The company is not just aiming to rise; it’s aiming to soar. As cities continue to grow and evolve, KONE is poised to lead the way, ensuring that the future of urban living is not just functional but also sustainable and enjoyable.
KONE's strategy revolves around four key shifts. First, it plans to accelerate digital transformation. This is not just about adopting new technologies; it’s about fundamentally changing how KONE delivers its services. Imagine a world where elevators and escalators are not just machines but smart systems that anticipate needs and enhance user experience.
Second, KONE intends to drive modernization. The company recognizes that the elevator and escalator market is evolving. By modernizing its offerings, KONE hopes to tap into new growth opportunities. This is akin to upgrading an old highway to a smart road, where every vehicle communicates with the infrastructure for optimal travel.
The third shift focuses on winning the residential segment. This is the largest segment in the industry, and KONE aims to lead it. By enhancing residential solutions, KONE is positioning itself as a household name, much like how a trusted brand of appliances becomes synonymous with quality and reliability.
Finally, KONE is committed to cutting carbon emissions. In a world increasingly concerned about climate change, this move is not just smart; it’s essential. By prioritizing sustainability, KONE aims to create customer value while differentiating itself from competitors. It’s like planting a tree that not only provides shade but also fruits for future generations.
At the heart of KONE's strategy is its people. The company aspires to be the easiest organization to work for and with. This is a refreshing approach in an industry often bogged down by bureaucracy. By prioritizing employee satisfaction, KONE is betting on a happier workforce leading to better customer service. It’s a simple equation: happy employees equal happy customers.
KONE's ambition is clear. It aims to be the number one choice for both employees and customers. The company is setting high standards, not just for itself but for the entire industry. The megatrends of urbanization, technological advancement, and sustainability are reshaping the market. KONE is ready to embrace these changes, viewing them as opportunities rather than obstacles.
Financially, KONE is aiming for growth that outpaces the market. The company has set long-term targets, including an EBIT margin of 16%. This is a bold goal, but KONE believes it can achieve it through improved working capital rotation and mid-single-digit sales growth by 2027. These targets reflect a commitment to profitability while also focusing on sustainable practices.
The new strategy will officially kick off on January 1, 2025. This timeline allows KONE to prepare its workforce and operations for the changes ahead. It’s a strategic move, ensuring that the company is not just reacting to market trends but proactively shaping them.
KONE's purpose is to shape the future of cities. This mission is more than just a tagline; it’s a guiding principle. The company moves two billion people daily, making their journeys safe, convenient, and reliable. This is no small feat. It requires constant innovation and a commitment to excellence.
In 2023, KONE reported annual sales of EUR 11.0 billion and employed over 60,000 people across more than 60 countries. This global presence gives KONE a unique perspective on urban mobility challenges and opportunities. It’s like having a front-row seat to the evolution of cities worldwide.
As KONE embarks on this new journey, it faces challenges. The elevator and escalator industry is competitive. New players are emerging, and customer expectations are rising. However, KONE's focus on digitalization, sustainability, and employee engagement positions it well for success.
In conclusion, KONE's "Rise" strategy is a bold vision for the future. It’s about more than just elevators and escalators; it’s about creating a seamless urban experience. By prioritizing digital transformation, modernization, residential solutions, and sustainability, KONE is setting the stage for a new era in urban mobility. The company is not just aiming to rise; it’s aiming to soar. As cities continue to grow and evolve, KONE is poised to lead the way, ensuring that the future of urban living is not just functional but also sustainable and enjoyable.