Bosch Group anniversary magazine years of Bosch worldwide by jnyjhtw


									Bosch Group anniversary magazine: 125 years of “knowing how, thinking beyond”


Pages 2 – 9                 Pages 10 – 17               Pages 18 – 24
Power of innovation         Drivers of innovation       Culture of innovation
The Bosch Vision
Creating value – sharing values

                          As a leading technology and services company, we take advan-
                          tage of our global opportunities for a strong and meaningful
                          development. Our ambition is to enhance the quality of life with
                          solutions that are both innovative and beneficial. We focus on
                          our core competencies in automotive and industrial technolo-
                          gies as well as in products and services for professional and
                          private use.

If we want to work
                          We strive for sustained economic success and a leading market
successfully as a team
in a globalized and       position in all that we do. Entrepreneurial freedom and financial
complex world, then       independence allow our actions to be guided by a long-term
we need a common
                          perspective. In the spirit of our founder, we particularly demon-
image of the future
for our company. This     strate social and environmental responsibility — wherever we do
image – this vision –
helps us bring our
strategic thinking into
clear alignment.          Our customers choose us for our innovative strength and effi-
                          ciency, for our reliability and quality of work. Our organizational
                          structures, processes, and leadership tools are clear and effec-
                          tive, and support the requirements of our various businesses.
                          We act according to common principles. We are strongly deter-
                          mined to jointly achieve the goals we have agreed upon.

                          As associates worldwide, we feel a special bond in the values we
                          live by – day for day. The diversity of our cultures is a source of
                          additional strength. We experience our task as challenging, we
                          are dedicated to our work, and we are proud to be part of Bosch.
Key Data

Bosch Group                                                 2009      2010
Sales revenue                                              38,174    47,259

percentage change from previous year                         – 15      + 24

Sales revenue generated outside Germany
as a percentage of sales revenue                              76        77

Research and development cost                               3,603     3,810

as a percentage of sales revenue                              9.4       8.1

Capital expenditure                                         1,892     2,379

as a percentage of depreciation                               80       100

average for the year                                      274,530   276,418

as of January 1, 2010/2011                                270,687   283,507

Total assets                                               47,509    52,683

Equity                                                    23,069     26,243

as a percentage of total assets                               49        50

Profit before tax                                          –1,197     3,485

as a percentage of sales revenue                             –3.1       7.4

Profit after tax                                           –1,214     2,489

Unappropriated earnings (dividend of Robert Bosch GmbH)       67        82

Currency figures in millions of euros
The Bosch Group at a Glance

The Bosch Values                                The Bosch Group is a leading global supplier of technology and services.
                                                In the areas of automotive and industrial technology, consumer goods, and
– Future and result focus                       building technology, some 285,000 associates generated sales of 47.3 billion
– Responsibility                                euros in fiscal 2010. The Bosch Group comprises Robert Bosch GmbH and
– Initiative and determination                  its more than 350 subsidiaries and regional companies in over 60 countries.
– Openness and trust                            If its sales and service partners are included, then Bosch is represented in
– Fairness                                      roughly 150 countries. This worldwide development, manufacturing, and
– Reliability, credibility, and legality        sales network is the foundation for further growth. Bosch spent some 3.8 bil-
– Cultural diversity                            lion euros for research and development in 2010, and applied for over 3,800
                                                patents worldwide. With all its products and services, Bosch enhances the
                                                quality of life by providing solutions which are both innovative and beneficial.

Shareholders of                                 Bosch is celebrating its 125th anniversary in 2011. The company was set up
Robert Bosch GmbH                               in Stuttgart in 1886 by Robert Bosch (1861–1942) as “Workshop for Precision
                                                Mechanics and Electrical Engineering.” The special ownership structure of
– Robert Bosch Stiftung GmbH                    Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch
  92% share of equity                           Group, making it possible for the company to plan over the long term and to
  No voting rights                              undertake significant up-front investments in the safeguarding of its future.
– Bosch family                                  Ninety-two percent of the share capital of Robert Bosch GmbH is held by
  7% share of equity                            Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting
  7% voting rights                              rights are held by Robert Bosch Industrietreuhand KG, an industrial trust.
– Robert Bosch Industrietreuhand KG             The entrepreneurial ownership functions are carried out by the trust. The
  93% voting rights                             remaining shares are held by the Bosch family and by Robert Bosch GmbH.
– Robert Bosch GmbH
  1% share of equity
  No voting rights                    

    Business sectors and divisions

                                                                                          Consumer Goods and
    Automotive Technology                       Industrial Technology                     Building Technology

    Gasoline Systems                            Drive and Control Technology 2            Power Tools
    Diesel Systems                              Packaging Technology                      Thermotechnology
    Chassis Systems Brakes                      Solar Energy                              Household Appliances 3
    Chassis Systems Control                                                               Security Systems
    Electrical Drives
    Starter Motors and Generators
    Car Multimedia
    Automotive Electronics
    Automotive Aftermarket
    Steering Systems 1
                                                                                          3 BSH
                                                                                              Bosch und Siemens Hausgeräte
    1 ZF
           Lenksysteme GmbH (50% Bosch-owned)   2 Bosch
                                                          Rexroth AG (100% Bosch-owned)    GmbH (50% Bosch-owned)
125 years of Bosch


                                               Power of innovation

Innovations                                                 Again and again, the

          culture of innovation                      we have developed over the years gives rise to beneficial

      innovations that are “Invented for life.” A high-performance research

                         organization and highly committed engineers are major     drivers of innovation.

                                       D     ear readers,
                                             This year we celebrate the 125th anniversary of our
                                       company’s founding and the 150th anniversary of our com-
                                                                                                       Pages 2 – 9

                                                                                                       Solar cells
                                       pany founder’s birth. This has prompted us to publish a sup-    Internal-combustion
                                       plement that showcases our extensive power of innovation        Service platform for
                                       from the company’s infancy to the present day – and even        electromobility

                                       somewhat beyond. Bosch is by no means resting on its
                                       laurels, but instead is continuously exploring new areas of
                                       endeavor – in photovoltaics, for example, or in telehealth.

                                       We could never have developed as dynamically as we have         Pages 10 – 17

                                       without perseverance and single-mindedness. At Bosch, the       Engineers in close-up
                                                                                                       Interview with
                                       main drivers of innovation are resourceful and highly com-      Dr. Volkmar Denner
                                       mitted engineers, a high-performance yet efficient research     History of innovation

                                       organization, and a historical background that is both an
                                       inspiration and an obligation, driving us on to further out-
                                       standing achievements.
                                                                                                       Pages 18 – 24

                                       In all our areas of work, the culture of innovation that has    Automotive technology
                                                                                                       Industrial technology
                                       thus developed over the years has repeatedly given rise to      Consumer goods
                                       groundbreaking products that are “Invented for life.” The       Human resources
                                                                                                       Financial management
                                       list includes the ABS and ESP® vehicle safety systems, the
                                       fuel-saving start-stop system, the energy-efficient hybrid
                                       drive, and the compact Ixo drill/driver. But we have also
                                       brought our innovative strength to bear on our internal proc-
                                       esses, such as financial management or human resources
                                       management. There is no end in sight to the stream of good
                                       ideas – not by any means.

                                       Franz Fehrenbach
                                       Chairman of the Board of Management

Power of innovation
New departures for Bosch: automotive
powertrains, photovoltaics, telehealth

                                        manufacturing costs can the photo-
                                        voltaic industry become as competi-
Solar cell development                  tive as it needs to be.
                                            A total of more than 100 Bosch
Innovative                              scientists and engineers are working
structures                              day in, day out to develop innovative
                                        cell structures and new, forward-look-
A solar module manufactured by          ing cell concepts to further increase
Bosch Solar Energy AG contains up to    the generating capacity, and thus the
60 cells. Their efficiency determines   efficiency, of crystalline solar cells.
the output of the modules – and             Development departments at
hence the competitiveness of            Bosch Solar Energy AG are focused
photovoltaic technology.                on designing and testing not only the
    The people who develop our          cells themselves, but also suitable
crystalline solar cells are system-     processes for manufacturing them.
atically working on new cell genera-        The effectiveness and profitability
tions. The next high-performance        of such innovations must first be
cell generation is due to enter pilot   verified before pilot fabrication, and
fabrication in early 2011.              then large-scale series production,
    Put simply, the goal of cell        can begin. The aim is to ensure that
development is to extract higher        the new processes are truly ready for
output from less material input and     series production, since continuous
thus deliver a lower cost per watt.     shift production would otherwise not
Only by significantly cutting its       be possible. 
125 years of Bosch                   Vorwort         3




                         The layers that make
            4            up a solar cell …
                         1   Front surface contact

                         2   Anti-reflective layer
                     5   3   n-type silicon
                             (doped with phosphorus)

                         4   p-type silicon
                             (doped with boron)

                         5   Rear surface contact

    “Anything that helps to improve technology and
     the economy should always also be beneficial
     for mankind.”                          Robert Bosch

                                                  increased. This method creates what          Latest results in the laboratory have
                                                  is described as a “selective emitter.”       already reached values of 19.5 per-
    Innovative solar cells                            Improved screen-printing technol-        cent. Thanks to systematic fine-tun-
                                                  ogy also makes it possible to affix          ing, Bosch engineers have succeeded
    One percentage                                much slimmer contacts to the cell.           in boosting the average efficiency of
    point more efficient                          This reduces the degree of surface           cells from 16.5 percent in 2009 to
                                                  shading, increases the area exposed          18.1 percent today. Over the same
    Our latest-generation crystalline cells       to light, and thus allows the cell to        period, wafer thickness has also been
    feature a new design on both sides.           generate more electricity.                   reduced, from over 220 microns to
    The “emitter” surface of the front                The rear side of the cell is             180 microns. And researchers are
    side of the cell – where the light hits       also being optimized. The familiar           already working with significantly
    the cell, is absorbed in the silicon,         continuous contact strips that were          thinner wafers.
    and is converted into electricity             previously used are now divided into            The cell developed by Bosch Solar
    (see diagram) – is optimized for the          several short sections. In this way, the     Energy AG marks yet another step
    short-wavelength, or blue, region of          amount of costly silver paste used is        in a challenging development time-
    the light spectrum. It thus generates         reduced, and more of the rear side is        table. Scientists at Bosch are already
    more power in the cell.                       coated with aluminum.                        designing ways to raise the efficiency
        This higher power generation is               CalLab, the independent photo-           of solar cells to over 20 percent. 
    due to the lower phosphorus content           voltaic calibration laboratory at the
    in the emitter layer. For the strong          Fraunhofer Institute for Solar Energy
    electrical contact between the metal-         Systems (ISE), has confirmed ef-
    lic front contacts and the silicon sur-       ficiency values of 18.9 percent for our
    face to be retained, the phosphorus           new cells. This equates to an increase
    content of the area directly beneath          of 1 percentage point compared with
    the contacts must be selectively              today's standard cells.

    … and how they generate electricity

1                                             2                                            3

    Photons hit the solar cell and are            This creates an electron “hole”              … an electrical field between the
    absorbed within the semiconductor             and a proton “hole.” These particles         two silicon layers separates the two
    material.                                     would normally recombine, but …              charged particles. This results in a
                                                                                               direct current voltage, which can be
                                                                                               tapped at the contacts.
                                                                           ment. Costly hospital stays can
                                                                           frequently also be avoided.
                                    Telehealth                                The comprehensive Bosch
                                                                           package has already demonstrated
                                    Close monitoring for
                                                                           its practical worth. For instance,
                                    greater quality of life                Bosch cooperates with the Vet-
                                                                           erans Health Administration in the
                                    Bosch has developed an innovative      United States. In Germany, it has
                                    solution for the remote monitoring     been responsible for the technical
                                    of patients who suffer from chronic    side of the “Partnership for the
                                    conditions. In addition to involving   Heart” consortium since 2006.
                                    the routine recording of medical          As part of a clinical study
                                    data such as blood pressure,           sponsored by the German Federal
                                    weight, blood sugar, and oxygen        Ministry of Economics and Technol-
                                    saturation, the Bosch Telehealth       ogy and conducted in partnership
                                    Plus concept also asks patients a      with Charité Hospital in Berlin and
                                    series of questions on a daily basis   the Robert Bosch Hospital in
                                    and gathers feedback about their       Stuttgart, scientific evaluations
                                    state of health.                       have been performed to determine
                                       At the medical monitoring           the benefits of telehealth for
                                    centers where the data is sent for     applications in Germany.
                                    evaluation, medical personnel can         These evaluations show that
                                    put together a complete picture of     telehealth monitoring – when it is
                                    patients’ health. Round the clock,     used to complement officially
                                    they can better track how patients’    approved out-patient care – can
                                    conditions are progressing.            significantly improve quality of life,
Bosch “Telehealth Plus” allows      Patients enjoy greater quality of      and in some cases even the life
medical personnel to monitor
                                    life, since they can often remain in   expectancy of patients with
their patients better and more
                                    their familiar domestic environ-       congestive heart failure. 
efficiently – without the need
for frequent visits to the doctor
or the hospital.


     “Whatever my company makes, it must be
      first-class and fault-free.”                                       Robert Bosch

                                                 and long-distance trips, in contrast,      With all these products, plus the
                                                 will be improved, fuel-efficient diesel    lithium-ion batteries from the SB
      Electromobility                            and gasoline engines. Hybrid drives,       LiMotive joint venture set up with the

      The powertrain                             a combination of internal-combustion
                                                 engines and electric motors, will be
                                                                                            Korean company Samsung SDI,
                                                                                            Bosch is in a position to supply the
      of the future                              an option for any type of driving.         entire electrical powertrain – from
                                                     Bosch has based its long-term          the energy-storage medium to the
      What kind of propulsion system will        strategy on these considerations,          electric motor.
      power the car of the future? There         fine-tuning diesel and gasoline en-           Each year, Bosch makes some
      is no clear answer at present. What        gines while at the same time investing     400 million euros available for power-
      is certain is that the system will be      major effort in the electrification of     train electrification. Since 2010, the
      based closely on drivers’ specific mo-     the powertrain.                            parallel full-hybrid system, a Bosch
      bility needs. In the long term, electric       Bosch already has a full product       innovation, has been available in two
      motors will play an important role.        portfolio for hybrid and electrical        premium-class models. And 2011 will
          They will offer the greatest ben-      powertrains. It includes core compo-       see the premiere of our hybrid tech-
      efits in short-distance driving in the     nents such as the power electronics        nology in combination with a diesel
      world’s growing megacities, reduc-         systems which control the energy           engine. 
      ing emissions in major population          flows in hybrid and electrical vehicles,
      centers. The best option for medium-       as well as high-torque electric motors.
  125 years of Bosch                                                                                      Power of innovation               7

  In the long run, the electric motor will
                                                                                                                 Electric/fuel cell
  prevail as the automotive powertrain.
  Until then, however, the internal-combus-                                                                      Electric/battery
  tion engine will dominate the scene.                                   Electric/range extender                 Electric/range extender
                                                                         Controlled auto-ignition                Controlled auto-ignition
                                     Hybrid                               Hybrid                                 Hybrid
                                     Alternative fuels                    Alternative fuels                      Alternative fuels
Diesel                               Diesel                               Diesel                                 Diesel
Gasoline                             Gasoline                             Gasoline                               Gasoline


                                                 cylinders and 1.1 liters of displace-
  Internal-combustion engine                     ment – without sacrificing power or

  Diesel and gasoline:                           comfort.
                                                     Thanks to Bosch technology,
  still frontrunners for                         these engines will run much more ef-
  years to come                                  ficiently. By 2015, a gasoline-powered
                                                 car will consume only 5.5 liters per
  Electric vehicles use energy extremely         100 kilometers – 29 percent less
  efficiently. In the long run, therefore,       than today’s standard engines. In the              02
  the electric motor will become the             same year, a diesel-powered car will
  most important automotive power-               burn only 3.6 liters per 100 kilometers
  train.                                         – about one-third less than today’s
         For the next 20 years, however,         diesel engines.
  the internal-combustion engine will                What is more, carmakers are
  remain the powertrain of choice. Per           harnessing other technologies to
  kilogram of energy storage, and as             further cut vehicle consumption
  technological developments stand               and emissions. By designing more
  at present, a car equipped with an             streamlined car bodies, they are
  internal-combustion engine can drive           reducing aerodynamic drag. They are
  roughly 40 times farther than an elec-         also paring down vehicle weight and
  tric vehicle. And there is still potential     minimizing rolling resistance.
  to further reduce the consumption                  All in all, automobiles that are
  and emissions of internal-combustion           fully optimized in the ways described
  engines.                                       above will consume at least 50
         Bosch is developing innovative          percent less fuel than automobiles                 In Hildesheim, Germany, Bosch has set up
  solutions for both gasoline and diesel         do today. Under standard conditions,               a new manufacturing facility for electric
  engines. The new components and                consumption of roughly 4.4 liters of               motors.

  systems that are being engineered              gasoline or some 2.9 liters of diesel
  today will be ready for the market by          per 100 kilometers can by all means
                                                                                                    In modern diesel engines, injection systems
  2015. Extreme downsizing will reduce           be achieved in the future.                        play a major role in reducing consumption
  diesel and gasoline engines to three                                                              and CO2 emissions.

Pilot project in Singapore
Technology                                                                      26,073 taxis
of the future
When it comes to electric vehicles,     Service providers, for example, might
Bosch can draw on a wealth of exper-    one day propose routes to drivers that
tise not only in powertrain technol-    take into account their electric vehi-
ogy, but also in the corresponding      cles' ranges, the charge spots that
                                                                                    Software from
infrastructure. In Singapore, Bosch     are available, and the current traffic      Lake Constance
has successfully bid for a pilot        situation. On their navigation devices
project. It involves a software-based   and cell phones, drivers might also         The infrastructure project in Singa-
service platform for electromobility    receive information about the best          pore will be spearheaded by Bosch
as well as the requisite charging and   way to reach their destinations using       Software Innovations GmbH, the
communication infrastructure. The       alternate routes that include public        Bosch Group’s software and systems
target customers and users of the       transportation.                             unit. This subsidiary originated from
platform include people who own or          eMobility Solution is based on          Innovations Software Technology
rent electric vehicles.                 Visual Rules software, which allows         GmbH, which Bosch acquired in
                                        specialist users to independently           2008, and can draw on both the ex-
An open and flexible design             define and modify business rules.           pertise of Bosch as a global provider
                                        The software also makes it possible         of technology and services and on its
The internet-based “eMobility           for other companies to integrate their      own long years of experience.
Solution” not only helps drivers find   business models into the eMobility              Bosch Software Innovations,
available charge spots, but also lets   Solution. Those companies might             which is headquartered in Immen-
them reserve spots in advance. That     include operators of parking garages        staad on Lake Constance and has
is particularly significant in mega-    or facility managers, for example. The      other locations in Singapore, Chicago,
cities, where parking space and thus    solution can be adapted to existing         and Stuttgart, employs just under
space for charge spots is limited.      information and energy networks,            300 specialists, who develop software
eMobility Solution is designed to be    allowing an e-mobility network to be        for energy management, mobility,
open and flexible, so that additional   tailored to the existing infrastructure     telehealth, and the finance sector. Its
business models and value-added         in a given city.                            web-based solutions are designed to
services can be integrated, such as         eMobility Solution was specifi-         network different components and
the option for drivers to reserve       cally designed to be open enough to         systems via the internet and thus
power from renewable sources at         allow even competing companies              to offer users and operators market
the corresponding “eco-rates” or        – public utilities, for example – to        access for new business models.
plan routes including alternative       participate, and other providers to             This especially applies to areas of
forms of transportation. Especially     integrate their charge spots. This          technology that are relevant for
in megacities, there is a growing       approach actively encourages                Bosch, such as energy, mobility,
realization of the many possibilities   unrestricted competition when it            healthcare, and the environment. In
this integrated service platform        comes to creative e-mobility service        the coming years, an increasing
offers. The Singapore government        ideas. It is accessible and flexible,       number of smart systems will be
has now taken the initiative and is     offering customers a broad range of         communicating automatically with
working together with Bosch to make     services and a high level of informa-       each other online. Experts forecast
this pioneering technology a reality.   tion security at the same time.            that, 15 years from now, the resulting
125 years of Bosch                                         Power of innovation           9

“internet of things and services” will
interconnect more than 50 billion
components – from tiny sensors to
high-performance computers. 


                                             e-mobility in

       4.6 million                               01
                     inhabitants                 “eMobility Solution,” the Bosch web-based
                                                 service platform, helps the drivers of
                     6,550     inhabitants
                                                 electric vehicles to quickly find a vacant
                     per km2
                                                 charge spot.


 Drivers of innovation
“Of researchers and inventors, movers and
 shakers, and the spirit of the company …”
                                          “never been bored.” Which is not to            of progress, Bosch allowed him to
                                          say that wrestling daily with chal-            take on another associate. Together
Engineers in close-up                     lenges – which may or may not even             with his new colleague Andrea Urban,
                                          have solutions – is all just a walk in         Lärmer cut the Gordian knot. The
Marathons of the                          the park. It requires tremendous               two managed to develop a process
mind                                      patience, perseverance in the face             for the mass production of microsen-
                                          of frustration, and a certain faith in         sors, which was key to manufacturing
Franz Lärmer believes that the South      serendipity. According to Lärmer’s             highly sensitive yaw-rate sensors.
Tyrolean air turbocharges the brain.      co-worker Andrea Urban, it’s mostly            Yaw-rate sensors are at the heart of
With his eyes turned to the Cima          a painstaking process – conduct-               the ESP® electronic stability program,
Grande, which at 2,999 meters is the      ing tests, following clues, analyzing          the highly successful safety system
highest peak of the “Tre Cime di Lava-    results, and examining irregularities          Bosch supplies to the automotive
redo” mountains in Italy, he set off on   closely. “One by one, the pieces of the        industry.
the hike that was to spark a brilliant    puzzle fall into place, finally produc-            On the long road leading to the
idea. That same evening, the vaca-        ing a complete picture – the solution,”        breakthrough, the two researchers
tioning Bosch associate would fax a       she says.                                      encountered every imaginable high
hand-written invention disclosure to          Franz Lärmer and Andrea Urban              and low associated with an extremely
his company’s patent department.          have known and respected each                  demanding research project. Some-
Explaining the anecdote from his          other for a long time. Working in the          times intuition determined their next
anything-but-ordinary career, he says,    Research and Advance Engineering               step, sometimes logic, and some-
“My best ideas come to me when I'm        corporate sector in the early nineties,        times they disagreed on how to pro-
showering or hiking.”                     Lärmer’s task seemed to be an insur-           ceed. And then there were, of course,
     By his own account, the physicist,   mountable one. When his work none-             the moments when they seemed at a
scientist, engineer, and inventor has     theless started to show initial signs          complete impasse.

                                          Dr. Franz Lärmer

                                          The 50-year-old scientist won the “Inventor of the Year” award
                                          in 2007.

                                          – 1960: Born in Waldsassen, Germany
                                          – 1980: Graduated from high school
                                          – Until 1986: Studied physics in Munich and Zurich
                                          – 1989: Received his PhD in Munich. At Bosch since 1990

                                          After hours, Franz Lärmer looks for a change of pace from his
                                          demanding job by hiking in the mountains, diving, and cooking.
                                          But even at home there’s no escaping his vocation: “No electrical
                                          installation or water pipe is safe when I’m around.”
125 years of Bosch                                                                                 Drivers of innovation            11

                                            Andrea Urban

                                            The 43-year-old engineer won the “Inventor of the Year” award
                                            in 2007.

                                            – 1967: Born in Waiblingen, Germany
                                            – 1987: Graduated from high school in Schwäbisch Gmünd, then
                                             studied surface technology and materials science at the Aalen
                                             university of applied sciences. At Bosch since 1992

                                            Andrea Urban likes to recharge her batteries by gardening.
                                            She also finds relaxed get-togethers with friends a welcome
                                            change of pace.

Throughout their scientific (ad)ven-        works in close cooperation with               tention to new things. With relish, he
ture, the associates knew that they         mechanical engineers, develop-                then returns to the search for the next
could always count on support from          ing sensor process technology for             big idea and admits to having taken
Bosch. Research is regarded as one          automotive and consumer products              “even greater risks” since winning the
of the pillars underpinning the com-        such as cellphones. Miniaturization           inventor’s award. Currently, Lärmer is
pany’s future success. Even in times        continues apace, and demands on               focusing on questions related to medi-
of crisis, it remains virtually non-        microelectromechanical sensors and            cal technology. If the microsystems
negotiable. Lärmer credits his em-          applications are also growing. Adapt-         technology for diagnostic platforms
ployer with “admirable stamina and          ing and fine-tuning the manufacturing         requires it, he is quite prepared to
patience” when it comes to pursuing         processes involved is often anything          demand everything of his staff and
ideas that promise business success.        but easy, and that places great               push them to the limits. “The task has
In 2007, the solution to microsensor        responsibility on Andrea Urban, who           to be as challenging as possible” is his
manufacturing also earned the duo           must deal directly with the logistics of      motto.
the title “Inventor of the Year” from       production.                                        Giving your all is as essential in
the European Patent Office. Today,              Franz Lärmer has remained at              this profession as in sports. “Research
both are still diligently adding to their   the Bosch corporate headquarters              is like running a marathon,” says Franz
extensive patent collections.               at Schillerhöhe near Stuttgart. As            Lärmer. “Only those at the top of their
    Nonetheless, Andrea Urban               a trailblazer in the field of applied         game reach the finish line.” 
believes “an idea of that caliber           research, he has to “be able to let
only comes once in a lifetime.” She         go” of a successful project about
has subsequently taken a position           two years before it is ready for series
at Bosch in Reutlingen, where she           production so that he can turn his at-

                                                                    Dr. Volkmar Denner, member of the
                                                                    board of management responsible
                                                                    for research and advance engineering

“We need researchers with
 rough edges.”

 The scope of the Bosch Innovation Award was extended recently to include business
 models – a sign that Bosch is redefining its understanding of innovation. What was the
 reason for that? And what does innovation mean to you?
 For me, a Bosch innovation is in the first instance a new and meaningful thing that has been
 “Invented for life.” But in the future, we will focus on more than just products. By expanding the
 Innovation Award, we want to encourage people to turn more of their attention to new types of
 business models. Product innovations alone won’t be enough to ensure our company’s continuing

 A new product starts with an idea, and that takes creativity. Can creativity be planned?
 Creativity needs freedom, and it especially needs inspiration and the ability to connect the dots
 between different things. So creativity can only be planned to a limited extent. It’s mainly the
 atmosphere, the setting, that must be creative. And it needs tolerance of mistakes. We need an
 attitude, a spirit that allows creative minds to tackle innovative topics, even if there is the risk of
125 years of Bosch                                                                            Drivers of innovation   13

How does Bosch manage to generate that spirit and keep it alive?
The basic premise is getting the right people together in a team. And having enough of the right kind
of knowledge in that team. Innovation teams call for a special management style which I would
describe as a balance between granting autonomy and providing support.

What role will web 2.0 tools – new communication platforms, that is – play in future
We are experiencing a major transition right now. It is becoming more and more important to work in
large, international, intercultural, and virtual teams. That will become the norm one day. We use web
2.0 to work with teams that are spread across the globe. Innovation is still managed with a relatively
firm hand today, but we are planning to develop a new platform, Inno@Bosch. Its open architecture,
which emphasizes spontaneous and creative elements rather than management elements, is
designed to encourage interesting new ideas and innovations.

Does Bosch need to become as unbureaucratic, straightforward, and fast as Facebook or
We certainly want to move more in that direction. In the future, we will have more platforms,
especially those where experts can meet, exchange information, and work on projects. And that will
enable them to develop solutions much faster and more creatively than they can today.

The Bosch Group operates in many different fields. Is there such a thing as a technical
common denominator for the innovations it comes up with?
On the technical side, metering, governing, and control are the factors common to all our work. More
generally, however, all of us at Bosch are motivated by the same thing: we embrace the process of
continuous improvement. That drives innovations at Bosch forward – and not just in development,
but in every other area as well.

What are the focal points of the company’s innovation efforts at the moment?
Right now, the focus is on high-precision materials processing – in high-pressure injection systems,
for example. We are also looking into the use of new materials, simulation technology, and control
technology. And software technology will be much more in focus in the future. The internet is playing
a more important role; it won’t be just people but also systems communicating with each other. So
we are turning our attention to new fields such as the increasing use of software and services.

So what challenge will define the next 20 years?
The challenge will be to shape this process of development. We will incorporate more software into
the company, together with the services related to that software. One good example is the expertise
at our Bosch Software Innovations subsidiary. Their software can accommodate new business
models that rely more heavily on the internet, as pilot projects with several divisions have success-
fully shown.

And after that?
With the ever more sophisticated links on the web of the future – web 3.0, or the internet of things
and services – hardware elements will also play a major role: sensors and control units, for example.
The Bosch Group is strong in this area, and I see major opportunities for us here that we should take
advantage of.

What does Bosch get out of the exchange with universities and other institutions of higher
Our exchange with leading research institutions ensures that we are always up to speed on the latest
technology. Every one of our fields of activity needs access to that technology. Without it, they would
inevitably fall behind and lose their competitiveness within a few years. That is one reason we are
steadily expanding our regional research centers in the U.S., Asia, and Russia.

In the pursuit of innovation, is Bosch also harnessing synergies across its divisions and
business sectors?
Certainly. We’ve made the most progress with automotive technology, where we have been working
on networked functions across divisions for several years now. In building technology, we will also
generate substantial added value when Thermotechnology, Solar Energy, Security Systems, and
other divisions start to collaborate more extensively on home energy technology. There is still vast
potential there. And Bosch is in an outstanding position to tap into it.

How does Bosch attract the best talent for development and innovation?
By cultivating a well-established network with leading universities. Of course, our reputation – the
image Bosch enjoys as an innovative, well-positioned company – is also vital. And when we actually
hire university graduates, one thing is decisive: to create an environment where maverick personal-
ities feel at home. Every large company tends to smooth out its associates' rough edges over time.
That’s a tendency we need to counteract resolutely, especially if we want to encourage high-tech
innovation. The most capable people often have rough edges, so they’ll only come to Bosch if they
know they can stay that way.

What qualities do you look for in young researchers and engineers?
They should have a broad education, and they should enjoy designing technology that benefits
people. They need to be team players, of course. And as engineers, they need a fairly high frustration
threshold – they must be able to deal with technical setbacks.

How would you answer if the world’s most talented researcher or engineer asked, “Why
should I go to Bosch? What’s so special about them?”
Invented for life – I think everyone can identify with that. Invented for people, to improve their lives.
That was Robert Bosch’s goal when our company was founded 125 years ago. Ever since then, it has
called for idealism, especially from highly qualified researchers and engineers. Plus, it’s important
for them to find enough like-minded peers – we don’t want these people to be lone wolves. Finally,
we are looking for the kind of researchers who love seeing the results of their work translate into ben-
eficial products. 

For a complete version of this interview, go to:

“People may say I am not
 an inventor …”

                                         Industrial Technology business sec-       his 1918 design of the armature in a
                                         tor. And in 1933, it launched the first   circle, the symbol Bosch still uses to
 Robert Bosch                            refrigerator for household use.           this day.

 Not an inventor –                          Ensuring quality and reliability
                                         were Bosch’s forte, not inventing. No
                                                                                       Gradually, more and more associ-
                                                                                   ates added to the seeds Honold had
 an astute judge of                      photograph exists of him sitting at       planted, joining Bosch to develop new

 human nature                            a drawing board or at a workbench
                                         in the test workshop. But he knew
                                                                                   products. When the company divi-
                                                                                   sions were created in 1959, each had
                                         how to choose the right people to do      its own development department.
 “People may say I am not an inventor:   the inventing, and he gave them the           But Bosch also needed to create
 indeed, I do not pretend to be one.     freedom they needed to do their jobs      the basis for the corporate develop-
 What I am is a man who has man-         well – the time, the space, and the       ment of new products, and so it
 aged, through staying power, by good    financial resources.                     concentrated research and advance
 example, and by treating my associ-                                               engineering in a single corporate
 ates well, to build up a company that                                             sector. As a cross-divisional hub,
 has a good name all over the world. I                                             that sector created the conditions in
 owe my success in no small part to my                                             which innovations could originate. Its
 tenacious thoroughness, which has       Research and development                  work has included basic chemical and
 prevented anything of poor quality
 from leaving my workshop.”
                                         Behind                                    physical research on the materials
                                                                                   used to manufacture the microchips
    These words, spoken by Robert        the innovation                            in electronic control units.
 Bosch in 1931 on his 70th birthday,                                                   In today’s Bosch Group, some
 do not even hint at the overwhelm-      Bosch had a development depart-           34,000 associates around the world
 ing innovative strength his company     ment as early as 1901 – a one-man         work in research and development. 
 had built up by that time. Bosch had    show by the name of Gottlob Honold,
 launched the diesel injection pump in   who tinkered away in a modest
 1927, created the first power tool in   wooden shack on the Bosch factory
 1928, and started developing televi-    grounds. After starting out as an         01
 sion cameras in 1929. In 1930, about    apprentice with Robert Bosch, the en-     Robert Bosch 1936.
                                                                                   The company founder, who never wanted
 a year before Robert Bosch made         gineer Honold came to be seen as the
                                                                                   to be seen as an inventor, had a good nose
 his birthday statement, his company     epitome of innovation at Bosch, and
                                                                                   for associates with innovative ideas and
 set up the special-purpose machin-      remained so until his early death in      the ability to translate them into success-
 ery unit – the forerunner of today’s    1923. Honold’s inspirations included      ful series-manufactured products.


                                                The development of gasoline injection    Bosch engineers set themselves two
                                                systems at Bosch had less to do with     development objectives. First, they
     Diesel and gasoline                        the potential loss of a market than      aimed to create a system that would

     Securing                                   with safety considerations. So it was
                                                that Bosch started testing gasoline
                                                                                         control all four wheels, so that cars
                                                                                         would remain in their drivers’ control.
     the future                                 injection systems in aircraft engines    Second, they focused on systemati-
                                                in 1932. In cars, the systems began      cally fine-tuning integrated circuits
     The success story of the diesel            displacing traditional carburetors       to bring the number of components –
     engine in commercial vehicles began        on a large scale in the 1980s. Here      initially on the order of 1,000 – down
     around 1920. Robert Bosch was              too, Bosch’s innovations proved far-     to a minimum and thus improve the
     quick to respond to the new develop-       sighted: meeting today’s emissions       reliability of ABS.
     ments. In 1922, he ordered develop-        standards would not be possible with         This is what makes ABS so
     ment work to start on diesel injection     carburetor engines.                     typically Bosch – it is an innovation
     pumps. After all, his best-selling prod-                                            that is not the product of a flash of
     ucts were ignition systems, and they                                                genius, but the result of years of
     weren’t needed in diesel engines.                                                   painstaking engineering. It is also
          After production began in late        ABS and ESP®                             why it takes a number of years for
     1927, Bosch rapidly became the
     European market leader for diesel
                                                Staying on track                         many Bosch innovations to pay
                                                                                         off. Experts at Bosch spent years
     technology. Bosch followed the strat-      despite obstacles                        putting ABS through its paces under
     egy of securing its future through                                                  extreme testing conditions (the
     selective innovations in a well-           Bosch can claim to have launched the     picture above was taken in 1973).
     researched field. It was not always        world’s first series-produced antilock   They also focused on streamlining
     an easy task, as Robert Bosch’s            braking system in 1978. Today, ABS is    microchip production to make
     daughter remarked at the time:             as much a part of everyday automo-       ABS affordable. Only then could
     “Going into diesel-pump production         tive vocabulary as windshield wipers.    ABS and its successor, the ESP®
     is as though you were setting up your          While the Bosch-designed ABS         electronic stability program, gain
     company for a second time.” Still, the     was not the first of its kind, all the   broad acceptance. ESP® prevents
     Bosch strategy proved to be the right      earlier versions of the technology       vehicles from skidding and is thus
     one. Today, diesel-powered vehicles        were expensive, custom-built, me-        credited with averting nearly one in
     are no longer criticized as slug-          chanically operated systems intend-      two serious or fatal single-vehicle
     gish and smelly – they are fast and        ed for aircraft and luxury vehicles.     accidents – making it second
     fuel-efficient, and satisfy very strict    Malfunctions also meant they were        only to the seatbelt as the most
     emissions standards.                       an unacceptable option for drivers.      important safety system in cars. 
125 years of Bosch                                                                             Drivers of innovation          17

Industrial technology

Innovation for in-
house production
The seed that grew to become today’s
Industrial Technology business sector
can be traced back to a dire predica-
ment. Robert Bosch discovered that
no one made the special lathes he
needed to produce ignition systems.
    This difficulty gave rise to a
pragmatic solution: in-house produc-
tion. All the necessary expertise was
certainly available in-house, and the
new approach made custom solutions            ness unit was founded, which in 1996     expertise, this special-purpose unit
possible. When similar situations kept        became the Automation Technology         consistently came up with innovation
cropping up, Bosch finally decided            division, and which today is known as    after innovation. The world’s first
to set up an in-house unit to produce         Drive and Control Technology.            swivel-arm robot, launched in 1976,
manufacturing equipment. In 1930,                 To preserve Bosch’s competitive      was one of its innovations. 
a special-purpose machinery busi-             edge in the field of manufacturing

                                              Power tools
Tests with the W114-series Mercedes Benz
                                              New motor design
in 1973. The antilock braking system was      gives rise to
one of the most significant Bosch innova-
tions of the 1970s. Before the system could   a new division
be launched, prototypes underwent en-
durance tests under extreme conditions.       Product innovation sometimes
                                              moves in mysterious ways: the
                                              origins of Bosch power tools, for
Fully automatic parts processing in the
                                              instance, lie in the Forfex hair trim-
Power Tools division, 1983. Bosch has
always endeavored to set up optimum           mer. Launched in 1928, it paved the
manufacturing processes. When certain         way for a new division at Bosch that
items of manufacturing equipment could        would diversify its activities and
not be purchased in the early 1900s,
                                              thus help to reduce the company’s
Bosch gradually established a unit of its
                                              reliance on a single area of business.
own to make them.
                                                  The Forfex had an innovative         manufactured in 1932. The product
03                                            design: its motor was built into its     was an instant hit, and so what was
Bosch shift supervisor with an electric       handle. That made it very easy to        originally a power tool for internal
drill, 1937. A hair trimmer was the basis
                                              use – and thus the perfect blueprint     use became a commercial success
for an innovative power tool that was light
                                              for power tools. Bosch used this         story that endures to this day. 
and had its own integrated motor. This
tool formed the basis for today’s Power       successful motor design as the
Tools division.                               basis for the first hand-held drill,

Culture of innovation
Safe, clean, and efficient technology –
opportunities for consumers and associates
                                         “ABS 9 base” – at 0.7 kilograms, much
 01                                      lighter and just half the size of its
                                         predecessor. That made it by far the
                                                                                     Saving fuel with
                                         most compact system in the market,
                                         suitable for use in all motorcycles that    start-stop systems
                                         have hydraulic brake systems.
                                             This active safety system allows        If we are to continue reducing fuel
                                         motorcyclists to brake safely in critical   consumption and thus CO₂ emissions
                                         situations without the wheels locking       in the future, innovative solutions will
                                         up, and without having to fear an           be needed. Too much fuel is wasted

Motorcycle ABS can                       inevitable fall. Braking distance is also   when engines are left running at red
                                         reduced considerably. Experts regard        lights or in traffic jams. That is where
save lives                               the motorcycle ABS as a huge boost          the Bosch start-stop system comes in.
                                         to safety, and international studies
For the ADAC, Europe’s largest auto-     have shown that the system can save         A saving of up to 8 percent in
mobile association, it was an achieve-   countless lives.                           urban traffic
ment worthy of special recognition: in
2010, the new Bosch motorcycle ABS                                                   It automatically stops the engine when
garnered its coveted “Gelber Engel”                                                  the vehicle comes to a standstill – at a
(yellow angel) innovation prize. The                                                 red light, say, or in a traffic jam – and
judges found the braking system’s                                                    it restarts the engine as soon as the
potential to save lives particularly
                                         Drives                                      clutch is engaged and the car is shifted
worthy of recognition.                   for e-bikes                                 into first gear. The system makes it
                                                                                     possible to reduce fuel consumption
“Yellow Angel” for Bosch                 Bosch has entered the growing               by up to 8 percent in urban driving.
motorcycle ABS                           market to supply electrical drives for      Since start of production in 2007,
                                         pedelecs, and it aspires to become          Bosch has equipped some 2.5 million
The Bosch engineers’ innovative          one of the leading providers. In rolling    vehicles with this system. 
achievement was to develop an ABS        out its new product for the bicycle
system tailored specifically to two-     industry, Bosch drew on its expertise
wheeled vehicles and their technical     in electronics, electrical drives,           02
specifications. The previously avail-    sensors, and battery technology.
able systems had all been derived from   At the heart of the e-bike drive is the
passenger-car technology and were        drive unit, an electric motor with a
appropriate mainly for large motor-      control unit and sensors. The first
cycles with 250 cc displacement or       bikes featuring Bosch drives pre-
more. But they were simply too heavy     miered at the Eurobike trade show
for smaller classes. That was the        held in Friedrichshafen, Germany, in
challenge the engineers at the Bosch     September 2010. 
motorcycle ABS competence center in
Yokohama, Japan, decided to tackle.
They created the new-generation

       2 mm

                                           the European Patent Office for the
                                           process they developed to verti-
Sensors                                    cally structure silicon – known as the   Consumer sensors

Electronic                                 “Bosch process.” Based on this inven-
                                           tion, Bosch has successfully taken
                                                                                    Ever smaller, ever
sensory organs                             a series of microelectromechanical       more economical
                                           processes from the research lab to
It all began in the mid-1980s, when        industrial mass production. This was     Microelectromechanical, or MEMS,
a small team of Bosch researchers          also judged worthy of an award, with     sensors are increasingly being used
developed basic techniques for the         the 2008 German President’s Future       in mobile consumer products, where
manufacture of microelectrome-             Prize going to a Bosch team.             they are making new functions possi-
chanical components, thus laying the                                                ble. The sensors can now be used not
foundation for high-volume sensor          Number one for microelectro-             only for common functions such as
production. But few people at the          mechanical sensors                       the automatic rotation of display con-
time could have guessed how quickly                                                 tent (portrait or landscape). They can
microsystems technology would              Sensors enable machines to detect        also be used to register hand move-
gain popularity. It is one of the most     and monitor their environment.           ments that are used to control devices,
remarkable of the many stories of in-      MEMS sensors feature mechanical          and to protect laptop hard drives
novation at Bosch. Since production        components such as springs, beams,       against data loss caused by rough
started in 1995, Bosch has manu-           weights, and membranes, all in the       treatment. In cell phones, the sensors
factured well over 1.5 billion micro-      form of delicate silicon structures      improve the accuracy of pedestrian
electromechanical (MEMS) sensors.          only thousandths of a millimeter         navigation features and can help
Today, it turns out nearly 400 million     thick. They accurately and reliably      subscribers navigate inside build-
units a year. That is more than a mil-     measure physical parameters such as      ings, accurate to the nearest floor.
lion a day, making Bosch the undis-        pressure, acceleration, yaw rate, and        For the consumer sector, it is
puted leader in the global market for      flow rate.                               not sufficient simply to deliver reli-
MEMS sensors.                                  Microelectromechanical sensors       ability and robustness. While this
    This success has not gone un-          have found widespread use in the         is enough for automotive engineer-
noticed. In 2007, Bosch research-          automotive industry. In vehicles, they   ing applications, the consumer sec-
ers won the Inventor Award from            are used to measure intake pressure      tor needs sensors to be economi-
                                           for engine management, to gauge yaw      cal, as well as ever smaller in size.
                                           rate for the ESP® electronic stability   Measuring just 2 x 2 x 0.95 milli-
                                           program, and to detect impacts for       meters and with a standby power
                                           airbag deployment. Bosch sensors         consumption lower than the battery’s
Brake trials to test motorcycle ABS
                                           are used by many major automotive        self-discharge rate, Bosch MEMS
02                                         suppliers worldwide.                    acceleration sensors are the world’s
The start-stop system reduces fuel con-                                             smallest. The company has thus
sumption at traffic lights, for example.                                            taken the technological lead in the
                                                                                    acceleration-sensor market.
                                                                                        Bosch has pooled its consumer
Bosch has already produced more than
1.5 billion microelectromechanical                                                  product sensor business in its Bosch
sensors                                                                             Sensortec GmbH subsidiary. 

                                          sumption and hence CO₂ emissions
                                          by up to 25 percent, and brake wear
Bosch Rexroth                             by as much as 50 percent. This cuts        Packaging technology

Tapping into                              operating costs significantly.
                                             Following a successful test phase,
stored energy                             the HRB system went into series pro-       conveyor system
                                          duction in October 2010. Numerous
Increasingly scarce resources,            garbage trucks featuring the system        Perishable foodstuffs and confection-
growing environmental awareness,          are already being used regularly by        ery items must be placed quickly and
volatile fuel prices, and tighter emis-   private and municipal operators in         spaced evenly as they move toward
sions standards around the world          over ten European and North Ameri-         the point of packaging. Achieving
are speeding up the introduction of       can cities, including Kiel, Germany;       this used to require highly complex
alternative drive concepts.               Nantes, France; New York City, USA;        belt systems or robots. Now, Bosch
     Bosch Rexroth has come up with       and Vienna, Austria.                       has developed a smart mechatronic
a particularly innovative solution for       After exhaustive tests, Kiel’s          system that does the job even when
commercial vehicles, the HRB hydro-       municipal waste management com-            the product flow fluctuates. The
static regenerative braking system.       pany purchased vehicles with HRB           advantages of this new, rotating-belt
It reduces fuel consumption, is eco-      technology, and is very satisfied with     conveyor system are its extremely
friendly, and cuts operating costs.       the investment. “The Kiel municipal        compact size, fast format switches at
     The system is designed for use       council is committed to environmen-        the push of a button, and gentle prod-
in heavy vehicles that have to stop       tal protection, and we as a municipal      uct handling. Linear motor technology
and start frequently, such as garbage     company aim to help meet the targets       allows independent control of the
trucks, school buses, public buses,       that have been set,” says Sigfrid          individual carriers. A central control
and shuttles, as well as earthmoving      Schock, head of waste logistics and        unit uses a real-time bus system to
machinery.                                technology. Two vehicles are already       coordinate the carriers, making the
     The way the hydraulic hybrid         out and about on Kiel’s roads, and         conveyor system extremely dynamic,
works is simple. Instead of the kinetic   there are plans to purchase additional     with speeds of up to four meters per
energy that is generated during brak-     trucks equipped with Bosch Rexroth         second. 
ing being wasted as unused heat, it is    technology. The higher acquisition
converted into hydraulic energy and       costs for a vehicle with a hydrostatic
stored in special pressure accumula-      hybrid drive are offset within six years
tors. During the next acceleration        at most. 
cycle, the stored energy is fed back
into the propulsion system to reduce
the load on the internal-combustion
engine. The economic and environ-
mental advantages of the technology
are compelling. It lowers fuel con-

 01                                                                                  01
                                                                                     Municipal garbage-disposal operators in
                                                                                     many cities have equipped their garbage
                                                                                     trucks with Bosch Rexroth’s fuel-saving

                                                                                     The compact Ixo drill/driver is the world’s
                                                                                     widest selling power tool
125 years of Bosch                                                                           Culture of innovation            21

                                           target groups. The handy cordless
                                           drill/driver quickly became a model
Power tools                                for a whole range of tools – tools for    Household appliances

Drill/driver with                          do-it-yourselfers, for professionals,
                                           and even for use in the garden.
                                                                                     Smart washing machines
cult status                                    By 2011, 90 percent of all cord-      Brand new on the market: a Bosch
                                           less devices in Europe are expected       washing machine that can figure out
                                           to feature lithium-ion batteries. Bosch   by itself how much detergent to use.
 02                                        leads the way in this technology, and     Depending on how much laundry you
                                           offers the largest range of any manu-     have, how soiled it is, and how hard
                                           facturer.                                your water is, the machine automati-
                                                                                     cally releases the right amount of liquid
                                                                                     detergent and softener, which flow
                                                                                     from its reserve tank into the water.
                                                                                     This precise dispensing system reduces
                                           Heating technology                        the amount of detergent used in the
                                                                                     washer by up to 30 percent compared
The Ixo, the world’s most successful
                                           Comfort and con-                          with conventional appliances. The new
cordless drill/driver, has achieved        venience at the                           Logixx 8 washers are also equipped
cult status. There are a number of                                                   with special sensors that can recognize
Ixo versions available: a standard
                                           touch of a button                         fabric types and how dirty the laundry
and ready-to-use version, a version        Hot water supplied quickly and at         is, and adjust the amount of water
with special adapters for driving          the constant temperature needed           pumped in, the number of rinse cycles,
screws around corners, one with a          for showering or rinsing your hands       and the spin speed accordingly. 
torque limiter for lovers of detail, one   – that is the definition of convenient
with Swarovski elements for home           hot water today.
improvement with style, and a special          And Bosch has now gone one step
edition for opening wine bottles.          further with its innovative Compact       Security systems
    Today, some ten million of the         Advanced Electronics (CAE) solution.
                                                                                     Sharp images
small, versatile drill/drivers are being   Given sufficient water pressure, CAE
used by do-it-yourselfers around the       gas-fired instantaneous water heaters     At Bosch, the drive to innovate is just
world. No other power tool has ever        can deliver the same level of conven-     as evident in security-systems tech-
sold so widely. As the world’s first       ience, but without the need for an        nology as in any other division. Bosch
tool to feature lithium-ion battery        external power supply, either from the    has developed a full range of high-
technology, the Ixo created a new          power grid or from batteries. A kind      definition devices for video surveil-
market in 2003.                            of miniature hydropower plant inside      lance. From the camera lenses to the
    With its ergonomic pistol-like         the boiler generates the electrical       monitors, everything works together
shape, the Ixo weighs in at only 300       power needed for the pilot light and      for crisp, sharp images. Even the
grams, but it packs lots of power for      control functions.                        tiniest background features are easy
all the usual tightening and assembly          The kinetic energy of the water       to identify. Every detail is captured,
jobs around the home. Thanks to its        drives a turbine, and a hydrodynamic      without any compromises in frame
lithium-ion battery, it does not self-     generator then produces the neces-        rate. For security staff, analyzing
discharge but retains its full power       sary electrical current from that spin-   video images is thus much easier with
even after being left unused in the        ning turbine. Thanks to a navigation      the help of Bosch security systems,
drawer for a year.                         menu, it is very user friendly: at the    which are also ideally suited to facial
    The advantages of lithium-ion          touch of a button, water temperature      recognition and similar biometric
technology secured the Ixo’s remark-       can be set to the nearest degree.        applications. 
able success across all markets and

                                           frame, leaving many students with a
                                           packed syllabus that gives them less
PreMaster program                          time for internships.                       Bosch competence
Bringing theory and                            The large number of applicants          management
                                           and participants goes to show that
practice together                          Bosch has put its finger on a gap in        “Only with motivated and capable as-
                                           the market. There are currently over        sociates will we be able to apply the
The PreMaster career program was           60 graduates with bachelor’s degrees        Bosch corporate strategy success-
launched in June 2008. Specially           who are under contract at Bosch, with       fully,” says Dr. Wolfgang Malchow,
tailored to young university graduates     men and women represented equally.          the director of industrial relations at
who have bachelor’s degrees, it offers     The PreMaster program is exactly            Bosch. That is one of the many rea-
the opportunity to gain valuable, well-    what young people want and need             sons why Bosch has introduced com-
paid work experience over a period of      for their career planning. It combines      petence management. Its goal is to
up to twelve months.                       undergraduate and postgraduate              systematically ensure that associates
     Prerequisites for the program         studies with valuable professional          with the necessary skills are available
include a bachelor’s degree in a tech-     experience to create an attractive          in the right place at the right time.
nical or business field, an excellent      education package.                          It focuses on professional and con-
transcript, a good command of Eng-             “Bosch was the first German             ceptual skills, which are developed
lish, a proactive mindset, team spirit,    industrial enterprise to offer a career     either in seminars or on the job, using
and innovative drive. After the partici-   program specifically tailored to the        strategies such as job rotation. 
pants have completed the program           needs of graduates with bachelor’s
and begun to work on their master’s        degrees,” says Dr. Wolfgang Malchow,
degrees, they remain in close touch        director of industrial relations at
with Bosch and are supervised by a         Bosch. The program is an important
mentor. They also have the option of       tool that will help the Bosch Group
working directly at Bosch while they       meet the challenges posed by demo-
pursue their degrees, thus gathering       graphic change and by the resulting
practical experience related to their      shortage of engineers. 
     The aim of the program is to offer
students the practical experience
that few are able to gain while study-
ing today. Now that degree programs
have been reorganized in the wake
of the Bologna Process, courses are
concentrated into a shorter time

                                                                                                             Career start

                                                                        Study for master’s      Education for life
                                                                        degree                  Bosch offers graduates with bach-
                                                     Practical experience                       elor’s degrees a comprehensive
                                                                                                education package comprising
                                                                                                phases of practical, in-company
                                                                                                experience before and during their
Study for bachelor’s degree                                PreMaster program                    studies for a master’s degree, as
                                                                                                well as a mentoring program and
                                                                                                attractive compensation.
125 years of Bosch                                                                            Culture of innovation           23

                                                                                                718      Europe


                      Americas   37                                 321

                                                   43                                                                   76
                                                                                                                        Asia Pacific, Africa


Innovation through                                       International
internationalization                                     exchange of specialists
                                                         between …
Bosch has regional subsidiaries in                                                         Asia Pacific, Africa, and the Americas
over 60 countries. If its sales and                                                        Europe, Asia Pacific, and Africa
service partners are included, then                                                        Europe and the Americas
the company is represented in 150                                                          Countries on the same continent
countries. Bosch’s international reach
is also clearly visible in the more than                                             BMS consultants are deployed when-
300 manufacturing sites it operates                                                  ever a Bosch location needs specialist
worldwide. Over 60 percent of Bosch
                                           Keeping expertise                         expertise or is experiencing tempo-
associates work outside Germany.                                                     rary bottlenecks.
    Innovation through internationali-     on board                                     The senior experts, all between
zation is a key objective at Bosch –                                                 60 and 75 years of age, work across
one that is pursued in part by offering    Bosch has been expanding its senior       the globe. Their assignments vary.
associates the opportunity to work         expert service for over ten years.        They might step in for just a few days,
abroad. The team that works on the         The company’s seasoned associates         lending a hand during the switchover
project to develop and manufacture         possess a wealth of expertise and         to a new production line or helping to
the Bosch components for the Tata          experience. Bosch Management Sup-         identify the cause of a technical mal-
Nano microcar in India is made up          port GmbH (BMS) was set up to make        function. Or they might work for a few
of Chinese, Indians, Germans, and          sure this valuable resource is not lost   months to facilitate processes such as
Turks, for example.                        when they retire.                         setting up a branch office in China.
    In 2010, some 2,200 expatriates            When it was established in 1999,         BMS consultants draw on a grand
were working on assignments away           BMS was the first organization of its     total of 25,000 years of experience.
from their home countries for a            kind in Germany. Since then, it has       Most of them are longstanding
period of longer than two years. Of        proved so successful that branch          Bosch veterans with track records
these expatriates, 40 percent were         offices have sprung up in Brazil,         of 30 years or more. “In this way, we
non-German citizens working outside        India, Japan, the U.K., and the United    keep expertise on board, even when
their home country – whether in Ger-       States. A total of over 900 in-house      people retire from active working life,”
many or elsewhere. There were also         senior experts with Bosch experience      says Dr. Alfred Odendahl, one of the
some 1,700 associates on interna-          are currently on call.                    two BMS managing directors. 
tional assignments lasting two years
or less. 

                                            contribution, safeguarding the earn-
                                            ings power and financial strength
                                            of the Bosch Group and support-
Putting a figure                            ing its future growth. In 2010, the fig-
on success                                  ure used to calculate cost of capital      of financial flows
                                            remained unchanged at 8 percent.
We have collected the principles                Value contribution is a measure        Over the course of the past few years,
and guidelines which we observe in          of the success of each operating unit,     a Bosch “in-house bank” has been
our dealings with our partners and          using a single indicator that takes into   created by systematically centralizing
each other and published them in a          account both profitable growth and         the company’s financial activities.
brochure known as the House of Ori-         improvements in profitability. Value-      This “bank” directs the Bosch Group’s
entation. A central position in this bro-   based management also highlights           global risk and liquidity management
chure is taken up by the Bosch values,      where divisions have potential to          and provides Bosch companies with
which, in addition to future and result     improve value contribution by way of       financial services tailored to their spe-
focus, include responsibility and           price and cost management, asset           cific needs. With these objectives in
legality. The House of Orientation also     management, and growth. This analy-        mind, Bosch has centralized numer-
sets out our Bosch vision, our BeQIK        sis provides the basis for defining        ous processes, set up standardized
mission as a standard for our everyday      measures specific to each operating        systems, taken auxiliary organiza-
action, and our core competencies.          unit, and ensures that entrepreneurial     tional measures, and introduced
The Bosch Business System provides          responsibility can be brought to bear      group-wide directives.
a framework for the continuous              in the best possible way at every level        At the heart of this “in-house
improvement of all internal processes       of the Bosch Group.                       bank” is a system of internal accounts
in the company. Wherever they work                                                     for the individual Bosch companies
in the company, Bosch managers have                                                    – in-house bank accounts showing
the task of working with their associ-                                                 intercompany financial receivables
ates to drive forward the continuous                                                   and liabilities. If necessary, the organi-
                                            In-house consultants
improvement process, and thus to                                                       zation’s regional finance companies
help us achieve our objectives.             When drawing up benchmark analy-           extend loans to Bosch companies
     The growth and deliberate diver-       ses and designing restructuring con-       locally or invest the funds available on
sification of the Bosch Group have          cepts, Bosch operating units can rely      behalf of those companies.
also led to considerable differences        on the support of in-house experts             In all countries where the law
in levels of capital tie-up from one op-    drawn from various functional areas        permits, cash pools have also been
erating unit to another. Thus, return       in the company. These “in-house            set up to manage and combine local
on sales alone does not provide an          consultants” analyze the market and        liquidity centrally. The “in-house bank”
adequate measure of success at the          the competition, as well as the entire     thus creates a high level of transpar-
operating level. That is why Bosch          value chain, including the line items      ency with respect to financial flows,
uses a value-based approach in busi-        related to products and non-produc-        and allows risk and liquidity manage-
ness management. The key perfor-            tion costs.                                ment to be performed efficiently. 
mance indicator is value contribution,          Their consulting services focus
which takes both profit and capital         on a fact-based assessment of how
tie-up into account.                        Bosch's current position compares
     This capital market-oriented           with that of its major competitors.
approach is critical for Bosch as a         Two things are of key importance
non-listed company. Only if Bosch           here: first, determining what the criti-
can generate a higher return on             cal success factors are in the busi-
capital employed than on a compa-           ness areas in question, and second,
rable investment in the capital mar-        examining in detail why there has
ket can it generate a positive value        been divergence from targets. 
Published by                               Title picture
Robert Bosch GmbH                          In Arnstadt, Germany, Bosch Solar Energy
Corporate Communications (C/CC)            AG operates photovoltaic arrays known
Postfach 10 60 50                          as “movers” that adjust to the position
70049 Stuttgart                            of the sun. Each mover measures 5.8
Germany                                    meters by 10.6 meters, with the solar cells
Phone +49 711 811-0                        themselves covering a surface of 52.7 m².
Fax    +49 711 811-6630                    There are 12 solar modules per mover, each
                                           fitted with 160 monocrystalline solar cells
Vice President                             made by Solar Energy. Thanks to a newly
Uta-Micaela Dürig                          developed mechanism, the arrays track the
                                           sun vertically and horizontally. This allows
                                           the solar farm’s yield to be increased by                              up to 40 percent, with total output of each
                                           individual mover standing at more than
                                           7,500 watts peak. Together, the ten movers
Additional information can be taken from   generate some 78,000 kilowatt-hours of
the company brochures                      “green” electricity per year.
– Annual Report
– Bosch today
– Corporate Social Responsibility

The above brochures can be ordered at:

Wood and paper products bearing the
PEFC logo originate from responsibly
managed forests. For more information
Robert Bosch GmbH
Postfach 10 60 50
70049 Stuttgart
Phone +49 711 811- 0
Fax   +49 711 811- 6630

Printed in Germany

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