Business challenge

It’s no secret that motivated sellers perform better. How could Siemens Healthineers make sure its salesforce in Germany received fair commission on deals, with better transparency of pay?


Siemens Healthineers rebooted its commission plans using IBM® Incentive Compensation Management, boosting automation and visibility of calculations and payments.



calculations help the finance team work efficiently


sales teams, who enjoy full visibility of commission calculations


time for the IT team by adopting a SaaS approach

Business challenge story

Striving for excellence

A world-leading provider of medical technologies, Siemens Healthineers employs many salespeople in Germany and across the globe. These teams work hard over sales cycles that can last for months and even years—and to keep them motivated, it’s vital for Siemens Healthineers to ensure that each salesperson is properly rewarded for the time and effort they dedicate to a deal.

Previously, Siemens Healthineers in Germany managed sales commission using a homegrown solution, which had been gradually expanded and enhanced over time. Only limited personnel were trained to maintain the system, and upgrades or enhancements were difficult and time-consuming.

To unlock efficiencies, Siemens Healthineers set out to improve the management of sellers’ commission payments, and to provide salespeople with a clear view of how their pay was calculated. Additionally, the company wanted to extend the incentive system to salespeople for different types of sales and to deploy it to more countries.

IBM Incentive Compensation Management will help us transform our approach to compensation.

Erwin Merkel, Director of IT, Siemens Healthineers

Transformation story

Prescribing leading-edge technology

After reviewing proposals from several vendors, Siemens Healthineers decided to deploy IBM® Incentive Compensation Management on a Software-as-a-Service (SaaS) basis.

Erwin Merkel, Director of IT at Siemens Healthineers, explains: “We are currently working to deploy a new ERP system, so it was vital that we chose a sales performance management solution that could be integrated with our new ERP system once it went live. We selected IBM Incentive Compensation Management because it offered much greater flexibility than the competing solutions we examined.

“One of the key advantages of IBM Incentive Compensation Management was the option to select an SaaS deployment. Choosing cloud enables us to think big and start small, scaling up the solution to keep pace with business requirements. Of course, in light of Siemens’ recent IPO announcement for Siemens Healthineers, cloud will be a great advantage in boosting flexibility to meet evolving business needs.”

IBM provided local support during the implementation, with IBM Business Partner Lanshore LLC delivering offshore consulting services. Siemens Healthineers completed the deployment within a tight budget.

“The implementation went very smoothly, and we completed the deployment within a tight budget,” recalls Erwin Merkel. “Siemens Healthineers and IBM people worked together as a single team, and forged close relationships. The IBM consultants demonstrated an in-depth knowledge of the Incentive Compensation Management software and a strong commitment to delivering a solution that would provide us with real business value.”

At this point of time the finance team at Siemens Healthineers is using the Incentive Compensation Management solution to calculate commission for around 130 salespeople in Germany. The solution maintains a full track record of payments and calculations, simplifying compliance with regulations around bonus schemes.

Soon, salespeople will have full visibility of how their commission is calculated via a new web portal in IBM Incentive Compensation Management, enabling them to drill down to view bonuses for each deal they close. If sellers have questions or think a payment is incorrect, they will be able to send questions via the portal to a finance person and receive a prompt response to their inquiry.

In the future it will be easier to update our commission plans to better align sellers’ efforts with overall company strategy, steering sales in a proactive manner. The IBM solution will enable us to analyze payments quickly, easily and at a granular level, helping to derive decisions about the new plans.

Erwin Merkel, Director of IT, Siemens Healthineers

Results story

Embracing transparency

The new solution enabled Siemens Healthineers to replace its old solution with a robust, highly automated way of calculating compensation for salespeople. If the finance team needs to make manual adjustments or corrections, the changes can be completed more transparently compared to the previous system.

“We have eliminated the business risk of relying on a homegrown system with limited support,” remarks Erwin Merkel. “IBM Incentive Compensation Management has been met with a very warm reception among our finance people, who like the look and feel of the solution, and can see commission data in much finer detail.

“For salespeople, one of the main advantages is the increased transparency that the new portal will soon provide. Sellers will be able to see precisely how their pay is being calculated and even view the results in charts and graphs. We hope this openness will boost their engagement, inspire their trust, and help them see exactly how their hard work pays off.

“What’s more, it is now much easier to update our commission plans to better align sellers’ efforts with overall company strategy, steering sales in a more proactive manner. The IBM solution will enable us to analyze payments quickly, easily and at a granular level, helping to inform decisions about the new plans.”

Building on its success, Siemens Healthineers plans to roll out the solution to other types of sales and other countries.

Erwin Merkel concludes: “IBM Incentive Compensation Management will help us transform our approach to compensation. In future, we hope to expand this to the next level – by using the compensation system in more types of sales and across borders.”

Siemens Healthineers

Siemens Healthineers specializes in helping healthcare providers worldwide to deliver high-quality patient care in an affordable manner. The company is a world market leader in many of its lines of business, employs more than 45,000 people across 73 countries, and generates annual revenues of around EUR 13 billion. Its technology helps treat 209,000 patients every hour and influences over 70 percent of critical clinical decisions.

Solution components

Take the next step

IBM is working with organizations across the financial services industry to use IBM Cloud, cognitive, big data, RegTech and blockchain technology to address their business challenges. Watson Financial Services merges the cognitive capabilities of Watson and the expertise of Promontory Financial Group to help risk and compliance professionals make better informed decisions to manage risk and compliance processes. These processes range from regulatory change management to specific compliance processes, such as anti-money laundering, know your customer, conduct surveillance and stress testing.

To learn more about IBM financial risk and regulatory compliance solutions, visit and follow us on Twitter @IBMFintech

Lanshore LLC specializes in implementing sales performance management solutions. Headquartered in Texas, the company also operates offices in the UK and Costa Rica. To find out more about Lanshore, please visit: