Centro de desarrollo de telecomunicaciones de Siemens en Argentina

1. Centro de desarrollo de telecomunicaciones de Siemens en Argentina En el centro de desarrollo para telecomunicaciones de Siemens en Argentina 150 profesionales desarrollamos hardware y sobre todo software. Utilizamos tecnologías y conceptos organizativos avanzados, y nuestros productos y servicios alcanzan el mercado local y los mercados mundiales.

2. Siemens S.A. (Argentina) 1998 ICN business share • Turnover: 554 M$ 47% ICN • Order input: 523 M$ 48% ICN • Headcount: 3016 41% ICN

3. Argentina Mission INGENIERÍA SIEMENS S.A. Information & Communication Networks ING • We provide convenient and competitive expert services in the field of I&T : • Development of Siemens products: basic and adaptative. • Application engineering, network integration and customer support services. • Telecommunication Network Solutions: Tailor-made application SW for network operators and corporate clients. • The contact with our clients and the institutional image of the company are favored by our strong regional implantation.

4. Main activities: Small Digital Exchange SDE: Center of Competence for the world market • Development of hardware, basic SW and application SW • Nine product versions developed since 1986, 300 SY of development efforts • Country adaptations for more than 30 countries, directly or through cooperation with partner companies • Support and training in the setting-up of decentralized development centers in Indonesia, South Africa, Turkey, China and Russia • Technical assistance for the world market (“TAC-3” service)

5. Main activities: EWSD GP SW development: Regional center of competence for adaptation development • Adaptation development of the basic EWSD SW to the specifications of the regional operators. More than 20 projects with versions 4.6, 7.1, 9, 11, 12, 13 and 14 since 1992. • SW development for the implementation of minor features under specifications of the regional customers with very short delivery times. • Technical support for the network integration of new SW versions (“First Office Application”) • Cooperation with Siemens Brazil in joint adaptation development projects • Subcontractor of SAG for adaptation and basic development projects

6. Main activities: Access / Transport / Network Management: • Cooperation with SAG in the development of the xDSL line card for the EWSD InterNode. • Cooperation with Siemens Brasil in the development of the Qnn interface for the Transport Net Management platform TNMS • Application engineering, network integration, technical support services for: • Network management: NodeCommander, AccessIntegrator, EMOS, SMNOS • Access: FastLink, CoaxLink, FMX • Internet Service Provider platforms • Transport: Radio and SDH product range • Power systems

7. Main activities: Cooperation with SICN U.S.A.: Partnership for EWSD development • Selection of experienced personnel from SSA • Initial development activities in Boca Raton and Lake Mary in February ‘99 • Ten engineers working at present in the U.S.A. till end of FY 99/00 • Original plan to set up an EWSD development CoC for SICN in ARG to be now re-assessed

8. Main activities: System integration laboratories • The laboratories provide a complete environment to run function tests under controlled, near-to-reality conditions. • They save users´ time, assure the quality of the testing process and optimize investments through the pooling of resources and the minimization of the lead times. • Complete range of data and telephone switches, access equipment, transmission equipment and network management platforms • Complete set of automatic traffic simulators and protocol analyzers • Two training areas • Round the clock operation • Qualified technical staff pre-configure the test beds to user specifications • 700 sq. m. with independent air conditioning and access security

9. Main activities: Telecommunication Network Solutions • Provisioning of integrated SW packages tailored to customer specs. Mainly applications for the telecommunication operators, that make use of the files and data bases handled by the network elements and the management systems. • The activity involves application SW development, system parameterization and system integration. It employs commercially available HW/SW platforms, most possibly specified by the customer. The characteristic edges of the activity are the following: • The deep knowledge of telecommunication networks, communication protocols and data handled in the switching, transport and management elements is a key factor for the correct design of the requested systems • The proximity with the customer is a strong advantage in terms of delivery times, maintenance response times and cost

10. The development center in perspective

11. Basic development project sizes

12. Adaptation development project sizes

13. Human resourcesStatus July ‘99 • 66% have a university degree or are advanced students of electrical engineering or computer science • 43% graduated from technical high schools • 86% know english, 60% with intermediate-or-higher level ( 3 pts. BULATS) • Age: average 34, 72% below 40 • High turnover: 16% per year. 9% internal rotation (staying with Siemens),7% resignations. Objective: 6% to 10% per year • Permanent scholarship plan allowing for fast compensation of turnover

14. Staff age profile Average: 34

15. Skills of the development & technical support staff

16. Long term planning • Long term planning: • Four-year forecast of strategic activities, reviewed quarterly • Systematic monitoring of the skill profile of HR. • Planning of training on strategic subjects reviewed bimonthly

17. Project-oriented administration: • 100% of working hours are allocated to specified projects • All projects are explicitly agreed with the requesting Organizations, with firm commitments to costs and delivery dates • Electronic timesheets provide permanent and accurate tracking of costs

18. Fiscal advantages: • Tax credit for specified R&D projects • Projects are submitted to Government agencies, specifying their purpose, development steps, schedule and costs • Tax credit is granted through a bidding process

19. Performance indexes • Performance indexes: • Timeliness: rate of fulfillment of agreed deadlines • Costs: percentage of projects concluded within cost objectives • Product quality: ratio of product maintenance to product development efforts • Response times: percentage of failure reports or technical support requests serviced within agreed delays • Quality costs: monitoring of the efforts invested in preventive, verification and corrective actions, and of the ratios between them. • Permanent measurement of the indexes embedded into the process • Published quarterly • Direct relation with incentives

20. Future activitiesDriving forces • “Telecommunication Network Solutions” • Application Engineering and Network Integration • Minor features

21. Future activitiesDriving forces • “Telecommunication Network Solutions”: Development of SW applications tailored to the requirements of the local customers. Typically applications that run on commercial HW/SW platforms, that create value through the use of currently available on-line data from the standard network elements and management systems. • Application Engineering and Network Integration: Support to take into the field the new products. A range of services from the assistance to the customer in the application engineering up to the integration testing in the laboratories and in the field, ensuring the successful market introduction of ever-shorter-lifecycle products. • Minor features: Addition of minor features to the standard products, providing differentiation through the fulfillment of specific requirements from the local customers.

22. Future activitiesMain challenges • Development of subcontracting skills for enhanced flexibility and shorter response times • Accelerated acquisition of knowledge of the IP and ATM product range • Positioning as a supplier of Telecommunication Network Solutions • Identification of opportunities for SW development subcontracting from other associate companies: SAG, SICN, … • Identification of new synergic projects with Siemens Brazil