Honeywell aims to be Apple of industrial giants

Honeywell aims to be Apple of industrial giants

Summary: Honeywell's plan to boost profit margins over the next five year largely revolves around software engineers, user experience and application development.

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Dave Cote, CEO of Honeywell, outlined the company's five-year plan and said "it is our intent to become the Apple of the industrial center."

Honeywell's planning process through 2018 highlights how every business increasingly revolves around software and the user experience. Honeywell, which makes everything from thermostats that compete with Nest to industrial equipment and technology, is betting that better applications will boost its profit margins.

Industrial giants such as Honeywell and General Electric are increasingly more about software and applications than turbines, generators and hardware.

Among the key items Cote noted:

  • Honeywell has created nine separate design centers focused on "how we can change and improve the experience" for users and installers of equipment.
  • The company has an "intensified software focus" and a unified operating approach with HOS Gold, the latest version of the Honeywell Operating System.
  • Of Honeywell's 22,000 engineers, more than half of them are focused on software.
  • 62 percent of those engineers are Capability Maturity Model Integration (CMMI) Level 5 today and Honeywell plans to have all of its talent certified at that level by 2015. CMMI Level 5 indicates that process improvements are optimizing applications and processes. 
  • That software certification will enable Honeywell to reuse more software, increase speed and create more robust systems.

Honeywell's tech heavy plan is expected to result in 2018 revenue of about $46 billion to $51 billion with 18.5 percent to 20 percent operating margins.

Also see: CNET: Honeywell Lyric Thermostat review

Topics: Innovation, CXO, Enterprise Software, Hardware, Software Development

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4 comments
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  • Honeywell aims to be the MS of industrial giants

    Honeywell would have to re-invent their company culture. Never gonna happen. I recently tried to return a $40 thermostat that was DOA. In the box was a card that said do not contact your merchant regarding product issues, call us directly. Spent 3 days on the phone trying to customer service to replace the item. Should title the article "Honeywell aims to be the MS of industrial giants."
    panic man
  • Merge with Fairchild

    Years ago while with Fairchild Semiconductor (inventor of the planar integrated circuit that we all know and love), it was rumored that Fairchild would merger with Honeywell. The idea was tossed out though when it was realized that people would inevitably refer to the new company as Fairwell Honeychild.
    KennyJr
  • Oh so it's like that hey...

    So it's like that Honeywell eh... Game on... Game on... - Signed UX Architect from Schneider Electric (Me).

    @Panic - I've also worked at Microsoft (Prod Mgr of .NET), so being the Industrial Giant of Microsoft isn't a bad thing, especially with their cloud first strategy principles they are lining up now... its all good, nothing but up from here.
    mossyblog
  • too big too greedy is their mantra

    Honeywell is a high tech sweat shop. I know as I have worked there. All is not that well at Honeywell. It is like a shell game where is the pea.... Why in cote's hand as well as all the money!
    geofer50