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C/CEP | 2016-01-21 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights. Robert Bosch GmbH Play video 1 Bosch Product Engineering System Managing Company-Wide Innovation Dr. Martin Hieber Vice President Product and Technology Planning, Innovation Management Robert Bosch GmbH, Germany

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C/CEP | 2016-01-21 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Robert Bosch GmbH

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Bosch Product Engineering System Managing Company-Wide InnovationDr. Martin HieberVice President Product and Technology Planning,Innovation ManagementRobert Bosch GmbH, Germany

Robert Bosch GmbH

C/CEP | 2016-01-21 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Some 45,700 researchers and developers work at Bosch: at 941 locations worldwide, in a single network.

Over the past five years, Bosch has investedmore than 20 billion Euros in research and development.

Each working day, Bosch files 18 patents on average.

1R&D locations with >50 associates, as of 12.14

Our objective: to develop innovative, useful, and exciting products and solutions to enhance quality of life – technology that is “Invented for life.”

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C/CEP | 2016-01-21 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Robert Bosch GmbH

Mobility Solutions

Industrial Technology

Energy andBuildingTechnology

Consumer Goods

Bosch Group 48,9 billion euros in sales* 290,000 associates 360,000 associates as per April 1.15**

* without BSH Hausgeräte GmbH (formerly BSH Bosch und Siemens Hausgeräte GmbH) and Robert Bosch Automotive Steering GmbH (formerly ZF Lenksysteme GmbH).** including BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH.

2014 key figures

68%share

of sales

32%share

of sales

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A History of Innovations which …Robert Bosch GmbH Mobility Solutions

1995

ESP® electronic stabilityprogram 80% fewerskidding accidents if all cars had ESP®.

…became global standards

Diesel injection for motor vehiclesspawned a revolution. First added to passenger carsin 1936.

Electronic gasolineinjectionmade engines cleaner.Paved the way for lambda closed-loop catalytic converters starting in 1976.

Complete elec-trical systems made cars driver-friendly.Electric starterwas integratedin 1914.

High-voltagemagneto, spark plugmade enginesreliable.

1902

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1913 1927 1967 1978

ABS antilock brakingsystem keeps vehicles under control during braking.

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A History of Innovations which …Robert Bosch GmbH Mobility Solutions

Start-stopsystem8% less fuel consumption,8% less CO2in urban driving.

Predictiveemergency brakingsystemhelps to preventserious rear-end collisions.

Common-rail high-pressurediesel direct injection30% less fuel consumption, 25% less CO2, 50% more torque1.

1997 2000 2007 2009 2010 2012

1Compared with gasoline engine fitted with conventional port fuel injection

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Motorcyclestability controlMSCSafe braking andacceleration on straight stretchesof road and in curves.

Gasoline directinjectionDI-MotronicBy injecting thefuel directly intothe combustionchamber, theDI-Motronicsubstantiallyreduces gasolineconsumption.

Hybrid drive Roughly 25% less fuel consumption and CO2.Offered in conjunction with diesel engine since 2011.

…became global standards

5

Junkers condensing boilerreached 98%efficiency by additionallyutilizing the heat in the water vapor.

Robert Bosch GmbH Energy and Building

2012

6

2002

Energy-Plus-HouseConcept byBosch Thermo-technology. Expected spill-over of energy: some 1,500 kWh per year.

1895

Junkers –gas bath boilerEnergy efficientthanks to 1892 patented„Kalorimeter“and freelyplaceable –independentfrom positionof the chimney.

1932

Bosch –ignition safegas switchfor more com-fort and safety(figure: advert1955). From1966 piezo-electricalignition.

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2014

Bosch Security SystemsBosch merges itsactivities in buildingsecurity and trans-mission systemstogehter withbusiness servicesin one division“SecuritySystems“.

1985

Fuel-cell heaterEurope-wide field trial with more than 70 appliances.

A History of Innovations which ……became global standards

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Robert Bosch GmbH Consumer Goods

1932 1933 1958 2003

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Boschwashingmachinewithintelligent automaticdosingi-DOS® .

2012

Boschelectric rotaryhammer drilleliminatedthe need for a compressed air supply.

Bosch refrigeratorenabledfood to be kept fresh in the home.

Bosch washingmachinemade lifeeasier.

Bosch Ixo cordless drill with lithium-ion batteryfits into yourpants pocket;has everything except a power cord.

2014

Bosch‘sfirst connectedhomeappliancesare on themarket.

A History of Innovations which ……became global standards

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Robert Bosch GmbH

Innovations – Invented for Life

Active Safety ModulationAntilock Braking System (ABS), Traction Control System (TCS), Electronic Stability Program (ESP®), Automated parking brakes (APB), etc.

Active Safety ActuationiBooster, Vacuum booster, Hydraulic booster, Tandem Master Cylinder, etc.

Passive Safety and SensorsAirbag Control Unit, Integrated Safety Unit (ISU), Passive safety sensors, Active safety sensors, Pedestrian protection, etc.

Driver Assistance Predictive emergency braking, Evasion assistance, Lane assistance, Driver monitoring, Park and maneuver assistance, etc.

Two-Wheeler SafetyMotorcycle ABS

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Bosch Product Engineering System

Our objective – what we want to achieve

In the spirit of Robert Bosch, we aim to secure our company’s future by ensuring its strong and meaningful development and preserving its financial independence.

Our motivation – what drives us

Invented for life: we want our products to spark enthusiasm, improve quality of life, and help conserve natural resources.resources.

Our strategic focal points – what will help us succeed

Our strengths – what we do well

Our values – what we build on

Focusing on customers Shaping change Striving for excellence

Bosch culture Innovation Outstanding quality Global presence

Future and results focus

Responsibility and sustainability

Initiative and determination

Openness and trust

Reliability, credibility, legality

Fairness Diversity

We are Bosch | BES Mission Statement

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Strengthen competences

Work smartand agile

Understand products

Passion for Engineering:Employing our creativity and our courage to break new ground, we develop fascinating products delivering outstanding quality at attractive costs.

Create value Lead by content

Bosch Product Engineering System | What we are striving for

CompetencesWork Organization

Product Engineering

Innovation Management

Vision

Elements

Principles

We strive for mastery of our technical topics and methodical approaches supported by continuous learning and networking. We naturally share our knowledge within Bosch.

Evaluating the type of tasks, we actively shape the cross-functional and international collaboration using agile and lean principles. We ensure clarity of tasks and transparency in workflows.

We create our products based on understood customer/user needs and requirements. We fully understand our product designs and production processes, using suitable models describing their properties.

We focus on exciting our customers and users with innovative and reliable products along the customer journey. Thus we are an appreciated partner delivering valued solutions.

We – the engineering leaders and the empowered teams –complementarily share the accountability for our product designs. We shape team work that inspires passion for engineering.

Cross functional teams

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Bosch Product Engineering System

Benefit of BES

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BES…… provides orientation thru

development processes as a framework and structure for content-driven engineering andcontent-driven leadership

… creates orderby describing coordinated engineering methods and theirapplication

… stimulates engineering work thru focus on technical models withcause-effect relationships and thrufreedom for innovative solutions

Product quality with respect to Function Cost Time to Market

Development/extension of the knowledge base

SOP

Effort

Time

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Bosch Product Engineering System

Competences

Work Organization

Product Engineering

Innovation Management

BES Innovation ManagementInnovation Networks

Innovation Culture

Roles andResponsibilitiesInnovation Process Methods and Tools

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Bosch Product Engineering System

Success Factor: InfrastructureStock chart development of EURO STOXX50 “Best Innovator Winners”

Source: A.T. Kearney 2014

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Bosch Product Engineering System

Strategic Planning and Innovation Process

StrategicPlanning

IG1

Legend:IG Innovation Gate

IG0 IG2 IG3

SeriesDevelopment

SearchFields

IdeaGeneration

PreStudy

ConceptStudy

Innovation Process

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Bosch Product Engineering System

Data Source: Fraunhofer-Gesellschaft / Kienbaum 2005

1.919Generated Ideas

Pre Projects

Projects presented to Board

Started ProjectsProducts Accepted from Markets

Successfull Products

524

369

17652

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Success Factor: Number of Ideas

Success Ratio: approx. 1 : 200

Innovation is like kissing 1000 frogs only 1 in a thousand may turn into a princeArthur Frey, 3M, Inventor of the “Post It”.

time

no. ofideas

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Bosch Product Engineering System

+

IG 0 IG 1 IG 2 IG 3Idea generation Pre-Study Concept

Study SoDsearch fieldsInnovation

Innochallenge

Search field

Innovation Manager, Experts, ManagementAll associated with access to Bosch Connect

Management of GB Innovation pipeline: assessment, elaboration,

documentation and analysis of innovation ideas and projects

Generation and collection of

innovation ideas by means of challenges

Bosch innovation platform

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Bosch Product Engineering System

Objectives of the Bosch innovation platform Increase innovation strength by involving all employees into the

idea generation and evaluation by means of innovation challenges Strengthen cross divisional innovation projects Create transparency in the innovation process

Guiding Principles Address and involve of the most creative and competent

employees in a targeted way, irrespectively of the location Appealing and comfortable user interface; seamless integration in

Bosch Connect Direct feedback to idea owner regarding the status of the idea

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Bosch Product Engineering System

+

IG 0 IG 1 IG 2 IG 3

Idea generation Pre-Study Concept

Study SoDsearch fieldsInnovation

Innochallenge

Search field

All associated with access to Bosch Connect

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Central „landing page“ in Bosch Connect

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Bosch Product Engineering System

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Bosch Product Engineering System

Innovation challenges Idea generation Pre-Study

ConceptStudy

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Bosch Product Engineering System

Innovation challenges Idea generation Pre-Study

ConceptStudy

Click

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Bosch Product Engineering System

Innovation challenges Idea generation Pre-Study

ConceptStudy

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Bosch Product Engineering System

Idea Pre Evaluation Idea generation Pre-Study

ConceptStudy

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Bosch Product Engineering System

+

IG 0 IG 1 IG 2 IG 3

Idea generation Pre-Study Concept

Study SoDsearch fieldsInnovation

Innochallenge

Search field

Management of GB Innovation pipeline: assessment, elaboration,

documentation and analysis of innovation ideas and projects

Generation andcollection of

innovation ideasby means ofchallenges

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C/CEP | 2016-01-21 | © Robert Bosch GmbH 2015. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch Product Engineering System

Success Factors Online Idea Generation

Embed online idea generation in a holistic innovation concept

Build the bridgebetween ideation and

implementation

Professional preparation of each phase of the innovation challenge

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