In 2004, Siemens ranked 21st among the Fortune 500 companies, with an annual revenue of 80.501 billion dollars.
One hundred years of Siemens brilliant innovation process
Siemens was founded in 1847, from the middle of the 19th century, with all the way across the 20th century, with a brilliant way into the 21st century in a vigorous and vigorous posture. The predecessor of Siemens was Siemens-Halske Telegraph Manufacturing Company, a small enterprise founded by Werner von Siemens, known as the "Father of Siemens", and his partner Johann Georg Halske with only 10 people.
The Werner von Siemens era was a glorious period of Siemens' entrepreneurial development. Siemens achieved rapid success thanks to the inventions of Werner von Siemens. Siemens quickly embarked on the internationalization of the company, and set up overseas branches in England in 1850, Russia in 1855 and Austria in 1858. 1890, Werner von Siemens retired, and the number of employees of Siemens reached more than 5,500, half of which were working overseas. 1892, Werner von Siemens died in Berlin at the age of 76. He left mankind countless inventions, a huge legacy and valuable successes. Because of his outstanding contributions to mankind, he is thus regarded as a bright star in the European electrical world.
After Werner von Siemens passed away, his three sons became the heads of the company, and in 1897 the family business was reorganized into a joint-stock company, renamed "Siemens & Halske AG". When Siemens lost almost all of its foreign assets during the First World War, Werner von Siemens' third son, Carl Friedrich Siemens, succeeded in rebuilding the company. Carl Friedrich changed the direction of the company, concentrating on electrical engineering and, at the same time, covering "the entire field of electrical engineering" and withdrawing from areas that were "not part of the business". By 1939, Siemens' sales exceeded DM 1 billion for the first time, making it the world's largest electrical company. During the Second World War, the company was forced to increase its production of wartime goods. At the end of the war, most of the company's factories were destroyed and the company lost about 80 percent of its assets. After the war, Siemens began rebuilding in two industrial towns in western Germany - Irvingen and Munich.
Siemens was successively succeeded by the descendants of the three Carl Friedrich Siemens brothers, all of whom were technologists with doctoral degrees and capable managers who insisted on pioneering new fields of technology and innovative development. After the Second World War, Siemens and Krupp established the first Institute of Nuclear Physics in the Federal Republic of Germany to develop and research technology for the nuclear industry, and in 1953 Siemens' development of a process for obtaining ultra-pure silicon led to a revolution in electronics and electrical technology. The company's sales increased year by year, from DM 1 billion in 1951 to more than DM 5 billion in 1962, and in 1966 it was officially renamed Siemens AG. In the early 1970s, Siemens contributed to the modernization of communications with the development of a successful system for transmitting telephone signals. In 1989, Siemens reorganized itself in a modern structure to form 17 core business groups to better accommodate the company's growth in new areas, and in 1990 Siemens acquired Leadframe Computer AG to become the largest producer in the growing European personal computer market.
Siemens began its entry into modern China in 1982 with the opening of a representative office in Beijing, followed by three additional local representative offices in Guangzhou, Shanghai and Shenyang. Two years later, Siemens cooperated with Beijing International Technical Cooperation Center to establish Beijing Technical Exchange and Training Center. 1986, Siemens introduced the world's advanced numerical control system into China, which made the Chinese machine tool makers with common machine tools as the dominant products brightened up their eyes. 1994, October, Siemens invested to set up a holding company in China, and Siemens (China) Ltd. was established in Beijing as a subsidiary of Siemens. Ltd. was established in Beijing to provide sales, marketing, human resources, information and communication, e-commerce, purchasing, financing, legal and strategic planning services for Siemens' operating companies. All the business branches of Siemens, including Information & Communication, Automation & Control, Power, Transportation, Medical, Lighting and Household Appliances are set up in China, among which Infrastructure Development and Automation & Control are the core industries of Siemens in China. After 10 years of unremitting efforts, Siemens' business in China has developed rapidly, with long-term investment totaling more than 500 million euros, and more than 40 branches and 26 representative offices all over the country. In 2001, the total sales of Siemens in China region exceeded 3.5 billion euros. China has become one of the main pillars of Siemens' business development in the global and Asia-Pacific regions.
Two, innovative management to enhance core competitiveness
Prahalad and Gary? Hamel in the classic "core competitiveness of the company" in the article first put forward the concept of "core competitiveness", and pointed out that: "the company is like a big tree, the trunk and a few major branches is the core product, the more slender branches is the business unit, leaves, flowers and fruits belong to the final product. The root system, which provides nutrients and anchors the tree, is the company's core competence." Siemens' innovation management is the "root system that feeds and anchors the tree". Innovation management has three different and interrelated meanings: firstly, innovation in management; secondly, management of innovative activities; and thirdly, innovative management. Siemens innovation management refers to the "management of innovation activities", including innovative technology management, innovative product management and innovative talent management. Innovation is the deepening, expanding and sublimation of people's understanding of the law of development of things, and the purpose of innovation is to explore new knowledge and promote the development of the premise that there must be a correct way of thinking, scientific and realistic attitude, and the courage to change and seek new ideas. Theoretically speaking, the driving force of innovation is the pull of social demand and market needs, and the thrust of science and technology and the development of the enterprise itself. Market demand is always the main source of Siemens' innovation. With the progress of civilization in human society, consumers' demands keep becoming more advanced and diversified. In response to such changes in market demand, one attitude is to follow negatively, and the other attitude is to actively and appropriately move ahead. Siemens adopts the attitude of being appropriately ahead of the curve, on the basis of market needs investigation and demand development prediction, relying on innovative talents and innovative technologies to produce innovative products to drive and influence new consumption habits, consumer culture and the corresponding new market policies and market purchasing power to create new market demand, forming the "market demand prediction → technological and product innovation → new consumption patterns and market resilience → new consumption habits and market resilience → new consumption patterns and market resilience. New consumption mode and market adaptability → new market demand → new innovation conception" virtuous cycle. Innovation is based on the objective needs, the existing factors of production, existing conditions, technology combination to produce a new leap, so as to improve production efficiency, innovative product value, for enterprises to enter a number of markets to provide convenience, the final product for the customer to bring the perceived value of the contribution of the results of the innovation of competitors difficult to imitate, so as to enhance the core competitiveness of enterprises. Siemens in the continuous cycle of innovation, to maintain a strong corporate vitality, although over a hundred years and eternal youth.
1. Siemens' innovation tradition
In 1997, Siemens published and distributed a book of the nature of the company's autobiography, called "Siemens - 150 years of splendor", which was printed on the second cover of the book with an opening paragraph, which included the following sentence:" In 1997, Siemens opened the 150th page of her history, a moment in history that deserves special celebration. Throughout the world, there are only a few industrial companies of similar size that enjoy such a long and successful history." Siemens maintains and builds on a career of technological invention and innovation pioneered by Werner von Siemens, which has made Siemens a leader in the electrical age, the electronic age, and the upcoming photovoltaic age in human history.
Werner von Siemens lived a brilliant life and was recognized as one of the shining stars of the European electrical world because of his outstanding contributions to mankind. Werner von Siemens was born in 1816 in Hanover, Germany. His parents, who were farmers, could not afford to send him to college, so at the age of 18, Werner von Siemens enrolled in the Berlin Artillery School. During his studies, Werner von Siemens began to create inventions. In the second year of his enrollment, Wernher von Siemens used the metal plating and silver plating technology he had developed to co-operate with a factory to establish the first electroplating department in Germany. He also invented zinc printing and built the first zinc printing press. After graduating from school, Werner von Siemens served in the Prussian army, continued his scientific research, and furthered his studies at the University of Berlin. 1845, after graduating from the university, Siemens invented the automatic intermittent pointer telegraph, and soon afterward succeeded in the trial production of cotton gunpowder with a powerful explosion. 1846, he pioneered the first malay gum electric wire, the first to solve the problem of insulating electric wires. The following year, he used this wire to lay an underground line from Berlin to Grosse Pointe, and in October 1847, Werner von Siemens, who had become a Prussian second lieutenant, and the mechanic Johann Georg Halske, founded the Siemens-Halske Telegraph Manufacturing Company in Berlin. The company was so successful that Werner von Siemens took off his military uniform and concentrated on his business. The company successively undertook the laying of 500 kilometers of communication lines between Berlin and Frankfurt, was appointed by the Russian government as "Contractor for the Construction and Maintenance of the Telegraph System in Tsarist Russia", completed the telegraph system in Great Britain and Austria, laid 11,000 kilometers of Indo-European telegraph lines connecting London and Calcutta, and laid the Indo-European telegraph line across the Atlantic Ocean. In 1848, Werner von Siemens invented the electric current-activated undersea mines and the anti-personnel mines, etc. He also developed the electric distance measuring device, and maneuvered the ships with electric power. 1866, Werner von Siemens discovered the working principle of the dynamo, and after many times of painstaking experiments, he developed the world's first two "self-excited magnetic field-type" generators. After many painstaking tests, he developed the world's first two "self-excited magnetic field" generators. This was the core technology of the second world industrial revolution, and since then generators have been widely used all over the world. Siemens thus won the highest award in France - "Medal of Honor", and was made a nobleman by the King of Prussia. 1867, Werner von Siemens invented the alcohol doser, which was designated as a standard measuring instrument by many European countries and used for a long time, contributing to the standardization work in the world. 1888, Werner von Siemens invented the alcohol doser, which was designated as a standard measuring instrument by many European countries and used for a long time. In 1881, Werner von Siemens developed the world's first tram.
Werner von Siemens died in 1892. Before his death, Werner von Siemens asked his children and grandchildren to adhere to the policy of "20,000 inventions and innovations a year" and "beneficial to human society" and the successful experience, and insist on the importance of opening up new technological fields and innovation. In 1936, Siemens produced the first cable TV for the World Olympic Games, in 1938, the first video telephone and electron microscope were built, and in 1953, Siemens developed the ultra-pure silicon process, which caused a revolution in the whole electronic and electrical technology. With a coaxial telephone line, 10,800 telephone signals could be transmitted at the same time, which put the telephone communication network on the road to full automation. Siemens has developed the traditional photographic lithography for the manufacture of micro-integrated circuit boards, which has reached a leading level. In addition, Siemens innovated a new photocopier capable of copying two colors simultaneously on both sides of a sheet of paper, and cooperated with the Dutch company Philips to develop microcomputers.
Siemens always puts technological innovation, which is mainly based on creation and invention, at the forefront of all its work, attaches great importance to scientific research and development, and continuously transforms scientific research results into real productivity as soon as possible. In the invention book of Siemens, you can see a series of European and world firsts: the first telephone automatic switchboard, the first long-distance telephone, the first generator, the first electric locomotive, the first electron microscope, the first teletypewriter ...... According to the statistics, in all the patents of the German electrical technology, Siemens accounted for more than a quarter. to more than 1/4.
2. Siemens' technological innovation management
Core competitiveness is formed in the long-term operation of the enterprise, unique, dynamic ability resources, supporting the enterprise now and in the future in the market to maintain sustainable competitive advantage in the development of this core competitiveness is the integration of a variety of resources and all aspects of the ability of the enterprise's results. The purpose of technological innovation management is to enhance enterprise research and development (R&D) capabilities. Enterprise R&D is the source of enterprise development and the basic guarantee for long-term competitive advantage. Enterprise R&D capability mainly includes: R&D resource acquisition and utilization capability, development capability, R&D results conversion capability and so on. Anything in the world has a life cycle of generation, development and decay. Enterprises, as economic organizations, also have to go through the life course of start-up period, rising period, heyday, decline period and bankruptcy and demise. The key to the length of an enterprise's life cycle lies in how to accelerate the period of its rise, prolong the period of its prosperity and postpone the arrival of its decline after the period of its establishment. As a collection of resources and capabilities, an enterprise must constantly inject new resources and continuously improve its market operation capability and enterprise management capability in order to maintain and extend its life cycle. Products and services are the life elements of an enterprise, and the life cycle of a product is short compared to that of an enterprise. Enterprises must develop a number of innovative products with market value, one or a few products to reach the rise and heyday, in its not yet entered the period of decline, another one or a few products have reached the rise of the heyday, so interlocking, wave connected, relying on the continuous launch of innovative products to form a "surge", to obtain the enterprise's Innovation is the key to Siemens' continuous growth. Innovation has continuously injected vitality into Siemens. In the long course of more than one and a half centuries, Siemens continuously innovates, develops and launches innovative products, so that the company is always on the rise or in its heyday, and maintains the longevity of the enterprise. In recent years, with the acceleration of the process of integration of the world economy, the speed of Siemens' product renewal is also improving; in 1980, the innovation of Siemens not more than 5 years of products accounted for 48%, and in 1998, it has risen to 74%, and in 2003, more than 90% of the products of Siemens are innovative products including high-tech software. Of Siemens' more than 100,000 products, 92% were less than four years old. This is the secret of Siemens' "longevity".
The main task of innovation management is to manage the innovation process. The innovation process refers to a series of activities and their logical relationship from the generation of innovative ideas to the realization of innovation, until the innovative product on the market to improve the innovation. Innovation process is the most complex business process and organizational process, involving marketing, design, research and development, manufacturing, management, finance, business strategy and other activities. The innovation of technology and product is the core of the whole innovation work, the innovation of concept is the foundation of technology and product innovation, and the innovation of system and mechanism is the guarantee of technology and product innovation.
Siemens recognizes that "in the era of continuous development of high technology, everything will soon become the past, and there is hope only by grasping the future." In order to ensure that it firmly occupies a proactive position in the new technology industry, Siemens has made artificial intelligence, nuclear fusion, space technology, ultra-high-speed trains, solar energy utilization, optical communication technology and other topics the focus of its scientific research, and is striving to make new breakthroughs as soon as possible. The technological innovation of enterprises is divided into various forms such as original innovation, introduction innovation and imitation innovation. Original innovation is developmental innovation based on sufficient theoretical research. Introduced innovation and imitation innovation are the innovations formed on the basis of original innovation to be improved and perfected, thus the market risk is smaller and the effect is faster. However, with the intensification of competition in technology market, introduced innovation and imitation innovation are subject to greater limitations in terms of technological advancement, usability and timeliness. From the comprehensive viewpoint of innovation decision-making, technology development, capital investment, results transformation and risk bearing, Siemens mainly adopts original innovation. Siemens has gathered a large number of scientific researchers, increased capital investment in scientific and technological innovation, paid great attention to the accumulation of technology, and has strong innovative research and technological development strength. At present, Siemens has 48,000 professionals engaged in research and development worldwide***. There are large-scale research and development centers in Berlin, Irish Root and Munich. The annual expenditure on scientific research accounts for more than 10% of the company's total operating expenses and about 1/3 of all scientific research expenses in the German electrical industry. This guarantees a leading position in the field of new technologies.
Siemens' research and development work was halted after World War II. The Potsdam Agreement provided for the dismantling and control of German industry, and it was scientific research and technological development activities that bore the brunt of this. It was not until the late 1940s that routine research and development in individual fields resumed. Nevertheless, Siemens was required to provide the military government with detailed reports on individual research projects and their progress. As a result of the severe losses caused by the war, Siemens spent nearly twice as much on development and research as it had before the war in terms of sales in the early 1950s. Despite the Allied restrictions and prohibitions, Siemens was able to achieve considerable results in innovation and development. in 1951, some 2,100 inventions were registered, 700 patents were obtained, and 900 patents were granted abroad. in 1955, after the Allies finally gave up monitoring German scientific research, Siemens was able to rejoin the international scientific community and set up a laboratory in Munich. in 1965, Siemens was able to rejoin the international scientific community and set up a laboratory in Munich. In 1965, the Irish Roots Research Center was established. In 1965, the Irish Roots Research Center was established, followed by research laboratories in Berlin and Princeton. Siemens also established important research bases in the United States, Austria and the United Kingdom. 1969, Siemens restructured its research and development organization and established the Central Technology Division. 1988, the functions of the Central Research and Development Department were further strengthened. 1996, Siemens merged the Central Technology Department and the Development Center into one. The number of patents filed each year is increasing year by year. Siemens applied for 2,920 patents and registered samples of use at the German Patent Office in 1995/96 and made an additional 80 first registrations at the European Patent Office. The number of patents filed with the German Patent Office rose by 18% compared to the previous year. During the year, Siemens *** obtained 5,200 invention registrations, an increase of 125 percent compared to 1989/90. At the end of 1995/96, Siemens had approximately 73,000 protection rights worldwide, 44 percent of which were issued patents and registered patterns of use.
The significant advantage of Siemens' technological innovation is that all research projects included in the company's portfolio emphasize high technological content and market competitiveness, resulting in the development and trial production of a batch after batch of new technologies and products that meet the needs of the market and are on the cutting edge of science and technology in the world. In terms of electronic technology, Siemens successfully developed a 256-kilobit memory chip for mass production in 1983, and succeeded in its efforts to catch up with the world's top level in the mid-1990s. And, by collaborating with IBM, Toshiba, and Motorola on the development of gigabit chips, Siemens regained its role as a technology leader. With its emphasis on future-oriented technological innovation, most of Siemens' research and development projects are forward-looking. The company has invested heavily in research and development of clean solar energy and has achieved leading results. In the laboratory, a new type of solar cell made of "copper-indium-selenium" ternary material has been developed with a photoelectric conversion efficiency of more than 18%, which has a huge potential market. The consistent principle of Siemens is "customer-oriented, customer first" in technological innovation. Take cell phone as an example, German users emphasize the function of cell phone, while Chinese users pay more attention to the appearance and practicality of cell phone. Therefore, for Chinese users, it is very important that the operation is easy and the salesperson knows how to use the cell phone. Siemens attaches importance to the differences in consumer behavior brought about by cultural differences, and established two user interface design centers in Beijing, China and Princeton, U.S.A. in October 1999 to promote the localization of Siemens products.
3. Siemens' innovation organization management
Innovation organization management includes organizational innovation as well as the organization of innovation activities. Innovation organization management is the guarantee of technological innovation and product innovation. Innovation organization management refers to the effective allocation of human, material and financial resources, the formation of new **** the same purpose of identity, and make the original organization identity body of its members of the responsibility, rights and interests of the relationship between the reconstruction, the purpose of which is to achieve further **** knowledge of the innovation goal. Organizational innovation is not based on material carriers and favors management, called "soft technology innovation"; while technological innovation and product innovation is called "hard technology innovation". "Soft technology innovation" has a series of advantages such as less investment, less risk, and easy to see results. Siemens actively implements innovative organization and management to make the utilization of various resources more reasonable, the whole enterprise system run more harmoniously and efficiently, and the production capacity can be more effectively exerted to accumulate strength for "hard technological innovation" and promote "hard technological innovation". "It plays an extremely important role in improving the competitiveness of enterprises. "Hard technological innovation" and "soft technological innovation" are interrelated and mutually promoting. If the results of "hard technology innovation" want to be continuously and effectively transformed into the economic benefits of the enterprise, there must be corresponding "soft technology innovation" to cooperate with it. "Hard technology innovation" reaches a certain degree, will often call for and force the management system to operate in a corresponding way to change, so as to promote the "soft technology innovation"; On the other hand, the effective organization of innovation so that the production system to maximize the effectiveness of play, so that the limitations of production capacity and enterprise economic efficiency to further increase the production capacity and economic benefits. On the other hand, effective organizational innovation maximizes the effectiveness of the production system to give full play to the "bottlenecks" in "hard technology" that limit the further improvement of production capacity and economic efficiency of the enterprise, thus attracting the attention of the enterprise and focusing on solving the problem, thus promoting "hard technology innovation". "
This is the first time that a company has been able to make a significant contribution to the development of its business.
Three, knowledge management is the basis of innovation management
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