The CEO of Honeywell International’s software division, Honeywell Connected Enterprise, Que Dallara, is leaving the industrial giant to join the healthcare giant Medtronic.
New Leaders at Medtronic
Medtronic (ticker: MDT) announced the appointment Thursday. Dallara is the new president of its diabetes business. Medtronic named two others to top spots Thursday as well, one in robotic surgery, and another in cardiac rhythm management. The CRM business includes products such as pace makers.
“The future of medical technology requires strong leadership in data science, artificial intelligence, and robotics, all of which make these three Operating Unit President roles some of the most important and dynamic leadership opportunities in our industry,” said Medtronic Chairman and CEO Geoff Martha.
Honeywell’s Change and Succession Plan
Medtronic’s gain, however, is Honeywell’s loss. Honeywell said that Kevin Dehoff will succeed Dallara.
Dehoff is currently the chief operating officer of the connected enterprise unit and a former president in Honeywell’s automation division.
Significant Contributions
Dallara joined Honeywell in 2017 following stints at companies including TE Connectivity (TEL), and Microsoft (MSFT). She helped Honeywell grow its connected service and software business. Increasing software revenue is a big push for Honeywell in recent years. Software-related recurring revenue is being generated by all the smart, connected technologies permeating commercial buildings and manufacturing plants.
Honeywell’s connected enterprise business generates about $1.1 billion in sales, according to Constellation Research. That’s about 3% of total Honeywell sales, but connected enterprise revenue is growing at about 15% a year. For comparison, Honeywell sales, excluding connected enterprise, grew at about 5.2% in 2021.
Market Performance
Honeywell stock is flat since the Medtronic announcement, while Medtronic shares are up 1.7%. The S&P 500 has risen about 1.8%, and the Dow Jones Industrial Average is up about 1.4%.