May 26, 2011, Strategic Planner Circle

Innovation Management at Siemens

Building Technologies Division
Lucas Schmid, Head of Strategy

Siemens AG 2011. All rights reserved.

Areas of activity Building Technologies

Contents

Siemens Building Technologies

Overview

Innovation @ Siemens BT
Innovation Process
Key aspects of Innovation @BT
Manage the early phases of Innovation
Innovation strategy for emerging markets

Page 2

Siemens AG 2010. All rights reserved.

Industry Sector / BT

Sector

Divisions

Industry

Industry Automation
Drive Technologies
Building Technologies
Lighting (Osram)
Industry Solutions
Mobility

Energy

Fossil Power Generation

Renewable Energy
Oil & Gas
Energy Service
Power Transmission
Power Distribution

Healthcare

Siemens Organisation
Sectors & Divisions

Imaging & IT
Workflow & Solutions
Diagnostics

Page 3

Siemens AG 2010. All rights reserved.

Industry Sector / BT

Building Technologies
Key figures
FY2009

FY2010

New orders

6910

7132

+3.2%

Revenue

7007

6903

-1.5%

288

401

+39%

42575

42221

-0.8%

Profit
Employees

Revenue

Europe
CIS, Africa,
Middle East
56%

Employees

Americas
36%

Asia 8%

Europe
CIS, Africa,
Middle East
54%

54%

36%

Americas
34%

Asia 11%
Siemens AG 2010. All rights reserved.
Industry Sector / BT

What is the portfolio of our business units?

LV
Low Voltage
Distribution

CPS
Control Products
& Systems

FS
Fire Safety &
Security Products

SES
Security
Solutions

BAU
Building
Automation

Switchboards and
busbar trunking
systems
Distribution boards
Circuit breakers and
switch disconnectors
Low-voltage circuit
protection
Building management
systems
Switches and socket
outlets

Building automation
systems
Standard systems /
standard controllers
Thermostats
Sensors
Valves and actuators
Damper actuators
Variable speed drives

Fire alarm systems

Evacuation systems
Danger management
systems
Automatic
extinguishing
Life cycle
management
Maintenance

Intrusion & access

control solutions
Break-in detection
Video management
solutions
Command & control
systems
Danger management
systems

Energy efficiency
solutions
Efficiency monitoring
Green consulting
Building performance
optimization
Energy saving
Energy saving
performance
contracting

Siemens AG 2010. All rights reserved.

Industry Sector / BT

BT offers a unique portfolio

Everything to drive efficient and intelligent buildings

Energy Management
Security
Danger Management
Performance
contracting

Low
voltage

Security services
Life cycle services

HVAC

Engineering tools
Fire
Video
streams

Page 6

Air
Energy
Alarms
Water
Light
Power
People flow

Integrated
building solutions

Siemens AG 2010. All rights reserved.

Industry Sector / BT

Building Technologies
More than 400 offices worldwide

BT Offices
-

BT HQ responsibility

Siemens AG 2010. All rights reserved.

Industry Sector / BT

BT delivers real value to its customers

Strong position based on a compelling value propositions

Safety &
Security

FS
SES
LV

Energy
Efficiency

BAU
CPS
LV

Comfort
We want to be the preferred partner for energy efficient, safe and secure
building infrastructure.
Page 8

BT Global Management Conference 2011

Siemens AG 2011. All rights reserved.

Johannes Milde
Building Technologies/CEO

Our offering for low voltage distribution

Switches and
socket outlets

Switchboards

Management
Station

Switches and
socket outlets

Energy grid

Energy trading
Short circuit /
Overload protection

Power supply

Zurck
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Our offering for building automation

Room management:
Comfort, light, blinds
Management
Station

Energy
Management

Heating,
ventilation, climate
Zurck
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Our offering for security

Video
surveillance

Management
Station

Intervention
center

Alarming

Intervention
forces

Access
control

Intrusion
detection

Biometrics

Perimeter
protection

Zurck
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Our offering for fire safety

Fire and
smoke detection

Management
Station

Intervention
center

Alarming

Evacuation
Intervention
forces

Extinguishing
(dry, wet)
Zurck
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Innovation Management within Process

Landscape

Strategy development process

Generating and
selecting ideas

Innovation
review

Safety &
Security
Energy
Efficiency

Innovation
review

Product life cycle management

Product portfolio
Management

Pre development
process

Idea management
process

Product development
Process (PEP)
Implementation
of innovations

SCM process
CRM process
Support processes
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Value proposition teams drive new ideas

Goal for emerging markets

Achieve top position in Emerging Markets

Page 14

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Industry Sector / BT

Example
Danger Management

2c Fire brigade is advised

Detailed information (location,

type of fire, toxic gases,
temperature, etc.) about
emergency incident is sent to
fire brigades for best2
preparation on mission

Smoke is detected,
dampers are activated

Elevators are automatically

2a deactivated
People are safely guided by
2b voice, displays and lights to
the stairs

II

Detailed information about

people remaining in the building
is available to the fire brigade

System delivers detailed

information for post incident
analysis

People are directed to the

appropriate and safe exits

Siemens AG 2010. All rights reserved.

Industry Sector / BT

Example
Energy Management

Energy Management

Solar panels

Load management
within the building in
order to avoid peaks

BMS
BAS*
Energy trading

Building@Smart Grid

Lighting
natural/artificial

Heating, Cooling,
Air-Conditioning

Electricity storage in
the building
* BEMS: Building Energy Management System BAS: Building Automation System

E-car as temporary
power storage
Thermal energy
storage in the
building
Siemens AG 2010. All rights reserved.
Industry Sector / BT

Emerging markets are a key growth area for

Siemens

GDP 2009-2015 p.a.

(share of abs. growth)

+7.1%
p.a.

Markets

(40%)

(16%)
Global
average
(44%)

+4.6% p.a.
+3.6% p.a.

+2.4% p.a.

For each market

Segmentation

Emerging Markets
BRIC countries & Middle East
Further Emerging Markets
Developed markets

Market size by segment

M1

Segmentation

M1

M1

M2

M2

M2

M3

M3

M3

M4

M4

M4 Low-priced

Price as key segmentation criterion

High-end
Mid-priced

Innovative

High-end
innovations
SMART
innovations
= fits to Siemens

Excellent

Responsible

Quality 1)

High
performance

Ethical &
sustainable

Worldwide
Siemens
quality
standards

1) Quality
= Meet AG
the customer

Siemens
2010.requirements
All rights reserved.
Industry Sector / BT

Innovation strategy for emerging markets

Goal for emerging markets

Achieve top position in Emerging Markets

Market share

Global
BRIC

Expand mid- and low-priced portfolio

locally and globally

Increase local footprint and responsibility

Establish Local organization
Management
Product Management and Sales
Research & Development
Sourcing
Manufacturing

Develop entry level products /solutions

according to SMART principals:
Simple, Maintenance friendly, Affordable,
Reliable and Timely to-market
M1
M2

PM

R&D

Sourcing

Manufacturing

Headcount

Headcount

External PVO

Headcount

M3
M4
Market size

Market share

10

12

10

12

10

12

10

12

Siemens AG 2010. All rights reserved.

Industry Sector / BT

Localization in order to successfully penetrate

medium range and low end market segments

Siemens AG 2010. All rights reserved.

Industry Sector / BT