business principles

IT creates business value

Corporate Center CIT and IT in the Company (Business Principles) Version 1.3 2012-04-02 Juergen Stapf

Corporate Center CIT and IT in the

Company (Business Principles)

Version 1.3

Juergen Stapf

For internal use only

© Siemens AG 2012

of 29


Corporate Center CIT and IT in the Company (Business Principles)

Version 1.3, issued by Siemens Corporate Information Technology, 2012-04-02, © Siemens AG 2012.

Document status

This document with version 1.3 and status "Final" has been classified as "For internal use only".

Details relating to document and document owner

Siemens Corporate Information Technology

Topic Basic principles and processes of the company-wide IT Organization, Organization of Corporate Center CIT, Cooperation with IT Organizations in Siemens Units

Title Corporate Center CIT and IT in the Company (Business Principles)

Document type Business Principles

Bindingness Binding

Document name/-path

CIT Intranet -> About Us -> Business Principles

Original document/-language

English

Document management

Change history, version management and processing status (Outline draft, detailed draft, agreement pending, agreed, released, superseded)

Date Processed by Department Telephone E-mail

Version Status Comment

2008-11-06 Juergen Stapf CIT BA 636-35372 [email protected]

V1.0 Final


V1.1 Final New illustration global Siemens IT Organization (section 1.)

New section "Process Owner - IT Collaboration" (section 2.5)

New reference to "Siemens Diversity Initiative" (section 3.)

mailto:[email protected]�




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Change history, version management and processing status (Outline draft, detailed draft, agreement pending, agreed, released, superseded)

Date Processed by Department Telephone E-mail

Version Status Comment

Organizational change: new department CIT PCE (section 3.4)

Revision of descriptions CIT BR, G and BA (sections 3.2, 3.3 and 3.6)

Update IT Body Landscape (section 5.1)


V1.2 Final Revision of descriptions CIT BR, PCE, BA (sections 3.2, 3.4 and 3.6), Cooperation of CIT and IT Organizations in Sectors and Regional Clusters (section 4) and CIO Board Meeting (section 5.2)


V1.3 Final Renaming 'CIT BR' to 'CIT R' (effective 2012-02-01) Update of figures 1, 7, 8, 9, 11 and 12





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Table of Contents

1. Business Mandate and Scope of Business Principles .....................................6

2. Basic Principles and Processes of the company-wide IT Organization ......... 7

2.1 Focal points of direction for IT in the Company ................................................7

2.2 Corporate IT Governance ................................................................................8

2.3 IT Demand Management ................................................................................9

2.4 IT Portfolio Management ..............................................................................11

2.5 Process Owner - IT Collaboration (Focus on Demand Management) ..............12

3. Corporate Center CIT ................................................................................... 14

3.1 Structural Organization of CIT .......................................................................14

3.2 CIT Regions (CIT R)........................................................................................15

3.3 CIT Governance (CIT G) .................................................................................16

3.4 CIT Procurement and Contract Execution (CIT PCE) ........................................19

3.5 CIT Corporate Automation (CIT CA) ...............................................................20

3.6 CIT Business Administration (CIT BA) .............................................................21

4. Cooperation of Corporate Center CIT and the IT Organizations in Sectors and Regional Clusters .................................................................................. 23

5. IT Body Landscape – Decision Making Structure ........................................ 26

5.1 Principles of the Decision Making Structure ...................................................26

5.2 CIO Board Meeting .......................................................................................27

5.3 CIO Advisory Council.....................................................................................28

5.4 Topic Specific Committees ............................................................................28

5.5 Task Forces...................................................................................................29



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List of References

1. V Circular No. 15/2008: "Organization: Information Technology (IT) in the

company" 2. "Corporate IT Governance and Principles for IT at Siemens"

(CIT G SPA, released by CIO Board on June 18, 2008) 3. "Principles of IT Demand Management and IT Portfolio Management at Siemens"

(CIT G SPA, released by CIO Board on June 18, 2008) 4. CIT-Circular No. 04/2009: "Information Security Principles and Strategy Corporate

Information Security Guide" 5. "IT creates business value: business-oriented Information Technology for Siemens"

(presentation, status June 16, 2008) 6. Documents describing mission, tasks and responsibilities etc. provided by the

individual CIT departments 7. Siemens Organization Handbook, Version 1.1 September 1, 2010



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1. Business Mandate and Scope of Business Principles

The business mandate of Corporate Center CIT (Corporate Information Technology) has been specified with V Circular No. 15/2008: "Organization: Information Technology (IT) in the company"

Moreover, this V Circular outlines the basic structure and responsibilities of the global Siemens IT organization, consisting of Corporate Center CIT and the IT functions in the Sectors/Cross-Sector Businesses and Regional Clusters as well as the basic principles of the decision making process within this company-wide IT organization.

The business principles "Corporate Center CIT and IT in the Company" give a more detailed view on these topics, describing how Corporate Center CIT exercises its business mandate within its own organization as well as in close cooperation with other IT functions within Siemens.

Page 1

IT creates business value For internal use only / © Siemens AG 2011. All rights reserved.CIT [organizational unit] – 24.01.2012, [Version], [Name]

Siemens IT – roles, responsibilities and collaboration model

SectorEnergy IT

SectorHealthcare IT

SectorIndustry IT

6 Divisions 4 Divisions 3 Divisions

Corporate IT

5 Divisions*

SectorI&C IT Cluster

IT units

Page 1

CIT is responsible for:Corporate IT strategy/architectureCompany-wide IT portfolioStrategic IT purchasing and vendor management at Corporate level

The Sector IT Unitsare mainly responsible for business-specific design and implementation of Sector IT strategies

CIO Board = decision-making body of the company-wide IT organization. Together, Corporate IT and the Sectors have overall responsibility for Siemens-wide IT governance

The decentral IT units inClusters and Divisions focus on:

Demand ManagementImplementationIT Operations

* Excluding OSRAM

Figure 1: Global Siemens IT Organization

https://circulars.siemens.com/content/circulars/ca/DocLib/CircularsDocLib/728706_1196f6f20e3_-7fe31392540232.pdf�



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2. Basic Principles and Processes of the company-wide IT Organization

2.1 Focal points of direction for IT in the Company

"A high-performance and cost-effective information and telecommunications landscape that is oriented toward business requirements is as important for the competitiveness and profitability of Siemens as the high availability of data and information flows across all Sectors and Regional Clusters."

Corporate Center CIT and the IT functions of the Siemens units work in close coopera-tion to ensure the realization of an information and telecommunications landscape as described in V Circular No. 15/2008. This cooperation is based on four focal points of direction, see figure 2.


Page 8 CIT – June 16, 2008, M. Leipoldt, CIT BR CM

For internal use only / Copyright Siemens AG 2008

Focal points of direction for Information Technology at Siemens

Clear distribution of rolesand common goals

Business orientation andCustomer focus

Evolution not Revolution Centralized and local approach

CIT and the IT functions of the Siemens unitsact as a team with common goals, derivedfrom business requirementsClearly defined and complementary roles: - IT strategy and IT architecture concentrated

at Corporate and Sector levels to ensurealignment of IT activities across Siemens

- IT functions at Division and Cluster levelfocus on demand management, implemen-tation and rollout activities

Providing practical and practicable solutionsDemand Management:- Clearly specified and documented

customer requirements- Corporate projects only based on clear bu-

siness case and approved financing model- Consistent rollout and usage of the

solutions providedConsistent use of in-house products, services and competences

Centralized approach for topics with sufficientcommonality to allow for synergies (horizontal excellence)Decentralized approach to ensure businessorientation and provide solutions for unit-specificneeds (vertical excellence), within the frame-work of Corporate IT strategy and architectureImprovement of overarching architecture- Compatibility of horizontal and vertical

dimensions- Global usability

Evolution ensures that complexity remainstransparent and manageableUse and enhance existing solutions/ marketstandards, rather than develop from scratchMajor projects have been stopped (RD Processesand IT) or redirected (Spiridon, CRM)

Figure 2: Focal points of direction for IT in the Company



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2.2 Corporate IT Governance

"IT Governance is an integral part of enterprise governance and consists of the leader-ship and organizational structures and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives."1

Corporate IT Governance at Siemens is executed by Corporate Center CIT jointly with Sector representatives under the responsibility of Corporate Center CIT (which is, accor-ding to its Business Mandate provided with the "necessary guideline responsibility" to assume the responsibility for its scope of duties). The interests of the Regional Clusters and Cross-Sector Businesses are taken into account. Execution of Corporate IT Gover-nance includes focusing on a verifiable benefit for Siemens, taking into account the Sectors' "right-of-way" as well as the impact of decisions on the individual Siemens units. Ultimately, overall company benefit will have precedence over the interests of individual Siemens units.

Corporate IT Governance is on a corporate level responsible for:

IT Strategy,

IT Architecture,

IT Innovation,

Management of the IT Portfolio (Projects and Services),

Management of strategic IT Vendors,

Information Security,

as well as the related processes.

The execution of Corporate IT Governance is based on nine principles which reflect the business mandate given to Corporate Center CIT with V Circular No. 15/2008.

1. Our activities are driven by business requirements with committed and measured business benefits.

2. We ensure fulfillment of internal and external compliance requirements according to our assigned responsibility.

3. We enable business innovation with our IT Landscape. Proven technologies are used to reduce implementation risk.

4. We leverage Siemens products and services when technically and economically feasible.

5. We ensure that our IT is able to adapt to (business) portfolio and market changes in a fast and efficient fashion.

6. Our IT Landscape reflects an optimum between standardization with cost optimization and the enabling of vertical business excellence.

1 Source: IT Governance Institute




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7. We drive operational excellence by constantly identifying and implementing improvement potentials and by guaranteeing a pragmatic and cost-effective implementation approach by using existing solutions when technically and economically feasible.

8. Decisions are well prepared and made in a timely and comprehensible manner. We document these decisions and ensure their consequent implementation.

9. We focus on a verifiable Siemens optimum, considering the "right of way" rule of the Sectors/Cross-Sector Businesses.

2.3 IT Demand Management

According to its Business Mandate, "Corporate Center CIT will contribute to the com-pany’s business success in close cooperation with the Siemens units by ensuring the efficiency of Siemens’ IT landscape and its alignment to business requirements. In this context, IT Demand Management … is of particular importance."

IT creates business valueCIT, 2008-10-06 1


IT must follow business requirements to maximize business value

Individuality• Provide IT infrastructure with high

performance, availability & stability• Use market standards instead of

defining “Siemens standards”• Implement “Out-of-the-box”

solutions available on market

Standardization• Critical success factors of the

businesses have top priority for IT• IT must never affect essential

investments for the core business• Develop applications on standard

platforms with high flexibility

High differentiation to competition(with unique selling point) Low differentiation to competition

(w/o unique selling point)

Balance between individuality and standardization

IT supports/results in …

Critical success factorsIT, e.g. alignment of architecture, restrictive demand management up to complete implementation of new solutions, challenging business/ process benefits through ITBusiness, e.g. cultural change of process owner and end-user, traceable business benefits especially in case of individual solutions

Enterprise IT Architecture(interoperability)

Figure 3: Balance between Individuality and Standardization

IT Demand Management is the process which collects, analyzes, clarifies and bundles requirements towards IT from all sources (business requirements but also legal, com-pliance and technical requirements) in a systematic and proactive way, ensures that the proposed projects and service changes to implement these demands are consistently



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planned (cost, resources, skills etc.) and supports a clear Portfolio Management by the appropriate decision making bodies. It also supports consistent tracking of a demand and its scope until customer acceptance (V-Model of IT Demand Management).

Effective IT Demand Management therefore consists of five key components:

collecting, analyzing, clarifying and bundling all kinds of demands (legal, compliance, business, technical),

ensuring consistent transparency of planning,

supporting systematic go/no go decisions based on defined portfolio criteria,

tracking planned vs. actual demands through lifecycle,

influencing the behavior that drives demands through increased transparency and clear upfront agreed financing models (e.g. consumption-based IT chargeback).

In order to

support a common understanding of IT Demand Management on a CIO/IT and business side level at Siemens,

ensure a high standard of business orientation and business alignment of IT activities,

increase the value of IT (effectiveness) and the acceptance of IT activities by business,

the following seven principles have been set up.2

1. All IT demands are derived from clear compliance or business requirements as well as technical requirements from the product roadmap of IT vendors. Legal and Compliance requirements must be fulfilled. Technical requirements without business benefits are kept to an unavoidable minimum based on common agreement for main strategic vendors.

2. Business driven IT demands are derived from business targets/requirements and do always have a dedicated business owner who is responsible for delivering the identified benefit (Profit and Growth) for the business. Commitments to benefits may only come from someone who has the authority to deliver the benefits. A clear financing model considering TCO (Total Cost of Ownership) is agreed in advance with the business owner. The proclaimed benefits will be tracked after implementation (in accordance with top+).

3. With IT Demand Management the complete project and service portfolio is targeted. IT demands drive changes in IT Portfolio and comprise a range from small change requests to large projects. The IT Demand Management process differentiates according to complexity and investment for IT demand implementation.

2 These principles are based on input from the Sectors as well as insights gained from Gartner, Forrester and CIO Executive Board.



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4. Any IT demand is to be documented in a comprehensible way fulfilling a set of minimal requirements, e.g. responsible people on business and IT side, objectives, scope, source (legal, compliance, technical and business), benefits, financing model. In this context, the actual business requirements have to be specified.

5. The feasibility of implementation of IT demands is checked including technical, economical, legal and expert resource constraints. This also includes a conformance check with Target IT Architecture and IT Strategy and consideration of commitment of non-IT resources. IT Demand Management has especially first to verify with reasonable effort that none of the existing solutions/services can fulfill the demand at hand.

6. Before transforming an IT demand into a project a clear decision gate is required to ensure that all principles related to Demand Management (e.g. Principle 1-5) are properly fulfilled.

7. Demand Management must ensure that the solution for the IT demand is not only implemented but also consequently used by the business.

These principles intentionally define "what" the main attributes of effective IT Demand Management are. Principles of "how" IT demand is accomplished will only be defined on corporate level where necessary in the interest of Siemens and based on joint agreements with the Sectors.

For Demand Management with focus on the collaboration between Process Owners and IT refer to 2.5 "Process Owner - IT Collaboration".

2.4 IT Portfolio Management

According to its Business Mandate, "Corporate Center CIT will contribute to the company’s business success in close cooperation with the Siemens units by ensuring the efficiency of Siemens’ IT landscape and its alignment to business requirements."

IT Portfolio Management is a strategic level process for enabling successful delivery across an organization's entire set of programs and projects and services. IT Portfolio Management enables organizations to categorize, evaluate, and prioritize services as well as programs and projects - that will create new IT Services, enhance the value of existing IT Services or phase-out existing IT Services - manage IT resources — thus guiding the appropriate use of hardware, software, people, and processes (-> efficiency of Siemens' IT landscape). IT Portfolio Management also enables organizations to align IT spending to business priorities and achieve an acceptable balance of risk and benefits (-> alignment to business requirements). IT Portfolio Management activities are ongoing, because the variables that affect decisions about the contents of the portfolio need to be continually monitored and communicated.



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The following two principles have been set up for IT Portfolio Management3.

1. IT Project Portfolio Management has to ensure that the projects and change requests with the highest business benefit are realized first in addition to mandatory compliance projects. IT Project Portfolio Management is an ongoing process dealing with changes of priorities imposed during the fiscal year. This process is facilitated by the company-wide IT organization although the final decision about the portfolio is up to the relevant stakeholders.

2. IT Service Portfolio Management has to ensure that services operate on an efficient and reasonable basis. This is supported by a transparent service reporting and has also to consider potential phase-out of IT Services.

2.5 Process Owner - IT Collaboration (Focus on Demand Management)

The Corporate Process Owner (CPO) or Sector/Cluster Process Owner (PO) is the first addressee for all demands. Amongst other tasks, the CPO/PO specifies "what" must be done (demand specification, process description).

If an automated solution is required, IT becomes involved. For corporate Change Requests Corporate IT (CIT) is in charge, for non-corporate Change Requests Sector/ Cluster IT is responsible.

CIT/IT defines "how" the automated solution will be designed, based on the demand specification of CPO/PO.

For further details refer to figures 4 and 5.

3 For objectives, deduction and implementation of these principles refer to 2.2 IT Demand Management.



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IT creates business value For internal use only / © Siemens AG 2009. All rights reserved.

PO – IT Collaboration: Overview

Information Technology – IT*

„How“Process Owners (Business) – PO*

„What“

PO – ITCollaboration

Benefits“Why”

Clearly defined responsibilities for Demand Management i.e. business / process and IT-requirements in terms of collaboration resulting in optimized process quality and minor coordination effortsSectors & Clusters are involved at every stage of the collaboration process e.g. participation in Governance bodiesFast and transparent process for introduction and implementation especially for legal requirementsEnhanced Business- / Process- / IT-alignment resulting in high quality and acceptance of IT solutions by approved process/business demand and IT realization designed accordinglyUsage aspects such as establishment of process change and tracking of usage are continuously in focus

Determination of IT solution:Build or use - and IT cost evaluation and IT migration planningImplementation / IT rollout:Implementation and rollout of solution decided upon, for mandatory solutions global implementation confirmation

Definition of Demands:Single point of entry for demand, collection, classification and evaluation of demands, evaluation of business case, ensure funding, decision on IT-NeedAwareness Building:Preparation and communication of process change / roll-out, buy-in of stake holdersFunctional Rollout / use:Establishment of process change andusage of IT solution Monitoring incl. top+:Usage - and business benefit tracking

*) Responsibility has to be assigned case by case to Corporate, Sector/Division/BU level

Figure 4: Process Owner – IT Collaboration, Overview

IT creates business value For internal use only / © Siemens AG 2009. All rights reserved.

Process Overview and Responsibilities Handling of Demands

CPO / PO*

CIT / IT*

AwarenessBuilding

Single point of entry for demand, collection -, classification - and evaluation of demands,evaluation of business case, verification of funding and decision on IT need

Preparation and communication of process change / roll-out, buy-in of stake holders

Establishment of process change and usage of IT solution

Usage - and business benefit tracking

Build or use - and IT cost evaluation and IT migration planning

Implementation and rollout of solution decided upon, for mandatory solutions global implementation confirmation

*) Responsibility has to be assigned case by case to Corporate, Sector/Division/BU level

Definition ofDemands

FunctionalRollout / Use

Monitoringincl. top+

Determination ofIT Solution

Implementation /IT Rollout

1 2 3 4

5 6

1

2

3

4

5

6

Joint responsibility for successful implementation

of demands!

Main Details for Process Phases:

Figure 5: Process Owner – IT Collaboration, Handling of Demands



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3. Corporate Center CIT

Corporate Center CIT is strongly committed to the three pillars of the Siemens Diversity Initiative, focusing within the CIT organization and its cooperation with the IT Community on the areas "Networking and Visibility", "Work Life Balance" and "Mentoring". What Diversity means for Siemens At Siemens we understand Diversity to be the creative interplay of different modes of thinking, backgrounds, experiences, types of expertise and individual qualities across all organizational levels. With innovation driving global competition at an ever-accelerating rate, a company like Siemens needs more than ever to tap the full imaginative potential of its workforce if it is to succeed in the future. With talent spread evenly throughout the world and with customers in all corners of it, Siemens will remain on the cutting edge only if it recruits from and reflects the many different societies it serves.

Figure 6: What Diversity means for Siemens

Source: Siemens Diversity Initiative

3.1 Structural Organization of CIT

For the up-to-date structural organization of Corporate Center CIT please refer to SCO respectively the CIT intranet: Organization Charts Corporate Center CIT (SOC) Organization Chart Corporate Center CIT (CIT Intranet) The CIT Work Charts also provide an overview of the assignment of topics on a functional department level.

https://soc.siemens.net/index.html?orgcode=cit�

https://cio.siemens.com/cms/cio/en/aboutus/org/Pages/org.aspx�

https://cio.siemens.com/cms/cio/de/aboutus/org/Pages/org_workcharts.aspx�



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3.2 CIT Regions (CIT R)

CIT R ensures the alignment of the Regional Clusters with Corporate and Sector guidelines, as well as the adequate consideration of Cluster interests in Corporate IT topics.

This includes:

Functional management of the Cluster CIOs:

- selection, appointment and dismissal,

- target setting,

- performance reviews together with the respective Cluster CFO,

Guidance, in terms of governance, for Regional Clusters in close cooperation with CIT Governance (CIT G),

Facilitation between Sectors and Clusters and support of Clusters in case of conflicting requirements coming from the Sectors,

Representation of the Regional Clusters in the IT Body Landscape (CIO Board, CIO Advisory Council, Task Forces).

In addition, CIT R hosts the communications function of Corporate Center CIT (CIT R CC). CIT R CC has the following tasks and responsibilities within and for CIT:

Siemens-wide communication of (C)IT topics, supporting the mission "IT creates business value",

CIT-internal communication and change management, contributing to a motivating and stimulating working environment,

Providing and maintaining CIT media, e.g. CIT All Hands Meetings, CIT Breakfasts, CIT Tea Time (CIT-internal media) and CIT intranet homepage/structure, IT Newsletter (CIT-external media),

Communication and change management support for Corporate IT projects and to key players in Corporate Center CIT and the IT Community

Professional Siemens-external communication on demand,

Approval of external communication about Siemens-internal IT as described in CIT Circular No. 17/2009.

Special Projects (SP)

The Service Management Organizations (SMOs) deliver IT Services to their respective customers. Primary task of a SMO is to perform Service Management within the context of the TOPAS4 contract.

4 Transfer Operational Part of AMC from GSS to SIS

https://circulars.siemens.com/content/circulars/ca/DocLib/CircularsDocLib/CIT_CR_17_2009.pdf�



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The scope of the TOPAS contract is essentially the application maintenance and development of the application portfolio of the SMOs.

Application Management encompasses application development on behalf of the respective governance organization and with architectural approval of CIT.

3.3 CIT Governance (CIT G)

Corporate IT Governance (see chapter 2.2) at Siemens is executed within Corporate Center CIT by the department CIT Governance (CIT G).

CIT G executes the IT Governance tasks and responsibilities as described in chapter 2.2 "Corporate IT Governance", which includes the authorization to issue regulations. In order to cover all areas of IT Governance responsibilities, the CIT G organization is structured as follows:

Overall Strategic Planning & Architecture (SPA),

Topic Units to cover specific needs for areas such as:

- Customer Relationship Management (CRM),

- Supply Chain Management (SCM),

- Product Lifecycle Management (PLM),

- Management & Support Processes (M&S),

- Infrastructure (IN, e.g. workplace, data center and network),

- Sustainability (SU)

Information Security (ISEC).

Figure 7: Functional structure of the CIT G organization

Strategic Planning & Architecture

CRM

SCM

PLM

M&S

IN

SU

Information Security



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IT creates business value For internal use only / Copyright © Siemens AG 2008

CIT G collaboration – October 2008

CIT G SPA is responsible for Corporate IT Strategy and CorporateIT Architecture in close alignment with CIT G Topic Owners

Responsibilities:Corporate IT Strategy Development (including Consolidation of Strategic Demands)Corporate IT Portfolio Management (Projects, Services, Tasks)Corporate IT Architecture Development (e.g. Organization, Processes, Applications, Data, IT Infrastructure)IT Innovation Management to evaluate trends and their impact to Siemens business (in close collaboration with CT)Vendor-specific Technology Management for our main vendors (e.g. UGS, SIS, SAP, MS) to evaluate their strategic directionDefinition of processes, methods and tools related to collaboration with SectorsSiemens Process Framework Maintenance (incl. related tools)

Focus on:Overall Strategic Planning Process Definition and SteeringOverall Consistency and Quality AssuranceRelease of Corporate IT Strategy and IT Architecture, IT PortfolioCross-functional topics (e.g. Data Architecture,...)IT Innovation Management in early evaluation phase with

SectorsOverall alignment with CIT PCE and Strategic Vendors with

focus on process-independent application parts (e.g. Technology)

CIT G SPA

CIT G CRM

CIT G SCM

CIT G PLM

CIT G M&S

CIT G IN

Working Principles:•Ongoing close collaboration with CIT G Topic Owners for Corporate IT Strategy & Architecture development

• Involvement in CIT G Topic Owner Roadmap/Architecture activities

CIT G SU

Tasks and Responsibilities of "Strategic Planning & Architecture" (CIT G SPA):

Corporate IT Strategy Development (including Consolidation of Strategic Demands),

Corporate IT Portfolio Management (Projects, Services and Tasks),

Corporate IT Architecture Development (e.g. Organization, Processes, Applications, Data and IT Infrastructure),

IT Innovation Management to evaluate trends and their impact to Siemens business (in close collaboration with Corporate Department CT),

Vendor-specific Technology Management for our main vendors,

Definition of processes, methods and tools related to collaboration with Sectors,

Siemens Process Framework Maintenance (incl. related tools).

Figure 8: Tasks and Responsibilities CIT G SPA



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Tasks and Responsibilities of "Topic Units" (CIT G CRM, CIT G SCM, CIT G PLM, CIT G M&S, CIT G IN and CIT G SU) within their respective areas of responsibility:

Identification and evaluation of strategic demands,

Development of committed topic-specific roadmaps,

Development of topic-specific IT Architecture and definition of related topic-specific standards, services and solutions,

Topic-specific evaluation of strategic vendors,

IT Innovation Management in detail after first evaluation and assignment to topic cluster.

Figure 9: Tasks and Responsibilities CIT G Topic Owners

All activities connected with and regulations governing Information Security com-pany-wide are implemented in the Siemens Units, with support from the InfoSec community.

Tasks and Responsibilities of "Information Security" (CIT G ISEC):

Siemens-wide InfoSec program and the processes connected with it (e.g. definition of roles, interfaces and principles of collaboration),

Governance of the corporate Information Security services,

IT creates business value For internal use only / Copyright © Siemens AG 2008

CIT G collaboration – October 2008

CIT G Topic Owner are responsible for Topic-specific Roadmaps and Topic-specific Architectures in close alignment with CIT G SPA

Responsibilities: Identification and Evaluation of Strategic DemandsDevelopment of committed topic-specific RoadmapsDevelopment of topic-specific IT Architecture and

Definition of related topic-specific Services and SolutionsTopic-specific evaluation of strategic vendorsIT Innovation Management in detail after first evaluation and

assignment to topic cluster

Focus on:Detailing of Corporate IT Strategy in form of committed

topic-specific RoadmapDetailing of Corporate IT Architecture in form of topic-

specific ArchitectureProactive identification of need for action in form of

strategic demands and development of first ideas in form of White Papers or Statement of DirectionTopic specific discussions with strategic vendors with

focus on topic-specific application parts (e.g. Finance, Logistics,…)

CIT G SPA

CIT G CRM

CIT G SCM

CIT G PLM

CIT G M&S

CIT G IN

Working Principles:•Ongoing close collaboration with CIT G SPA for CIT G Topic Owner Roadmap/Architecture activities

• Involvement in CIT G SPA Corporate IT Strategy & Architecture development

CIT G SU



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The head of CIT G ISEC is also the Chief Information Security Officer (CISO) of Siemens AG.

The CISO of Siemens AG is responsible for:

- Defining the roles, interfaces and principles of collaboration within the InfoSec community,

- Issuing Information Security regulations and standards that are binding company-wide, and their continued development,

- Defining, as well as supervising and controlling the implementation of, the company-wide InfoSec program,

- External representation of Information Security on behalf of Siemens,

- Control of the corporate Information Security services,

- Regular reporting to the Executive Board and the corporate IT community on the status of Information Security,

- Organizing cooperation and exchange of experiences within the InfoSec community.

3.4 CIT Procurement and Contract Execution (CIT PCE)

CIT Procurement and Contract Execution (PCE) generates together with the Siemens Units significant and sustainable cost savings for Siemens’ information and telecommunications landscape and improves Siemens’ information and telecommunications cost management.

Responsibility:

CIT PCE is globally responsible for the Strategic Procurement of information and telecommunications services and products for Siemens’ internal demands and for the implementation of the respective cost savings.

Strategy:

CIT PCE implements its responsibility by

Defining and conducting sourcing strategies

Implementing the respective strategies, and

Continuously improving those strategies

Value proposition:

CIT PCE drives the process to

Achieve best cost positions for market-level services adequate to Siemens requirements

Ensure that savings potentials are realized according to ambitious implementation plans

Ensure long-term sustainability of best cost position and achieved savings



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Topics:

Significantly reduce Siemens’ IT costs on a global basis

Establish a central and decentral management of Siemens’ IT costs

Establish trustful and effective partnerships with Siemens’ major IT suppliers

IT Infrastructure Management (IM)

IM has the worldwide responsibility for the implementation of corporate contracts (guarantee of realization of contracts and conditions), the optimization of contracts and the Service Management for IT Infrastructure (guarantee of sustainability of cost position and quality), structured in

Performance Management

Product Management

SNX (Siemens Network eXchange)

3.5 CIT Corporate Automation (CIT CA)

CIT CA creates, manages and maintains company-critical applications for Siemens as well as all Corporate Unit applications including the required IT infrastructure. Com-pany-critical applications are indispensible for the Siemens business.

For Corporate Units, CIT CA exercises the IT Governance function which comprises the IT strategy linked with a master plan and guarantees that all applications conform to internal guidelines and legal requirements.

CIT CA also organizes selected company-wide IT projects with sole responsibility for their execution (e.g. worldwide projects relating to investigation and remediation).

The CIT CA performance is regularly measured by customer surveys. The "All-from-One-Source" principle is essential for CIT CA performance and covers the whole IT value chain. The broad CIT CA capabilities and competencies cover data center operations, the development and maintenance of applications and include a deep knowledge of company-wide processes in the finance, human resources and procurement area. Financial, human resources and procurement applications form the core of the administrative backbone of the company. Thanks to the close cooperation with the respective business departments CIT CA is directly involved in the development and execution of business processes ("IT as enabler").

The accountability for the development and operation of important central applications guarantees a pragmatic approach to daily IT operations. The profound knowledge of the business processes is a prerequisite for continuous improvement of IT driven process automation within Corporate Units (Corporate Automation).

The provision of a globally, 24/7 available, communication platform and security services is a mandatory prerequisite for company-wide applications and projects. The CIT CA solutions portfolio comprises company-wide services for a rapid and secure exchange of confidential data between all Siemens units as well as services for the



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secure access of workstations and applications. These "cross sector solutions" are supplemented by applications to ensure worldwide uniform master data (e.g. of customers and suppliers).

For further details refer to CIT CA Intranet

3.6 CIT Business Administration (CIT BA)

Realizing the business administration function of Corporate Center CIT, CIT BA's mission is based on the functional responsibility of CFOs following the "Chain of Command" principle.

Ensuring: - Financial reporting, integrity and an effective risk management/internal

control system, - Effective business administration, controlling and financial planning, - Efficient capital, financing and tax management.

Acting:

- As investor's advocate by protecting the assets and driving sustainable value creation,

- As trusted partner of the CIO Board.

Leading: - As "Role Model" for the financial community, - As developer, promoter and mentor for talents.

The task and responsibilities, resulting from this mission, refer especially to services, projects and tasks of the entrepreneur Corporate Center CIT and on a more generic level to financial aspects of the entire IT community in line with CIT's business mandate. To ensure the effective performance of Corporate Center CIT, CIT BA operates in close cooperation with all CIT departments and selected functions within the IT Community as an independent commercial controlling and support function, focusing on value creation and risk mitigation. Moreover, CIT BA assumes some non-financial tasks and responsibilities. Financial Tasks and Responsibilities Within the scope of the management process "Financial Planning & Controlling" and of the support process "Financial Management" (as described in the Siemens Reference Process House) CIT BA assumes, among others, the following tasks and responsibilities for cost centers, projects and services. Predominantly Corporate Center CIT:

Budget planning and forecast development including deviation analysis,

https://cio.siemens.com/cms/ca/en/Pages/ca.aspx�



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Securing closing figures according to regulations, Cost/Profit centre controlling and reporting for each cost centre including the

development of the appropriate controlling structure within SAP, Ensuring effective risk and opportunity management (process ownership), Developing business cases, Enhancing the productivity mindset and verifying the productivity reporting

according to top+ methodology. Predominantly IT Community:

Commercial management of saving and productivity programs, including controlling of measure ramp up,

Reporting of I&C Financials, Coordinating and driving commercial activities within the development of the IT

Planning Letter (e.g. service calculation, productivity tracking), Developing financing models, Billing and allocation (e.g. of Corporate services to the Siemens Units).

Non-financial Tasks and Responsibilities CIT BA also assumes non-financial tasks and responsibilities, predominantly but not exclusively relevant for Corporate Center CIT, e.g.

Organization, such as holding the CIT Business Mandate/Principles, facilitating CIO Board Meetings and supporting/following-up Corporate Audits (regarding Corporate Center CIT),

Regulations, such as coordinating the release of CIT Circulars and CIT internal Organizational Rules (including quality control),

Compliance: Applying appropriate actions to ensure compliance to Siemens-internal and -external regulations (e.g. implementation of Anti-Corruption Kit),

Integrated Enterprise Risk and Internal Control (RIC) Management including related tasks,

Export Control and Customs: Monitoring and assisting proper compliance with the statutory and Siemens-internal regulations on export control and customs within Corporate Center CIT in Germany,

Achieving SOX compliance of Corporate Center CIT ( e.g. by enforcing the implementation of relevant methods and processes),

Achieving EHS (Environmental Protection, Health Management and Safety) compliance of Corporate Center CIT,

Support within order processing ("Banf-Pool"), Human Resources, as an interface to the respective CHR units (e.g. definition

and implementation of HR strategies and processes as well as operational HR topics),

Support of the "Siemens Global Diversity Initiative" by implementation of appropriate measures within Corporate Center CIT and the worldwide IT Community (Diversity@CIT),

Representation of the local/site management at site Mch P ("Betriebsleitung").

http://cio.siemens.com/cms/cio/en/aboutus/diversity/Pages/Default.aspx�



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4. Cooperation of Corporate Center CIT and the IT Organizations in Sectors5 and Regional Clusters

Corporate Center CIT works closely and directly with the CIOs of the Sectors and Regional Clusters.

The Chief Information Officer (CIO) is the head of the function IT on Sector, Cross-Sector Business and Cluster level; he reports to the CEO of the respective organizational unit or a person appointed by the CEO (generally the CFO of the respective organizational unit) and to the functionally responsible person within CIT (shared management responsibility):

for the CIOs of Sectors and Cross-Sector Businesses this is the Head of CIT,

for the CIOs of the Clusters this is the head of the CIT unit Business Relations (CIT BR) or a managing function within CIT BR6.

The CIO function for all Corporate Units is allocated to CIT.

On Division level the following organizational models are possible:

(a) Department below the Sector CIO – typical management responsibility

A Department below the Sector CIO performs the IT function for the Division.

The Head of this Department reports to the Sector CIO.

No reporting line of this Department Head to the Division CEO.

(b) Model with shared management responsibility

The Head of the Division Function IT reports to the Division CEO or a person appointed by the Division CEO (e.g. CFO) and to the Sector CIO.

On Country level the following organizational models are possible:

(a) Department below the Cluster CIO – typical management responsibility

A Department below the Cluster CIO performs the IT function for the Regional Company.

The Head of this Department reports to the Cluster CIO.

No reporting line of this Department Head to the Country CEO.

(b) Model with shared management responsibility

The Head of the Country Function IT reports to the Country CEO or a person appointed by the Division CEO (e.g. CFO) and to the Cluster CIO.

Source: Siemens Organization Handbook, Version: 1.1 September 1, 2010

5 Within this section also including Cross-Sector Businesses 6 'CIT R' as of 2012-02-01



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Together with the Sector CIOs, Corporate Center CIT has the overall responsibility for Corporate IT Governance.

IT strategy and IT architecture tasks are concentrated at Corporate and Sector levels, in order to ensure alignment of IT activities across Siemens.

The IT functions on Division and Cluster level focus on demand management, implementation and rollout activities.

Increasing IT productivity and at the same time the enabling of productivity improvement in the business has to be enforced at all levels.

The responsibilities of Corporate Center CIT (according to V Circular No. 15/2008) refer to the exercise of Corporate IT Governance (for details refer to 2.2 Corporate IT Governance), including the necessary guidelines' responsibility as well as the related responsibility for monitoring implementation.

Responsibilities of the CIOs/CFOs of the Sectors according to V Circular No. 15/2008:

business-specific design and implementation of the IT strategies of their respective Sectors on the basis of the stipulated company-wide IT strategy (CIOs),

advising managers with business responsibility and supporting management in achieving its business targets within their areas of responsibility (CIOs),

overall responsibility for the relevant IT budgets (CFOs).

Responsibilities of the CIOs/CFOs of the Regional Clusters according to V Circular No. 15/2008:

business-specific design and implementation of the IT roadmaps in the relevant Regional Clusters, taking into account the requirements of the Regional Clusters and the company-wide and Sector-specific IT strategies and IT architectures (CIOs). The IT roadmaps of the Regional Clusters must be coordinated with and approved by the CIO Board.

overall responsibility for the relevant IT budgets (CFOs).

The CIOs of the Regional Clusters will report to the head of CIT Business Relations in functional matters. Their selection, appointment and dismissal as well as the establishment of their targets and their performance reviews will be performed jointly by Corporate Center CIT and the CFO of the relevant Regional Cluster.







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For internal use only / © Siemens AG 2008. All rights reserved

Information TechnologyReporting Structure

Source: Global G&A Program

Corporate Center CITBusiness Relations

(CIT BR)

Managing Board

RespectiveMember CFO

Regional Cluster

Disciplinary reporting line

Functional reporting line

Regional ClusterCIO

Regional Cluster CFO

Figure 10: IT Reporting Structure

Corporate Center CIT Regions (CIT R)



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5. IT Body Landscape – Decision Making Structure

5.1 Principles of the Decision Making Structure

IT creates business value For internal use only / Copyright © Siemens AG 2012.Page 3 Jan-2012 / Version 2.0 / C. Gebhardt, CIT G

IT Body Landscape

CIO Boarddecision level

decision preparation level

working level

temporary (discontinuation after completion of task/project)

permanent

CRM IT Service CommitteeHR IT Committee Germany

ERP Services Committee 2)IT Infrastructure Committee 1)

Task Forces (TF)

topic specific committees

Project Steering(with participation of CIO Board Members)

e.g. GAIN Steering Committee, Steering Committee HR S&D and SOM

initiation, closing, coaching

selected TF report to topic specific committees

1) GAIN topics are reported to GAIN Steering Committee as long as GAIN is a project

TFs report in general to CIO Advisory Council

- Steering of “operations”- provide expert knowledge- suggest strategic directions

prepare strategic decisions with impact on IT Strategy, IT Architecture, IT Governance, IT Planning Letter

2) includes CIP2SAP, EDI, Corp Layer, CMD

InfoSec Committee

CIO Advisory Council

Figure 11: IT Body Landscape

The IT body landscape is designed to make the voting and decision making processes of the IT Community fast, effective and less complex.

It consists of three levels:

Decision level: CIO Board Meeting and Project Steering

Decision preparation level: CIO Advisory Council

Topic specific Committees

Working level: Task Forces

Whereas CIO Board Meeting (CBM), CIO Advisory Council (CAC) and topic specific Committees are permanent institutions, Project Steering bodies and Task Forces are temporary bodies that are disbanded once the objectives have been achieved.

Voting in the CBM and the CAC always follows the same principle: Corporate Center CIT and the Sectors have one vote each.

Decisions in the CBM and the CAC are made unanimously.



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All decisions of the CIO Board have to be prepared by the CAC, which meets two weeks in advance of the CBM.

For a detailed illustration of the CAC's and CBM's sequence including "milestones" for specific topics refer to figure 12.

IT creates business value For internal use only / Copyright © Siemens AG 2012.Page 7 Jan-2012 / Version 2.0 / C. Gebhardt, CIT G

Annual Body Calendar CIO Advisory Council and CIO BoardSettled topics of CIO Advisory Council Meetings

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

CAC CIO Advisory Council CBM CIO Board Meeting

Risk WS

CF RICCF A ITRisk Managers from Sectors

additional CAC participants:

Corp. DemandsPlanning Letter


Sector BA

Corporate IT Strategy

Cluster IT Roadmaps

Clusters (AAE, CEE, SWE, NWE, Canada RoW)Cluster experts from Sectors

Clusters (AAE, CEE, SWE, NWE, Canada, RoW)Cluster experts from Sectors


no additional CAC participants


CAC CAC

CBM

CAC

CBM

CAC

CBM

CAC

CBMCBM

CAC

CBM

CAC

CBM

CAC

CBM

CAC

CBM

CAC

CBM

Figure 12: Annual IT Body Calendar

5.2 CIO Board Meeting

The CBM is the only decision-making body of the company-wide IT Community, making all strategic IT decisions for Siemens.

The CIO Board consists of the following members:

- Chief Information Officer of Siemens AG (= head of Corporate Center CIT),

- Chief Information Officers (CIOs) of the Sectors.

Each CIO Board member has one vote. Decisions have to be made unanimously.

Additional participants of the CBMs are:

- CIO(s) of the Cross-Sector Businesses,

- department heads of Corporate Center CIT.

The agenda as well as the decisions of the CIO Board are prepared by the CAC.



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Documents required for CIO Board decision are distributed to the CBM members one week in advance of a CBM.

5.3 CIO Advisory Council

The CAC defines the agenda of the CBM and prepares all decisions to be made by the CIO Board, meeting two weeks in advance of the CBM.

The CAC consists of the following members:

- heads of CIT G and CIT G SPA,

- one representative for each Sector,

- one representative of each Cross-Sector Business,

- one CIT R delegate representing the Regional Clusters,

- one representative of CIT CA,

- one representative of CIT BA,

- one cluster ambassador representing the regional clusters.

Corporate Center CIT and the Sectors have one vote each. Decisions are made unanimously.

The CAC initiates, coaches, steers (refer also to 5.4 "Topic Specific Committees") and closes Task Forces.

5.4 Topic Specific Committees

Topic Specific Committees (in the following "Committees") are focused on a specific range of topics.

Committees report to the CAC regarding all topics with impact on IT Strategy, IT Architecture, IT Governance and/or the Corporate IT Planning Letter (provide expert knowledge).

Committees have a mandate to decide within existing budgets (referring to the released Corporate IT Planning Letter).

Committees may suggest the initiation of Task Forces to the CAC and steer selected Task Forces.

The composition of Committees and the corresponding voting rights are settled in specific body charters considering the representation of the involved Siemens units.



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5.5 Task Forces

Task Forces are established temporarily by the CAC to work on specific topics.

Task Forces are staffed with mandated representatives of Corporate Center CIT, the Sectors and – if necessary – the Regional Clusters and other Siemens Units.

Task Force representatives ensure the agreement to the scope of their work and its results within their respective organizations.

Siemens AG

© Siemens AG 2012. All rights reserved

Corporate Information Technology