Corporate Venture Capital – how incumbents use external innovation

Ralf Schnell – Wiener Strategieforum / May 19th, 2015
Corporate Venture Capital –
how incumbents use external innovation
Unrestricted © Siemens AG 2015. All rights reserved
„Die digitale Revolution erlaubt es
fünf Jungs in irgendeiner Garage,
mein komplettes Geschäftsmodell zu zerstören“
Chuck Robbins, designated CEO, Cisco
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Page 2
Siemens Venture Capital
Financial Services
Siemens focuses on electrification, automation and digitalization –
and is actively picking up on new technological developments
Digitalization
Enablers
• Sensors
Automation
• Computing
power
• Storage
capacities
• Data analytics
Electrification
• Networking
ability
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Siemens Venture Capital
Financial Services
The entire value chain from product design to service
is digitalized and integrated
Simulation
Product Lifecycle Management (PLM)
Manufacturing Execution Systems (MES)
Totally Integrated Automation
Real World
Lifecycle & Data
driven Services
1
2
3
4
5
Services
Production
Production engineering
Production planning
Digital World
Product design
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Siemens Venture Capital
Financial Services
Digitalization at Siemens
Combining the physical and virtual worlds
Virtual world
Analytics
Fleet management
Embedded software
Fault recovery
Network planning
Smart grids
Meter Data Management
Neural networks
CAx
Traffic management
e-Tolling
Digital Factory
PLM Collaboration
MES
Efficient buildings
> 280,000
Imaging software
Image guided therapy
Decision support
in the cloud
> 16 terabytes
connected devices
of operations data every month
Physical world – Siemens installed base
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Siemens Venture Capital
Financial Services
The main challenges and drivers in the industrial environment
Shorten time
to market
Increase
flexibility
Boost
efficiency
• Shorter
innovation cycles
• Individualized mass
production
• More complex products
• Volatile markets
• Energy efficiency and
resource efficiency are
critical competition factors
• Greater data volumes
• High productivity
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Siemens Venture Capital
Financial Services
Research and development
Innovation has always been the foundation of our success
Ranking in patent applications
Employees in R&D
28,800
worldwide
13,200
15,600
R&D employees
R&D employees in approximately 30 other
countries worldwide
No. 13
(2013)
Siemens currently holds approximately
worldwide
USA
(2013)
Europe
(2013)
56,100 patents granted
Partnerships
5.7
FY 2014
€4.1 billion
FY 2013
Germany
No. 2
in Germany
R&D spending as % of revenue
5.5
No. 4
R&D employees
1,000
partnerships with universities, research institutes and other
organizations around the world
FY 2014
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Siemens Venture Capital
Financial Services
SIEMENS has a global network of strategic partnerships with universities
1st tier partnerships = 7 CKIs* worldwide
Top academic partner in Austria
• TU Graz – CKI candidate
Systems Engineering, Materials, Knowledge Management, Cyber
Physical Systems, IT Security
SIEMENS Partner: Mobility (Bogies Graz), Energy Management /
Transformers Weiz, Corporate Technology
• TU Wien – Principal Partner University
Smart Grid, Knowledge Management, Cyber Physical Systems,
Modelling & Simulation
SIEMENS partner for Industry 4.0 (e.g. “Pilotfabrik”, “Lernfabrik”),
„Talents@TU Wien for Siemens“
• Johannes Keppler Universität Linz – Partner University
Cyber Physical Systems, Smart Grids, Systems Engineering,
Modelling & Simulation
SIEMENS partner: Corporate Technology
• Research: Siemens as global benchmark in technology
transfer from academia
• Austrian Institute of Technology (AIT)
• Recruiting: Siemens becoming the employer of choice
with a strong employer branding
Smart Grids, IT Security, Modelling & Simulation
SIEMENS as partner in Smart City Demo Aspern – Die Seestadt
Wiens
* CKI = Center of Knowledge Interchange
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Siemens Venture Capital
Financial Services
Digital Factory – Shaping our customers' industrial future
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Siemens Venture Capital
Financial Services
Our Siemens Corporate Venture Capital (CVC) scope
We take minority equity stakes in business partners or
potential business partners.
We want to strengthen our business partners
and the business relationship by our financing activity.
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Siemens Venture Capital
Financial Services
Corporate VC (CVC) is on the rise
US Corporate Venture Capital Activity Levels
$M
140.000
120.000
VC Investment $M
CVC Investment $M
% of $ coming from CVCs
% of Deals with CVC Involvement
% of Total CVC Investment $
% of CVC
30,0%
100.000
Biotechnology
12%
25,0%
20,0%
80.000
Other
17%
15,0%
Industrial/
Energy
5%
IT Services
7%
60.000
10,0%
40.000
5,0%
20.000
0,0%
0
Software
42%
Media &
Entertainment
12%
Medical Devices
& Equipment
5%
47% of all Fortune 100 companies have established a CVC program
Source: PriceWaterhouseCoopers/National Venture capital Association MoneyTreeTM Report, Data: Thomson Reuters
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Siemens Venture Capital
Financial Services
Selected SVC portfolio companies
Mobility
Digital Factory
rolling stock maintenance
automation
software application lifecycle
management
Energy Management
Healthcare
energy optimization for
commercial real estate
teleradiology &
second opinion platform
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Siemens Venture Capital
Financial Services

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