siemens.com/answers

The Future of Shared Services

within Siemens Michel de Zeeuw, CEO Global Shared Services Siemens AG

Our vision – to provide answers to the great

challenges of our time

190 countries with ~ 370,000 employees and a revenue of more than 78 bn. in 2012

More than 290 major production and manufacturing plants worldwide

90,000 suppliers worldwide and ~150,000 internal customers of indirect material

About 1% of Germany's jobs are directly or indirectly linked to Siemens

Healthcare Sector Infrastructure &

Cities Sector

Industry Sector Energy Sector

In Doha, Siemens will build

the Middle East's most eco-

friendly tram system

We provided 890 million

people with affordable

access to advanced medical

imaging

>80% of automobile factories

in Europe use our automation

and drive technologies

More than 50% of the

electrical power in Brazil is

generated by Siemens

technologies

Brief overview in numbers

Energy Sector

Resource-saving power

generation

New orders 26,881

Total rev. 27,537

Profit 2,159

Employees 86,000

Industry Sector

Boosting industrial productivity

New orders 19,985

Total rev. 20,508

Profit 2,467

Employees 105,000

Healthcare Sector

Comprehensive patient care

solutions

New orders 13,806

Total rev. 13,642

Profit 1,815

Employees 51,000

Infrastructure & Cities Sector

Sustainable technologies for

metropolitan areas

New orders 17,150

Total rev. 17,585

Profit 1,102

Employees 89,000

A global delivery footprint with:

5 main delivery hubs in low cost

locations (Back Office)

Front and expertise office services

provided through regional and

country staff

Global Shared Services (GSS) is a global multifunctional organization

providing services to all Siemens businesses

~580 employees

2.6 Mill. calls handled in

Customer Care Services

Over 200 customer projects

per year in Marketing Services

across 45 regions

~2,550 employees

4.4 Mill. travel & exp. claims

330,000 pay checks/month

200,000 pensioners/month

27,000 expatriates

(short & long term delegations)

China

India

Czech Republic

Portugal

Accounting & Finance Services

Business Solution Services

Human Resources Services

Supply Chain Management Services

~2,450 employees

12-13 Mill. AP transactions p.a.

5-6 Mill. AR transactions p.a.

~400 legal entities (AREs)

~720 employees

400,000 purchase orders per year

12 logistic centers

Orlando

Frimley

Singapore

Local and Expertise Delivery Center Global Delivery Center

Bratislava

Cairo

Munich

São Paulo

Iselin

Melbourne Argentina

Need for change – 2009 the board gave us a mandate for certain services

and expressed clear expectations

Create synergies on a global

and cross-functional basis

Reach benchmarks in cost position levels

Improve quality and transparency

in operations

Requirements

Need for

Change

“We want GSS to be part of the solution”

Already large organization with around 4000

FTEs, broad portfolio and examples of best

practices

Inconsistent portfolio of regional services

and no global synergies

Improvement potential in quality and

transparency

Status as of late 2009

The GSS roadmap outlines three steps on the way to an

Innovative Solution Provider

Innovative Solutions

Engage with customers

Bundle mandated services

Professionalize operations

Develop service culture

Improve customer experience

Improve service quality and efficiency

Optimize operations

Develop solution competencies

Transform customer experience

Develop comprehensive solutions

Integrated business services

Enhance entrepreneurial spirit

End-to-end

optimization

Service

solutions

Process

improvement

Service

innovation

+

+

Cost reduction

Quality

improvement

2010 2012 2017 2015

Great Services & Solutions –

Creating and driving innovative

business solutions supporting Siemens

Lift & Drop

Change

Our achievements – global consolidation and clear structured business

responsibilities for bundling and professional operations

AFS Accounting &

FinanceServices

HRS

Human Resource

Services

SCMS

Supply Chain

Management Services

BSS

BusinessSolution

Services

Global Operations Delivery Hubs focus on

execution

Ramp up of ~1,400 in AFS and HRS

36% growth

Sharing best practice, harmonization and standard

IT-tools

Day to day service improvement

Business Lines with global business responsibility

Portfolio harmonization and restructuring

Transition management

Move to transaction based pricing with standard costing

structure

Cooperation and alignment with functional governance

Lift and Drop

Lift and Drop

Our achievements – creating a strong service and productivity oriented

culture to engage with customers and generate savings

Strong customer engagement model

Regional GSS heads drive customer satisfaction

Implementation of monthly User Satisfaction Index

Service mindset programs rolled out

Standard ticketing tool across operations

All focus on savings

Year on year commitment to productivity savings

Supported by tracking and monitoring tools

Tracking of savings generated in customers’ P&L

Savings targets linked to management incentives Dummy data

Change

Our achievements – improving quality and transparency

within processes and services

Targeting to reach World Class levels in Quality

Trained above 50% of staff on quality and Six Sigma

More than 300 continuous improvement projects

Achieved level 3 on 5 in 2012. Level 4 (World Class)

targeted for 2013/2014

More transparency through global KPIs

One global tool for operational and strategic KPIs with

drill down capabilities

Worldwide rollout of framework covering all our services

Excellent Processes

Customer integration

Quality standards

Consistent supplier

management

Quality controlling

Business-driven quality

planning

Focused quality reporting

Mindset and

capabilities

Comprehensive qualification

Continuous improvement

Leadership

for Quality

Management involvement

Control and support roles

Quality

Management

IndiGO!

KPI Reporting Suite

Our achievements – Customer driven transformation approach

for a greater customer experience

Change programs driven by Business Lines

Business Lines provide framework, standard,

best practices, support and transparency

Change plan is deployed locally in a

collaborative approach

HRS: Regional HR platforms, AskHR, policy

harmonization, end to end optimization

AFS: Event driven closing cockpit,

e-invoicing, self billing, external benchmarking

SCMS: OneSRM support, internal

benchmarking/harmonization

Support

ed b

y S

erv

ice L

ifecycle

Ma

nage

me

nt*

Business Line Functional Guidance (SLM)

and Programs e.g. PIA,

Simplify, TOM

Local requirements,

priorities and projects

Cluster

Cluster

Cluster Roadmaps

*Monitoring and Support, Generation Model, Maturity Assessment, Target GM, Service Improvement Plan

Change

The execution of our strategy led to significant achievements

over the past years

“They do have a significant responsibility to help us to get Siemens 2014 – to get the job done in a more effective way” Joe Kaeser, President and CEO of Siemens AG

Satisfaction Indexes Strategic Development

GSS TOP+ Savings Revenue & Employee Development*

Lift & Drop

Change

Innovative Solutions 2009 - 2012

2012 - 2015

2015 - 2017

Close collaboration with functions and businesses to foster improvements

Strong focus on operational performance (quality, KPIs, service mindset)

Productivity savings - GSS P&L effect FTE

Revenue Cost savings - Customer P&L effect

* On comparable basis

User Satisfaction Index

Customer Satisfaction Index (7,1)

Organizational Agility 1 Customer Experience 2 Growth and Revenue 3

One Solution for travel administration

activities

Provide automated information and

analytics to generate more sales leads

One Solution for all order and client

administration activities

Support new online ordering process

through study of customer needs

Redesign of end to end sales

administration and fulfillment process

Single contact for sales and after sales

support and customer escalation

Build call monitoring capabilities to

improve customer experience

Employee on-Boarding coordination to

ensure first day readiness

Mergers and Acquisitions Support

Mobile Analytics Solutions e.g.

delivery status and capacities on a

mobile device

HR analytics

We take a broader view of Operational Excellence, providing business value to operational productivity

We need to increase our capabilities: internal and external customer intimacy and business knowledge

In our last phase our main focus will be on developing innovative solutions

to support Siemens key strategic issues

Our OnBoarding Process

Solutions to reduce the complexity and time to

deliver

GSS is now able to be accountable for the

OnBoarding process end to end

Business is able to begin specific job training and

business unit induction more quickly

Further value add by closely monitoring the

overall process for quality and performance KPI’s

The teams were able to meet the goal of Day 1 Readiness. Reduction for OnBoarding from one month to one week

Especially adding value for countries where we are hiring significantly

Our achievements – Customer driven transformation approach

(in progress and on-going)

Innovative Solutions

“Innovation distinguishes between a leader and a follower”

Steve Jobs

Questions and Answers

siemens.com/answers

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