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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.

Innovation in an Enterprise 2.0

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Planary talk at ISPIM 2009: http://conference.ispim.org/

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Page 1: Innovation in an Enterprise 2.0

Innovation in an Enterprise 2.0

Assoc. Prof. Dr. Michael HeissGlobal Vice President for Knowledge, Innovation & TechnologySiemens IT Solutions and Services

Innovation in an Enterprise 2.0

Assoc. Prof. Dr. Michael HeissGlobal Vice President for Knowledge, Innovation & TechnologySiemens IT Solutions and Services

© Siemens AG Austria 2009. All rights reserved.

Page 2: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 2

Vision of an innovative Enterprise 2.0

„Who has helped you in your professional work during the last 12 month“

Page 3: Innovation in an Enterprise 2.0

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

Page 4: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 4

1st extreme: the one man show

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!

Page 5: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 5

2nd extreme: chaos

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 pseudobottom-up

Page 6: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 6

Adapted 1st extreme: the central portfolio management department

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

Page 7: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 7

Adapted 2nd extreme: networked innovators

Everybody has the chance to know everythingand to be an innovator

• Cost effectiveness: medium

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

• Entrepreneurship: works only if enough risk moneyis available

• Innovation culture: high, bottom-up focussed

Very creative setting

customers & partners

Page 8: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 8

Enterprise 2.0: optimized interoperability of network / line management / small central functions

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

customers & partners

switching

Page 9: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 9

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.”

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

Page 10: Innovation in an Enterprise 2.0

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

Page 11: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 11

Enterprise 2.0 and innovation: plan the unplanned

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

Page 12: Innovation in an Enterprise 2.0

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

Agenda

Page 13: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 13

Microblogging: lower barrier, higher frequency

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

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12 13

Reihe1

Number of Enterprise 2.0 tweetson June 11, 2009

25201510

50

00:00 04:00 08:00 12:00 16:00 20:00 24:00

Page 14: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 14

Example: discovering the blog of Prof. McAfee (Harvard University) in less than 2 hours after he published it

25201510

50

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 athttp://andrewmcafee.org/blog/?p=871

June 10, 2009:18:13 McAffee, Boston18:19 RT New Jersey18:29 RT Canada18:46 RT Singapore19:01 RT San Francisco19:10 RT Stuttgart19:30 RT Washington20:08 RT Vienna20:25 RT HawaiiRT…retweet

Page 15: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 15

Microblogging is…

• 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

Page 16: Innovation in an Enterprise 2.0

How does innovation work?

How does Enterprise 2.0 support innovation?

How can Microblogging help?

Case study within Siemens

Agenda

Page 17: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 17

The basic idea of TechnoWeb 2.0:identify implicit knowledge via the activity stream of the appropriate expert

Brain

Face 2 Face

Voice

pers. E-mails

pers. Desktop

Proj. E-mails

Blogs, Microblogs, Wikis, CRM, CM, Intranet

Internet, publications

DIG

ITIZ

ED

NO

N D

IGIT

IZE

D

activity stream

visible

limited access

data privacy

not visible

low

er a

cces

sibi

lity

hig

her

acce

ssib

ility

high

er b

usin

ess

valu

e

lo

wer

bus

ines

s va

lue

identifyable

Page 18: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 18

Knowledge Networking across the organization is not just a vision: it already works today

Example: Social Network Analyses atSiemens IT Solutions and ServicesSystem Development and Engineering

„Who has helped you in your professional work during the last 12 month“

Page 19: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 19

634 technologies are already supported by knowledge networks of today's TechnoWeb

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

Page 20: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 20

Our 6 rules for shifting TechnoWeb from Web 1.0 to Web 2.0

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

Page 21: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.

TechnoWeb: find people1) to get answers

“Elevator Pitch” for the Siemens-internal social media tool TechnoWeb

Minimal pre-requisite is to join a network once2)

1) Do not 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

Page 22: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.

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-feedsUrgent request

+ Tag/Technology page+ Search page+ integration of Sharepoints,wikis, blogs...

Open to all Siemens employees

Page 23: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.

121 31

6 369

Example of facts and figures supporting the vision

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

Page 24: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.

Building bridges by knowledge networking – the potential is enormous!

Commuter Train Laboratory Diagnostics

Power Distribution

Metering and Control

Industrial AutomationSystems

ComputationalFluid

Dynamics

Secure SoftwareDevelopment

Linda Pollari

Linda Pollari

Fabrizio De Pasquale.

Page 25: Innovation in an Enterprise 2.0

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

Page 26: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 26

Assoc. Prof. Dr. Michael Heiss

Global Vice President for Knowledge, Innovation and Technology

Siemens AG ÖsterreichSiemens IT Solutions and ServicesGudrunstraße 11

1100 Vienna AustriaPhone +43-5-1707-46560 Fax     +43-5-1707-56591 Mobile +43-664-8855 1526 mailto:[email protected]

http://twitter.com/heisss

Thank you for your attention!

Page 27: Innovation in an Enterprise 2.0

© Siemens AG Austria 2009. All rights reserved.Page 27

Thanks for copyrights of the visualization photos to:

“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

“TechDay 07” by Helge Süß

“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