ABB Annual Report 2012 PDF - ABB Group Annual Report 2012

We will also be looking at ways to scale up the new businesses that we have successfullydeveloped. We have entered several new markets in recent years, such as electric vehicleinfrastructure, energy storage, energy consulting and data center electrification, and we willmake sure that the ones with the greatest potential have the resources and businessmodels that will enable them to grow. A related priority will be to effectively commercializethe advances made in our R&D programs.We will keep customer satisfaction at the top of our priority list by continuing to addressthe areas they want us to improve, mainly responsiveness and delivery time. Importantly,we are improving in the eyes of our customers: Our Net Promoter Score (NPS) measure ofcustomer satisfaction rose by more than 30 percent in 2012 compared with 2011. Thescore remains lower than we would like it to be but we are pleased at the progress we aremaking.As we strive to increase the satisfaction of our customers, the Executive Committee hasintroduced a systematic approach to addressing the top issues that they have raised, withEC members personally supervising the projects set up to address them. The project teamsare responsible for determining the root causes of the issues and the measures thatneed to be taken, and will establish an implementation plan to ensure steady improvement.We are confident that we have the right projects in place with the right leaders toensure that we achieve the Group targets that we have communicated.Shaping the futureLooking ahead, we are confident that ABB is well placed to benefit from several long-termtrends, and even to shape them through technological innovation.The major trends driving demand include the increasing use of electricity in areas suchas data centers and electric vehicles; the rapid economic growth and urbanization in emergingmarkets; the need to use our natural resources more efficiently; and the integration of newsources of energy – such as wind and solar – into existing grids.Balancing electricity supply and demand at any time is becoming harder as renewableenergy becomes more widespread, given that wind and solar power are highly intermittent aswell as distributed across a very large number of sources. Ensuring frequency and voltagestability of the grid is therefore an increasingly complex challenge.In Europe, power networks will have to be better interconnected if the region is to make useof its natural power sources. Wind from the North Sea or the Atlantic, sun from the South,hydro facilities in Norway or the Alps, all need to be connected with energy-intensive industrialregions. Transmission grids need to be upgraded but they also need to become more flexibleand intelligent. We expect HVDC to be deployed more widely as it is well suited to many ofthe emerging trends, and the hybrid HVDC breaker should pave the way for the developmentof an interconnected grid based on direct current.“ABB is one of the few global companiesoperating in the attractive sectors of power and automation”Manufacturing is also changing. Rising wages in emerging economies, higher transportand energy costs, and increasing levels of automation are driving manufacturers to lookfor ways to stay competitive other than by offshoring activities to markets with lower laborcosts.06 Chairman and CEO letter | ABB Annual Report 2012