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TRANSCRIPT
INTERNAL
Internal
Next Generation Business
Architecture – Embracing the
Digital Age at BASF
2018, October 17 – Prague
Wiebe van der Horst
Agenda
1. About BASF
2. Digitalization at BASF
3. Technology challenges & blueprint
4. Next Generation Business Architecture
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BASF – We create chemistry
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◼ Our chemistry is used in almost all industries
◼ We combine economic success, social responsibility and
environmental protection
◼ Sales 2017: €64,457 million
◼ EBIT 2017: €8,522 million
◼ Employees (as of December 31, 2017):
115,490
◼ 6 Verbund sites and 347 other production sites
BASF’s segments
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Oil & GasAgricultural
Solutions
Functional
Materials & Solutions
Performance
ProductsChemicals
▪ Petrochemicals
▪ Monomers
▪ Intermediates
▪ Dispersions &
Pigments
▪ Care
Chemicals
▪ Nutrition &
Health
▪ Performance
Chemicals
▪ Catalysts
▪ Construction
Chemicals
▪ Coatings
▪ Performance Materials
▪ Agricultural
Solutions
▪ Oil and Gas
Agenda
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1. About BASF
2. Digitalization at BASF
3. Technology challenges & blueprint
4. Next Generation Business Architecture
Digitalization - What‘s in for the chemical industry?
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R&D
- Scientific digital simulation & modelling
- Supercomputer for increased processing capabilities
Supply Chain
- Prescriptive support in decision making
- End-to-end value chain integration
Digital Business Models
- Lean start-up development based on design thinking
- Example: cosmetics formulation platform
Engineering & Maintenance
- Digital Plant and digital twin → predictive maintenance
- Information provisioning via Augmented Reality
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Agenda
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1. About BASF
2. Digitalization at BASF
3. Technology challenges & blueprint
4. Next Generation Business Architecture
Technology Ambition
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Example for usage scenario
Key pre-requisite
Close connectivity of components in real time
Industry
4.0
Technology Ambition
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© Motorola
Technology Challenge
Industry
4.0
The foundation for BASF‘s digital core has
been designed in the early 90s
The
“Internet” is born
© US Roboitics
© IBM
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Integration &
organization
How do they do it? Learn from the best…
Alphabet
The customer is always first,
but…
- great digital visions require
digital excellence to become valuable
- an outstanding and flexible
user experience requires…
a. a backend to cope with
real time
b. mechanisms to extract
valuable insights out of data assets (e.g. AI)
Integration &
organization
Amazon
Technology Ambition
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3 cornerstones build the
foundation of our new architecture
Industry
4.0
Integration & organization
user
experience
modern backend smart data
Agenda
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1. About BASF
2. Digitalisation at BASF
3. Technology challenges & blueprint
4. Next Generation Business Architecture
The evolution of the ERP architecture at BASF points towards a
modular architecture
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Next Generation
Business Architecture
One globally
consolidated
system
(Cobalt)
1990 - 2000
2000 - 2008
2008 - 2014 Differentiated
applicationsE.g. on agile platforms
like SAP Cloud Platform,
Amazon Web Services
Commodity
servicesE.g. travel management,
text processing tool
ERP*
Core
System and
processes per
region
One system per
legal entity
2015 – 202x
*Enterprise Resource Planning
A standardized ERP Core will be the basis of a modular and agile
architecture
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Data Integration LayerLinking of data across all levels
Monolithic ERP Core• Far off standard• Inflexible
• High-maintenance
Today: monolithic In future: modular & agile
SAP satellite
systems
Commodity services• Plug & Play• Software-as-a-Service
Differentiated applications• Agile development• Customized
• Platform-as-a-Service
Reduced ERP Core• Efficient & Fast• Close to standard
Phase 2:
Core Conversion
The transformation of our architecture will take place in
4 key steps
Phase 4: Satellite Transformation
Phase 1:
Preparation of Conversion
Kick Off Soft freeze Deep freeze Go live Post go live
Phase 3 waves
Phase 4 waves
Preparation projects
Go/no-go
decision
Phase 3: Process Adaptions
Design Development Testing cycles Post go live
Core conversionPreparation
IPE design
Soft freeze Deep freeze
Preparation satellite projects
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Summary: we intend to maximize the value of digitalization for BASF
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• Enable better decisions by increased transparency & AI → e.g. supply chain, finance
• Improve R&D and time to market with digital intelligence
Get out more value of our data
assets
• Provide real time information where required
• Attractive interaction with IT systems where needed→ e.g. app, speech, augmented reality
Provide right information at the right
time
• Increase speed, service & quality for existing business areas
• Explore new market opportunities with new capabilities (e.g. AI or IoT)
Improve market
performance
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