Innovation in an Enterprise 2.0 Assoc. Prof. Dr. Michael Heiss Global Vice President for Knowledge, Innovation & Technology Siemens IT Solutions and Services © Siemens AG Austria 2009. All rights reserved.

Vision of an innovative Enterprise 2.0 Page „ Who has helped you in your professional work during the last 12 month“

How does innovation work? How does Enterprise 2.0 support innovation? How can Microblogging help? Case study within Siemens Agenda

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

1st extreme: the one man show Page The CEO is the „all-knowing“ genius and innovator. The rest of the company is just executing. Cost effectiveness: up to 100% - no overhead Risk: high – even perfect CEOs are not always right. Entrepreneurship: yes! Innovation culture: innovation cult instead of culture, top-down Not scalable!

The CEO is the „all-knowing“ genius and innovator.

The rest of the company is just executing.

Cost effectiveness: up to 100% - no overhead

Risk: high – even perfect CEOs are not always right.

Entrepreneurship: yes!

Innovation culture: innovation cult instead of culture, top-down

Not scalable!

2nd extreme: chaos Page Everybody tries to be the genius innovator. Some are successful, some fail. Cost effectiveness: down to 0% - not enough resources / experience / management power to be really successful. Risk: high – not enough strategic guidance Entrepreneurship: to small Innovation culture: yes, but often pseudo bottom-up

Everybody tries to be the genius innovator.

Some are successful, some fail.

Cost effectiveness: down to 0% - not enough resources / experience / management power to be really successful.

Risk: high – not enough strategic guidance

Entrepreneurship: to small

Innovation culture: yes, but often pseudo bottom-up

Adapted 1st extreme: the central portfolio management department Page In large companies the CEO is no longer able to know everything better. A central portfolio management department is supposed to do this job. Cost effectiveness: theoretically high, practically often low (if not well enough integrated into the operative business) Risk: medium/high – enough knowledge? Accepted by the operative units and countries? Entrepreneurship: needs to be clearly defined Innovation culture: low, top-down

In large companies the CEO is no longer able to know everything better.

A central portfolio management department is supposed to do this job.

Cost effectiveness: theoretically high, practically often low (if not well enough integrated into the operative business)

Risk: medium/high – enough knowledge? Accepted by the operative units and countries?

Entrepreneurship: needs to be clearly defined

Innovation culture: low, top-down

Adapted 2nd extreme: networked innovators Page Everybody has the chance to know everything and to be an innovator Cost effectiveness: medium Risk: medium/low (if the network works well) Entrepreneurship: works only if enough risk money is available Innovation culture: high, bottom-up focussed Very creative setting customers & partners

Everybody has the chance to know everything and to be an innovator

Cost effectiveness: medium

Risk: medium/low (if the network works well)

Entrepreneurship: works only if enough risk money is available

Innovation culture: high, bottom-up focussed

Very creative setting

Enterprise 2.0: optimized interoperability of network / line management / small central functions Page Dynamic switching between network and hierachy. Everybody learns what the ingredients of good innovations are. Network : Innovation idea (“ Invention “) and support of implementation. Hierarchy : Innovation realization (“ Innovation “) and strategy. Cost effectiveness: optimized (if done right) Risk: minimized (if done right) Entrepreneurship: yes Innovation culture: high, balanced: bottom-up and top-down, customer oriented switching customers & partners

Dynamic switching between network and hierachy.

Everybody learns what the ingredients of good innovations are.

Network : Innovation idea (“ Invention “) and support of implementation.

Hierarchy : Innovation realization (“ Innovation “) and strategy.

Cost effectiveness: optimized (if done right)

Risk: minimized (if done right)

Entrepreneurship: yes

Innovation culture: high, balanced: bottom-up and top-down, customer oriented

Learning: be able to master both: hierarchy and network For Prof. Peter Kruse successful company leadership means: “ ... that we should learn to differentiate between different phases of company activities. If a company is stimulating the search for inventions – to discoveries and the creative advancement of ideas – then it makes perfect sense that it always ‘switches’ to a rather more egalitarian network function. Just suppose that the right idea’s been found; then the next stage is to realize it , to take the step from invention to innovation. And if you practice innovation you need to bundle your forces together. In other words you need to have a very precise way of proceeding and a hierarchical way of proceeding certainly fits that bill. You shouldn’t think that networks are a way of replacing hierarchies. What happens is that functions become more specific. I have to be capable of mastering both of them .” Page W. Buhse, U. Reinhard (eds.): „DNAdigital - Wenn Anzugträger auf Kapuzenpullis treffen: Die Kunst aufeinander zuzugehen“, Whois Verlag; 1st edition, February 25, 2009, p.191. http://de.wikipedia.org/wiki/Peter_Kruse

For Prof. Peter Kruse successful company leadership means:

“ ... that we should learn to differentiate between different phases of company activities. If a company is stimulating the search for inventions – to discoveries and the creative advancement of ideas – then it makes perfect sense that it always ‘switches’ to a rather more egalitarian network function.

Just suppose that the right idea’s been found; then the next stage is to realize it , to take the step from invention to innovation. And if you practice innovation you need to bundle your forces together. In other words you need to have a very precise way of proceeding and a hierarchical way of proceeding certainly fits that bill.

You shouldn’t think that networks are a way of replacing hierarchies. What happens is that functions become more specific. I have to be capable of mastering both of them .”

How does innovation work? How does Enterprise 2.0 support innovation? How can Microblogging help? Case study within Siemens Agenda

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

Enterprise 2.0 and innovation: plan the unplanned Page Solely planned communication is not sufficient – you would never plan to meet somebody in a field which you do not know that it exists. Plan the unplanned communication! Classical formats: External: e.g. customer advisory boards, conferences, fairs, journals, patents, universities, analysts… Internal: e.g. innovations days, technology events – not just role-based but a good composition of both, management & experts Today: travel restrictions in many companies Enterprises 2.0 use social media tools like wiki, blog, micro-blogging, Xing, LinkedIn, Facebook, Flickr to laverage the unplanned communication

Solely planned communication is not sufficient – you would never plan to meet somebody in a field which you do not know that it exists.

Plan the unplanned communication!

Classical formats:

External: e.g. customer advisory boards, conferences, fairs, journals, patents, universities, analysts…

Internal: e.g. innovations days, technology events – not just role-based but a good composition of both, management & experts

Today: travel restrictions in many companies

Enterprises 2.0 use social media tools like wiki, blog, micro-blogging, Xing, LinkedIn, Facebook, Flickr to laverage the unplanned communication

How does innovation work? How does Enterprise 2.0 support innovation? How can Microblogging help? Case study within Siemens Agenda

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

Microblogging: lower barrier, higher frequency Page following interesting persons retweeting interesting messages non-public replies Continuous search on “Enterprise 2.0“ Continuous search on “Open Innovation” publishing 140 letters messages incl. link Number of Enterprise 2.0 tweets on June 11, 2009 25 20 15 10 5 0 00:00 04:00 08:00 12:00 16:00 20:00 24:00

Example: discovering the blog of Prof. McAfee (Harvard University) in less than 2 hours after he published it Page 25 20 15 10 5 0 00:00 04:00 08:00 12:00 16:00 20:00 24:00 2.0: Technology is used to broadcast information publicly to people both known and unknown 1.0: Technology is used to transmit information privately to known people Example from McAfee‘s blog at http://andrewmcafee.org/blog/?p=871 June 10, 2009: 18:13 McAffee, Boston 18:19 RT New Jersey 18:29 RT Canada 18:46 RT Singapore 19:01 RT San Francisco 19:10 RT Stuttgart 19:30 RT Washington 20:08 RT Vienna 20:25 RT Hawaii RT…retweet

Microblogging is… Page a dynamic social bookmarking tool (at least a typical use case of professional users) helps to separate the business stream (mailbox) from the knowledge stream (twitter) : the business stream needs 100% be read, elements of knowledge stream: only if the subject looks interesting (and if you have time) increases the communication frequency compared to full blogs as the barrier is much lower (less time required) and increases the private/collaboration/social aspect which is important for globally distributed teams generates a digital activity stream which helps to identify implicit knowledge of experts

a dynamic social bookmarking tool (at least a typical use case of professional users)

helps to separate the business stream (mailbox) from the knowledge stream (twitter) : the business stream needs 100% be read, elements of knowledge stream: only if the subject looks interesting (and if you have time)

increases the communication frequency compared to full blogs as the barrier is much lower (less time required) and increases the private/collaboration/social aspect which is important for globally distributed teams

generates a digital activity stream which helps to identify implicit knowledge of experts

How does innovation work? How does Enterprise 2.0 support innovation? How can Microblogging help? Case study within Siemens Agenda

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

The basic idea of TechnoWeb 2.0: identify implicit knowledge via the activity stream of the appropriate expert Page activity stream visible limited access data privacy not visible lower accessibility higher accessibility higher business value lower business value identifyable

Knowledge Networking across the organization is not just a vision: it already works today Page Example: Social Network Analyses at Siemens IT Solutions and Services System Development and Engineering „ Who has helped you in your professional work during the last 12 month“

634 technologies are already supported by knowledge networks of today's TechnoWeb Page 10 years of experience with TechnoWeb Facts of TechnoWeb 534 knowledge networks 8072 members 634 technologies 3366 network services 38 countries Examples for knowledge networks within TechnoWeb: RFID, Green IT, Car-2-X, Security, DEMS, Architecture, Remote Service, Modeling, Semantic Systems Networks related to technology Focus on networks of experts Open for all Very low costs for operation Key aspects of SIS TechnoWeb Trend setting: 31,6 % of TW members are already in Siemens top priority trends (analysis FY08) Early/fast identification: Significant Improvement regarding availability/visibility of new technologies Innovation: TechnoWeb members have a 7 times higher probability of a successful innovation idea. Cost reduction: 0‘4 Mio € in FY2008 could be saved only by the TechnoWeb urgent requests Business impact start small and evolve continuously (business demand driven) Hold barriers low for participation Balanced bottom up / top down approach

Facts of TechnoWeb

534 knowledge networks

8072 members

634 technologies

3366 network services

38 countries

Networks related to technology

Focus on networks of experts

Open for all

Very low costs for operation

Trend setting: 31,6 % of TW members are already in Siemens top priority trends (analysis FY08)

Early/fast identification: Significant Improvement regarding availability/visibility of new technologies

Innovation: TechnoWeb members have a 7 times higher probability of a successful innovation idea.

Cost reduction: 0‘4 Mio € in FY2008 could be saved only by the TechnoWeb urgent requests

start small and evolve continuously (business demand driven)

Hold barriers low for participation

Balanced bottom up / top down approach

Our 6 rules for shifting TechnoWeb from Web 1.0 to Web 2.0 Page Keep the basics of TechnoWeb which made TechnoWeb successful. Identify those web 2.0 features which really add value to the users, do not include all possible new features. Do not compete with other platforms but focus on smooth integration of existing solutions within the organization – e.g. Sharepoints, Blogosphere and Wikisphere. Focus on networking/sharing the implicit knowledge and do not think that it is possible to explicit all the knowledge. Don't forget that tooling is just 10% of the story – never forget the accompanying activities to build up a networking culture. Start with a slim solution (minimal budget) which shapes the new identity of the TechnoWeb 2.0 application – additional features will be added later, if they add value. 1 3 2 4 5 6

Keep the basics of TechnoWeb which made TechnoWeb successful.

Identify those web 2.0 features which really add value to the users, do not include all possible new features.

Do not compete with other platforms but focus on smooth integration of existing solutions within the organization – e.g. Sharepoints, Blogosphere and Wikisphere.

Focus on networking/sharing the implicit knowledge and do not think that it is possible to explicit all the knowledge.

Don't forget that tooling is just 10% of the story – never forget the accompanying activities to build up a networking culture.

Start with a slim solution (minimal budget) which shapes the new identity of the TechnoWeb 2.0 application – additional features will be added later, if they add value.

TechnoWeb 2.0 provides an integrated “Dashboard" for technology workers Page The Siemens Technology Network Dashboard Techno Web 2.0 Members rating + Rating of network activity Short description of technology/topic Member communication Services and experiences provided by the network Links & references to related content Partner Networks De-centrally emerging structure Topics that are related to network Incorporated Fast Technology Search network members / experts. Links to personal page Communities with related topics Network services/references Abstract Information Partner Tools Application Evaluation Coaching Consulting Workshops Literature Helpdesk Trainings Projects Best Pract. Miscellan. Abstract Abstract Abstract Abstract Abstract Abstract Abstract Abstract

The key features of TechnoWeb 2.0 Page Assignment of people to networks (create, join, unjoin) Urgent requests Bi-directional Mail-Interface Dynamic member administration Activity stream RSS to interface with activity streams of other systems and internet content Tagging for decentralized structuring of content and communication Personal page and network page Architecture based on web services, portlets and open APIs TechnoWeb acts as content aggregation and navigation platform. Real content is only stored on interfaced platforms (Wikis,Blogs,SP) TechnoFlash: integrated Livemeeting support

Assignment of people to networks (create, join, unjoin)

Urgent requests

Bi-directional Mail-Interface

Dynamic member administration

Activity stream

RSS to interface with activity streams of other systems and internet content

Tagging for decentralized structuring of content and communication

Personal page and network page

Architecture based on web services, portlets and open APIs

TechnoWeb acts as content aggregation and navigation platform.

Real content is only stored on interfaced platforms (Wikis,Blogs,SP)

TechnoFlash: integrated Livemeeting support

Balanced Innovation Management: you need both, hierarchy (top-down) and network (bottom-up) Innovation needs unplanned communication: plan the unplanned Enterprise 2.0 methods like microblogging support the unplanned communication and leverage the innovation capability The most valuable knowledge is in the brain of the employees – this can be identified by their activity stream Conclusions

Balanced Innovation Management: you need both, hierarchy (top-down) and network (bottom-up)

Innovation needs unplanned communication: plan the unplanned

Enterprise 2.0 methods like microblogging support the unplanned communication and leverage the innovation capability

The most valuable knowledge is in the brain of the employees – this can be identified by their activity stream

Thanks for copyrights of the visualization photos to: Page “ Hierarchy” by Jurvetson Eye Catcher for Visualizations in Powerpoint Presentations Siemens AG Siemens Brandville “ In This Defence” by Adam Wise Eye Catcher for Visualizations in Powerpoint Presentations Siemens AG Siemens Brandville “ Hoe rain forrest” by Gerhard Käfer Eye Catcher for Visualizations in Powerpoint Presentations “ Networked Organizational Structure” by Michael Heiss Eye Catcher for Visualizations in Powerpoint Presentations “ Innovation” by Michael Heiss Eye Catcher for Visualizations in Powerpoint Presentations “ TechDay 07” by Helge Süß

Assoc. Prof. Dr. Michael Heiss Global Vice President for Knowledge, Innovation and Technology Siemens AG Österreich Siemens IT Solutions and Services Gudrunstraße 11 1100 Vienna Austria Phone +43-5-1707-46560 Fax +43-5-1707-56591 Mobile + 43-664-8855 1526 mailto: [email_address] http://twitter.com/heisss Thank you for your attention! Page

Assoc. Prof. Dr. Michael Heiss Global Vice President for Knowledge, Innovation and Technology

Siemens AG Österreich Siemens IT Solutions and Services Gudrunstraße 11 1100 Vienna Austria Phone +43-5-1707-46560 Fax +43-5-1707-56591 Mobile + 43-664-8855 1526 mailto: [email_address]

http://twitter.com/heisss