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Data is the New Oil

SCM World

London, July 10, 2018

Dr. Frithjof Netzer, Chief Digital Officer BASF Group

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Leading the digital transformation in chemicals

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Leading the digital transformation in chemicals

BASF’s digital vision

BASF adds value to customers through

digitally enabled products and services.

BASF enhances effectiveness

and efficiency through horizontally and

vertically connecting value chain data

and applying advanced data analytics

to enhance decision making.

The BASF team understands and

leverages the value of data and new

digital technologies.

Consumers

Suppliers BASF

Public

Customers

Partners

Flow of goods

Flow of information

Data Platform

BASF

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BASF 4.0 Project Organization

HR

Smart Innovation & Technology

Smart Supply Chain

Digital Business Models

Smart Manufacturing

Smart IT

Communication

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Understanding the context of chemicals

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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| BASF 4.0 – Data-to-Value

Data are the foundation of digitalization

7/10/20186

Grow existing

business

Create new

business

Improve

efficiency

Boost

innovation

(e.g. customer

sales data)

(e.g. combination

of technical and

commercial data)

(e.g. external

scientific data)

(e.g. production

process data)

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We are making our manufacturing processes safer and more efficient

Predictive Maintenance

Rotating

equipment

Distillation

tower

Heat

exchanger

Reliability Unexpected

ShutdownsTransparency

Augmented Reality

Operations

Workforce

Efficiency

Maintenance

Potential

Errors

Turnaround

Know-how

Transfer

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Predictive MaintenanceLive Demonstrator – Asset Level

Quench cooler

Heat exchanger

8

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We are translating B2B2C requirements into oursupply chain

BASF customer

Transparency ↑

Responsiveness ↑

Collaboration ↑

Lead times ↓

Reliability ↑

Working capital ↓

End consumer

Convenience ↑

Speed ↑

Loyalty ↓

Information

Flow

Product

Flow

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“Rapid Response” by Kinaxis as chosen solution for external customer collaboration

Cloud Planning Platform

BASF customer BASF supplier

Near-real-time information exchange

End-to-end transparency Collaborative planning

What-if scenario based planning

Supply chain risk and disruption management

Early identification of potential issuesIncreased order processing

efficiency

Functionalities of the

solution:

Information

Flow

Product

Flow

Single set of data

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Customer Feedback on Rapid Response

“Working with BASF on this project has been extremely beneficial to our operations – an increase

in reliability and reduction of working capital shows the power of systems collaboration and

exchange of real-time information. Planners have more flexibility to adjust and proactively

manage our critical value chain for a product line that brings benefits to the world.”

BASF customer, FMCG industry

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Data-to-Value

“Data will become BASF’s # 1 raw material –

re-usable and increasing in value

when shared and managed properly.”

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| BASF 4.0 – Data-to-Value

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We need the bestdata infrastructure

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Data

Integration

Layer

Enterprise Data Lake• Global platform for BASF to share, add and

analyze data

Data Analytics,

Reporting,

Self-service

Access

AuthenticationEnd

Users

Interfaces (API)• Access & security management

• Data sharing

Digital Projects

Data

Source

Systems

Data Catalog• Transparency across all data sources

• Find, understand, trust and leverage data

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Talent & Innovation: “Coding Chemistry” HackathonNovember 2017

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Connect with us

www.basf.com/digitalization

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