Innovation in an Enterprise 2.0

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 „ Es ist die nicht quantifizierbare, sondern nur erfühlbare Idealmischung aus fixen Vorgaben und kreativem Freiraum, die Jazz-Musiker zu künstlerischen Höchstleistungen antreibt.“ “ What drives jazz musicians to perform at their artistic best? It is that perfect, immeasurable mix of guiding principles and creative freedom which jazz musicians just develop a feel for.” Kurt Prohaska, jazz pianist, head of the Kurt Prohaska Trio and communication manager at Siemens IT Solutions and Services

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!

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

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

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

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

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

Agenda „ Es ist die nicht quantifizierbare, sondern nur erfühlbare Idealmischung aus fixen Vorgaben und kreativem Freiraum, die Jazz-Musiker zu künstlerischen Höchstleistungen antreibt.“ “ What drives jazz musicians to perform at their artistic best? It is that perfect, immeasurable mix of guiding principles and creative freedom which jazz musicians just develop a feel for.” Kurt Prohaska, jazz pianist, head of the Kurt Prohaska Trio and communication manager at Siemens IT Solutions and Services

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

Agenda

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

Agenda

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

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

“ Elevator Pitch” for the Siemens-internal social media tool TechnoWeb TechnoWeb: find people 1) to get answers Minimal pre-requisite is to join a network once 2) 1) Do no t expect to find answers directly in TechnoWeb, but expect to find the experts who know the answer! 2) High activity level is not necessary . Part of the workplace of the future

TechnoWeb connects people and supports the unplanned communication Personalized dashboard (incl. activity stream of joined networks) Network pages, with member list, partner network list, activity stream Public profile pages of each user (incl. activity steam ) with news and RSS-feeds Urgent request + Tag /Technology page + Search page + integration of Sharepoints,wikis, blogs... Open to all Siemens employees

Example of facts and figures supporting the vision 121 316 369 398 248 250 228 206 CT 192 Industry 161 Health Number of networks with common participation
Computational Fluid Dynamics (E,H,I,CT,SIS)
eCAR (E,H,I,CT,SIS)
Factory Planning (E,H,I,CT)
Innovation Strategy (E,I,H,CT,SIS)
Nondestructive Evaluation (E,H,I,CT)
Requirements Engineering (E,H,I,CT,SIS)
Usability (E,H,I,CT,SIS)
277 SIS Energy Source: 672 networks from https://technoweb.siemens.com 12.4.2010 Examples: 112 145 160 134 121 One month after the official launch of TechnoWeb

Building bridges by knowledge networking – the potential is enormous! Commuter Train Laboratory Diagnostics Power Distribution Metering and Control Industrial Automation Systems Computational Fluid Dynamics Secure Software Development Linda Pollari Linda Pollari Fabrizio De Pasquale.

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 „ Es ist die nicht quantifizierbare, sondern nur erfühlbare Idealmischung aus fixen Vorgaben und kreativem Freiraum, die Jazz-Musiker zu künstlerischen Höchstleistungen antreibt.“ “ What drives jazz musicians to perform at their artistic best? It is that perfect, immeasurable mix of guiding principles and creative freedom which jazz musicians just develop a feel for.” Kurt Prohaska

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

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

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Innovation in an Enterprise 2.0

by Michael Heiss

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