Infrastructure – the fabric of society

Siemens launched its Smart Infrastructure business in April 2019, 18 months on, as I get ready to assume a new CEO role for Siemens Digital Industries, I reflect on what we mean by “smart infrastructure” today: For me, Infrastructure is more than buildings, roads and power, it is the fabric of society – it brings people together whether literally with a bridge, or physically through transport or by the connection to power and water. And with new digital solutions it can be even more than this. For us, smart means running infrastructure in the most human-centric and sustainable way possible. We want to do more with less.

Taking time to reflect, three main thoughts come to mind: 

• Firstly, no one can do it alone, we need to partner with our customers, communities and in some cases our competitors. We need to continue to focus on collaboration across the ecosystem to develop smarter, more responsible environments; 

• Secondly, infrastructure has for a long time being optimized for cost only. As an example we spend 90% of our waking life in buildings, therefore we need to be more human-centric and adaptable, this opens up greater possibilities for businesses and communities; 

• And finally, there is only one way to make it happen - digitalization and data provide the foundation to make this a reality.

Starting with collaboration. Infrastructure brings people together – we create the perfect places to live, work, relax and create and the network of roads, tunnels, bridges and transport links to move people comfortably and efficiently. These increasingly complex networks need to deal with the pressure of increasing populations in cities – two out of three people by 2050 according to the UN. A single municipality, utility, government or corporation cannot provide the solutions. Add a global pandemic into the mix and the challenges escalate to a new level. There is a strong need to collaborate across the ecosystem with a common purpose of creating more comfortable, safer, more livable environments. Just as an example, a New Yorker uses 20 times more resources than someone living in Jakarta. How do we make sure that everyone lives in good environment with the minimum environmental footprint?

An ecosystem of innovation

In the last two years, I have been heartened by the positive intentions of the government officials in all continents and impressed by the innovative spirit of our customers and partners. There are examples around the world of what is possible through a spirit of collaboration. Starting close to home, take Siemensstadt 2.0 where government, industry and the people of Berlin are collaborating to create a new working and living environment. We will create more than 1 million square meters with the aim to have a zero-carbon footprint. Or Wunsiedel, in Bavaria, where utility SWW Wunsiedel is a pioneer with a supply network fully based on renewables. Just last week, we announced the largest green hydrogen system in Bavaria, that will convert renewable energy from solar and wind power into storable hydrogen for mobility and industry. And even Lappeenranta in Finland where more than 50 buildings are connected as a ‘virtual power plant’ to allow for balancing loads across buildings and the grid to decrease the need for reserve power. With the European Commission accelerating its net zero ambition to 2050, such projects are lighthouses to show the way for others. 

The common factor in these great examples is collaboration, with an ecosystem of partners pulling in a common direction daring to innovate for the benefit of the community. These examples show the huge potential of the new dimension of solutions and business models at the grid edge – where the consumer, prosumer and intelligent grids interact. 

This year, we’ve hit the ground running in eMobility, one of the most exciting areas at the grid edge. I’d like to thank the team for successfully pushing our eCharging solutions across markets globally; more than doubling our business with great wins. This is one of the economic areas which actually accelerated during the pandemic. One of the examples is 34 eBuses in Auckland and Christchurch we supplied with DC fast charging technology.  

Human-centricity and adaptability

The next area that has come to the foreground in the last 18 months is the importance of human-centricity and adaptability of infrastructure. In 2020, it is a year of many challenges, but as Winston Churchill said, “Never waste a good crisis.” There will be much good that comes out of this difficult year. The world has learned how to adapt in many new ways.

In the area of buildings, we have seen that technology that used to bring people together can now help keep us safely apart. Space optimization has been a major focus for our customers. IoT solutions were ensuring maximum occupancy and optimum rental yields. And now, the same building blocks used for space optimization can be applied to manage physical distancing to enable a safe return to the workplace. In 2018, we acquired the startups Enlighted and Comfy; their technology is at the heart of these new offerings. Before the global pandemic, we talked about the importance of speed, but in the face of a crisis we all had to change – individuals, organizations and the use of technology.

One of the highlights this year was our partnership with Salesforce to create a tech suite to help people return to work safely. Our Comfy and Enlighted offerings are at the heart of this partnership. I’m proud that both start-ups have become an example of human-centric tech players in Silicon Valley and beyond. Together, we’re working to create future workplaces beyond Covid-19. 

Smart infrastructure is about technology that is intuitive and adaptable, that can respond to the needs of different stakeholders. We will see infrastructure that is all-sensing, that learns about the requirements to become increasingly responsive. We will see the age of human-centric, adaptable infrastructure – systems to improve air quality; temperature and lighting set to your preference in your office; and information for you to safely manage physical distances in a range of buildings

Digitalization as the foundation

“Smart” is only achievable on the foundation of digitalization and the intelligent use of data. Our mission is to use finite resources responsibly. This responsibility includes a focus on cybersecurity and individual data privacy. As a company, we have been focusing on the application of our technology in the real world for more than 170 years. One strength is deep domain knowledge in the physical world – in buildings, in electrical infrastructure, in industry. We now connect the physical world to the digital world to optimize the physical environments. 

In infrastructure, we have digital twins of buildings, grids and industrial sites so we can apply electrification and building technologies to improve productivity, energy efficiency, comfort, security and even air quality across the lifecycle of assets. And we increasingly see the potential of automation and the evolution to artificial intelligence – managing optimum building temperature based on historical occupancy data or predictive maintenance information.

Data as an infinite resource

Infrastructure has remained one of the least digitally transformed sectors of the economy so the time is now. Our resources are finite, but data is infinite – this creates a unique opportunity for us all. Let’s work together across industries and geographies to innovate in ways that have a positive impact both on the quality of life and sustainability? We can make the difference. I am optimistic about the path forward – together.

In the new chapter of Siemens from October 1, our global employees will continue to partner across ecosystems in industry and infrastructure to support our customers to make an impact – bringing together physical and digital realms, where we can make a difference – to our climate, to energy efficiency, for economic prosperity. This technology with purpose is what has the power to transform the everyday.