Drive standardization at the same time as supporting local flexibility Siemens AG All rights reserved. siemens.com

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1 Master Data Drive standardization at the same time as supporting local flexibility Siemens AG All rights reserved. siemens.com

2 169 years of innovation Milestones 1847 Werner von Siemens founds the company 1879 Electric train 1881 Telephone switchboard 1939 Electron microscope 1959 Simatic (electronic automation) 1953 High-purity silicon 1962 Thyristors for energy transmission 1974 Computed tomography scanner 2000 syngo user interface 2000 Wind turbine rotor blades in one cast 2009 World record gas turbine, 370 MW Heart pacemaker 2013 PLM Software 1847 Pointer telegraph 1866 Dynamo 1924 Traffic light 1988 Megabit chip 2010 Biograph mmr 1881 Electric streetcar 1935 Coaxial cable 1965 Integrated circuit 1985 ICE top speed 300 km/h 2015 Somatom Force Restricted Siemens AG 2016 All rights reserved. Page 2 Siemens AG

3 Vision 2020 Electrification, automation, and digitalization Our mission We make real what matters, by setting the benchmark in the way we electrify, automate, and digitalize the world around us. Ingenuity drives us and what we create is yours. Market development (illustrative) Digitalization Automation Electrification ~7 9% market growth ~4 6% market growth ~2 3% market growth Together we deliver. Today Mid term 2020 Power Generation Power transmission, distribution, and smart grid Efficient energy application Imaging and in-vitro diagnostics Restricted Siemens AG 2016 All rights reserved. Page 3 Siemens AG

4 Driving sales excellence by digital transformation which requires consistent processes and IT landscape - Customers are increasingly using Digital Sources along the entire Sales Process Customer Journey Acquire Idea, Concept Decision Engineering Ordering Operations Documentation Maintenance After-Sales Interest Selection Growth Digital touches Engages in digital media, Views webcast Download Whitepaper Reads analyst review online Uses online forum reviews product ratings Non-digital touches Read magazines, call suppliers Met with channel rep onsite Presentations negotiations Project meetings Restricted Siemens AG 2016 All rights reserved. Page 4 Siemens AG

5 Media Provisioning Marketing-Automation Information Provisioning Data Provisioning Configuration Pricing Quotation Ordering Logistics Information Assembly/ Operating Service After-Sales Harmonized processes, IT-solutions and data are building blocks for an individual customer experience (CX) and collaboration Optional Human Touch Individual Customer Experience Digital Business Collaboration Platform Analytics Self Services 360 Customer View Transparency CRM Vision Principles Quick serving of customers self-service desires and needs Capture digital and physical customer touch points with harmonized systematics Ease of use tool landscape for digital collaboration along the customer lifecycle Automation where needed and human touch where necessary Data- quality and quantity Sales Management Platform Consolidated Data & Information Customer Master, Product, Transactional, Unstructured, Financial Process and data quality Joint data framework (definitions and structure like customer master data) as basis for internal and external facing platforms Restricted Siemens AG 2016 All rights reserved. Page 5 Siemens AG

6 Master Data Management, today: Working effective and efficient? Approval Many high-touch activities Process Fragmented application support Restricted Siemens AG 2016 All rights reserved. Page 6 Siemens AG

7 Master Data Management tomorrow: Less complex and faster in execution! Approval Automated routing Most activities no-touch Decision Process 100% application support Restricted Siemens AG 2016 All rights reserved. Page 7 Siemens AG

8 Europe Asia How to combine global standardization with flexibility for local needs? Flexibility: Local requirements (system/process/legal) UI and local validation Ensure country and system specific flexibility Standardization & Harmonization: Access to global data bases, general validations, Workflow, Data model MDM Framework Set up a global MDM Framework to be applicable for all Siemens entities Create one place where all master data (Customer/ vendor) can be requested and handled Centralize and harmonize all field validations Integrate all relevant central data source to ensure smooth end to end process Increase efficiency by making all relevant information for approval processes available in one tool (E.g. Bank validation, address validation ) Platform: Access management, User identification, Layout definition Siemens Enterprise Layer make reuse of Pega platform functional components already set up within Siemens Pega 7 Platform Cloud solution setup for Siemens Make reuse of the out-of-the-box solutions provided by Pega 7 (e.g. flows, actions, reports) Restricted Siemens AG 2016 All rights reserved. Page 8 Siemens AG

9 FocuS/4 PEGA MD solution connects the user to all relevant data sources (single point of entry) Example: local and central search PEGA MD solution is fully integrated in internal databases (e.g. internal and external business partner) and SAP backend systems Based on search results, possible actions are automatically derived (e.g. unblock only when block is set; update existing business partner) Full end-to-end integration: all requests in PEGA are replicated to local SAP systems Restricted Siemens AG 2016 All rights reserved. Page 9 Siemens AG

10 FocuS/4 PEGA MD solution guides the user to what is relevant driving efficiency Example: customer change approval Role-based approval tab has been implemented (e.g. different fields highlighted for compliance officer vs. business approver) Only relevant fields are displayed & changes to previous versions are highlighted All remaining fields are visible via separate standard tabs Restricted Siemens AG 2016 All rights reserved. Page 10 Siemens AG

11 FocuS/4 PEGA MD solution validates entries increasing quality and speed of entry Example: address auto completion & validation (vs. global postal validation) Proposal inputs are shown real-time when typing Proposals are derived from trusted sources (e.g. global postal service) Example: bank detail completion & validation By entering bank account / IBAN, all bank details can be automatically derived incl. status of bank account (e.g. blocked / not existing) Restricted Siemens AG 2016 All rights reserved. Page 11 Siemens AG

12 FocuS/4: Master Data Management The big picture: WHAT? Single source of truth Central data creation, maintenance and validation Central data distribution via push principle Integration with internal tools & external sources ERP Data storage, replication UI, workflow, validations Vendor portal External Siemens Business Partners Siemens Employees Internal and external validation sources Technical solution CMDB Global backbone Push 3) ERP SWE ERP ERP ERP Multiple Siemens ERP Push 1) NWE PEGA MDM Framework Finavigate CRM SCM Service setup Operations & support Multiple Siemens central tools/applications (e.g.) 1) Push principle will be applied. Interface requirements to be analyzed in details. Efficiency, Quality and Flexibility Quality at creation ensures lower processing & process cost (higher automation, less complaints & returns) One single pre-system optimizes data footprint (no duplication) and helps reduce tool landscape complexity Scalable layer cake platform ensures functional flexibility Perform central and standardized validation of addresses, bank details, tax code, & telephone number formatting, completion and consistency Leverage of technology and service capabilities Deployment of best of breed technology taking advantage of harmonization and at the same time supporting flexibility Ensure end-to-end integration of master data management processes and tools Scaling of cost efficiency master data services (existing know-how across MD areas and activities - from daily maintenance over analytics to automation) Restricted Siemens AG 2016 All rights reserved. Page 12 Siemens AG

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