150 years

Transformación digital en la química

Santiago, 09.05.2017Frithjof Netzer, Chief Digital Officer

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Industria 4.0

Video

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150 years

Transformación digital en la química

Santiago, 09.05.2017Frithjof Netzer, Chief Digital Officer

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Industria 4.0

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For starters …

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K E Y V I S U A L S

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Fundamentals on Data

Culture

DataIntegration

„Data Farming“

House-keeping

Technology& logicProcesses

Value Generation

Data Sharing

Innovation Efficiency

Growth

Seven core technologies enable Industry 4.0

Industry 4.0

Augmented Reality

Artificial Intelligence

Big Data Analytics

Cloud Computing

Internet of Things

Mobile Devices

3D Printing I0II0I0I0III0I00I0III0II0II0I00II0

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Chemicals are …

Components / ingredients in a broad range of industrial applications and consumer goods

Key to innovative solutions

Subject to specific regulations (e.g., risk of explosion, toxicity, dual use)

Their production is typically automated and requires a high level of safety and security precautions.

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Chemicals come with a few particularities

Digital maturity varies across different industries

Digital Maturity

Chemicals Agriculture Electronics/ IT

Consumer Goods

AutomotiveSuppliers Reference

Construction

Digital Novice

Vertical Integrator

DigitalChampion

Below Digital Novice

HorizontalCollaborator

4.0

Customers

Source: PwC Strategy& (Status: 2016) 9

Digitalization is a strategic lever for growth & efficiency

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Growth

Digitalization of R&D Customer Connectivity Digital Business Models

Higher innovation output Increased supply share New revenue streams

Predictive Maintenance Augmented Reality in production Smart Supply Chain

Increased Capacity Increased work efficiency Reduced working capital

Efficiency

Overview of Ideation Workshop Results

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Ideation Workshops

>15

>200

Unique Participants

Digital Business ModelsIdentify the boldest business model for prototyping: Our INNORATE® process

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Business Model Idea Fragments

Pitches to Workshop Audience

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Business Model

Canvasses

Selected forPrototyping

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1,650

As of August 2016.

New sales: share of turnover

Customer data insights for targeted discussions with

platform users

BASF Value

Drivers

New sales: Subscription fee for platform usage

Connecting players in an ecosystem to more efficiently match supply and demand of a given product / solution

Online platform connecting suppliers and users of a

product

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Specification of quantities and prices offered and

requested

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Digital Business ModelsExample: Platform business

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Providing transparency on product property generated by plants and requested by

users

Time-efficient disposal and sourcing of product

Ecosystem

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First formulation batchadjusted using real customer application data. Positive performance in customer plant.Partnership definitions ongoing now.

Predict catalyst lifetime performance

Augment enzyme discovery by big data

Augment biological entity discovery by literature mining

Accelerateformulation adjustment

Intuitive structuring of all datarelevant for catalyst research.Performance ranking after 840 hrs in high throughput setup well correlated with 2700 hrs miniplant test.

More than 50 million enzyme sequences (internal and external), including patent status and properties can be explored interactively. Intuitive interface developed with users.

Artificial Intelligence filtered 29relevant out of 48,000 published documents.3 months of manual search had only found 6.Continuous literature surveillance with live relevance filtering for specific questions.

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First projects in R&D showed tremendous potential

Smart Supply Chain:Using a cloud based planning platform, BASF can plan across the extended value chain in near real time

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Traditional approach

ProductionSupplier Distribution Customer

Plan

Execute

Plan

Execute

Plan

Execute

Plan

Execute Supplier Production Distribution Customer

Cloud Planning Software

In implementation with key accounts

Predictive MaintenanceLive Demonstrator – Asset Level

Quench cooler

Heat exchanger

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Resilience oriented predictive security for a 4.0 world

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Internet

BASF Firewall

Cloud

Threat sandbox

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53 Anomaly surveillance

1Security by design

Internet

BASF Firewall

Supplier Customer Public CustomerSupplier MachinePublic Device

Static Security (Preventive) Dynamic Resilient Security (Predictive)

2Encryption as internal standard

Threat intelligence

Intranet Intranet

IT / OTIT / OT

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Video

Building competencies for BASF‘s digital transformation

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Digital Transformation Campaign - Theme

Thank you very much

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