Siemens Corporate Technology | Business Excellence 2014 Open Co-Ideation @ Siemens An Innovation approach to connecting an organizations‘ knowledge and creativity Presented @ Innosite Conference, København | Christoph Krois Unrestricted © Siemens AG 2014. All rights reserved Win the future with innovative business models in complex business ecosystems Content Siemens – a short introduction Who are we ? Open Innovation @ Siemens What is it and why does it matter ? Open Co-Ideation example @ Siemens Data-driven Services Contest Key Takeaways Questions ? Page 2 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Siemens – a short introduction Page 3 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Siemens is organized in 4 Sectors: Industry, Energy, Healthcare and Infrastructure & Cities Siemens: Facts and Figures Siemens sectors Industry Key figures FY 2013 Energy Divisions • Industry Automation • Drive Technologies • Customer Services Divisions • Power Generation • Wind Power • Energy Service • Power Transmission Healthcare Divisions • Imaging & Therapy Systems • Clinical Products • Diagnostics • Customer Solutions Infrastructure & Cities Divisions • Rail Systems • Mobility & Logistics • Low and Medium Voltage • Smart Grid • Building Technologies • Sales: ~€ 76 bn. • Locations: In 190 countries • Employees: ~362,000 • R&D expenses: ~€ 4.3 bn. • R&D engineers: ~29,800 • Inventions: ~8,400 • Active patents: ~60,000 ~€ 19 bn.1) ~€ 27 bn.1) Corporate functions Corp. Finance Corp. Technology Corp. Development … ~€ 14 bn.1) ~€ 18 bn.1) Corporate Technology 1) Sales in FY 2013 Page 4 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Siemens Corporate Technology fulfills 3 missions within Siemens Siemens: Facts and Figures Siemens sectors Industry Energy Divisions • Industry Automation • Drive Technologies • Customer Services ~€ 19 bn.1) Divisions • Power Generation • Wind Power • Energy Service • Power Transmission ~€ 27 bn.1) Corporate functions Corp. Finance Corp. Technology Corp. Development … Healthcare Divisions • Imaging & Therapy Systems • Clinical Products • Diagnostics • Customer Solutions ~€ 14 bn.1) Infrastructure & Cities Divisions • Rail Systems • Mobility & Logistics • Low and Medium Voltage • Smart Grid • Building Technologies ~€ 18 bn.1) Corporate Technology 3 missions of CT § Secure the technological and innovation base of Siemens § Secure the technological and innovation future of Siemens § Support Siemens as an integrated technology company 1) Sales in FY 2013 Page 5 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Corporate Technology provides leading-edge methods for a systematic approach to innovation Identify Trends, Scenarios & Technologies Determine Innovation Focus & Understand Eco System Develop Business Model & Realization Plan Incorporate existing obvious and unobvious expertise & creativity A systematic & combined approach to innovation increases chances of market success Source: Business Excellence / top+ Page 6 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Innovation @ Siemens Why does it matter ? Page 7 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Joy‘s law “No matter who you are, the smartest people work for someone else”. - Bill Joy Joy’s law, named after the co-funder of Sun Microsystems Page 8 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Innovation has a long history @ Siemens1) – a Web2.0 supported approach is a new discipline ~1900 2008 First university cooperation Open Co-Ideation Contests STA & TTB First lead customer workshop Management of employees' ideas TechnoWeb2.0 First centers of Competence Scouting/ InnoPortal E-Broker Traditional innovation mgmt. rules New options in the "Open Innovation" game: Focus on bilateral partnerships Use unobvious sources § Workshops or mailboxes as frame for ideation § IT-based methodologies ("Web2.0") § Limited speed of network dynamics § Enhanced speed in the dynamics of networks § Default: Maximize IP protection § Balance between IP protection and openness Source: Business Excellence / top+ Page 9 September 2014 § New levels of scalability 1) Selection of examples is not exhaustive Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Changing demands in the business world ask for new approaches Solutions Typical Challenges § Need for matured Ideas § Need for collaboration § Need for higher efficiency of innovation process § Cost pressure § Faster time to market § Reduce non-conformance cost § Need for higher decision acceptance Source: Business Excellence / top+ Page 10 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation approaches @ Siemens What is it and why is it driving Innovation? Page 11 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved True innovation Easy said but difficult to realize Uncertain about the future of your business? How can we create additional value for our customers? What are tomorrows winning business models? What else could we do with our technology & capabilities? What should we do: • Strategy Meeting? • Wait? • Changes? What changes? Page 12 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Idea Management – the established way Classical Idea Management Idea generation Idea collection Pre-evaluation / Implement ??? Source: Business Excellence / top+ Page 16 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation facilitates the wisdom of Siemens through an oriented crowd development Principles of Co-Ideation Process New ideas by community Idea discussion and maturation Pre-selection Validation Final selection of winner ideas Implementation (guided within predefined framework) (supported by expert moderators) (through community and expert rating) (supported by expert moderators) (by high level management jury) (mandatory for success) Int. IP Ext. Source: Business Excellence / top+ Page 17 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation @ Siemens is a proven methodology which has been conducted since 2009 Overview of open Co-Ideation Contests 2009 External contests 2010 2011 2012 2013 1 5 Designs for emotional LED solutions Smart grid business opportunities, part I & II 2014 2 3 6 8 10 Sustainable company and portfolio ideas (Siemens) Products & solutions for urban markets & city dev. (Siemens India) Future business opportunities for high-voltage switchgears (E T HS) Innovative joining Technologies in PR (E F PR) Employee integration Siemens Office @PPC (Corporate Technology) 4 7 9 11 Business opportunities for the "Future of Hubs" (Siemens Mobility) Business opportunities for "Future of Metals" (I MT) Data driven services (Leverage Service @Siemens) Business opportunities for "CTI Cloud Computing" (CT RTC) Internal contests Source: Business Excellence / top+ Page 18 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation example @ Siemens Data-driven Services Contest Page 19 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Data-driven Services Co-Ideation contest: Cross sector to gather, enrich, mature business ideas Combination of proven methodologies to gain value added business opportunities Leverage Service @ Siemens Open Co-Ideation Methodology • Data as a Service Framework to answer the guiding question: „How to create value added business from data?“ § Development of user stories & customer insights § Validation of existing data-driven service business ideas § Development of new data-driven business opportunities (high level) § Common description of ideas based on proven BizMo™ methodology • Business Model Framework (BizMo™) for Business Model Innovation Source: Business Excellence / top+ Page 20 September 2014 Corporate Technology § Community idea generation, evaluation, discussion & maturation Unrestricted © Siemens AG 2014. All rights reserved The “Data-driven Services" Idea contest showed the potential of Co-Ideation in a mega-trend topic Source: Business Excellence / top+ Page 22 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Some figures… … describe the main topics of the Leverage Service @ Siemens Data-driven Services Idea Contest 45 12 40 966 3272 6 190 1226 8802 2 4 65 Source: Business Excellence / top+ Page 23 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Key Takeaways Questions ? Source: Business Excellence / top+ Page 24 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved By now, three main use cases for internal Co-Ideation events have been identified Use case 1 Discuss a hot topic & develop business ideas 2 Engage employees in the regions 3 Let experts co-create the future Example Main outcome Mid 2013: “Data-driven Service” Idea Contest § Unexpectedly high level of participation and interaction across 40 countries § Strong company wide awareness § Ideas with manifold business focus § Highest motivation by employees who want to position themselves - intrapreneurs Early 2011: "Urban India" Idea Contest § High potential to gain innovations from nonHQ-countries § In India, do it the Indian way § Two strategic projects to elaborate business cases around winner ideas Mid 2012: “Innovative Joining Technologies” Idea Contest § Higher quality ideas achievable in expert teams § High acceptance & participation in expert com. § New cross organizational expert collaboration on common topic § Co-working on pre-defined content does work § Extremely high implementation rate (25%) Source: Business Excellence / top+ Page 25 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation methodology biosphere Typical Challenges § Need for matured Ideas § Need for collaboration § Need for higher efficiency of innovation process Open Co-Ideation Methodology § Highly integrative and efficient Ideation & maturation on Web2.0 platform § Fast Idea maturation § Direct feedback § Fully transparent § Cost pressure § Direct & fast community prioritization § Faster time to market § Reduce non-conformance cost § Need for higher decision acceptance through peer rating and expert assessment § Create awareness § Motivate & engage employees (swarm intelligence) § Flexible collaboration Source: Business Excellence / top+ Page 26 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Open Co-Ideation Methodology Success Factors • Alignment of owner, topic and approach with strategy • Senior management buy-in to visibly support OCI participation • Expectation management • Topic of interest for employees and strategic importance for mgmt. • Methodological support • Content expert project responsibility • Continuous personal coaching of moderators • In depth, continuous Community Management • Best practice sharing Source: Business Excellence / top+ Page 27 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Questions and Answers Thank you! Any Questions? Page 29 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Contact details Christoph Krois Senior Key-Expert Consultant Siemens AG Corporate Technology Business Excellence/ top+ Innovation Service & Project Management Consulting Group Innovation Management Phone: +49 89 636 633123 E-mail: christoph.krois@siemens.com www.siemens.com/corporate-technology Page 30 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Contact details Siemens AG Corporate Technology Business Excellence / top+ Volker Ganz Head of Practice Innovation, Service & Project Management (CT BE PPC ISP) Phone: +49 (89) 636-633110 Mobile: +49 (174) 1533326 Email: volker.ganz@siemens.com Harald Schweickhardt Head of Consulting Group Business Innovation (CT BE PPC ISP IM) Mobile: +49 (173) 2532720 Email: harald.schweickhardt@siemens.com Page 31 September 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved