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BASF innovation approach – digitalization in R&D Dr. Martin Brudermüller Vice Chairman of the Board of Executive Directors and Chief Technology Officer BASF R&D Roundtable on June 28, 2017
BASF innovation approach –digitalization in R&D
Dr. Martin BrudermüllerVice Chairman of the Board of Executive Directors and Chief Technology Officer
BASF R&D Roundtableon June 28, 2017
Success through strong commitment to R&D and continuous adaption to market needs
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BASF R&D – Success stories of innovation
2016Maglis®
152 years build-up and continuity of competency in R&D
Synthetic dyes Fertilizers Plastics / foams Health care & nutrition, crop protection Systems
1900 1950 2000
1869Alizarin
1897Indigo
1901Indanthrene
blue
1923Methanol
1913Ammonia
1937Polyethylene
1936Buna
1951Styropor®
1963Vitamin A
1974Basagran®
herbicide
1980Citral
1990Vitamin
B2 1998 Neopor®
2011 Xemium® fungicide
1930Polystyrene
1934Magnetic
tape
1993Opus® fungicide
1996Strobilurinefungicide
2008HPPO
2006Ecovio®
2015Slentite®
1949U46 herbicide
2013 Infinergy®
DroughtGard®
FWCTM Four-Way-Conversion Catalyst
R&D is and will be the growth driver for BASF
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BASF R&D – 2016
10
20
2126
2
21
€1.86billion
R&D expenditures on constantly high level
10,000 employees and 3,000 projects in R&D
Global Know-How Verbund with external partners
More than 300 new products each year
€10 billion net sales each year with innovations
Chemicals
BASF R&D expenditures 2016 (%)
Performance Products
Functional Materials & Solutions
Agricultural Solutions
Oil & Gas
Corporate research, other
Our innovation landscape is getting complex
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Patent applications Academic
publications
Chinese patent applications
Chinese academic institutes
US risk capital
1980
749,426
546
920,000
8,558
893,611
728
1985
1,000,000
10,137
1,006,937
866
1990
1,050,000
18,699
1,211,859
1,000
1995
1,378,000
51,906
1,348,087
1,137
2000
1,702,900
173,327
1,654,041
1,325
2005
1,997,400
391,177
2,100,005
1,434
2,680,900
928,177
2,238,079
1,459
2,7862,8548,01723,24523,52558,811
20102015
104,9983 x
100 x
3 x
2 x
20 x
1985 –
BASF R&D – Today’s environment
Need for quick adaption to this fast changing environment
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BASF R&D – Today’s environment
The shelf-life of innovations drops significantly.
Academic research broadens
Chinese competitors leverage R&D
Start-ups drive technology
Technological progress accelerates
Battle for talent intensifies
Focus content
Drive methodologies
Optimize structures
BASFInnovationapproach
Dynamic environment
Constantly advancing BASF R&D performance
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Enhanced innovation approach to increase power of innovation and secure long-term competitiveness
Innovation approach
Transfer to business or Key TechnologyCapability
Stop/Go-decisionDecisionIdea
submission
Foster creativity and accelerate evaluation of strategically relevant ideas
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Top manage-ment
Creativity budget –select strategicallyrelevant topics
Creativityphase
high turnover
The Creativity concept is a new approach for the early evaluation and pragmatic early pursuit of ideas with relevance for BASF.
Innovation approach – Focus content
Polymer Technologies
Biotechnology
Production Processes
Materials
Catalysis
Biodegradable & BiobasedMaterials
Enabling Methods
BASF’s Key Technology Capabilities (KTCs)are bundled in seven focus areas
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Selected KTCs reflect where BASF requires continued effort and resources to safeguard today’s and tomorrow’s excellence in innovation.
Innovation approach – Focus content
New catalyst materials
KTCs enable technology development in operating divisions
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KTCs combine key capabilities across Technology Platforms and integrate external capabilities
More than one capability or KTC to meet specific needs of operating divisions (ODs)
Data mining & computational
chemistry
Novel concepts for catalyst synthesis
Inorganic & zeolite
chemistry
Heterogeneous Catalysis OD1
OD2
OD3
OD4
Innovation approach – Focus content
New catalyst materials, syntheses and applications
Global R&D presence in key markets
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BASF R&D sites – regional hubs and sites with specific customer know-how and proximity
Innovation approach – Optimize structures
Headquarters of technology platforms Selected R&D sites
LemfördePolyurethanes
MuensterCoatings
LudwigshafenProcess Research &Chemical Engineering
MumbaiCrop protection
ShanghaiAdvanced Materials & Systems Research
Amagasaki Batteries
SuwonElectronic materials
San Diego Enzymes
Wyandotte Materials
Research Triangle ParkBioscience Research
Iselin Catalysts
Around 70BASF R&Dsites globally
FrankfurtSurface treatment
Innovation Campus Asia Pacific in Mumbai started 2017 and is the 2nd largest R&D site in Asia Pacific.
The latest addition to our global R&D network –the Innovation Campus Asia Pacific in Mumbai, India
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Focus areas Crop protection, process development and organic synthesis
Campus concept Mumbai site combines all parties in the innovation process for innovative solutions tailored to the local markets
Campus canaccommodate
300scientists
Innovation approach – Optimize structures
56K
1G
Year 2015
Year 2009
93,0
0,04
Year 2002 Year 2016 Year 2002 Year 2015
173.5
1,432.9
The digital acceleration –exponential technology development enables digitalization
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Innovation approach – Drive methodologies
Rise in supercomputer performance (Peta FLOPS*)1
Improvement in telecommunications transmission speed (bits per second)2
Number of smartphonesshipped worldwide(in million units)3
Sources: 1Top 500, 2T-Mobile, 3IDC*FLOPS: the number of floating-point operations per second performed by a computer.
BASF 4.0 –digitalization in BASF will support growth and efficiency
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Digital business models enable new revenue streams
Higher supply share by customer connectivity
Drive new kinds of innovation by connecting to customers and partners
Smart supply chain reduces working capital
Predictive maintenance leads to increased capacity
Augmented reality increases production efficiency
Innovation approach – Drive methodologies
Digital Business Models
Smart Supply Chain
Smart Manu-facturing
Smart Innovation
Growth
Efficiency
Scope of BASF 4.0
Digital business models create new offerings and strengthen customer collaboration
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Innovation approach – Drive methodologies
Key aspects New digital platform supporting customers in operating their plants more efficiently
Simulation of optimum plant parameters available to the operator in real time
Complements existing gas treatment solutions to companies worldwide
Unique offering setting a new benchmark in the industry
OASE® connect: Digitalizing the gas treatment business and supporting customers in real time
Digitalization in R&D –enabling new digital solutions for our businesses
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Innovation approach – Drive methodologies
Modeling & SimulationData Science
Fast access to integrated clean data
Accelerate modeling & simulation with supercomputing
Connect knowledge from inside and outside BASF
Knowledge Systems
Scope of ”Digitalization in R&D“
Key aspects The most powerful supercomputer in the chemical industry worldwide
Proprietary computer designed to precisely meet BASF’s needs
Boost modeling and simulation capabilities opening new avenues for BASF
Enable BASF to reduce time to market and costs
QURIOSITY –BASF’s new supercomputer
We will drive innovation through integrating digital technologies into everyday work in R&D.
We will use supercomputing to digitalize R&D
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Innovation approach – Drive methodologies
Illustrative picture
Digitalization projects in R&D demonstratetremendous potential
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Innovation approach – Drive methodologies
Predict catalyst lifetime
Accelerate enzyme discovery by big data
85 mio. candidate sequences explored
New formulationspinpointed
38 hits found automatically in
48,000documents
Performance ranking
3 times faster
Modeling to design functional polymers
Augment bacteria discovery by literature mining
Stain-resistant coating:faster market entry by digital engineering
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Innovation examples – Advanced Materials & Systems Research
Challenge No suitable water-based white furniture coating with improved resistance against colored stains found via classical experiments
Research Data analysis led to dedicated experiments
Solution Newly developed formulation enabled accelerated market entry
New stain-resistant coating for the furniture industry developed based on systematic data analysis
Number ofexperiments
reduced by factor
10
Revysol®: the new blockbuster fungicide
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Challenge Need for innovative new chemistry that meets future efficacy and regulatory requirements
Research Molecular modeling contributed to quick identification of compounds with optimal performance
Solution First registrations and market introduction of Revysol® expected in 2019 season
Innovation examples – Bioscience Research
Active ingredient selected through molecular modeling technologies
New benchmark
indisease control
Cathode materials for high-performance batteries
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Challenge Enhance battery performance for affordable electro-mobility
Research Modeling, simulation and big data analytics drive the development of cost-efficient, innovative battery material solutions
Solution Accelerated development of high performance cathode materials
Data-driven approach to optimize innovative battery materials for electric vehicles with extended driving range
Driving range
>600km
Innovation examples – Process Research & Chemical Engineering
L-Menthol: top-notch through radical process innovation
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Challenge Cost-competitive synthesis route for L-Menthol from cis-Citral with high yields and in short time
Research Enantioselective hydrogenation of cis-Citral: obtain detailed mechanistic understanding via density functional theory (DFT)
Solution Understanding of kinetics enabled faster optimization of catalyst structure and high selectivity
Computational chemistry accelerated the development of a new efficient and resource-saving process to reliably produce L-Menthol
Innovation examples – Process Research & Chemical Engineering
More cost-efficientthan natural
Digitalization in R&D will enable us …
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… to be the most innovative company in the
chemical industry!
BASF R&D and innovation approach
