Innovations in Partnership

Klaus HelmrichCTOSiemens AG

Siemens Innovation Day 2011Klaus Helmrich, CTO2

Why “Innovations in Partnership”

… world-class partnershipsWe want to pioneer…

Innovation in Partnership aim at …

developing products & solutions which meet or even surpass our customers’ requirements

complementing our own and strong R&D position with world-class partnerships in selected areas

accelerating our innovation processes by sourcing leading edge technologies worldwide

In the following areas of…

Energy efficiency

Industrial productivity

Affordable and personalized healthcare

Intelligent infrastructure solutions

…we need to drive high-end innovations together with our leading partners

Siemens Innovation Day 2011Klaus Helmrich, CTO3

Siemens opens up Innovation Day to a broader external audience

Siemens Innovation Days

2008 First Innovation Day in Berlin„Innovation in Manufacturing/Innovation for Customer Value“

2009 Innovation Day in Munich„Co-operation & multiple application technologies”

2010 Innovation Day in Munich“Driving Sustainability”

2011 „Innovations in Partnership“for the first time open to top customers, government institutions and universities

Innovation Day 2011

This Innovation Day is set to …

Deepen our relationship for future partnerships in innovation

Share with our customers 30 top innovations from all our divisions

Discuss new and open approaches of steering innovation processes and driving innovations

Gain a common understanding about related innovation challenges like IP

Siemens Innovation Day 2011Klaus Helmrich, CTO4

Innovation Day 2011 Our Partners

Siemens Innovation Day 2011Klaus Helmrich, CTO5

A broad mix of customers and partners took part

29

444

Germany

Europe (w/o Germany)

United StatesChinaOthers overseas

Regional mix of guests

72

31

More than 70 international guests from:

Top Management Industry (~50)

University and research organizations (~15)

Public authorities and related R&D associations (~5)

Siemens Innovation Day 2011Klaus Helmrich, CTO6

Four megatrends are shaping our future

UrbanizationUN estimates: 60 percent of the world's population will live in cities in 2030With efficient planning

and managing, we can handle the complexity of soaring megacities

Climate ChangeTo limit CO2 to 450 ppm: Additional investment of €10.5 trillion is required in energy industry by 2030By combining all

efficiency measures we can limit climate change

Demographic Change

Globalization

The 65+ generation will nearly double worldwide by 2030 (from 7% to 12%)We have to provide

affordable and high-quality healthcare for developed and emerging countries

Annual GDP growth until 2020 (IHS Global Insight): India 8.6%, China 8.1%, USA ~3%, Ger. 1.7%Emerging markets offer

tremendous opportunities and also challenges

Siemens Innovation Day 2011Klaus Helmrich, CTO7

Our portfolio meets these challenges

Industry

Divisions

Drive Technologies

Industry Automation

Building Technologies

Mobility

Lighting (OSRAM)

Industry Solutions

Energy

Divisions

Fossil Power Generation

Renewable Energy

Oil & Gas

Energy Service

Power Transmission

Power Distribution

Healthcare

Divisions

Imaging & Therapy Systems

Clinical Products

Diagnostics

Customer Solutions

Siemens Innovation Day 2011Klaus Helmrich, CTO8

Cities will be the focus of our new Infrastructure & Cities Sector1)

High-speed trains and light rail

Traffic management and networking

Postal and airport logistics

Modern energy management systems

Automated power distribution systems

Virtual power plants and micro-grids

Energy-efficient building automation

Fire protection and security systems

Mobility

Smart grid and smart consumption

Building technologies

1) New organizational structure effective as of October 1, 2011

Siemens Innovation Day 2011Klaus Helmrich, CTO9

Americas

Germany

Europe, CIS, Africa, Middle East (excl. GER)

Asia, Australia

All figures: FY 2010

Revenue (billion €; share of total, total: 75"9)

7,30091,00020"6

R&D employees (number; share of total; total: 30,100)

Major production facilities (number; total: 342)

Employees (number; share of total, total: 405,000)

8913,000

128,000

11"4

3,50074,00013"9

6,200112,00030"0

Global sales, global production, global R&D

27% 23% 24%

40% 27% 21%

18% 18% 12%

15% 32% 43%

92

83

78

xx

Siemens Innovation Day 2011Klaus Helmrich, CTO10

Pioneering means partnering across organizational boundaries

Innovations of Products, Systems and Solutions

Customers

Universities

Research Institutes

Start-ups / VCs

Suppliers

Corporate Technology (CT)

Sectors / Divisions

The Integrated Technology Company (ITC)

Industry Energy Healthcare

Leveraging knowledge & synergies

Partner network with customers, universities, research institutes, start-ups / VCs, suppliers

Global Shared R&D (CT) Research & technology- based projects, consulting, patents and standardization

Best-practice sharing among Divisions, Corporate Departments and Regional Companies

Technology platforms Identification and use of common innovative technologies

Siemens Innovation Day 2011Klaus Helmrich, CTO11

The information explosion – a challenge an Integrated Technology Company must meet

Digitalization is key

Generation of information:

Dramatic growth of internet data: Number of web servers grew from 62 million in 2005 to 114 million in 2007 to 313 million in 2011 (Netcraft survey)

China will overtake USA in research paper output in 2015

Distribution of information:

Exponential growth in computing power needed to process flood of data

Virtualization of networks

Web 2.0 – new communication platforms

We can only manage information flow by using networked systems and by extracting information from bulk data

1800 1900 1950 1970 1980 2010 14 18 22

Centuries Decades Years

Time it takes for information to double

Virtual global networks & communities

Siemens Innovation Day 2011Klaus Helmrich, CTO12

Innovative tools that leverage internal information and know-how

Social media tool to facilitate knowledge exchange within Siemens

>900 networks and 13,000 members

Response to urgent requests within 24 hours

Clear business driven use cases

Clear rules for confidentiality

Personalized semantic search for technologies and experts

Developed by CT and Sinequa

Innovative features (expert & department finder, security cockpit, saved queries)

Public Intranet

Social Software

Spec. Repositories

Document Mgt.

Public Intranet

Social Software

Spec. Repositories

Document Mgt.

113361 390

484

298

278

206207

CT

177

Industry

160 Health

321

SIS

Energy

113361 390

484

298

278

206207

CT

177

Industry

160 Health

321

SIS

EnergyNumber of networks with cross-sector participation

More than 30 repositories connected in pilot H IM - CT

Techno WebAccess to implicit knowledge

Techno SearchAccess to explicit knowledge

Siemens Innovation Day 2011Klaus Helmrich, CTO13

Idea contests as web-based global collaboration platforms – example: smart grid innovation

www.siemens.com/smartgridcontest

Public phase Apr 13 to May 31

Objective: to come up with the best ideas for...

Idea contest Everybody can submit, comment, rate ideas and win attractive prizes.Total prizes for winners: €15,000 & invitation to Berlin

University phase Oct 4 to Nov 30

Call for research proposals University program only – R&D-projects, industrial PhD, optional seed-funding for startupsTotal funding of €1 million for research projects

New business models

Applications that offer customers new benefits

Disruptive technologies that change the game

Status as of May, 2nd

>100 ideas

>400 registered members from >40 countries

>30,000 actions on the site

Siemens Innovation Day 2011Klaus Helmrich, CTO14

Partnering with leading universities and research institutions, customers and suppliers

Worldwide university cooperation network Universities, customers and suppliers

Competencies

Aerodynamics

Dynamic Integrity

Materials / Coatings

Combustion

Heat transfer

Probabilistic Design

Diagnostics & Sensors

>1,000 partner universities in 50 countries

Major strategic cooperation agreements with top universities in the US, Europe and China

Expert exchange: Some 200 lectureships, fellowships and honorary professorships

Siemens recruited more than 11,000 engineering graduates in 2010

World-record efficiency boost only achievable with a deep R&D network integration for gas turbine engineering

Some 50 leading universities worldwide contribute their core competencies

Preferred and approved suppliers focused on strategic specific components

>60%

Vision

Total plant efficiency

Past 2010 Future

Siemens Innovation Day 2011Klaus Helmrich, CTO15

Accelerators as Open Innovation concepts for fast commercialization of technologies

Implementing external leading edge innovations / leveraging internal innovations

Technology-to-Business Centers in Berkeley and Shanghai

Value creation

Culture

Result

Promoting innovation culture and techno-preneurial spirit

TTB (28 spin-ins, 9 start-ups), STA (8 Spin-offs, 9 sale / licensing deals) through 2010

Siemens Technology Accelerator in Munich

Focus on outside/in transactions Focus on inside/out transactions

Market Market

Siemens Innovation Day 2011Klaus Helmrich, CTO16

Siemens has been pioneering innovations in Industry, Healthcare, Energy and Infrastructure & Cities to address major global challenges.

With our partners worldwide, we provide leading edge technologies close to our customers.

We open up our innovation process to selected partners.

Get in discussion with our experts of our ten best examples!

Innovations in partnership