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Digitalization in the chemical industry

June 2018 Henrik Hahn

Opportunities, myths andchallenges

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What do you expect from a presentation on digitalization?

Let‘s talk aboutdisruption!

© Patrick Daxenbichler / Fotolia

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A brief litmus test on disruption with reference to the inventor of the theory of disruptive innovation

© Tesla Motors © Uber © Apple

TESLA UBER iPhone

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A brief litmus test on disruption with reference to the inventor of the theory of disruptive innovation Professor Clayton Christensen

© Tesla Motors © Uber © Apple

TESLA UBER iPhone

“Disruptors don’t have to discover something new; they just have to discover a practical use for new discoveries.”

Jay Samit

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Digital innovations change industries and enterprises in many dimensions

• Platform economy • Use of artificial intelligence

• Personalization of interactions• Interconnectedness of value chains

Customers & products Competitors & business models

© sdecoret / Fotolia © wladimir1804/ Fotolia

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Sometimes it is better to not just draft a digitalization strategy, but first of all decide on priorities

Could digital technologies …

… improve the way you generate value?

… change how you target the customer?

.... affect the value proposition?

… enhance the enterprise capabilities?

… help to differentiate from the competition?

Digitalization means creating, communicating, delivering, exchanging offerings that have value for customers ...

… whereas we use “industry 4.0” pragmatically for digitalization on the shopfloor level.

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Digital thinking and acting is a twofold challenge

Challenge

Exploring disruptive business opportunities

Approach

„Agile testing“

Strategic directions

Business model innovation

Internal focus

External focus

Examples

E-commerce platforms

Artificial intelligence

Adapting existing business and processes to digital environment

„Keeping pace“Management of user touch points

Management of internal value creation

Virtualization

Industrial internet of things

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Industry 4.0 means using digital technologies for efficiency gains in production and operations

Remote control Predictive maintenance Modular engineering

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Digitization facilitates end-to-end connectivity of business processes fostering sustainability

Procurement Energy management Transportation management

© vege / Fotolia

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Digital platforms and algorithm-based marketing are gaining more and more importance for B2B business models

MEDOX® Webshop PLEXIGLAS® Webshop UK Alibaba Flagship Store

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Digital technologies are changing the way we work – from job profiles to contribution profiles

Cognitive solutions Robotic process automation Immersive experience

© peshkova / Fotolia © zapp2photo / Fotolia

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There are three basic archetypes for driving digital business transformation within the organization

Aim

Embedded UnitsDigital Business UnitDigital Corporate Unit

Setup

• Digital activities embedded in business or functional units

• Digital driven by self-contained ‘digital’ unit

• Digital initiative at the corporate level

• Strategy defined at business level

• Own P&L accountability and resources

• Centralized strategy definition

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Chief Digital Officer (CDO) and newly founded group company Evonik Digital GmbH support the digital transformation within Evonik

CDO Evonik Digital GmbH

Transformation Digital Innovation Factory Scaling

...

Technology focus

• Scouting

• Strategy

• Governance

Workforce focus

• Methodology

• Change & Culture

• Communication

Sprint 1 Sprint 2

Sprint 3 Sprint 4

Business idea 1• Operational team• External partner

Business idea 2• Operational team• External partner

Business idea n• Operational team• External partner

Coaching

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Share and connect

Update leadership

Inform and inspire

Foster new ways of work

We put people at the heart of digitalization

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