By contributing to all the stages of the value chain, Corporate Technology - Siemens' global research unit - is helping the company gain and maintain a technological lead over its rivals.
A gas turbine that weighs several hundred tons may not seem to have much in common with organic light-emitting diodes, gearless wind turbines, or electric mobility systems. But it does. All of these technologies are expected to become highly innovative segments of major future markets. And Siemens is leading the way forward technologically in these fields. What makes this possible is a vast network of experts from a wide variety of company departments around the world.
A key role is played here by the Corporate Technology (CT) global research unit, which encompasses a spectrum of technology fields and so-called “lighthouse projects.” Hardly any other company in the world conducts applied research on such a broad front as does Siemens.
CT can support development work from initial idea to pilot product or technology. The unit has experts for materials, electronics, mechatronics, sensor systems, software, manufacturing, testing techniques, and analytical systems. It also employs process specialists, who are networked with other experts at Siemens’ Sectors.
It is this combined expertise that enables Siemens to master even complex new systems such as gas turbines that exhibit record-breaking levels of efficiency. “This ability is of crucial strategic importance to an integrated technology company such as Siemens,” says Klaus Helmrich, Siemens’ Chief Technology Officer and Head of Corporate Technology. “It enables the company to not only remain competitive in a wide variety of markets characterized by shorter and shorter innovation cycles, but to actively shape these markets as well.”
Working with the Best Partners. As shown in the accompanying boxed texts, Corporate Technology covers the entire innovation value chain, from research, development, production, and manufacturing to the testing of prototypes and products. CT can encompass this broad range of tasks for two reasons. The unit’s approximately 2,000 researchers and 4,000 software developers work closely with the other 23,000 employees at Siemens businesses who are involved in research and development; in addition, they collaborate with a wide variety of universities and research institutes worldwide. In this way, the company integrates its projects at locations where the best partners are available. For example, Siemens has set up Centers of Knowledge Interchange (CKI) at eight renowned universities, including the University of California at Berkeley, Tsinghua University in Beijing, the Technical University of Munich, and the RWTH in Aachen, Germany. These universities conduct research in areas that are of special strategic importance to Siemens.
At the RWTH in Aachen, for example, Siemens will be contributing €6 million over the next four years to fund research into scarce raw materials and ways of mining them in an environmentally friendly manner. The company is also pursuing other approaches aimed at reducing our dependence on potentially critical raw materials. These efforts include research into new recycling methods and alternative substances. To this end, CT launched the Sustainable Materials Management lighthouse project in October 2011. Other projects focus on biotechnology, electric mobility, and thermal energy.
With a view to discovering which issues the company will be addressing in the future, CT’s Technology & Innovation Management department supports the strategic innovation process. Together with chief technologists from the Siemens Sectors, the department regularly analyzes new business opportunities in order to determine their importance for the company. The process uses information from a range of sources, including the results of the Pictures of the Future program, which serves as Siemens’ strategic research tool for studying future developments. Potentially disruptive technologies, which may be capable of revolutionizing entire markets when combined with new business models, are analyzed in depth during the innovation process. Subsequently they are set up as CT lighthouse projects, for example, following management approval.
In each case, the goal is that such projects will migrate to one of Siemens’ operating units. The Industry Sector, for example, is striving to convert surplus electricity from renewable sources into hydrogen fuel on an industrial scale. The idea of running a PEM fuel cell in reverse to achieve hydrogen electrolysis was originally conceived at CT. Similarly, the CT Smart Grid lighthouse project has resulted in software that the Infrastructure and Cities Sector is now testing at a utility company in Germany.
However, not all ideas and developments from Corporate Technology are adopted by Siemens. To ensure the solutions and resulting patents can nevertheless be used, CT also launches technologies on the market by establishing spin-off companies such as EnOcean. The latter was established around ten years ago to produce wireless sensors that garner their own power for buildings and industrial facilities. These miniaturized energy transducers are now being used in more than 200,000 buildings throughout the world. In the future, CT will also be able to create its own start-up companies with business models that make them potentially interesting for Siemens Sectors — even though they have not yet been assigned to a Sector because the ideas are still at an early stage of development.
Only by taking such a broad approach can Siemens’ global research unit remain at the forefront of innovation cycles and help shape an appropriate technology strategy for the whole company. “CT has to perform three basic tasks,” says Klaus Helmrich. “It has to secure the technological basis on which Siemens is founded, shape tomorrow’s world technologically, and strengthen the integrated technology company by generating synergies on as broad a scale as possible.” Only if it succeeds will Siemens be able to continue to build on one of its key pillars: its innovation-driven competitive edge.