Steering an Enterprise Social Network

1. Unrestricted © Siemens AG 2014. All rights reserved Steering an Enterprise Social Network: do measures have the desired impact? A case study of Siemens TechnoWeb Siemens Corporate Technology | May 2014

2. Page 2 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Conclusion Metric results and derived measures Strategy and Metrics: The Balanced Score Card for TechnoWeb Siemens TechnoWeb Introduction – Why metrics? Agenda

3. Page 3 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved The earlier we know the impact of an activity, the more directed (efficient) we can manage the change Resources Challenge • We cannot1) efficiently manage change without feedback about our progress • Implementing metrics also costs resources The challenge: Reach the desired situation with minimal resources in a limited time period 1) Exception: a sufficiently accurate model about the system is available. Per definition this is not possible for complex systems. Change ManagementCurrent situation Desired Situation

4. Page 4 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Large Enterprise Social Networks require metrics: there is always something we did not know before Feedback Channels More than 3000 usersUp to 300 users Source: Christian Pescher, LMU: Social Network Analysis of Urgent Requests within Siemens TechnoWeb, data: 2/2014, colors represent the Siemens Sectors and CT • Change management is possible without formal metrics • Our personal network : • knowing the key players • knowing the key activities • open feedback culture within this network • Metrics are required for an efficient change management • In addition to our personal network • And formal feedback channels

6. Page 6 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved TechnoWeb: “Find People to get Answers” Enterprise Social Network for Siemens experts Personalized dashboard (incl. activity stream of joined networks) Network (Community) pages, with member list, partner network list, activity stream Public profile pages of each user (incl. activity stream) with news and RSS-feeds Urgent request (with target messaging) + advanced search and tagging + integration of Sharepoints, wikis, blogs... Open for all Siemens employees

7. Page 7 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved 435 Networks with all Sectors Examples:  Computational Fluid Dynamics (E, H, I, IC, CT)  Siemens Production System (E, H, I, IC, CT)  Nondestructive Evaluation (E, H, I, IC, CT)  Technology Scouting (E, H, I, IC, CT) Key Figures  > 1400 technology networks  > 38.000 users Corporate Problem Solving: Urgent Request  Ø 30 Mio.€/year accumulated business impact  Ø 7 Replies / Urgent Request (w/o Author’s comment)  Median: 31 minutes for first response TechnoWeb supports open cross-Sector collaboration # of networks with at least one member of A and B A B Number of TechnoWeb network with members from both sectors 435 • 749 I&C Industry CT • 619Energy Health Data: March 2014

9. Page 9 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved The new TechnoWeb strategy is based on Value Steering – RIP4ROI revisited Conference1) Amsterdam 2010: RIP or ROI? • TechnoWeb strategy of 2010 was presented via Balanced Score Card • Focus on quantity Today: 4 years later RIP 4 ROIRest in Peace for Return on Invest • TechnoWeb strategy of 2014 is presented via Balanced Score Card today What is new? • Challenge 1: Bridging the innovation chasm from early adopters to mainstream e.g. simplified user interface • Challenge 2: “Market share” due to the expansion of the internal ecosystem • Challenge 3: New actionable metrics (instead of “vanity metrics”) generated new insights and need for action e.g.: retention rate, persons without networks Today: more focus on value What changed since 2010? 1) See slides at http://de.slideshare.net/heisss/rip4-roi-siemens-heiss

10. Page 10 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Strategy: value steering focuses on the value (RIP) – the benefit (ROI) follows as a consequence Driver Tree for the TechnoWeb Balanced Score Card 2014 GrowthActivity Value (RIP) Benefit (ROI) Attract New Users # of new users per month, total # of users Foster Cross-Sector Communication Avg. # of sectors / network (quarterly) Enrich Targeting Information (Digital Trace) Avg. level, histogram of tag assigned (quarterly) Corporate Problem Solving Success Urgent Request Success Rate (including monitoring1) of Business Impact level of unanswered Urgent Requests), median of first response time (moving window over 12 months) Generate Business Impact Σ Business Impact in € of Urgent Request with reply (moving accumulation over 12 months) 1) Increase Retention retention rate (%) of not new users within 1 full month / 12 months 2) Trigger Cross-Sector Collaboration Avg. # of sectors / Urgent Request Provide Targeted Audience for Written Content (Write) write rate (%) of not new users within 1 full month / 12 months 2) Increase Recommendations # of invite activities / month Increase Moderated Content Total # of Technology Portals Provide Simple Interactions (Activity) activity rate (%) of not new users within 1 full month / 12 months2) Encourage Users to Join Networks # of users with network memberships 1) Details in monthly analysis 2) Details per cohort monthly and annually An improvement of A leads to an improvement of B (thick lines: strong dependency)BA

11. Page 11 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Conclusion Metric results and derived measures (selected examples) Strategy and Metrics: The Balanced Score Card for TechnoWeb Siemens TechnoWeb Introduction – Why metrics? Agenda

12. Page 12 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Strategy: value steering focuses on the value (RIP) – the benefit (ROI) follows as a consequence Driver Tree for the TechnoWeb Balanced Score Card 2014 (symbolic3)) GrowthActivity Value (RIP) Benefit (ROI) Attract New Users # of new users per month, total # of users Foster Cross-Sector Communication Avg. # of sectors / network (quarterly) Enrich Targeting Information (Digital Trace) Avg. level, histogram of tag assigned (quarterly) Corporate Problem Solving Success Urgent Request Success Rate (including monitoring1) of Business Impact level of unanswered Urgent Requests), median of first response time (moving window over 12 months) Generate Business Impact Σ Business Impact in € of Urgent Request with reply (moving accumulation over 12 months) 1) Increase Retention (Read) retention rate (%) of not new users within 1 full month / 12 months 2) Trigger Cross-Sector Collaboration Avg. # of sectors / Urgent Request Provide Targeted Audience for Written Content (Write) write rate (%) of not new users within 1 full month / 12 months 2) Increase Recommendations # of invite activities / month Increase Moderated Content Total # of Technology Portals A1 A2 A3 A4 A5 A6        Encourage Users to Join Networks # of users with network membership Provide Simple Interactions (Activity) activity rate (%) of not new users within 1 full month / 12 months2)  1) Details in monthly analysis 2) Details per cohort monthly and annually 3) For reasons of confidentiality the traffic lights do not show real values A1-A6: planned activities (see next slide) An improvement of A leads to an improvement of B (thick lines: strong dependency)BA   

13. Page 13 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Most of the planned activities are stimulating early drivers of the Balanced Score Card Examples of Activities A1-A6 • Inform users about the impact of tagging and motivate them to improve their digital trace • Enable mobile access (App) for key functions of TechnoWeb • Award those moderators who have the most new members in their network in a defined period (e.g. 3 month) Technology Portals Welcome Wizard Moderator’s Competition Newsletter EditorialMobile Access • Helps new users to identify interesting networks • Goal: every TechnoWeb user should be a member of at least one network • New network type Technology Portal supports better moderated content • Acquisition of new Technology Portals • Flexible in adding new functionality for Technology A1 A2 A3 A4 A5 A6  done  done  10/2014  2014  done

14. Page 14 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved 1 10 100 1000 10000 100000 Strong tag relationship (personally assigned tags, e.g. follow tag) Weak tag relationship (indirect tag assignment, e.g. by joining a network) Need for actions ( + + ): Many users have very good Digital Trace, but some have no Digital Trace Enrich Targeting Information (Digital Trace) Avg. level, histogram of tag assigned (April 2014) 37584 – 19397 = 18187 Metric: Average Digital Trace Level (weighted arithmetic average, weak tag levels are weighted with 0.5): 1.35 A6A3A2 A2: Welcome Wizard A3: (sorry, confidential) A6: Newsletter Editorial

15. Page 15 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Very good Cross-Sector participation within TechnoWeb networks Foster Cross-Sector Communication Histogram: number of networks with x number of Sectors (April 2014) Sectors considered: Energy, Healthcare, Industry, Infrastructure & Cities, CT + Others 79 196 293 365 511 0 100 200 300 400 500 600 1 2 3 4 5 Numberofnetworks Number of sectors Avg. # of sectors per network: 3.7 0 1 2 3 54

16. Page 16 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved In most cases, Urgent Request responses also come from other Sectors Trigger Cross-Sector Collaboration Number of Urgent Requests with X Number of Sectors Sectors considered: Energy, Healthcare, Industry, Infrastructure & Cities, CT + Others Sectors of users who have been deleted from the database (per April 17, 2014) are assigned to ‘CT + Others’ 263 424 390 252 142 0 50 100 150 200 250 300 350 400 450 1 2 3 4 5 NumberofUrgentRequest Number of Sectors Avg. # of Sectors per Urgent Request: 2.7 0 1 2 3 54

17. Page 17 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 Avg.NumberofSectors Month More and more Urgent Request responses come from other sectors Trigger Cross-Sector Collaboration Average Number of Sectors per Urgent Request (moving window over 365 days) Sectors considered: Energy, Healthcare, Industry, Infrastructure & Cities, CT + Others

18. Page 18 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Message targeting algorithm preserved the Urgent Requests high success rates Corporate Problem Solving Success1) Urgent Request success rate (10/2011-04/2014) 82% 95% 91% 89% 100% 93%93% 98%100% 89% 94%94% 82% 91% 80% 93% 81% 89% 96% 92% 94% 93%93% 80% 93% 89% 77% 91% 94% 97% 88% 94%93%93%93% 90% 85% 87% 100% 93%93%93% 92% 50% 60% 70% 80% 90% 100% Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 PercentageofUrgentRequestsAnswered Broadcast Target Messaging 1) Note that Target Messaging reduced the number of email notifications by an order of magnitude compared to broadcasting (notifying all users). Therefore a significantly lower success rate was expected. Nevertheless, in the meantime the success rate is again at the same level.

19. Page 19 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved The higher the Business Impact level, the higher the probability that it is answered Corporate Problem Solving Success Monitoring of Business Impact Level (BI) of unanswered Urgent Requests 0 1 2 3 4 5 6 7 8 9 10 BI € 1000 BI € 10 000 BI € 50 000 BI € 250 000 BI € 1 000 000 1) 1) Unanswered Urgent Request was too specific

20. Page 20 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Most Urgent Requests receive a response within the first 30 minutes Corporate Problem Solving Success Median for first response time (moving window over 365 days) Mandatory reason from Business Impact > €1 Miliion Ecosystem Expansion 0 10 20 30 40 50 60 MedianUrgentRequestFirstResponseTime(minutes) Month

22. Page 22 May 2014 Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved The Balanced Score Card helped to master the key challenges Conclusion Ecosystem  Within the ecosystem, TechnoWeb has a clear position in technology related topics  Changes in the ecosystem had no impact to the success of TechnoWeb’s Urgent Request Actionable Metrics  The design of actionable metrics opened our eyes as we discovered the missing digital trace for a class of users  measures have been derived and are currently implemented Innovation Chasm  Significant effort spent to reduce complexity of GUI and offering the Technology Portal functionality  First positive impact due to migration of another channel to TechnoWeb (main impact will follow next year) Challenge 2 Challenge 1 Challenge 3

23. Page 23 May 2014 Corporate Technology Ilka Karina Djajakusuma Master Student at TU Vienna Dr. Michael Heiss Principal Open Innovation and Scouting Siemens AG Österreich (Austria) Dr. Manfred Langen Principal Key Expert Social Media Siemens AG Siemens AG Corporate Technology Open Innovation and Scouting Email: michael.heiss@siemens.com Phone: +43-664-88 55 15 26 siemens.com/answers Contact