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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?
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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
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“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?
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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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