Next Generation Business Architecture Embracing the Digital Age at BASF

Transcription

1 Next Generation Business Architecture Embracing the Digital Age at BASF 2018, October 17 Prague Wiebe van der Horst INTERNAL Internal

2 Agenda 1. About BASF 2. Digitalization at BASF 3. Technology challenges & blueprint 4. Next Generation Business Architecture 2

3 BASF We create chemistry 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 3

4 BASF s segments Chemicals Performance Products Functional Materials & Solutions Agricultural Solutions Oil & Gas Petrochemicals Monomers Intermediates Dispersions & Pigments Care Chemicals Nutrition & Health Performance Chemicals Catalysts Construction Chemicals Coatings Performance Materials Agricultural Solutions Oil and Gas 4

5 Agenda 1. About BASF 2. Digitalization at BASF 3. Technology challenges & blueprint 4. Next Generation Business Architecture 5

6 Digitalization - What s in for the chemical industry? R&D - Scientific digital simulation & modelling - Supercomputer for increased processing capabilities 1 Supply Chain - Prescriptive support in decision making - End-to-end value chain integration 1: pwc 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 6

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8 Agenda 1. About BASF 2. Digitalization at BASF 3. Technology challenges & blueprint 4. Next Generation Business Architecture 8

9 Technology Ambition Example for usage scenario Industry 4.0 Key pre-requisite Close connectivity of components in real time 9

10 Technology Ambition Technology Challenge IBM Industry 4.0 Motorola The Internet is born US Roboitics The foundation for BASF s digital core has been designed in the early 90s 10

11 How do they do it? Learn from the best The customer is always first, but - great digital visions require digital excellence to become valuable Integration & organization Integration & organization - an outstanding and flexible user experience requires a. a backend to cope with real time Alphabet Amazon b. mechanisms to extract valuable insights out of data assets (e.g. AI) 11

12 Technology Ambition 3 cornerstones build the foundation of our new architecture user experience Industry 4.0 Integration & organization modern backend smart data 12

13 Agenda 1. About BASF 2. Digitalisation at BASF 3. Technology challenges & blueprint 4. Next Generation Business Architecture 13

14 The evolution of the ERP architecture at BASF points towards a modular architecture x Differentiated applications E.g. on agile platforms like SAP Cloud Platform, Amazon Web Services ERP* Core Commodity services E.g. travel management, text processing tool One system per legal entity System and processes per region One globally consolidated system (Cobalt) Next Generation Business Architecture *Enterprise Resource Planning 14

15 A standardized ERP Core will be the basis of a modular and agile architecture Today: monolithic In future: modular & agile SAP satellite systems Monolithic ERP Core Far off standard Inflexible High-maintenance 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 Data Integration Layer Linking of data across all levels 15

16 The transformation of our architecture will take place in 4 key steps Phase 1: Preparation of Conversion Phase 2: Core Conversion Phase 3: Process Adaptions Phase 4: Satellite Transformation Preparation projects IPE design Preparation Core conversion Design Development Testing cycles Post go live Soft freeze Deep freeze Phase 3 waves Preparation satellite projects Phase 4 waves Kick Off Go/no-go Soft freeze Deep freeze Go live Post go live decision 16

17 Summary: we intend to maximize the value of digitalization for BASF Get out more value of our data assets Enable better decisions by increased transparency & AI e.g. supply chain, finance Improve R&D and time to market with digital intelligence 1: pwc 1 Provide right information at the right time Provide real time information where required Attractive interaction with IT systems where needed e.g. app, speech, augmented reality Improve market performance Increase speed, service & quality for existing business areas Explore new market opportunities with new capabilities (e.g. AI or IoT) 17

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