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© Siemens AG, CT, 2005
Changing Paradigms in R&D –A View from Siemens
EIRMASaint-Paul de Vence - January 27, 2005
Dietmar TheisSiemens AG, Corporate Technology
C O
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© Siemens AG, CT, 2005
Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
2
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© Siemens AG, CT, 2005
Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
C O
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© Siemens AG, CT, 2005
The World Electrical/Electronics Market Development 2002 – 2007 by Region
NAFTA(USA)
Europe Asia
7.6% p.a.
6.0% p.a.
2002 2007(Forecast)
Source: ECR 2
2007(Forecast)
2002
661727
6.9% p.a.
2002 2007(Forecast)
946
1,318
1,045
888
Figures in billions of euros
3
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ENIAC: Electronic Numerical IntegraterAnd Calculater (1946)
C Components: 18 000 tubesC Multiplication time: 3 msC Power: 150 kW C Price: 2 Mio. US $
Performance in Key Technologies Has Increased by Orders of Magnitude Processors
Software
Data-Transmission
Integration:more than the sum
Storage Devices
Intel Pentium 4 (2004)C Components: 125 Mio. transistorsC Multiplication time: ~ 0.4 nsC Power: 103 W (3.4 GHz)C Price: 400 US $C Chip Area: 112 mm2
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© Siemens AG, CT, 2005
Regional Continental CosmicGlobal
Increase of Performance by Factor 10: A New Dimension!
Historic view: Revolutions in transportation
x 10 x 10 x 10
4
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© Siemens AG, CT, 2005
Advances in technologydriven mainly by• digitalization• miniaturization• rapid innovation• technological strides• networks
Advances in technologydriven mainly by• digitalization• miniaturization• rapid innovation• technological strides• networks
Increased competitivenessis mainly stimulated by• globalization• faster response time• price reductions• specialization• liberalization / deregulation• cooperation / alliances
Increased competitivenessis mainly stimulated by• globalization• faster response time• price reductions• specialization• liberalization / deregulation• cooperation / alliances
New Marketsare mainly created by• growth in services• system integration• software solutions• ecological concerns• changes in life styles• e-business
New Marketsare mainly created by• growth in services• system integration• software solutions• ecological concerns• changes in life styles• e-business
Entrepreneurship- skills- management
Stable conditions- political- economic- social
Factors Influencing Growth in the Electrical and Electronics Industry
Acceptance ofnew technologies
- society- media
V innovationV timeV networking
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© Siemens AG, CT, 2005
Market requirements:C Increasing
- variety - performance
of all products
Market requirements:C Increasing
- variety - performance
of all products
C Information technologies penetrate into all segmentsC Increasing share of servicesC Information technologies penetrate into all segmentsC Increasing share of services
C Integration and miniaturizationC Integration and miniaturizationC Increasing customer
needs for consultation and after sales services
C Increasing customer needs for consultation and after sales services
C Software replacing hardwareC Software replacing hardware
B Services and knowledge based businesses gain in importance
Marketing Productdefinition Development Manufacturing Sales After Sales
Structural Change of the Industrial Production
5
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© Siemens AG, CT, 2005
Changing Paradigms in Management
LinearLongtermplanning
Analysis of competitiondynamics
(Porter)
Analysis of Value chain
Benchmarking(Porter)
Networkedspaces of
value added
Learning curvePortfolio matrix
(BCG)
Shareholdervalue
Stakeholdervalue
2,0 1,0 0,5
7%
14%
Nr. 3
Nr. 1
Nr. 2
93%
profit margin[%]
competitive position
Competitive position
Mark
et g
rowt
h
Stars Question mark
Cash Cows Dogs
- 5
0
10 1,0 0,10,20,52,05,0
10
25
Market
Com
pete
ncies
Exploitationof
competencies
White space
Mega-chancesBuilding newcompetencies
existing new
exist
ingne
w
Market
Prod
ucts
/ Tec
hnol
ogies
Market penetration
Market enlargement
DiversificationProduct program
enlargement
existing new
exist
ingne
w
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© Siemens AG, CT, 2005
Revolutionary Changes Call for More Strategic Orientation of R&D
V Short term: Fast product sequences with evolutionary /marginal product improvement
Price degression in devices & systems requires continuosimprovement
Market penetration risky with revolutiony improvements
V Funding: Financial reservation towards long and expensive R&DShort-term business orientation of companiesR&D expenditures directly affecting profit marginStrong effect of compound interest
Strategic company goal: Minimize Risc !
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© Siemens AG, CT, 2005
R&D is Increasingly Networked Nationally and Internationally on Professional and Political Levels
V Science and educationUniversities (Techn. Co-Operations, Trustees, Ambassadors …)Public Research Institutes: FhG, Helmholtz-Gemeinschaft, MPG, acatech, …
V Associations, boards, initiativesPartner for Innovations (Fed. Govmt.)BDI, EICTAVDI, VDE, ZVEI, DIHK, DPG …WTB, abayfor
Strategic Company Goal: Improve balance of knowledge!
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© Siemens AG, CT, 2005
Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
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Innovations Have Kept Siemens Strong for 157 YearsOutstanding innovations and sales development by Siemens AG, 1847 – 2003
Digital electronic switching system
(EWSD) -first telephone
exchange
1847 1879 '80
Sales (in logarithmic scale)
First pointer telegraph
19241926 1958 1959 '74
ICE3
'031866 1973
Implantation of firstcardiac pacemaker
by Siemens
Start of Production of large-scale integrated
(LSI) circuits
W.v. Siemens discovers dynamo-electric principle
'81
64-kbit-memory chip
Magnetom
'84 …
"Eurosprinter"
Siretomcomputer
tomograph
'92
First 256megabit chip
First Simatic
Fingertip sensors
First electricrailway
First Siemensradio
receiver
First trafficlights
ISDN "HICOM" Market launch
of TransrapidFirst GSM cellular phone
with color display
Surface wave technology
Piezo injection valves
High purity silicon
Year of introduction
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© Siemens AG, CT, 2005
Sony
55.9
43.6
GE IBM Siemens
77.8
73.975.2
67.7
Hitachi
67.4
Matsu-shita
61.6
Toshiba
43.4
Dell
38.8
SamsungElectronics
54.5
49.2
30.9
58.5
39.1 38.8
49.0
Hewlett-Packard
65.6
63.7
The Top Ten Companies in Electrical Engineering and Electronics in Fiscal 2004
Total sales (in billions of euros)
Sales in electrical engineering and electronics(in billions of euros)
119.0
8
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Siemens – Global Network of Innovation (1)
External sales in billions of €w/o SFS, SRE) - FY 2003/04
Broad scope of business(6 business segments, 13 Groups + SFS, SRE)
Information andCommunications
Medical Transportation
Automation and Control
Power
Lighting4.1
10.8
17.1
20.8
7.013.3
NorthAmerica
Europe
MiddleEast
Asia /Pacific
Source: CD S 8 - 11/04
Production sites
NAFTA GER EURexcl. D
APAC SAM AFRME
96 72 61 4414 4
430,000 employees wordwide164,000 (38%) in Germany110,000 (26%) in Europe (w/o Ger)
95,000 (22%) in North America52,000 (12%) in Asia-Pacific
9,000 (2%) in other countries
Global presence(in more than 190 countries)
SouthAmerica
Africa
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© Siemens AG, CT, 2005
Siemens – Global Network of Innovation (2)
GE1)
Sourcee: Siemens AG, CD S 8 – 11/04
1) e/o GECS (GE Capital Services)
IBM
Hitachi
HP
Samsung
Toshiba
Siemens
Sony
Matsushita
1 US$ = 0.82125 EUR1 Yen = 0.00755 EUR1 Won = 0.00070 EUR
1.8
4.6
3.9
2.9
2.6
5.1
2.8
4.0
4.6
0.5Dell
R&D expenditure in 2004:5.1 billions of euros …
Information and Communications
Automation& Control
PowerTransportation
MedicalLightingOthers
… more than 50% for Software(worldwide total R&D personnel 45,000 ; 2/3 in software dev. )
Business Units
Corporate Technology
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Corporate Structure (October 1, 2004)
Managing BoardOperating Groups Corporate Departments
Corporate CentersCorporate Communications(CC)Corporate Information and Operations(CIO)Global Procurement and Logistics(GPL)Chief Economist / Corporate Relations(ECR)Management Consulting Personnel(MCP)
Company Unit in Siemens Schweiz AG*)
Corporate Finance(CF)
Corporate Personnel(CP)
Corporate Technology(CT)
Power Generation (PG)
Power Transmissionand Distribution (PTD)
PowerCommunications(Com)
Information and Communications
Siemens Business Services GmbH & Co. OHG (SBS)
Industrial Solutions and Services (I&S)
Automation and Drives (A&D)
Automation and Control
Siemens BuildingTechnologies AG (SBT)
Logistics and AssemblySystems (L&A)
*
Transportation Systems (TS)
Transportation
Siemens VDOAutomotive AG (SV)
Lighting
Osram GmbH
MedicalMedical Solutions(Med)
Financing and Real Estate
Siemens Financial Services GmbH (SFS)
Siemens Real Estate(SRE)
Corporate Development(CD)
Regional Organisation Germany (RD), Regional Companies, Representative Offices, Agencies
Regional Units
CT / E 011 a -10.04
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© Siemens AG, CT, 2005
Bracknell
Pretoria
Lisbon
Zaragoza
Toulouse
EynshamBerlin
Brussels
Budapest
Milan
Melbourne Sydney
Bratislava
Roke Manor
Paris
Helsinki
Zurich
Porto
Bombay
Istanbul Seoul
Penang
Tel Aviv
Buenos Aires
Sao PauloCuritiba
ShanghaiYokohama
Burlington
Orlando
Auburn Hills
ArlingtonKnoxville
Mülheim
Dresden Erlangen-NurembergRegensburg
Salzburg
Graz
Vienna
Karlsruhe
Taipei
Issaquah
HoffmannEstates
Bangalore
BeijingTokyo
Lake MaryAustin
Newport NewsPrinceton
Piscataway
Norcross
Danvers
Linz
Changchun
Xi‘an
ChengduNanjing
Tianjin Ichon
Date: 01.01.2005
TilburyLondon
PeterboroughDrummondville
Chatham
Johnson CityPittsburgh
Madrid
SophiaAntipolis
Netanya
PandrupOslo
Goeteborg
New DelhiKakegawa
Kawasaki
Munich
Hong KongGoa
Santa Clara
BerkeleySacramento
Concord
San DiegoSan José
Mountain View
Athens
St. Petersburg
Treviso
Global Presence of R&D −More than 45,000 R&D Employees Worldwide
Moscow
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Aspects for the Internationalization of R&D
Santa Clara
Close to the productionClose to the customer Networking to the scientific communityCostsRecruitingCorporate Citizenship Cultural diversity
R&D goes where the businesses and the markets are growing
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Innovation, Productivity and Growth are Closely Interlinked
Continuous renewal is a permanent challenge for all companies
CostsSales Costs
Sales
Starting point Target(e.g. after 5 years)
"new"products< 5Y
"old"products> 5Y
"new"products< 5Y
"old"products> 5Y
GrowthRestructuring
Demandfor
InnovationTidy upthe productportfolio
Expansion ofcurrent businesses
New products
Processoptimization
Design to cost
Reduction of the product
complexity
New services
New applications
World Class Productivity
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5 years and younger
6 to 10 years
More than10 years
Shares of sales with products
48% 55% 75%
1980 1985 2003
30% 29%
19%
6%16%22%
Speed as a Measure of Innovative StrengthC
O R
P O
R A
T E
T
E C
H N
O L O
G Y
© Siemens AG, CT, 2005
Any Innovation Process Starts and Ends with the Customer
„Genius is1% Inspiration
and 99% Perspiration"
Thomas A. Edison
V Idea generationB creativity
workshopsB customer
benefits
V Idea selectionB value creationB competitionB competence
V IP generation
V (Draft) Business PlanB product specificationB business strategyB business data
V Financing
V Project management
V Production/LogisticsIntegration/Testing
V Controlling
V MarketingB market
segmentationB timingB alliances/
cooperationsB key customers
V Sales
V After sales services
Innovation process
Invention Implementationin the company
Implementationon the market
Customer
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Innovation
Platform strategies
Trendsetting technologies
Customer focus
Cross-selling initiative
Winning new customers
Driving Strategy Implementation –Three Company Programs With 11 Initiatives
top+ company programs
Globalcompetitiveness
Project management@Siemens
Software initiative
Worldwide manufacturing concept
Shared services
Asset management
Service initiative
Quality and process initiative
Initiatives: Initiatives:Initiatives:
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Innovation Strategy is Part of the Business Strategy
Science
Business
Innovation Side“Knowledge to Money”
R&D Side“Money to Knowledge”
Technology“The systematic
application of knowledge (science) to practical
tasks in industry”
Business Strategy
Innovation Strategy
Technology Strategy
R&D Strategy
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The Most Important Innovation Strategies and TheirPositioning along the Technology Lifecycle
Pace-setting Technologies:Determine tomorrow‘s competitiveness
Key Technologies:Determine today‘s competitiveness
Basic Technologies:Basic competence for today‘s business
New Technologies:DiscontinuityNew rules of the game
First Mover
Trendsetter
Fast FollowerMaturity
Time
First Mover“The early bird gets the
worm“american saying
Fast Follower”The early bird gets the
worm but the second mousegets the cheese“
G. Keillor
Trendsetter”If you‘re in control of
wormholes and mousetraps,you get both - the worms
and the cheese“
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Siemens´ Innovation Strategy:”Be Trendsetter in Our Businesses“
B Comprehensive visions: “Pictures of the Future”
B Technological leadership
B Strong patent portfolio
B Use of synergy
B Optimized innovation processes
B R&D presence in the lead markets
B Network of excellent people
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© Siemens AG, CT, 2005
Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
C O
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© Siemens AG, CT, 2005
Corporate Technology: About 1,700 Researchers and Developers Worldwide …
Berkeley, CA
Roke Manor, Romsey Berlin
Erlangen
Beijing
Tokyo
Munich Perlach
Princeton, NJ
BangaloreNew sites planned in 2005:• Shanghai• St. Petersburg / Moscow
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Corporate Technology: International Network of Competencies –Worldwide Partner for Innovation
Roke Manor Research
Information Technology &Networks
Radio Communications
Sensors Products Siemens CorporateResearch
*) LLC of Siemens Corporate Research
CT China
SiemensTechnology Accelerator
Architecture
Development Techniques
Software&
EngineeringSystems Engineering
Project Management and Innovation
Materials &
MicrosystemsFunctionalPolymers
Innovative Electronics
Ceramics Analytics
Micromechanics & Coatings
Packaging &AssemblyDesign to Prototype
Information &
Communications
SecurityNeural Computation
Networks & Multimedia
Communications
Professional Speech Processing
User Inter-face Design
Intelligent Autonomous
Systems
Knowledge Management
ProductionProcesses
Simulation & Risk Management
Holistic Processes
Product Definition
Service Management
Manufacturing Engineering
VirtualEngineering
CT India
Electromagnetic Systems & Plasma Technology
Fuel Cells &Energy Conversion
Transducer Systems
Power & Sensor Systems
PowerManagement
Power Components & Superconductivity
Power Electronics
Microwave Systems
Sensor & ActuatorSystems
SensorSolutions
SiemensTechnology-to-Business
Center *)
CT Liaison OfficeTokyo
Imaging & Visualization
Software Engineering
Multimedia/Video Technology
Integrated Data Systems
User Interface Design Center
Intelligent Vision& Reasoning Real-Time Vision
& Modeling
Automation& Control Strategic
Marketing &
StrategicPlanning
System and Software Processes
Discrete Optimization
SoftwareInitiative
CERT
Business Development
CT Russia
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© Siemens AG, CT, 2005
Business Model of Corporate Technology
Goal:Creation of EconomicValue Added for the Company
B Projects for theBusiness Group(Contract R&D)
B Projects to build up new competences
Cross BusinessGroup/SegmentTechnology Strategies forthe Company
New Businessopportunities byexternalcommercializationof technologiesand IPRs
Network of Competences-Partner for Innovation
• Pictures of theFuture- Markets- Trends- Technology- Business
Opportunities• Technology
Screening & Analysis
• Spin off´s(STA, TTB*)
• IP marketing• External
marketing of technologicalservices
* Partnership with A&D, arisinng also for Spin-in‘s
Core BusinessInnovationsStrategies
ExternalBusiness
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© Siemens AG, CT, 2005
Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
C O
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© Siemens AG, CT, 2005
ContractedR&D for
groups
Externalfunding
Corporatefunding
58 %
7 %
35 %
Technology“Provider“
Technology “Driver“
Know-How
CT´s Technology Divisions: “Driver“ and “Provider“ of Innovations and Technologies
Strategic principles► Focus & Multiple Impact► Key Account Management► Networking internally &
externally► Systematic Technol.&Innov.
Planning► “Strengthen the strength“► Acting as entrepreneurs► Decentralization of
responsibilitites► Performance differentiation
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Networking to the Groups: Key Account Managers Represent the Whole of CT‘s Technologies
Key Account Managers act like heads of “virtual Group laboratories“
Corporate Technology
Medical SolutionsMedical Solutions
Power GenerationPower Generation
Key Account Manager
Key Account Manager
Key Account Manager
Osram GmbHOsram GmbH
Power Transmissionand Distribution
Power Transmissionand Distribution
Siemens BuildingTechnologies AG Siemens BuildingTechnologies AG
Logistics &Assembly
Logistics &Assembly
Industrial Solutionsand Services
Industrial Solutionsand Services
Automation and Drives
Automation and Drives
CommunicationsCommunicationsSiemens
Business Services GmbH & Co. OHG
SiemensBusiness Services GmbH & Co. OHG
Siemens VDO Automotive AGSiemens VDO Automotive AG
TransportationSystems
TransportationSystems
Bosch und Siemens Hausgeräte GmbH
Bosch und Siemens Hausgeräte GmbH
USAUSAMaterials &Microsystems
Information &Communications
Power & SensorSystems
Software&
Engineering
Siemens Corporate Research
ProductionProcesses
C O
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© Siemens AG, CT, 2005
The Time Horizons of the R&D Activities of the Business Groupsand of Corporate Technology are Different
A seamless transition from R&D in Corporate Technologyto the Business Groups is crucial for our success
R&DExpenses
BusinessGroups
CorporateTechnology
Today Two product generationsin the future
One product generation in the future
Time to market(The absolute time scaledepends on business)
Total R&D expenses
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+
++
+++
+- 0
„Developindividual
strategies“
Position in comparisonto competition
Innovationpotential
„Stop“
„Ensure / enlarge the
lead“
„Fast marketing“
„Reducethe
distance“
Evaluation of Technologies with Regard to the Innovation Potential and the Own Competence
C O
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© Siemens AG, CT, 2005
“Customer"
R&DProgram
“Operations"
Market / BusinessTechnology
Key AccountManagement
(KAM)
StrategicMarketing
Technology Divisions
• Strategy Meetings• Inner Strategic
Circles
• Projects• Information Days
• Pictures of the Future• Technology strategies
Criteria• Group R&D spending• Group innovation strategy• Customer relationship
Criteria• Know-How• Unique selling point• Resources• Strategic fit
– Division– Department
Criteria• Market potential
–Size–Growth–Attractiveness for Siemens
• Technology trends• Discontinuities• New business opportunities
Optimization of the R&D Program of Corporate Technology
B Technology divisions and departments are responsible for optimizing the R&D program
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N Technology Divisions/Departments are fullyresponsible for the development of their uniquetechnology portfolio. Technology planning isdetermined by technology roadmaps and department strategies.
N CT´s Key Account Management orchestratesthe manifold communication processes towardsthe Groups.
CT-Inhalte
Key Account Management
(KAM)
StrategicMarketing
Technology Divisions
CT-Inhalte
Key Account Management
(KAM)
StrategicMarketing
Technology Divisions
Optimization of the R&D Program of Corporate Technology
N Strategic marketing bundles informations on markets, trends, technologies, competition and analyses them in a comprehensive way. The results of this retropolative strategic visioning process are fed into the mid- and long range CT strategy
CT-Inhalte
Key Account Management
(KAM)
StrategicMarketing
Technology Divisions
C O
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© Siemens AG, CT, 2005
Core Technologies: Sensors and Actuators
Strategic Planning of Innovations & Technologies
"Extrapolation“ viaRoadmaps
ProductsTechnologiesCustomer Requirements
Short-term Medium-term Long-term
Horizon of time(varies significantly in the different business segments)
Today
Today‘sBusinessToday‘sBusiness
"Retropolation" outof Scenarios
New MarketsNew CustomerRequirementsNew TechnologiesNew Businesses
Factors ofInfluence
Individual
Society
Politics
Economy
Environment
Technology
Customers
Competition
StrategicVisioning Scenarios for the
Business Segments
MedicalMedical
TransportationTransportation
PowerPower
Automation andControl
Automation andControl
Information andCommunicationsInformation andCommunications
LightingLighting
The combination of extropolation and retropolation leads to theB
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: Detailed Description of AllRelevant Trends of Our Business Segments
C Socio-economic trendssocietylife of work
C Market trendssize / growthstructuregeographical
C Customer / business trendsvalue chains / networkscompany structureprocesses
C Technological trendsstrategic importancemultiple impactdisruptive
Transportation
Power
Information & Communications
Medical
Automation & Control
Lighting
C O
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Goal:Create values
for thecompany
Technology focus• high priority of
central R&D• wide range of topics• minor budgetary
constraints• little controlling
Market focus• the market as a
source of topics• selected
range of topics• close connection
of centralized anddecentralized R&D
• cost controlling
Process focus• feedback
between R&D and the market
• concentration oncore competencies
• internationalization• process-oriented
innovationsmanagement
• strategiccontrolling
Customer focus• customer is in the
center of interest• new businesses
as goal of R&D• flexible, interdisciplinary
task forces• cooperation and
strategic partnerships• knowledge management• technology marketing
as an independent business
Value
Time
Industry Research in Transition:Increased Value Through Broadening the Focus
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”We can no longer confine ourselves only to the progress achievable in the area of our own professional specialization. We have to build connections between the different branches of technical life and we have to exploit the technical and economic advantages which can be derived from interlacing and mutual stimulation of these branches.”
Carl Friedrich von Siemens , 1920
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Open Innovation*)V Valuable ideas are coming from inside or outside the companies.
They can go to market also from inside and outside the companies.
V Reasons for paradigm changes towards Open Innovation:N Knowledge is becoming obsolete at an ever-growing pace
N Innovation in the fastest growing markets is more directly rootedin science
N Increased mobility of work force
N New quality of university research (increased need for networking)
N Increasing importance of venture capital
N Great ideas arise from everywhere in the world
*) Henry Chesbrough, 2003
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Manifold Cooperation with the International Public Research
Training/Education Experience-sharing
Research and development policy
Research and development
Symposia /workshops
Symposia /workshops
RecruitingRecruiting
Equipment, training material, partnerships with
schools
Equipment, training material, partnerships with
schools
Structure of the research landscape, overall legal situation
Structure of the research landscape, overall legal situation
Future markets, labor situation,
knowledge society
Future markets, labor situation,
knowledge society
Bilateral research projects,
contract research
Bilateral research projects,
contract researchPublicly funded
projectsPublicly funded
projects
“Siemens sponsors”“Siemens sponsors”Requirements profiles forengineers and scientists,
internationalization, curricula, contributions to the work of associations
Requirements profiles forengineers and scientists,
internationalization, curricula, contributions to the work of associations
Awards,scholarshipAwards,
scholarshipTemporary student employees, interns,
students working on theses, doctoral candidates,
appointments to chairs and other teaching assignments
Temporary student employees, interns,
students working on theses, doctoral candidates,
appointments to chairs and other teaching assignments
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Outline
Siemens Innovation strategy:Trendsetter in our businesses
Evolvement of central R&D Towards Open Innovation
Corporate Technology Securing the technological future – new paradigms for innovation
Business environment Major trends in electricalengineering and electronics
Conclusion Lessons learned
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Common Features of Successful Innovators
N Growth orientation – sustainable growth throughinnovations
N Strategy orientation – long-term future perspectivesthrough innovation strategies
N Customer orientation – focus on solution of customer-specific problems
N Competence orientation – integration of competencesof internal and external partners in networks
N Technology orientation – successful application of results from research
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Innovation Supporting Company Culture
Classical culture Modern culture
Founding grounds of the company Structure Culture
Basis of working together Coherence on contract basis Coherence through inte-gration of common sense
Alignment of attitudes Code of conduct Shared vision
Process organization “Enterprise as clockwork“ “Enterprise as network“
Company organization structure Hierarchical Heterarchical (with partial hierarchies)
Leadership concept Organisation of careers Management of competencies
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Seven Typical Errors in theInnovation Process …and How to Avoid Them
Censure by “best practise“
Fixation through traditional productsand customers
Short-sighted profit orientation
Small tolerance for failures
Little exploration of ideas
Innovation as a structurally assignedtask
Innovation as a matter of chance
Individual problem solvingcompetence as a primary asset
Exploration of potentials frompartners and competences
Long term strategic perspective
Innovation friendly corporate culture
Creative spaces a basis forsuccessful innovations
Cross-discipline collaboration
A continuum of structuredinnovation processes
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“Not the strongest species survive,nor the most intelligent ones,
but only those who
can react fast enough to changes!“
Charles Darwin