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ICT and Innovation

Key for the Success

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Our motto: Global network of innovation

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Nb. 2 in sales among the

world’s leading electronics and

electrical equipment companies

400.000 employees

75 % of total sales earned from

products developed in the last

five years

5 to 6 billion US$ invested in

R&D worldwide annually

www.siemens.com/research

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1847 Electric pointer telegraph – predecessor of modern communications

1853 Siemens Russia established; the first step toward becoming global player

1858 Siemens UK established

1849 Formation of the Health and Life Insurance Fund for Engineering Workers in Berlin

1872 Pension fund for employee widows and orphans

1866 invention of the dynamo lays the foundations for electrical engineering

1870 Completing of the transcontinental telegraph line between London and Calcutta 1873 Early environmental

measure: Werner von Siemens proposes installing spark arresters in smoke stacks to cut ash emissions

1877 Regulations governing recognition of inventors achievements

1879 First electric railroad

1881 First telephone exchange

1890 Werner von Siemens retires from business. By this time,more than 2,000 of the company’s 4,500 employees were working outside the German empire

1892 Werner von Siemens proposes a method for sterilizing drinking water

1892 Poststrasse power plant in Hamburg becomes the first to supply steam for district heating

1897 Siemens reorganize as a stock corporation (Siemens UK done in 1881)

1904 Siemens China established1906 World’s first

vacuum cleaner

1922 Siemens India established

1919 Osram GmbH KG established

1891 introduction of the 8.5 hour working day – at that time revolutionary

1893 Siemens begins training apprentices in business adminsitration

1905 Metal filament light bulb

1908 Siemens Argentina established

1923 Workforce grows to more than 100,000

1923 Siemens Japan stablished

Our corporate history founded on innovation

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First traffic light in Germany

1959 Simatic

First electronic automation system for industry

1930 E 44 multipurpose locomotive

1943-44 Siemensstadt

in Berlin sustains heavy damage.

Siemens losts 80%

of its total assests

during World War II

1954 initial steps in computing

1939 Electron microscope

1935 Appointment of first company safe engineers and medical officers 1953 high purity

silicon

1971 Executive guidelines on business conduct

1958 first cardiac pacemaker

1965 Diagnostic real-time ultrasonic scanner

1980 digital switching system EWSD

1975 world’s first scanner capable of delivering instant images

1985 ICE achieves speed of 300 kmh 1988

ISDN

1971 Siemens sets up first corporate office for environmental affairs

1987 start of regular audits to ensure compliance with statutory and company environmental regulations

2003 fuel cell factory in Pittsburg, USA;solid oxide fuel technology reaches the marketplace

1991 formation of corporate office for product-related environmental protection

2001 world record for data transmission on optical fiber

2000 Piezoelectronic valves for automobiles

1995 Siemens first Environmental Report

2000 First ccorporate citiuens report2001 Business

conduct guideliness

2002 First combined PET/CT scanner2002 Transrapid’s maiden trip in Shangai

1925 Siemens Turkey established

Milestones in our company history

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1st Cycle

1793 1847 1893 1939 1989 2040

Steamengine

RailwaySteel

ElectricityChemistry

Automobiles,Electronics

KnowledgeEcology

Virtualization

2nd Cycle 3rd Cycle 4th Cycle 5th Cyclewe arehere

Innovating means the speed with which new products reach marketplace

Products accelerated market penetration

Innovation cycles: shorter and faster than ever before

More than 3/4 of sales revenues with products less than 5 years old

Global competition asks for -Innovation and Speed

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Innovation leads to leadership

Biggest software company in the world

7,100 inventions and 4,600 patents in 2002

Latest ICT developed and implemented in all operating Groups

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Another innovative approach

To assist new business at various business stages:

In seed phase:

Siemens Technology Accelerator www.sta.siemens.com

Siemens Technology-To-Business Center www.ttb.siemens.com

Siemens Mobile Accelerator (Smac) www.smac.siemens.com

Following seed phase:

Siemens Venture Capital (SVC) www.siemensventurecapital.com

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Networking of knowledge using ICT

Networking of innovation using ICT

Siemens global competence network on intranet

R&D increases performance and capabilities of ICT

Mobiles exceeded fixed lines

Internet boom-exponential growth

Major challenge: to communicate with anyone, anywhere and anytime

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ICT rockets innovation with networking

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General Trends

Globalization

Mobility and nomadicworking

Efficiency of capital

Furtherpopulationgrowth

Individualization

Increasing innovation rates, shorter innovation cycles

Education: lifelong learning,

multimedia-based forms,

global schools/universities

Growing technology turnover rate

Moreenvironmentalproblems

GENERAL TRENDS

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Why is ICT important for our economic lives?

Innovation depends on free and easy accesible flows of information and knowledge

ICT made world without limit: time and space

High R&D intensity go together with higher producitivity

Productivity growth implies enchanced competitiveness

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KEY MESSAGES

World is in continuos change, we have to be part of that change

Only way to differientiate ourselves is innovation

Exploit up-to-date ICT

Innovation gives us competitive advantage

Our success in Croatia is a proof that ICT & innovations are the key factors for the success

We contribute to the national economy

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Thank you very much for your attention!