Opening Innovation

1. Doz. Dr. Michael Heiss Siemens AG Chief Technology Office Open Innovation Opening Innovation

2. Guess, which situation is preferred by most of the employees? 29.03.11 CT O Open Innovation Cozy, familiar , proven outcome, protected Fuzzy, cold, risky, unfamiliar, unknown result Inside the firewall Outside the firewall

3. Which situation has more innovation potential? 29.03.11 CT O Open Innovation Opening? Internal Innovation Open Innovation Thousands of “light bulbs” * WYSIWYG : “ W hat Y ou S ee I s W hat Y ou G et”, light bulb as symbolization of innovation WYSIWYG*: your innovation

4. How can you start the opening process towards an open innovation culture? Opening? 29.03.11 CT O Open Innovation Internal Innovation Open Innovation Thousands of “light bulbs” * WYSIWYG : “ W hat Y ou S ee I s W hat Y ou G et”, light bulb as symbolization of innovation WYSIWYG*: your innovation <ul><li>Opening Strategy: </li></ul><ul><li>Leave the abstract top level view and take them to the ground level: </li></ul><ul><li>Enable fascination </li></ul><ul><li>Experience trust-relationships </li></ul>

5. Enable the Fascination for Open Innovation Methods, Foster the Experience of Productive Trust-Relationships Thousands of “light bulbs” <ul><li>Opening Strategy: </li></ul><ul><li>Leave the abstract top level view and take them to the ground level: </li></ul><ul><li>Enable fascination </li></ul><ul><li>Experience trust-relationships </li></ul>29.03.11 CT O Open Innovation Internal Innovation Open Innovation WYSIWYG * WYSIWYG : “ W hat Y ou S ee I s W hat Y ou G et”, light bulb as symbolization of innovation WYSIWYG*: your innovation

6. <ul><li>Opening Innovation at Siemens </li></ul><ul><li>Step 1: get experience with trust-relationships: </li></ul><ul><ul><ul><li>Knowledge Networking via TechnoWeb </li></ul></ul></ul><ul><ul><ul><li>Global Enterprise Search </li></ul></ul></ul><ul><li>Step 2: get fascinated by open innovation methods: </li></ul><ul><ul><ul><li>E-brokering </li></ul></ul></ul><ul><ul><ul><li>Idea contests and jams </li></ul></ul></ul><ul><li>Conclusion </li></ul>Agenda

7. “…take them to the ground level”: five concrete initiatives with concrete results 29.03.11 CT O Open Innovation Internal External Osram Idea contest Sustainability Idea contest Enterprise Search for Technologies TechnoWeb 2.0 Ideas Technologies E-broker

9. Siemens established a global internal social media platform, the so-called TechnoWeb 29.03.11 CT O Open Innovation 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 . Indentify experts due to their Activity Stream and memberships Part of the workplace of the future.

10. Goal of TechnoWeb: Building bridges - the potential is enormous! 29.03.11 CT O Open Innovation Commuter Train Laboratory Diagnostics Power Distribution Metering and Control Industrial Automation Systems Computational Fluid Dynamics Secure Software Development Source: Fabrizio De Pasquale

11. The configurable dashboard is the personalized access to all knowledge networks 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 TechnoWeb is open to all Siemens employees

12. TechnoWeb supports cross-Sector networking and establishes the experience of trust-relationships 29.03.11 CT O Open Innovation 121 316 369 398 248 250 228 206 CT 192 Industry 161 Health Number of networks with common participation 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 <ul><li>Computational Fluid Dynamics (E, H, I, CT, SIS) </li></ul><ul><li>eCar (E, H, I, CT, SIS) </li></ul><ul><li>Nondestructive Evaluation (E, H, I, CT) </li></ul><ul><li>Innovation Strategy (E, I, H, CT, SIS) </li></ul>

13. Success stories like the story of Alistair: “Grow Together” 29.03.11 CT O Open Innovation <ul><li>Alistair Gammie (H DX, UK) </li></ul><ul><li>In Brazil, Alistair supports the closing of a big deal – additional 11Mio EUR – with one of the biggest customer of Health Diagnostics, worldwide. </li></ul><ul><li>Results: </li></ul><ul><li>Customer feels Siemens is taking care of its business by proactively identifying problems and offering the right solution even within a week-end </li></ul><ul><li>Customer is comforted to get an overall quality solution from competent experts </li></ul><ul><li>Customer is confident that Siemens is the right choice: the partnership is stronger </li></ul><ul><li>The contract is finally signed </li></ul><ul><li>Alistair posts his request on Saturday night : </li></ul><ul><li>He receives 23 answers (also per email or phone) from Austria, India, UK, Germany, US, Belgium… </li></ul><ul><li>Colleagues belong to division like: CT DC, SIS, CT T, I MO, H DX, I IA </li></ul><ul><li>On Monday morning, at the final meeting, Alistair is able to discuss with the customer 5 possible solutions </li></ul>Our customer prints 1.2M barcodes a month. I noticed that quality is assessed by eye and monitored by untrained and multiple different staff. Is there a cheap solution available to automate the deterioration check?

14. Key learnings CoDev 2011, Jan 24 -26, Scottsdale, AZ CT O Open Innovation <ul><li>Early success stories show innovation potential of Enterprise 2.0 </li></ul><ul><li>Continuous adaption of the platform necessary to support business needs </li></ul><ul><li>Commitment of top management essential </li></ul><ul><li>Don’t forget to involve important stakeholders (work council, legal, patent, data protection, ECC) </li></ul><ul><li>TechnoWeb generates trust-relationships within Siemens </li></ul>

16. 29.03.11 CT O Open Innovation Enterprise Search for Technologies: again “find people (via their documents) to get answers”

18. E- brokers connect innovation seekers with problem solvers CT O Open Innovation Innovation Seeker Companies Problem Solvers Huge Network of Million Solvers Source: Dr. Thomas Lackner Priced-based problem solving via online R&D marketplace Large corporations, SMEs Start-ups Universities, R&D organizations Consultants Individual Experts

19. Examples for Requests for Proposals CT O Open Innovation Source: Dr. Thomas Lackner Challenge Sector Business intention E-broker Smart Grid & Power System Operation Energy Impact of Smart grid on grid architecture & components High capacity , frequent cycling energy storage Energy, CT Market overview and identification of emerging new technologies Robust Wireless Sensor Systems for Extreme Conditions Energy, CT Find Off-the-shelf solution available for Energy Service business High Throughput Automatic Parcel Unloading (of trucks) Industry MO Solving a bottleneck in logistics to increase speed of delivery Methodology for Structuring Technology Information ( Technology Map ) CTO OI, CT Enhance Enterprise Search with Technology Map

20. Recent Challenge „ High Throughput Automatic Parcel Unloading (of trucks)”, posted 05/2010 CT O Open Innovation Solving a bottleneck in logistics to increase speed-up processing I MO Postal Automation Specification Not of interest <ul><li>RFID labeling </li></ul><ul><li>Increased manual labor </li></ul><ul><li>32 proposals received (20 Industry, 8 Academic, 2 non profit lab, 2 consultant) </li></ul><ul><li>Variety of approaches, many “outside the box” </li></ul><ul><li>Frequent Use of Vacuum Grippers </li></ul><ul><li>Individual strengths in many areas could be targeted for combining and developing Siemens lead consortium </li></ul><ul><li>Seven proposals short-listed </li></ul><ul><li>Evaluation process ongoing </li></ul>Overview Example: Distributed Robotics LLC, NY <ul><li>Tilting trailer, with Overhead conveyer gripper, using both vacuum and fingers </li></ul><ul><li>previously implemented in the food industry </li></ul><ul><li>Unload at a rate of > 3000 per hour </li></ul><ul><li>Handle packages of a variety of sizes, weights, material and shapes </li></ul><ul><li>Variable Distribution of shapes (~8% soft bags and ~2% odd shapes </li></ul><ul><li>No fixed order or arrangement </li></ul><ul><li>Forces no greater than those experienced in a 30 cm drop </li></ul>Source: Dr. Thomas Lackner Request for proposal Results

21. E-Broker: summary & lessons learned CT O Open Innovation <ul><ul><li>Excellent relation to selected e-brokers established since 2009 </li></ul></ul><ul><ul><li>First Requests for Proposals (RFPs) gave deep insight in process and huge potential of e-broker approach </li></ul></ul><ul><ul><li>Results are promising, feedback of Siemens stakeholders is positive </li></ul></ul><ul><ul><li>Present topic selection did not allow to find golden nuggets (we still focus on “confirmation of knowledge”) </li></ul></ul><ul><ul><li>Full exploitation of e-broker if various stakeholders are involved during entire process </li></ul></ul><ul><ul><li>Internal barriers have to be overcome (e.g. “It’s our job to solve the problem”). </li></ul></ul><ul><ul><li>Change of mindset : From NIH (Not Invented Here) to PFE (Proud of having it Found Elsewhere) </li></ul></ul>Confidential E-broker: An efficient approach to an Open Networked Enterprise Source: Dr. Thomas Lackner

23. The external Osram idea contest: new design and application ideas CT O Open Innovation Contest details <ul><ul><li>Collaborative evolution of fresh design ideas and application concepts for existing LED technology </li></ul></ul><ul><ul><li>Phase I (May 8 th – June 25 th 2009): </li></ul></ul><ul><ul><ul><li>Ideas to be collected, prioritized and assessed, top 3 with financial awards </li></ul></ul></ul><ul><ul><ul><li>Creation of an active design community on the contest platform </li></ul></ul></ul><ul><ul><li>Phase II (July 8 th – July 23 rd 2009): </li></ul></ul><ul><ul><ul><li>10 ideas selected for further development (e.g. technical solution, design alternatives) </li></ul></ul></ul><ul><ul><ul><li>Establishing of a permanent community </li></ul></ul></ul>"LED – emotionalize your light" Source: Dr. Thomas Lackner

24. Unexpected amount and quality of design concepts – additional marketing and branding effect CT O Open Innovation Results after phase I <ul><ul><li>3 awarded design concepts </li></ul></ul><ul><ul><li>10 concepts selected for further development in phase II </li></ul></ul><ul><ul><li>Huge visibility and marketing effect: </li></ul></ul><ul><ul><ul><li>37,630 web-site visits 1) with 258,000 actions 1) </li></ul></ul></ul><ul><ul><ul><li>Viral presence in >200 blogs, networks and forums </li></ul></ul></ul><ul><ul><li>More than 500 ideas from 9 topic clusters 2) </li></ul></ul><ul><ul><li>Creation of the first active, truly international LED community world-wide with more than 900 members 3) </li></ul></ul>Huge further potential yet to be leveraged 1) only counting LED-emotionalize.com 2) e.g. garden, outdoor, furniture, lamps, etc. 3) for a first impression: see next slides (community / design ideas)

25. 29.03.11 CT O Open Innovation Internal Siemens Sustainability Idea Contest Source: Bernd Blumoser Join in from April 19 th – June 11 th, 2010 (for all Siemens employees) Make use of a proven Open Innovation methodology <ul><li>The contest sponsors are Mrs. Kux and Prof. Requardt </li></ul><ul><li>A high-profile jury from corporate and sectors will award the top ideas </li></ul><ul><li>Expected results: </li></ul><ul><ul><li>New impulses for your division and business unit </li></ul></ul><ul><ul><li>Ideas which mature on the way and profit from different perspectives </li></ul></ul><ul><li>Portfolio & company ideas </li></ul>

26. Siemens (internal) Sustainability Idea Contest Output (19.04. - 11.06.2010): 850 Ideas 2.584 Members 3.259 Evaluations 3.525 Detailed evaluations 2.234 Comments 879.524 Page views 43.044 Visitors Activity after Contest End (12.06. -15.07.2010): + 0 Ideas (function disabled) + 575 Members + 1.018 Evaluations + 1.123 Detailed Evaluations + 462 Comments + 496.313 Page views CT O Open Innovation CoDev 2011, Jan 24 -26, Scottsdale, AZ

27. <ul><li>Open Innovation methodology: based on social media platform </li></ul><ul><li>Two submission phases: </li></ul><ul><ul><li>13.4. - 31.5.2011: Public Phase: Idea contest Everybody may submit, comment, rate ideas and win attractive prizes. </li></ul></ul><ul><ul><li>4.10.-30.11.2011 : University Phase: Call-for-research-proposals University Program only - option of startup seed-funding for best projects. </li></ul></ul><ul><li>Ideas and proposals shall address: </li></ul><ul><ul><li>Smart Grid business models </li></ul></ul><ul><ul><li>Smart Grid technologies </li></ul></ul><ul><li>Contest sponsors are Klaus Helmrich (CTO) and Dr. Richard Hausmann </li></ul>Siemens (external) Smart Grid Innovation Contest: Join the grid – energize the world. Total funding 1,000,000 € in total for research to create innovation out of the initial ideas € € € more investments possible, if the innovation is selected to be part of the Siemens portfolio www.siemens.com/smartgridcontest Winners Prices 15,000 € in total cash awards plus trip to Berlin

28. Global involvement of utilities, industry, academia and creative minds for a comprehensive market view minimum 1.000.000€ in total public idea contest call-for-proposals Awards 15 k€ in total

29. Our Social Media based Idea Contest Framework 29.03.11 CT O Open Innovation Tools & Process Community Functionalities <ul><ul><li>Idea entry toolkit </li></ul></ul><ul><ul><li>Intuitive exploration of idea pool (e.g. tag cloud, photos) </li></ul></ul><ul><ul><li>Connecting ideas </li></ul></ul><ul><ul><li>Evaluation tool, rating </li></ul></ul><ul><ul><li>Pre-selection by moderators </li></ul></ul><ul><ul><li>Jury meeting </li></ul></ul><ul><ul><li>Detailed profiles </li></ul></ul><ul><ul><li>Pinboard </li></ul></ul><ul><ul><li>More ideas from this member </li></ul></ul><ul><ul><li>Visitors of my profile &ideas </li></ul></ul><ul><ul><li>Comments & discussion </li></ul></ul><ul><ul><li>Forwarding of ideas </li></ul></ul>Community Management <ul><ul><li>Attention for the project </li></ul></ul><ul><ul><li>User support </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Acknowledgement </li></ul></ul><ul><ul><li>(Appeasement) </li></ul></ul>Developed in cooperation with Hyve

30. 29.03.11 CT O Open Innovation Characteristics of a Web2.0 based Idea Contest Benefit Success criteria <ul><ul><li>Empower employees to contribute directly and visibly to large innovation community </li></ul></ul><ul><ul><li>Leverage huge innovation potential of Siemens crowd </li></ul></ul><ul><ul><li>Create awareness of Siemens employees for a high priority topic </li></ul></ul><ul><ul><li>Motivate employees to exchange and jointly develop new ideas </li></ul></ul><ul><ul><li>Get fast community prioritization of ideas </li></ul></ul><ul><ul><li>Avoid bottleneck of evaluating 100s of ideas by central expert team </li></ul></ul><ul><ul><li>Lower risk of wrong decision by running transparent process with many different stakeholders </li></ul></ul><ul><ul><li>Choose a topic of high priority </li></ul></ul><ul><ul><li>Choose level of communication , where many people can contribute </li></ul></ul><ul><ul><li>Demonstrate, that Siemens has a clear interest in new ideas ( Management attention ) </li></ul></ul><ul><ul><li>Show transparency of entire process (rules for participation, evaluation criteria, road for implementation, awards) </li></ul></ul><ul><ul><li>Respect and trust community, rely on peer rating </li></ul></ul><ul><ul><li>Award best ideas and promote implementation within Siemens </li></ul></ul><ul><ul><li>Communicate success stories </li></ul></ul>

32. Photo: networking based on trust Conclusion: establish trust and fascination

33. Contact Twitter: twitter.com/heisss Slideshare: www.slideshare.net/heisss Xing: www.xing.com/profile/Michael_Heiss2 LinkedIn: www.linkedin.com/in/michaelheiss Flickr: www.flickr.com/photos/michaelheiss Blog: heisss.wordpress.com Phone: +43-5-1707-46560 Dr. Michael Heiss Siemens AG Chief Technology Office Open Innovation

34. <ul><li>Opening Innovation at Siemens </li></ul><ul><li>Step 1: get experience with trust-relationships: </li></ul><ul><ul><ul><li>Knowledge Networking via TechnoWeb </li></ul></ul></ul><ul><ul><ul><li>Global Enterprise Search </li></ul></ul></ul><ul><li>Step 2: get fascinated by open innovation methods: </li></ul><ul><ul><ul><li>E-brokering </li></ul></ul></ul><ul><ul><ul><li>Idea contests and jams </li></ul></ul></ul><ul><li>Conclusion </li></ul><ul><li>Appendix </li></ul>Appendix

35. Siemens Innovation – Milestones across the centuries CoDev 2011, Jan 24 -26, Scottsdale, AZ CT O Open Innovation

36. Innovation activities – Siemens follows many paths to innovation Generation of ideas Selection & Concept Techn. development Market launch Openness Innovation process Supplier / customer integration External cooperations External communities Cross- Sector Along the value chain Within Sector / Division Within BU IPR / Standard. Research & Development Idea Gene- ration Corp. Labs Idea Management Sales & Marketing Technology e-Broker Open expert networks Spin-in Spin-out Venture Capital

37. Knowledge Networks make Implicit Knowledge Available "The Knowledge Worker Investment Paradox" Gartner 2002 Employees get 50% to 75% of their relevant information directly from other people .

38. TechnoWeb 2.0 differs from other social platforms 29.03.11 CT O Open Innovation Object centered Person centered Network centered Systems build around people: LinkedIn Xing Facebook Systems build around networks focused on knowledge areas: TechnoWeb 2.0 Systems build around objects: Flickr YouTube Wikis Open Expert Networks

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