C O R PO RATE TECHNOLOGY s Information & Communications Pictures of the Future: Research and Development at Siemens Transportation Health JASS ´05 St. Petersburg, April 2005 Services Energy Automation & Control Prof. Dr. Dietmar Theis dietmar.theis@siemens.com © Siemens AG, CT, 2005 Outstanding innovations and sales development by Siemens AG, 1847 – 2005 Sales (in logarithmic scale) ISDN "HICOM" First GSM cellular phone with color display Start of Production of large-scale integrated (LSI) circuits C O R PO RATE TECHNOLOGY Innovations have kept Siemens strong for 158 years Market launch of Transrapid "Eurosprinter" Implantation of first cardiac pacemaker by Siemens 64-kbitmemory chip First Siemens radio receiver W.v. Siemens discovers dynamoelectric principle Fingertip sensors Digital electronic switching system (EWSD) first telephone exchange First 256 megabit chip ICE3 Siretom First Simatic First electric railway computer tomograph Magnetom Piezo injection valves Surface wave technology First pointer telegraph 1847 High purity silicon First traffic lights 1866 1879 19241926 1958 1959 1973 '74 '80 '81 '84 '92… '03 Year of introduction 1853 first office St. Petersburg © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Siemens – Global Network of Innovation (1) Broad scope of business Global presence (6 business segments, 13 Groups + SFS, SRE) (in more than 190 countries) Production sites 90 NAFTA 87 80 GER 45 EUR APAC ohne D 12 SAM 2 AFR ME Europe Medical Transportation 13,3 4,1 Lighting 7,0 North America Middle East Asia / Pacific Africa 10,8 South America Power 20,8 17,1 430.000 employees wordwide 164.000 (38%) in Germany 110.000 (26%) in Europe (w/o Ger) 95.000 (22%) in North America 52.000 (12%) in Asia-Pacific 9.000 (2%) in other countries Information and Communications Automation and Control External sales in billions of € w/o SFS, SRE) - FY 2003/04 Source: CD S 8 - 11/04 © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Siemens – Global Network of Innovation (2) R&D expenditure in 2004: 5,1 billions of € … … more than 50% for Software (worldwide about 30 000 Software engineers) Expenditures in billions of € Siemens 5,1 Matsushita 4,6 IBM 4,6 Sony 4,0 HP 3,9 Samsung 2,9 Hitachi 2,8 Toshiba 2,6 GE1) 1,8 Dell 0,5 Automatin Power Transportation & Control Medical Information and Communications Business Units 1 US$ = 0,82125 EUR 1 Yen = 0,00755 EUR 1 Won = 0,00070 EUR 1) e/o GECS (GE Capital Services) Corporate Technology Sourcee: Siemens AG, CD S 8 – 11/04 © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Worldwide Activities in R&D London Chatham Peterborough Tilbury Drummondville Sacramento Auburn Hills Burlington Berkeley Hoffmann Danvers Mountain View Concord Estates Piscataway Pittsburgh Santa Clara San José Princeton Johnson City San Diego Arlington Newport News Norcross Knoxville Austin Lake Mary Orlando Issaquah Mülheim Pandrup Göteborg Helsinki Oslo Bracknell St. Petersburg Eynsham Roke Manor Berlin Dresden Erlangen-Nuremberg Karlsruhe Brussels Changchun Regensburg Paris Zurich Bratislava Vienna Budapest Toulouse Beijing Seoul Tokyo Istanbul Porto Tianjin Athens Netanya Lisbon Kawasaki Graz Ichon Yokohama Xi‘an Madrid Tel Aviv Linz Nanjing Shanghai Kakegawa Zaragoza Munich Salzburg New Delhi Taipei Chengdu Sophia Treviso Bombay Antipolis Hong Kong Milan Goa Bangalore Penang Sao Paulo Curitiba Pretoria Melbourne Buenos Aires Sydney Date: 30.09.2003 © Siemens AG, CT, 2005 C O R PO RATE TECHNOLOGY Corporate Structure (as of October 1, 2004) Managing Board Operations Corporate Departments Information and Communications Automation and Control Power Communications (COM) Automation and Drives (A&D) Power Generation (PG) Corporate Finance (CF) Siemens Business Services GmbH & Co. OHG (SBS) * Industrial Solutions and Services (I&S) Power Transmission and Distribution (PTD) Corporate Personnel (CP) Transportation Siemens Logistics and Assembly Systems (L&A) Transportation Systems (TS) Siemens VDO Automotive AG (SV) * Medical Medical Solutions (Med) Siemens Building Technologies AG (SBT) * Lighting Osram GmbH * Financing and Real Estate Siemens Financial Services GmbH (SFS) * Siemens Real Estate (SRE) Regional Units: Regional Offices, Regional Companies, Representative Offices, Agencies Corporate Technology (CT) Corporate Development (CD) Corporate Centers: Corporate Communications (CC) Corporate Information and Operations (CIO) Global Procurement and Logistics (GPL) Chief Economist / Corporate Relations (ECR) Management Consulting Personnel (MCP) *) Legally Separate Group © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Business Model of Corporate Technology Goal:Creation of Economic Value Added for the Company • Pictures of the Future - Markets - Trends - Technology - Business Opportunities • Technology Screening & Analysis Cross Business Group/Segment Technology Strategies for the Company Innovations Strategies B Projects for the Business Group (Contract R&D) B Projects to build up new competences Core Business New Business opportunities by external commercialization of technologies and IPRs External Business International Network of CompetencesWorldwide Partner for Innovations • Spin off´s (STA, TTB*) • IP marketing • External marketing of technological services * Partnership with A&D, including spin-in‘s © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Structure of Corporate Technology (Status: October 1, 2004) Corporate Technology Technology Divisions Corporate Intellectual Property Materials & Microsystems Production Processes Power & Sensor Systems Software & Engineering Information & Communications Intellectual Property Services Regional Intellectual Property Intellectual Property Support Company Name & Trademark Law Corporate Functions Strategic Planning Siemens Corporate Research, Inc. Standardization & Regulation Information Research Center Environmental Affairs & Technical Safety 2) Siemens Ltd. China Corporate Technology 2) Siemens Technology 2) Accelerator GmbH Human Resources Chief Information Officer Chief Knowledge Office Strategic Marketing SISL CT 2) Business Administration and Controlling International Relations & Projects OOO Siemens CT 2) Technology-to Business Center, LLC 2) Roke Manor Research, Ltd. 1) 1) 2) Functional reporting to Corporate Technology Separate Legal Entity; Part of Separate Legal Entity © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Corporate Technology: About 1,700 Researchers and Developers Worldwide … Roke Manor, Romsey Berkeley, CA Berlin Erlangen Beijing Tokyo Princeton, NJ München Perlach New Sites planned in 2005: • Shanghai • St. Petersburg • Moscow Bangalore © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Corporate Technology: International Network of Competences – Worldwide Partner for Innovations Services 1-3 Materials & Microsystems Information & Communications Technology Divisions Production Processes Power & Sensor Systems Strategy & Communication Strategic Marketing & Strategic Planning Licensing & Transactions Corporate Intellectual Property Company Name & Trademark Law Corporate Issues & Consultancies IP Support Software & Enginnering CT China Siemens Technology Accelerator Siemens Technologyto-Business Center Roke Manor Research* Intellectual Property US CT Russia Standardization & Regulation Corporate Functions Siemens Corporate Research * functional reporting Environmental Affairs & Techn. Safety CT India Information Research Center CT Liaison Office Tokyo © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Ultrafast Ceramics for Computed Tomography Functional Materials for Optoelectronics Functional Polymers Ceramics Multichip Module for Radar Evaluation Design to Prototype (D2P) Project: Environmentally Compatible Products Polymerelectronic Innovative Electronics Materials & Microsystems Analytics Micromechanics & Coatings Parallel Optical Link Packaging & Assembly Joining Technologies Electronic Assembly Eco-Design of Products Materials Analysis by Ion Bombardment Joining of Plastic Materials © Siemens AG, CT, 2005 CT / E 090-1 a - 10.03 C O R PO RATE TECHNOLOGY Remote Service Center Become Front-Runner with holistic Solutions Service Strategies and Processes Holistic Processes Service Management Field Service Innovation with System Product Definition Production Processes Manufacturing Engineering Innovative Manufacturing Technologies and Processes Realized Manufacturing Processes Structure Virtual Engineering From Concept to Product Simulation & Risk Management Optimized and reliable Products World Class Manufacturing Process Logistics With virtual Products and Processes to shorter Time to Market Technology Risk Analysis of hybrid Systems © Siemens AG, CT, 2005 CT / E 090-2 a - 05.03 TECHNOLOGY C O R PO RATE User Interface Design Usability Lab Protection of critical I&C infrastructure: Hacking prevention, incident handling User Interface Design Intelligent Robots and Software Agents assist everywhere Intelligent Autonomous Systems Knowledge Management & Business Transformation Information Networks & Multimedia & Communications Communications Interaction Technologies We add SENSE to Interaction Computer Emergency Response Team (CERT) Knowledge Management: Processes, Methods and Tools for distributed Organizations Security Neural Computation Neuro-Fuzzy Techniques for Systems & Industrial Projects Cryptographic Algorithms and Security Solutions and Consulting © Siemens AG, CT, 2005 CT / E 090-6 a - 05.03 R&D Expenses Business Groups C O R PO RATE TECHNOLOGY The Time Horizons of the R&D Activities of the Business Groups and of Corporate Technology are Different Total R&D expenses Corporate Technology Today One product generation in the future Two product generations in the future Time to market (The absolute time scale depends on business) A seamless transition from R&D in Corporate Technology to the Business Groups is crucial for our success © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE CT´s Technology Divisions: „Driver“ and „Provider“ of Innovations and Technologies Strategic principles ► Technology “Provider“ 58 % Contracted R&D for groups ► ► ► KnowHow 7% External funding ► ► Technology “Driver“ 35 % Corporate funding ► ► Focus & Multiple Impact Key Account Management Networking internally & externally Systematic Technol.&Innov. Planning „Strengthen the strength“ Acting as entrepreneurs Decentralization of responsibilitites Performance differentiation © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Technology-to-Business Center and Siemens Technology Accelerator Driving innovative technologies for “emerging markets” Combining technology and business orientation Generating new business through innovations: l l embedded in existing Siemens structures as start-up foundation Providing support through “seed money” from the business partners Impact on innovation and entrepreuneurship culture © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Strategic Planning of Innovations & Technologies Strategic Visioning Scenarios for the Business Segments Factors of Influence Individual Automation and Control "Retropolation" out of Scenarios Today‘s Business "Extrapolation“ via Roadmaps Products Technologies Customer Requirements New Markets New Customer Requirements New Technologies New Businesses Society Information and Communications Politics Lighting Economy Medical Environment Power Technology Customers Transportation Core Technologies: Sensors and Actuators Today Short-term Medium-term Competition Long-term Horizon of time (varies significantly in the different business segments) The combination of extropolation and retropolation leads to the © Siemens AG, CT, 2005 TECHNOLOGY : Detailed Description of All Relevant Trends of Our Business Segments Information & Communications Socio-economic trends C O R PO RATE Transportation society life of work Market trends Medical size / growth structure geographical Customer / business trends Lighting Power Automation & Control value chains / networks company´s structure processes Technological trends strategic importance multiple impact disruptive © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Future Electrical Engineering and Electronics: Main Trends with Relevance to Technology and Key Technologies „Software“ Software substitutes hardware … IT-security Increasing complexity Decentralisation of intelligence Neuro-/ bioinformatics … Semantic web Selforganizing systems Nanosystems Integration … Intelligent sensors & actuators … Miniaturisation … System architecture Nanomaterials … … Simulation/ optimization technologies Grid computing Knowledge discovery Virtualisation Augmented/ virtual reality Image and speech processing Embedded systems … „Systems“ Pervasive computing Mikro(nano)electronics Functional materials Modularisierung Modularisation … Integration Standardisation Light weight materials Sustainability „Biochips“ … … Robotics … Intelligent Displays Individualisation „Materials“ Core competence: interdisciplinary research and knowledge management © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Aspects for the Cooperation With the International public research Temporary student employees, interns, students working on theses, doctoral candidates, appointments to chairs and other teaching assignments Equipment, training material, partnerships with schools Awards, scholarship Publicly funded projects Research and development Training/Education Requirements profiles for engineers and scientists, internationalization, curricula, contributions to the work of associations Bilateral research projects, contract research Recruiting Experience-sharing Research and development policy Symposia / workshops “Siemens sponsors” Structure of the research landscape, overall legal situation Future markets, labor situation, knowledge society © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE Scientific Cooperation with International Public Research Institutions is of Great Importance for Siemens • • • • It helps integrating our R&D base in areas in which we do not (yet) have expertise of our own. It gets us in touch with the latest results of basic research and likewise supports the understanding of the research partner for modern applications. It facilitates recruiting top-notch young talent in the areas of engineering and science. It builds up our image by giving us a presence in the “scientific community”. We also support university research and education by supplying experts for about 350 teaching and visiting positions. © Siemens AG, CT, 2005 TECHNOLOGY C O R PO RATE When the winds of change are blowing, some build shelters and some build windmils . . . © Siemens AG, CT, 2005 © Siemens AG, CT, 2005 C O R PO RATE TECHNOLOGY TECHNOLOGY C O R PO RATE Siemens Corporate Technology: Mission, Vision and Strategy Goal: Creation of Economic Value Added for the Company Mission: Securing the technological future and Increasing the competitiveness of the company in close cooperation with the Business Groups and Regional Units Vision Network of Competences & Partner for Innovations Strategy • • • • Concentrating on core technologies Internal and external networking and cooperation Increased customer orientation Decentralizing responsibilities and fostering technopreneurship • Success-oriented allocation of resources • Systematic innovation and technology planning process © Siemens AG, CT, 2005 119,0 Total sales (in billions EUR) Sales in electrical engineering and electronics (in billions of euros) C O R PO RATE TECHNOLOGY The Top Ten Companies in Electrical Engineering and Electronics in Fiscal Year 2004 77,8 75,2 73,9 67,4 67,7 65,6 63,7 61,6 58,5 55,9 54,5 49,0 49,2 43,6 43,4 39,1 38,8 38,8 30,9 GE IBM Siemens Hitachi HewlettPackard Matsushita Sony Samsung Toshiba Electronics Dell © Siemens AG, CT, 2005