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Smart Grid Innovation Contest
Lessons Learned




          Dr. Michael Heiss
          Siemens AG
          Chief Technology Office   © Siemensthe four happy winners reserved.
                                         Photo: AG 2011. All rights
          Open Innovation Program        in front of the German Parliament, Berlin 2011.
Concept, facts and figures of the Smart Grid
               Innovation Contest: new top university cooperations

                              Phase I: Public Idea Contest                                                    Phase II: Call for Research Proposals
                                    (for everybody)                                                                    for universities only
                                                                            Apr – Jun 2011                                                                           Oct – Dec 2011

                                                                                                  Topic cluster              NDA Research Topic (confidential)


                                          Evaluation                            Award                                                   Submission RTR2)     Contracting
Process




               Submission &                                    Jury                                 Abstract        RTR2)
               social ranking              by Siemens        decision         ceremony              submission     accept/                of full decision       &
                                                Rec. by                      (incl. MVC*)           (Qualification) deny                 proposal          implementation
                                                 MVC1)                     15 000 € (total)                                                                          1 Mio. €
                                                                            + Berlin trip                                                                          budget (total)


                                                                                                                                                RTR2)+Selected Siemens experts:
                Public:                                Selected Siemens experts:                        Public & Peers:                         • Abstract submission
Visible




                • All submissions                      • Internal ranking (5 stars): public             • Nothing, except the generic           • Full research proposal submission
                • All comments                         • no internal comments!                            topic cluster description,            • Internal comments
                • Crowd ranking (5 stars)                                                               • no crowd ranking                      • Communication with submitter
                                                                                                                                                • Decisions

                Recruiting of participants: via social media (e.g. LinkedIn groups)                      via SCOPUS all authors of scientific papers in the field were invited
Participants




               • 100 countries                         • 500 ideas                                      • 40 countries                             • 172 abstracts submitted
               • 35 000 unique visitors                • 5 000 comments & evaluations                   • 200 universities                         • 25 accepted for full proposal
               • 1 500 registered users                • 300 000 minutes on the site                    • 400 registered users                     • 10 to be contracted



                                Awareness & branding                                                          High quality research proposals
Results




                                                                                     Top experts                         © Siemens AG 2011. All rights reserved.
                Page 2
               1)                                                                         10/05/12
                Rec. By MVC: Recommendation by Most Valuable Contributors, pre-evaluated by Core-Team                          2)                                           CT O
                                                                                                                                    RTR: Research Topic Responsible (from Siemens)   OI
Innovating Innovation is not for free


                                  Lessons Learned
                                      from the
                            Smart Grid Innovation Contest



                            Emotions Seismograph / Timeline




                                                  © Siemens AG 2011. All rights reserved.
 Page 3                         10/05/12                                        CT O OI
The „stock market price“ of the project
       shows the challenges of applying a new method
       Condensed Emotions Seismograph / Timeline
       estimated Return of Invest based on your own investment
                                                                                                                              #    Comments
            1.4.               15.6.         21.7.                    15.9. 4.10.                 30.11. 14.12.
                                                                                                                              1     Doubtfully at the beginning
                                                                                                                                    Too many proposals that were not in

 
 positive
                                                                       6                                 9               10   2      Siemens business.
                                                                                                                                    Loss of both power sponsors

                                                                                                                              3     Some interesting submitted ideas
                                                                                             8                                      New confidentiality policy disrupted
                                                                                                                              4      plans and caused extra challenges for
                                                                  5                                                                  the tool.

                                       3                                                                                            Definition of Research Topic Clusters
 1                                                                                                                   time     5      and Detailed Research Question

                                                                                                                                    The Award Ceremony in Berlin and the
                                                                                                                              6      community feeling hat was very positive

                                                                                  7                                           7     Technical issues behind the scene
                           2
                                                                  4                                                                 The contest was successfully launched

  
negative
                                                                                                                              8
                                                                                                                                     and immediate response was positive,
                                                                                                                                     but quality of submissions at the
                                                                                                                                     beginning not convincing.

                                                                                                                                    Very high quality of submission.
                                                                                                                              9      Due to the high number of submissions
                                                                                                                                     high effort.
Preparation   Idea Contest Online Jury Preparation      Topic          Award             CfP Online          Evaluation of
                13.4-15.6.2011       21.7.2011       Definition for   Ceremony        4.10.-30.11.2011        proposals             Contracting on the way
                                                                                                                              10
                                                         CfP            Berlin
                Research Topic Responsibles from BU                   15.9.2011
                Core Team                                                                                                © Siemens AG 2011. All rights reserved.
          Page 4                                                                        10/05/12                                                               CT O OI
Lessons Learned in Phase I:
Smart Grid Idea Contest




                              © Siemens AG 2011. All rights reserved.
Crowd Ideation in complex technology fields
  is more challenging
                                                                                Topic selection




http://led-emotionalize.com/              the winner        http://smartgridcontest.com/                      the winner




                                                  web platform by




 WYSIWYG*-topics (e.g. light design) can be understood & evaluated faster
 than complex topics like smart grid technology.
* WYSIWYG: what you see is what you get                                            © Siemens AG 2011. All rights reserved.
     Page 6                                                  10/05/12                                            CT O OI
Attracting participants via social media
  communication is “free of charge” but hard work
                                                                                                                Recruiting of Participants

 Estimated* costs just for attracting participants
 (not including the costs of performing the contest)

        1 Mio. to 90 Mio.* page impressions of contest announcements
        (more then 200 non-Siemens web platforms, e.g. smart grid communities, wrote about the contest)

                                                                                                     conversion rate: 30 to 2 500*
               35 000 unique visitors (50ct* each)
               would lead to approx. 17 500€ advertisement costs
                                                                                                     conversion rate: approx. 25

                                1 500 registered users (12€ each)
                                                                                                     conversion rate: approx. 3
                                                                         500 ideas (35€ each)
                                                                                                                                 4 winning ideas
Addressing individually selected expert communities is more focused than
just posting ads via Google or Facebook, but do not underestimate your effort:
it will not be cheaper than via Google or Facebook.
  * Facebook offers/recommends for contest advertisements approx. 50ct per click or 20ct per 1000 page impressions -> estimated conversion rate: 2 500
                                                                                                                    © Siemens AG 2011. All rights reserved.
    Page 7                                                                         10/05/12                                                              CT O OI
Customers and Government are also attracted by the
 contest but are more observing than submitting own ideas.
                                                 Recruiting of Participants




Make the contest also attractive for technology providers – this needs special
care at the terms and conditions regarding intellectual property rights (IPRs).
                                                    © Siemens AG 2011. All rights reserved.
  Page 8                            10/05/12                                      CT O OI
Obligatory key-visuals make submissions
more unique, attractive and understandable
                                              Idea Submission




Even for such complex technology fields like smart grids key-visuals work.
Most of the submitters are better in visualizing than in writing ;-)
                                                 © Siemens AG 2011. All rights reserved.
 Page 9                           10/05/12                                     CT O OI
It is beneficial to ask the Most Valuable Contributors*
   for their recommendation of the winners
                                                                                                       Involvement of Most Valuable Contributors




                                                                                              Niels Mast
                                   João Batista Gomes
                                                                                              Netherlands
                                   Brazil
                                                                          Shmuel Goldfisher
                                                                          Israel
                                                    Donatas Gatavynas
                                                    Lithuania




The Most Valuable Contributors have commented and evaluated more ideas
than each Siemens expert. Their recommendation was very valuable.
* Participants with the highest number of valuable comments and evaluations                                 © Siemens AG 2011. All rights reserved.
    Page 10                                                                      10/05/12                                                          CT O OI
Meeting the winners personally and discuss
their ideas was a highlight for all participants
                                                                         Award Ceremony in Berlin




Thillainathan Logenthiran
Singapure (1st prize)




             Vassilis Nikolopoulos   Thillainathan Logenthiran   Christian Huder
                                                                      © Siemens AG 2011.Slobodan Matic
                                                                                         All rights reserved.
             Greece                  Singapure                   Germany                Berkely, USA
Page 11                                             10/05/12                                        CT O OI
Lessons Learned in Phase II:
Smart Grid Call-for-Proposals




                                © Siemens AG 2011. All rights reserved.
If the research topic is confidential, a pre-qualification
 for (non-confidential) research topic clusters is helpful
                                                                                   Topic Confidentiality



     non-confidential research topic cluster
                                                               Example:
                                                               non-confidential
   confidential                      confidential
     topic 1                           topic 3                 research topic clusters at
                                                               http://smartgridcontest.com/university
                      confidential
                        topic 2




Do not underestimate the additional effort for IT security for confidentiality.
These requirements do not fit (economically) to a “two-month application”.
                                                                © Siemens AG 2011. All rights reserved.
  Page 13                                           10/05/12                                      CT O OI
The abstract should be limited to 250 words.
                                                                                                 Abstract Submission (Qualification)




                                         Photo: © amras_de at http://www.flickr.com/photos/51243943@N00/423875472/in/pool-visualization



If the abstract is 500 words, then submitters do not focus on the main idea.
This leads to more evaluation effort of the abstracts and
no clear separation of the abstract and full proposalSiemens AG 2011. All rights reserved.
                                                   ©
                                                      submission.
  Page 14                                  10/05/12                                                                       CT O OI
One of the main motivations of participants:
 be visible at Siemens and get a job at Siemens
                                                                   Job Recruiting




When we met the winners and Most Valuable Contributors we asked them
how we attracted them to participate. The surprising answer: not the award
is the attraction but the chance to get visibility within Siemens. All rights reserved.
                                                      © Siemens AG 2011.
  Page 15                               10/05/12                                    CT O OI
Siemens Smart Grid Call-for-Proposals
further lessons learned

Ownership
  Project needs to be fully adopted by the Business Unit –
   Project Lead from Business Unit.                                 Recruiting of Submitters
  Management support from CTO level required.                        SCOPUS gave us access to all the
   A wide spread management support leads to robustness               scientists who published in the search field.
    against organizational changes.                                 Optimization
   Early involvement of Product Managers.                            Having a pre-qualification process ensures
                                                                        that the Siemens Experts spend most of their
Confidentiality
                                                                        time with the best proposals and ensures
  The more concrete the search field description, leads to a           that only trusted submitters have access to
   trade off between                                                    the more confidential information.
       the more valuable the submissions
                                                                      Limiting the words and having a tool-
       the higher the risk of disclosing Siemens strategies.
                                                                        enforced structure helps to focus submitters
  The higher the security level of the tool, the more expensive,       answers – helps to minimize Siemens effort
   less flexible, more complex to handle.                               for evaluating.
  The quality of the submissions is higher if it is submitted        Explaining what type of proposals Siemens
   in a closed environment (not public) - at least in a highly          wants and does not want helps to optimize
   competitive search field.                                            the expectation of the submitters and the
Timing                                                                  workload at Siemens.
   It is more important to align the contest with the Siemens        Very high usability is required for the web
    budget planning than with the academic year.                        tool both for submitters and
   First receive all the submissions before making accept/deny         backend operations – End to end
    decisions.                                                          process/workflow support.


                                                                        © Siemens AG 2011. All rights reserved.
Page 16                                                10/05/12                                           CT O OI
Conclusion




                          „I thought I knew the best universities
                                   but obviously didn’t“



                      “Call-for-Proposals are a great method
                      to indentify the best university partner”



        “The Call-for-Proposals has a clear ROI*.
  A coupling with Phase I (Idea Contest) is not required”
* ROI: Return on Investment                            © Siemens AG 2011. All rights reserved.
      Page 17                               10/05/12                                 CT O OI
Contact




                                     Twitter: twitter.com/heisss
                 Dr. Michael Heiss   Slideshare: www.slideshare.net/heisss
                                     Xing: www.xing.com/profile/Michael_Heiss2
                      Siemens AG     LinkedIn: www.linkedin.com/in/michaelheiss
           Chief Technology Office   Flickr: www.flickr.com/photos/michaelheiss
                                     Blog: heisss.wordpress.com
          Open Innovation Program    Phone: +43-664-88 55 15 26© Siemens AG 2011. All rights reserved.
Page 18                               10/05/12                                               CT O OI
Appendix




                      © Siemens AG 2011. All rights reserved.
Page 19    10/05/12                                 CT O OI
Siemens uses the new rules of "Open Innovation“ to
   develop its portfolio of innovation methodologies

~1900                                          2003

             First university             Siemens Technology
                                                                           Open Idea Contests
             cooperation                  Accelerator

                         First lead customer                   TechnoWeb2.0
                         workshop
                                        First centers of
               Management of            Competence                 E-Broker
               employees‘ ideas


   Traditional innovation mgmt. rules             New options in the "Open Innovation" game:

    Focus on bilateral partnerships                 Use unobvious sources
    Workshops or mailboxes as frame                 IT-based methodologies ("Web2.0")
     for ideation                                    New levels of scalability
    Limited speed of network dynamics               Enhanced speed in the dynamics of networks
    Default: Maximize IP protection                 Balance between IP protection and openness


                                                                   © Siemens AG 2011. All rights reserved.
   Page 20                                       10/05/12                                        CT O OI
New Open Innovation approaches are set to
complement the portfolio of innovation methodologies


                    Ideas            Technologies
            Open Idea Contest    E-broker
 External




                                                        Absorptive Capacity


                                 TechnoWeb 2.0
 Internal




                                                        Integrated Technology
                                                        Company


            TechnoSearch




            Collaborate with     Find the expert to
            creative masses     solve your problem
                                                       © Siemens AG 2011. All rights reserved.
Page 21                                     10/05/12                                 CT O OI

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Lessons Learned from the Siemens Smart Grid Innovation Contest

  • 1. Smart Grid Innovation Contest Lessons Learned Dr. Michael Heiss Siemens AG Chief Technology Office © Siemensthe four happy winners reserved. Photo: AG 2011. All rights Open Innovation Program in front of the German Parliament, Berlin 2011.
  • 2. Concept, facts and figures of the Smart Grid Innovation Contest: new top university cooperations Phase I: Public Idea Contest Phase II: Call for Research Proposals (for everybody) for universities only Apr – Jun 2011 Oct – Dec 2011 Topic cluster NDA Research Topic (confidential) Evaluation Award Submission RTR2) Contracting Process Submission & Jury Abstract RTR2) social ranking by Siemens decision ceremony submission accept/ of full decision & Rec. by (incl. MVC*) (Qualification) deny proposal implementation MVC1) 15 000 € (total) 1 Mio. € + Berlin trip budget (total) RTR2)+Selected Siemens experts: Public: Selected Siemens experts: Public & Peers: • Abstract submission Visible • All submissions • Internal ranking (5 stars): public • Nothing, except the generic • Full research proposal submission • All comments • no internal comments! topic cluster description, • Internal comments • Crowd ranking (5 stars) • no crowd ranking • Communication with submitter • Decisions Recruiting of participants: via social media (e.g. LinkedIn groups) via SCOPUS all authors of scientific papers in the field were invited Participants • 100 countries • 500 ideas • 40 countries • 172 abstracts submitted • 35 000 unique visitors • 5 000 comments & evaluations • 200 universities • 25 accepted for full proposal • 1 500 registered users • 300 000 minutes on the site • 400 registered users • 10 to be contracted Awareness & branding High quality research proposals Results Top experts © Siemens AG 2011. All rights reserved. Page 2 1) 10/05/12 Rec. By MVC: Recommendation by Most Valuable Contributors, pre-evaluated by Core-Team 2) CT O RTR: Research Topic Responsible (from Siemens) OI
  • 3. Innovating Innovation is not for free Lessons Learned from the Smart Grid Innovation Contest Emotions Seismograph / Timeline © Siemens AG 2011. All rights reserved. Page 3 10/05/12 CT O OI
  • 4. The „stock market price“ of the project shows the challenges of applying a new method Condensed Emotions Seismograph / Timeline estimated Return of Invest based on your own investment # Comments 1.4. 15.6. 21.7. 15.9. 4.10. 30.11. 14.12. 1  Doubtfully at the beginning  Too many proposals that were not in  positive 6 9 10 2 Siemens business.  Loss of both power sponsors 3  Some interesting submitted ideas 8  New confidentiality policy disrupted 4 plans and caused extra challenges for 5 the tool. 3  Definition of Research Topic Clusters 1 time 5 and Detailed Research Question  The Award Ceremony in Berlin and the 6 community feeling hat was very positive 7 7  Technical issues behind the scene 2 4  The contest was successfully launched  negative 8 and immediate response was positive, but quality of submissions at the beginning not convincing.  Very high quality of submission. 9 Due to the high number of submissions high effort. Preparation Idea Contest Online Jury Preparation Topic Award CfP Online Evaluation of 13.4-15.6.2011 21.7.2011 Definition for Ceremony 4.10.-30.11.2011 proposals  Contracting on the way 10 CfP Berlin Research Topic Responsibles from BU 15.9.2011 Core Team © Siemens AG 2011. All rights reserved. Page 4 10/05/12 CT O OI
  • 5. Lessons Learned in Phase I: Smart Grid Idea Contest © Siemens AG 2011. All rights reserved.
  • 6. Crowd Ideation in complex technology fields is more challenging Topic selection http://led-emotionalize.com/ the winner http://smartgridcontest.com/ the winner web platform by WYSIWYG*-topics (e.g. light design) can be understood & evaluated faster than complex topics like smart grid technology. * WYSIWYG: what you see is what you get © Siemens AG 2011. All rights reserved. Page 6 10/05/12 CT O OI
  • 7. Attracting participants via social media communication is “free of charge” but hard work Recruiting of Participants Estimated* costs just for attracting participants (not including the costs of performing the contest) 1 Mio. to 90 Mio.* page impressions of contest announcements (more then 200 non-Siemens web platforms, e.g. smart grid communities, wrote about the contest) conversion rate: 30 to 2 500* 35 000 unique visitors (50ct* each) would lead to approx. 17 500€ advertisement costs conversion rate: approx. 25 1 500 registered users (12€ each) conversion rate: approx. 3 500 ideas (35€ each) 4 winning ideas Addressing individually selected expert communities is more focused than just posting ads via Google or Facebook, but do not underestimate your effort: it will not be cheaper than via Google or Facebook. * Facebook offers/recommends for contest advertisements approx. 50ct per click or 20ct per 1000 page impressions -> estimated conversion rate: 2 500 © Siemens AG 2011. All rights reserved. Page 7 10/05/12 CT O OI
  • 8. Customers and Government are also attracted by the contest but are more observing than submitting own ideas. Recruiting of Participants Make the contest also attractive for technology providers – this needs special care at the terms and conditions regarding intellectual property rights (IPRs). © Siemens AG 2011. All rights reserved. Page 8 10/05/12 CT O OI
  • 9. Obligatory key-visuals make submissions more unique, attractive and understandable Idea Submission Even for such complex technology fields like smart grids key-visuals work. Most of the submitters are better in visualizing than in writing ;-) © Siemens AG 2011. All rights reserved. Page 9 10/05/12 CT O OI
  • 10. It is beneficial to ask the Most Valuable Contributors* for their recommendation of the winners Involvement of Most Valuable Contributors Niels Mast João Batista Gomes Netherlands Brazil Shmuel Goldfisher Israel Donatas Gatavynas Lithuania The Most Valuable Contributors have commented and evaluated more ideas than each Siemens expert. Their recommendation was very valuable. * Participants with the highest number of valuable comments and evaluations © Siemens AG 2011. All rights reserved. Page 10 10/05/12 CT O OI
  • 11. Meeting the winners personally and discuss their ideas was a highlight for all participants Award Ceremony in Berlin Thillainathan Logenthiran Singapure (1st prize) Vassilis Nikolopoulos Thillainathan Logenthiran Christian Huder © Siemens AG 2011.Slobodan Matic All rights reserved. Greece Singapure Germany Berkely, USA Page 11 10/05/12 CT O OI
  • 12. Lessons Learned in Phase II: Smart Grid Call-for-Proposals © Siemens AG 2011. All rights reserved.
  • 13. If the research topic is confidential, a pre-qualification for (non-confidential) research topic clusters is helpful Topic Confidentiality non-confidential research topic cluster Example: non-confidential confidential confidential topic 1 topic 3 research topic clusters at http://smartgridcontest.com/university confidential topic 2 Do not underestimate the additional effort for IT security for confidentiality. These requirements do not fit (economically) to a “two-month application”. © Siemens AG 2011. All rights reserved. Page 13 10/05/12 CT O OI
  • 14. The abstract should be limited to 250 words. Abstract Submission (Qualification) Photo: © amras_de at http://www.flickr.com/photos/51243943@N00/423875472/in/pool-visualization If the abstract is 500 words, then submitters do not focus on the main idea. This leads to more evaluation effort of the abstracts and no clear separation of the abstract and full proposalSiemens AG 2011. All rights reserved. © submission. Page 14 10/05/12 CT O OI
  • 15. One of the main motivations of participants: be visible at Siemens and get a job at Siemens Job Recruiting When we met the winners and Most Valuable Contributors we asked them how we attracted them to participate. The surprising answer: not the award is the attraction but the chance to get visibility within Siemens. All rights reserved. © Siemens AG 2011. Page 15 10/05/12 CT O OI
  • 16. Siemens Smart Grid Call-for-Proposals further lessons learned Ownership  Project needs to be fully adopted by the Business Unit – Project Lead from Business Unit. Recruiting of Submitters  Management support from CTO level required.  SCOPUS gave us access to all the  A wide spread management support leads to robustness scientists who published in the search field. against organizational changes. Optimization  Early involvement of Product Managers.  Having a pre-qualification process ensures that the Siemens Experts spend most of their Confidentiality time with the best proposals and ensures  The more concrete the search field description, leads to a that only trusted submitters have access to trade off between the more confidential information.  the more valuable the submissions  Limiting the words and having a tool-  the higher the risk of disclosing Siemens strategies. enforced structure helps to focus submitters  The higher the security level of the tool, the more expensive, answers – helps to minimize Siemens effort less flexible, more complex to handle. for evaluating.  The quality of the submissions is higher if it is submitted  Explaining what type of proposals Siemens in a closed environment (not public) - at least in a highly wants and does not want helps to optimize competitive search field. the expectation of the submitters and the Timing workload at Siemens.  It is more important to align the contest with the Siemens  Very high usability is required for the web budget planning than with the academic year. tool both for submitters and  First receive all the submissions before making accept/deny backend operations – End to end decisions. process/workflow support. © Siemens AG 2011. All rights reserved. Page 16 10/05/12 CT O OI
  • 17. Conclusion „I thought I knew the best universities but obviously didn’t“ “Call-for-Proposals are a great method to indentify the best university partner” “The Call-for-Proposals has a clear ROI*. A coupling with Phase I (Idea Contest) is not required” * ROI: Return on Investment © Siemens AG 2011. All rights reserved. Page 17 10/05/12 CT O OI
  • 18. Contact Twitter: twitter.com/heisss Dr. Michael Heiss Slideshare: www.slideshare.net/heisss Xing: www.xing.com/profile/Michael_Heiss2 Siemens AG LinkedIn: www.linkedin.com/in/michaelheiss Chief Technology Office Flickr: www.flickr.com/photos/michaelheiss Blog: heisss.wordpress.com Open Innovation Program Phone: +43-664-88 55 15 26© Siemens AG 2011. All rights reserved. Page 18 10/05/12 CT O OI
  • 19. Appendix © Siemens AG 2011. All rights reserved. Page 19 10/05/12 CT O OI
  • 20. Siemens uses the new rules of "Open Innovation“ to develop its portfolio of innovation methodologies ~1900 2003 First university Siemens Technology Open Idea Contests cooperation Accelerator First lead customer TechnoWeb2.0 workshop First centers of Management of Competence E-Broker employees‘ ideas Traditional innovation mgmt. rules New options in the "Open Innovation" game:  Focus on bilateral partnerships  Use unobvious sources  Workshops or mailboxes as frame  IT-based methodologies ("Web2.0") for ideation  New levels of scalability  Limited speed of network dynamics  Enhanced speed in the dynamics of networks  Default: Maximize IP protection  Balance between IP protection and openness © Siemens AG 2011. All rights reserved. Page 20 10/05/12 CT O OI
  • 21. New Open Innovation approaches are set to complement the portfolio of innovation methodologies Ideas Technologies Open Idea Contest E-broker External Absorptive Capacity TechnoWeb 2.0 Internal Integrated Technology Company TechnoSearch Collaborate with Find the expert to creative masses solve your problem © Siemens AG 2011. All rights reserved. Page 21 10/05/12 CT O OI