Innovation at Siemens −
Shaping the future today

 

Finding answers to the toughest questions of the day has always been one of the main drivers of our success. With the invention of the pointer telegraph and the electric dynamo, Werner von Siemens, who founded our Company 160 years ago, revolutionized telecommunications and electrical engineering in the 19th century. In Ireland Siemens’ success story commenced with the invention of the Shannon hydroelectric power scheme in 1926. Major projects have included the construction of many of Ireland’s power plants, large scale transportation solutions and the introduction of the most up to date medical imaging systems to Ireland’s hospitals. Today, Siemens researchers are still following this tradition, asking the toughest questions of our time − and providing the answers.

 

Innovation has always been one of the most important elements in Siemens’ business strategy. Innovations help the cut costs, increase sales and achieve higher earnings. Nowadays, those who fail to launch the right new product on the market at the right time will be punished more severely than ever before. But how does one come up with new solutions, and can innovations really be strategically planned?

 

“The early bird catches the worm…,” begins a famous saying. However, the ending to this saying shows how such a strategy can also lead to ruin: “…but the second mouse gets the cheese” − meaning that the first mouse was quicker, but is now dead in the trap. In the world of business, both elements of the saying can be used as innovation strategies that will lead to success if they are consistently implemented. The first approach (the “early bird”) is that of the “first movers” − highly innovative, rapidly reacting companies that are first to market with a new technology, application or business model. Firms like Apple or Amazon are first movers. The second strategy is that of the “fast followers” − companies that avoid the lion’s share of high and risky start−up costs for research, development and market launch, but nevertheless win over customers through price, quality or service. The Dell computer company falls into this category.

 

There is, however, a third innovation strategy: that of the “trendsetter.” Trendsetters are companies that succeed in establishing a new technology, de-facto standard or indispensable feature on the market. In terms of the bird/mouse example above, such companies control both the worm hole and the mousetrap. As such, they can generally look forward to high profits. To accomplish all of this, they have to be in a strong technological position, particularly with regard to so-called key and pace-setting technologies that determine who will hold the competitive advantages today and tomorrow. However, they must also be well-positioned in disruptive technologies - in other words, those that can revolutionize the market in the future. In addition, trendsetters must closely align their R&D activities with their business strategy, and also be in possession of key patents. IBM, Microsoft and Intel are such trendsetters, and Siemens has chosen this path as well: Our goal is to be a trendsetter in as many fields of business as possible.

 

To achieve this, we locate R&D activities in markets with high economic and technological potential and attract the best employees worldwide. As part of this commitment Siemens Research Ireland collaborates with leading Irish research institutions in developing applications in the areas of Biotechnology, Pharmaceuticals and Information and Communications.

 

In conjunction with Science Foundation Ireland, Siemens established a new research facility, Siemens Research Ireland, where a number of leading Siemens research scientists collaborate with the Royal College of Surgeons, Trinity College, Dublin and University College, Dublin in Ireland in the emerging fields of Biotechnology, Bio−informatics and Pharmaceuticals.