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2 | | 3

Dear Customers,

The w

orld is facing huge social, economic and environ-

mental challenges, and every person and com

pany has a role in creating a sustainable future for all of us.

Global m

ega trends are affecting the chemical industry.

Resource scarcity, environm

ental impact, and enhanced

expectations in customer and consum

er experience call for innovative business m

odels and platforms in support

of a “circular economy.” D

ue to its early position in the val-ue chain, sandw

iched between energy &

feedstock play-ers and end consum

er industries, the chemical industry

is predestined to play a pivotal role in this. The need for sustainable, reliable, trusted

and innovative products and services requires chemical com

panies to ensure safety and integrity along the entire value chain and lifecycle of products.

I predict, that in 2025 a large part of chemical com

panies’ revenue will com

e from in-

novative products, services and business models, that are delivered based on real-tim

e data sharing and co-innovation w

ith customers on new

platforms and ecosystem

s. T

hese innovations range from sim

ple aftersales services to complex business outcom

es as a service delivering entirely new

customer experiences. T

hey also include the mone-

tization of knowledge, intellectual property and data assets, that com

panies are able to generate based on the business they conduct.

In order to achieve this, companies need to change the w

ay they operate. They m

ust integrate and increase transparency of their ow

n end-to-end processes and operations, com

bining this with real-w

orld awareness of custom

ers and environment. T

hey must

then learn from this inform

ation to make decisions and solve problem

s in novel ways.

By shifting routine tasks from

humans to business system

s enabled by machine learn-

ing and arti!cial intelligence, chemical com

panies will free up the capacity needed to

de!ne and pursue innovative and transformative business m

odels.

With the Intelligent E

nterprise framew

ork, SAP provides the integrated suite of ap-

plications, the intelligent technologies and the digital platform that com

panies need to do this shift. Together w

ith our partners, we have the vision, the solutions, and the

comm

itment to go w

ith you all the way from

de!ning your transformation strategy and

delivering the right solutions to running your digital backbone in the cloud.

Sincerely yours,T

horsten Wenzel (P

hD)

Global V

ice President · Chem

ical Industry · SAP SE

Imprint

© W

iley-VCH

Verlag Gm

bH& C

o.KGaA

Boschstr. 12, D-69469 Weinheim

, G

ermany

Email: info@

wiley-vch.de

SAP SEDietm

ar-Hopp-Allee 16,

D-69190 Walldorf, G

ermany

Email: info.germ

any@sap.com

Editor-in-Chief:

Michael Reubold

Ad Sales:Thorsten Kritzer

Print:AC

medienhaus G

mbH

, W

iesbaden, Germ

any

4 | | 5

Thriving in a Digital World

The need for change

Global

mega

trends are

affecting the

chemical industry but also provide new

opportunities for grow

th :

!R

esource scarcity, environmental im

-pact

and changing

consumer

expec-tations

call for

innovative business

models and platform

s in support of a „C

ircular E

conomy“.

Due

to its

ear-ly position in the value chain, sand-

wiched

between

energy &

feedstock

players and end consumer industries,

the chemical industry is predestined to

play a pivotal role in this.

!T

he need for sustainable, reliable, trust-ed and innovative products and services requires chem

ical companies to ensure

safety and integrity along the entire val-ue chain and lifecycle of products.

Content

Preface ....................................................................................................................................................................................................................................... 3

Thriving in a Digital World

.............................................................................................................................................................................. 5

The Intelligent Enterprise for Chem

icals .............................................................................................................................12

How

to get there ...................................................................................................................................................................................................... 24

Emerging Business M

odels in the Chem

ical Industry .................................................................................. 28

7HY[ULY�7YVÄSLZ .......................................................................................................................................................................................................... 31

6$3�3DUWQHU�3URðOHVBearingPoint .................................................................................................................................................................................................................. 32

Cam

elot ITLab ............................................................................................................................................................................................................ 35

Deloitte ................................................................................................................................................................................................................................... 39

enowa / iC

D. .................................................................................................................................................................................................................. 43

Ernst & Young .............................................................................................................................................................................................................. 46

IBM Deutschland

.................................................................................................................................................................................................... 50

Intense .................................................................................................................................................................................................................................... 53

Movilitas C

onsulting........................................................................................................................................................................................... 57

OSIsoft ................................................................................................................................................................................................................................... 60

Ovinto

....................................................................................................................................................................................................................................... 63

6 | | 7

In addition the chemical industry is re-

shaped by four major trends:

!

Ongoing com

moditization and m

argin erosion requires chem

ical companies to

focus on portfolio optimization, co-in-

novation and selling business value and outcom

e instead of just products with

the ultimate goal to deliver entirely new

custom

er and consumer experiences.

!

Digital as the new

norm w

ith technolo-gies like IoT, A

I/ML, B

lockchain, Cloud and analytics available provides new

opportunities for chem

ical producers to cut costs via autom

ating the back of!ce and running „low

touch“ operations.

!A

s the playing !eld is changing with

disruptors coming in from

various an-gles, chem

ical companies start looking

beyond traditional

value chains

and start com

peting in complex ecosystem

s.

!In a m

ore and more dynam

ic world

with m

ergers, acquisitions and divesti-tures as key vehicles for portfolio opti-m

ization and sustainable growth, stra-

tegic market-driven agility has becom

e an im

perative to survive or even thrive.

Ability to address the global trends w

ill determ

ine who w

ill be among the w

inners in m

id- and long-term future. Tom

orrow’s

leading com

panies are

already m

oving beyond providing products and services. T

hey are

applying technology

to create

deeper and more m

eaningful relationships w

ith people. They are creating new

af!li-ations w

ith businesses across industries w

ho share their vision and mission. T

hey are using these new

partnerships to invent new

products and services that meet the

goals of their customers and em

ployees and, in doing so, are achieving new

levels of grow

th and differentiation. They are also

helping their comm

unities create new eco-

nomic opportunities and develop new

ways

of serving and protecting citizens, bene!t-ting society as a w

hole.

Intelligent Technologies as Key Enabler

The

current pace

of technological

ad-vancem

ents has the most profound im

pact on enabling how

chemical m

anufacturers transform

themselves to respond to m

ar-ket trends and to deliver entirely new

cus-tom

er experience.Intelligent

technologies prom

ise to

bring great bene!ts such as productivity and ef!ciency gains, enabling innovative new

business models and new

revenue stream

s. The follow

ing intelligent technol-ogies are instrum

ental in helping chemical

companies respond to the m

arket trends.

(Y[PÄJPHS�0U[LSSPNLUJL��(0��HUK� 4HJOPUL�3LHYUPUN��4

3�M

achine Learning enables algorithms to

“learn” from existing data and achieve the

best possible outcomes w

ithout being ex-plicitly program

med. O

nce the algorithm

is trained, it can then predict future out-com

es based on new data. B

usinesses can leverage these capabilities e.g. in C

ash M

anagement to boost autom

atic matching

rates and free up !nance professionals to focus on strategy and service quality or in H

R to autom

ate the talent screening pro-cess and identify the candidates w

ith the best skills and education m

atch for a spe-ci!c job description.

;OL�0U[LYUL[�VM�;OPUNZ��0V;�A

dvances in ubiquitous connectivity and edge com

puting are driving a step change in business productivity. T

his connectivi-ty, coupled w

ith arti!cial intelligence and

machine learning, can analyze petabytes

of data and affect real business outcomes.

Although m

anufacturers have been us-ing IO

T for som

e time, now

the entire value chain can be connected: from

de-velopm

ent to production to supply chain. D

ata-driven insights

can drive

custom-

er-centric innovation,

lower

material

costs, and reduce risk. Rem

ote condition m

onitoring of assets, provides real-time

data of machines to predict m

aintenance needs, and identify potential quality prob-lem

s in manufacturing processes before

they occur. Assets can be jointly m

anaged as digital tw

ins by manufacturers, cus-

tomers and partners im

proving asset data and m

odelling.

Advanced AnalyticsT

he integration

of advanced

analytics capabilities, including situational aw

are-ness, into applications enables business users to analyze data on the "y and drives better decision m

aking from shop "oor

to top "oor. Em

powered users, bene!t-

ing from em

bedded analytics in business processes, can get real-tim

e visibility into their changing environm

ent, simulate the

impact of business decisions, m

itigate risk and achieve better custom

er outcomes.

)SVJRJOHPUA

relatively

recent breakthrough

tech-nology, blockchain is revolutionizing the m

ovement and storage of value by cre-

ating a chain of unaltered transaction-al data. T

he blockchain model of trust,

through massively distributed digital con-

sensus, could reshape supply chains and com

merce across the entire digital econ-

omy for exam

ple by digitizing the Bill of

Lading (B/L) docum

ent as part of the in-ternational ocean shipping process.

Augmented Reality

Virtual reality (V

R), the use of digital tech-

nology to create imm

ersive simulations,

was once the stuff of science !ction. So

was augm

ented reality (AR

), which lets

users interact with digital content that’s

overlaid on the real

world. A

lready in use to help w

orkers with dif!cult or in-

frequent maintenance activities, this w

ill becom

e even more critical to attract and

retain millennials.

Conversational AI

Advances in m

achine learning are ena-bling algorithm

s to become highly accurate

in natural language understanding and in im

age and speech recognition, especially useful in after service and call center ac-tivities. Voice interface w

ill be the go-to for the next generation of applications, allow

-ing for greater sim

plicity, mobility and ef-

!ciency while increasing w

orker produc-tivity and reducing the need for training.

Industry Vision 2025

By 2025, chem

ical company revenue w

ill depend on innovative products and ser-vices that derive from

new business m

od-els. T

hese new m

odels range from rela-

tively simple aftersales service offerings

to complex outcom

e-as-a-service models,

and include programs to m

onetize corpo-rate know

ledge, intellectual property and data assets. Increasingly, these new

ways

of doing business will rely on real-tim

e data sharing and collaboration w

ith cus-tom

ers on new platform

s, supported by extended partner ecosystem

s.C

ustomer-centric R

&D

will anticipate

customer and consum

er demand, collab-

orate with extended ecosystem

s, simulate

product and

formulation

performance,

8 | | 9

and design products that minim

ize envi-ronm

ental impact.

Applying digital technologies in oper-

ations will help analyzing production pro-

cess variables in real time and sim

ulating their im

pact on product quality, costs, and yield. T

his predictive analysis will further

enable chemical com

panies to anticipate dow

nstream supply chain disruptions and

take corrective actions in real time.

Enabling digital tw

ins and IoT con-

nectivity of assets will allow

chemical

companies to continuously m

onitor asset health, process quality, throughput, w

aste, and em

issions. By com

bining asset infor-m

ation with predictive analytics, com

pa-nies can predict the likelihood of asset failures,

plan m

aintenance and

adjust production plans accordingly.

Digital

technologies like

blockchain, the IoT, 3D

printing, and machine learn-

ing provide

opportunities to

optimize,

extend, an

d even disru

pt supply ch

ain processes

and

models.

Digitalization

bene!ts supply

chain processes

from

authentication of raw m

aterials and fair labor practices to autom

ated tank replen-ishm

ent and "eet managem

ent. It helps optim

ize trading and shipping, additive m

anufacturing, and

product integrity

managem

ent w

hile m

inimizing

supply chain risk.

Strategic Industry Priorities

Leading chemical com

panies plan to cap-ture new

business opportunities by driv-ing custom

er experience, focusing on step changes in productivity and em

powering

an innovation culture. They w

ill constant-ly innovate across the value chain to drive pro!table grow

th and adapt to how cus-

tomers w

ant to acquire, use, and pay for their products and services.

€/customer

90mNew

business

Higher value extraction

Higher market share

Safeguarding existing business

1234

80m

50m

40m

Time

€50m additional collective

revenue from digital services

Source: PwC Strategy & analysis

Source: PwC, Chem

ical Trends 2018-2019, A Tipping Point in Pro"tability

Business im

pact of introducing digital servicesin a chem

icals company

Imm

inent revenue

Future revenue

Currentrevenue

Successfully em

bracing the

following

four strategic priorities and addressing the opportunities from

new technologies

will

help chem

ical com

panies to

stay ahead of the innovation curve and evolve tow

ards the 2025 vision.

Sell business outcomes

instead of products

The chem

ical industry has its roots in selling products m

ade from crude oil and

inorganics into a variety of downstream

industries such as consum

er products or life sciences, pharm

aceuticals, automotive

and hitech, just to name a few

. Finding

new m

olecular structures, scaling them up

and selling them in a B

2B fashion, either

as standalone products or as part of pro-prietary form

ulations into downstream

in-dustries, w

as and still is today’s standard business m

odel. Now

, this business model

is challenged by mass com

moditization of

products and formulations, global com

pe-tition, higher dem

and from end consum

-ers in term

s of sustainable products and operations and exponentially increasing regulatory requirem

ents.

The vision:Com

ing from a pure B

2B-based push m

od-el in the past, by 2025 m

ost chemical com

-panies w

ill apply B2B

2C-based business m

odels and concepts, including the „seg-m

ent of one“ concept, leveraging digital technology to deliver sustainable, co-de-veloped applications, services and busi-ness outcom

es instead of simply pushing

products into the market. T

hey will devel-

op and maintain custom

er relationships, based on trust, joint developm

ent, shared values, risks and innovative custom

er ex-perience as the new

paradigm.

The journey:C

hemical

companies

will

start tow

ards this goal w

ith personalization of custom-

er experience by marrying custom

er sen-tim

ent analysis with analysis of buying

behavior across channels to understand individual custom

er needs and generate tailored custom

er interactions. They w

ill establish searchable IP databases to rap-idly access relevant scienti!c inform

ation.O

nce having this foundation they will

extend into predicting properties and per-form

ance of new form

ulations to signi!-cantly shorten developm

ent process and tim

e to market w

hile monitoring product/

formulation com

pliance along the entire lifecycle.

Furtherm

ore they

will

extend into their custom

ers’ value chain, moni-

tor process parameters and allow

in situ quality control in real tim

e through sen-sors at custom

er operations. In terms of

logistics they will track and trace m

aterial "ow

and product integrity along the entire value chain.

Finally they w

ill collaborate in open in-novation platform

s, turn data into value based services and establish transform

-ative business outcom

e driven and cus-tom

er centric revenue models to im

prove quality and reduce costs and risks for cus-tom

ers.

:PTWSPM`�[V�ZOYPUR�J`JSL�[PT

LZ

Safe, compliant and sustainable opera-

tions are at the top of the CE

O agenda and

thus have a high priority in any transfor-m

ational efforts. Even though a high lev-

el of safety and automation, in particular

through DC

S systems at the shop "oor,

has already been achieved over the last decades, m

any chemical com

panies still suffer from

siloed data and lack of in-

10 | | 11

tegration in

manufacturing

and supply

chain which prevents them

from further

automating end to end processes in those

key business functions.

The vision:B

y 2025 chemical com

panies will be able

to automate m

ajor parts of their back-end system

s leveraging machine learning

technology and predictive models to en-

able scenarios like „lights out manufac-

turing“ or

„touchless order

ful!llment“

bringing them close to the overall vision

of the autonomous enterprise.

The journey:In a !rst step com

panies will look at their

plants and further reduce processing time,

increasing !rst pass yields, and improv-

ing OE

E by fully integrating IoT, M

achine Learning

and digital

twins

throughout operations. N

ext, companies w

ill extend into

connecting and

collaborating w

ith custom

ers, suppliers and service partners upstream

and downstream

, e.g. via the A

sset Intelligence Netw

ork, using predic-tive m

odels to better forecast demand and

balance it with supply in real-tim

e. Fur-

thermore they w

ill be able to anticipate possible disruptions, ad-hoc sim

ulate and im

plement contingency plans to m

itigate risks along the entire supply chain.

Finally, they w

ill get close to the vision of

the autonom

ous enterprise

via fully

automating standard operations w

ith Ma-

chine Learning.

Com

pete as an ecosystem

Today most chem

ical companies operate

within their traditional boundaries. Inno-

vation is primarily driven by an “inside

out” view, prim

arily capitalizing on ex-

isting products, internal know how

and established relationships w

ith suppliers, partners and custom

ers. How

ever, with

growing com

petition, ongoing globaliza-tion and the advent of m

ega trends like Precision F

arming or the C

ircular Econ-

omy industry boundaries are m

ore and m

ore blurring and established business m

odels and practices, based upon linear value chains are no longer sustainable.

The vision:B

y 2025 many chem

ical companies w

ill have

gone beyond

the boundaries

of their current product-based value chain. Together w

ith a network of partners (for

example, service providers, universities,

research institutes,

toll-manufacturers,

technology providers, etc.), chemical pro-

ducers will be able to w

ork on custom-

er-speci!c solutions and applications in the E

nd Consum

er Industries (e.g. Auto-

motive, H

itec, Aerospace &

Defense, C

on-sum

er Products, etc.) in a „segment of

one“ relationship, delivering outcome-ori-

ented applications and services. They w

ill adopt the capability to "exibly redesign their netw

ork and relationships in line w

ith market dynam

ics and ongoing port-folio optim

ization.

The journey:In a !rst step chem

ical companies w

ill capitalize on structured and unstructured data from

an open network or ecosystem

to understand m

arket needs.Subsequently

they w

ill connect

with

and orchestrate an extended network of

external stakeholders to rapidly respond to m

arket needs and establish a comm

on platform

for collaboration.U

ltimately, based on data and intelligent

insights from ecosystem

they will develop

differentiating, innovative

services (like

benchmarking, proprietary recipes etc.)

or business models w

hich support a high-er purpose (e.g. Precision F

arming, C

ircu-lar E

conomy, O

pen Innovation).

Adopt strategic agility in response [V�T

HYRL[�K`UHTPJZ

In today’s highly dynamic w

orld growing

organically is no longer the only, or even the prim

ary, recipe for success. To survive and thrive in such an environm

ent more

and more com

panies turn towards m

erg-ers, acquisitions and divestitures to expe-dite portfolio adjustm

ents and diversify into prom

ising new m

arkets or segments.

How

ever, many of such initiatives fail as it

takes way too long to realize the expected

synergies and embed the acquired entities

into existing portfolios.

The vision:B

y 2025 chemical com

panies overall per-form

ance, pro!tability, growth and com

-petitive position w

ill be based upon en-hanced speed and agility to adjust strategy and product &

service portfolio, to grow

into new m

arkets or segments, and to re-

alize synergies of mergers, acquisitions,

and spin-offs. This goes far beyond the

product and manufacturing expertise the

chemical industry has show

n in the past. It requires the "exibility to apply B

2C sales

& product m

anagement capabilities and

the ability to manage diversi!ed product

and application portfolios frequently in a „segm

ent of one“ relationship.

The journey:F

irst and foremost chem

ical companies

will reduce cycle tim

es for dynamically

analyzing their product and service port-folios, based on better availability and vis-ibility into internal and external data.

In a next step they will start em

bedding external m

arket and company data into

ad-hoc simulations on strategic scenarios

(like Mergers, A

cquisitions and Divesti-

tures) and will be able to assess the over-

all impact on corporate K

PIs and compa-

ny performance.

In the !nal transformative stage com

-panies w

ill co-innovate with custom

ers and em

bed business and technology in-novations into their application &

service portfolio for diversi!cation, differentiation and pro!table grow

th.

12 | | 13

The Intelligent Enterprise for Chemicals

To continue

the digital

transformation

journey, you now need intelligent, inte-

grated business processes.In a connected w

orld where every com

-pany is becom

ing a technology company,

smarter products and services w

ill further focus on outcom

es for your customers and

change industry boundaries. In order to re-m

ain successful chemical com

panies should bring intelligence to their products, servic-es, and m

odels for work and business.

SAP point of view: w

inning with the

Intelligent Enterprise

Digital disruption has transform

ed how

companies

and custom

ers interact

and disruption is continuing as the transfor-m

ational power of digital fuels the F

ourth Industrial R

evolution, changing how peo-

ple live, work and relate to one another.

Unlike its predecessors, the current in-

dustrial revolution is affecting every sec-

tor of the economy w

ith chemical com

pa-nies right at the center.

The

new

intelligent technologies

are changing

the w

ay com

panies operate

and how they deliver and m

onetize their products,

solutions and

services. Intel-

ligent technologies are enabling the dis-ruption of the industry. E

mbracing these

technologies is critical for chemical com

-panies to thrive and becom

e Intelligent E

nterprises.Intelligent

enterprises em

power

em-

ployees through process automation. In

the coming years A

I will evolve to auto-

mate ever m

ore complicated tasks, to free

up employee tim

e and empow

er them to

do more m

eaningful and rewarding w

ork. C

ompanies have the opportunity to trans-

form the w

orkplace with autom

ation aug-m

enting their expert resources. Instead of fearing autom

ation, many em

ployees can look forw

ard to jobs that challenge and interest

them,

providing opportunities

Productivity

High ValueTasks

RepetitiveTasks

Automation

Time

IndustrialAutom

ation

BusinessProcess

Automation

DigitalTransform

ationIntelligent

Enterproses

,QWHOOLJHQW�6XLWHO

ur intelligent,

integrati-on-ready applications can help you m

anage custo-m

ers, supply chains, net-^VYRZ��

LTWSV`LLZ��

HUK�core processes. They are easily extensible – and of-fer a consistent and intuiti-ve user experience.

,QWHOOLJHQW�7HFKQRORJLHVDrive rapid and continuous innovation w

ith SAP Leo-nardo – a guided approach to

digital transform

ation that

combines

intelligent technologies and services.

'LJLWDO�3ODWIRUP

Manage

data from

any

source, in any format and

rapidly develop, integrate, and extend business ap-plications – w

ith an open digital platform

.

Fig.: 1

Fig.: 2

14 | | 15

en capabilities and applying core busi-ness com

petencies in innovative ways

that w

ould never

have been

possible w

ith traditional face to face engagement

models.W

hen interaction shifts to the digital, it becom

es far easier for customers to

switch to other providers, especially w

ith new

disruptive

market

entrants. N

ew

approaches and business models are re-

quired attract and retain customers and

companies

will

need to

anticipate and

proactively respond to customer needs,

creating personalized

and unique

cus-

to add more value instead of perform

ing m

undane, repetitive tasks.T

his empow

ered workforce w

ill be able to focus on high-value activities like cus-tom

er success,

strategic planning,

and innovation. A

utomation can now

also be im

plemented

far m

ore cost-effectively,

because it is embedded m

ore and more

within business processes.A

dvances in

ubiquitous connectivity

coupled with arti!cial intelligence and

machine learning, can be used to create

new business m

odels that generate new

revenue streams. M

onetizing data-driv-

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16 | | 17

tomer experiences using A

I, chatbots, and voice technologies to deliver best in class custom

er service.T

he imperative for change is clear and

the difference between w

inners and losers w

ill be to their ability to digitally trans-form

, embracing intelligent technologies

and the major trends shaping the future

of the industry.

SAP enables chemical com

panies to becom

e intelligent Enterprises

The Intelligent E

nterprise Suite for Chem-

ical Companies is a set of Integrated B

usi-ness A

pplications that use Intelligent Tech-nologies and can be extended on SA

P’s D

igital Platform. T

his enables next gener-ation business processes to deliver break-

through business value on our customers

journey to become Intelligent E

nterprises.

The Intelligent Chem

ical Enterprise

In order to execute on their strategic digital priorities and achieve the 2025 vision, com

-panies need to change the w

ay they oper-ate. B

y shifting routine tasks from hum

ans

to business systems enabled by m

achine learning, and redesigning processes, they w

ill free up the capacity needed to de!ne and pursue innovative and transform

ative business m

odels. The Intelligent E

nterprise is the fabric that w

eaves together all these siloed

processes, intelligent

technologies and real-w

orld data threads from custom

-ers and the environm

ent into "exible end to

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18 | | 19

end value chains that provide a transform-

ative custom

er experience

and support

next generation business models.

The Intelligent E

nterprise for chemical

companies offers unlim

ited innovation op-

portunities across the enterprise, and opens up the path tow

ards new frontiers beyond

the traditional

enterprise boundaries.

It offers intelligence that is em

bedded into processes w

ithin the enterprise, as well as

transforming the enterprise by supporting

new business m

odels and revenue streams.

The

strategic priorities,

that address

the major them

es shaping the industry, im

pact the entire end to end value chain.

Application of intelligent technologies w

ill help chem

ical companies address their

digital priorities, implem

ent next genera-tion business processes and becom

e intel-ligent enterprise.

(see Fig. 3)

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20 | | 21

Outcom

e Based Co-Innovation

in Chem

icals

Traditionally chemical com

panies devel-op products in response to m

arket needs driven

by dow

nstream

industries like

consumer products, pharm

aceuticals, en-gineering &

construction.In the future, chem

ical companies w

ill strive for unprecedented levels of custom

-er experience, anticipating m

arket trends and needs, rapidly developing and m

an-ufacturing

corresponding form

ulations, and selling those based on “business out-com

e” (e.g. !rst pass quality semi-!nished

parts or goods) instead of selling by quan-tity. Such innovative process are enabled by innovative technologies like M

achine Learning, IoT

and Blockchain. (see F

ig. 4)

Integrated Operations

Managem

ent in Chem

icals

Being able to operate safely and effectively

is essential to chemical industry. Com

pa-nies for years have been trying to reduce

cycle times and im

prove !rst pass yields to operate m

ore effectively with special

emphasis on individual inef!ciencies (e.g.

movem

ent of material, ef!ciency of equip-

ment,

etc.) for

years. M

odern chem

ical com

panies in their search to reduce cycle tim

es are looking at the fully integrated operations for the com

pany. Realizing that

changes in one area can impact further

downstream

operations they are looking at the total process, end to end, to reduce the cycle tim

e. By providing this integrated

operational view SA

P S/4HA

NA

, SAP Leon-

ardo, and the Digital Tw

in allows com

pa-nies to operate m

ore reliably and ef!cient-ly w

hile providing valuable insights into operations to im

prove problem resolution

and business outcomes.

(see Fig. 5)

Digital Farming - from

traditional ]HS\L�JOHPU�[V�I\ZPULZZ�UL[^

VYR�collaboration

Increasingly, agrichem

ical com

panies struggle to differentiate them

selves in a m

arketplace plagued by low com

modity

prices and highly price sensitive custom-

ers. Yesterday’s hot GM

O seed and its

companion crop protection chem

ical has to com

pete today with sim

ilar offerings from

global competitors. In this environ-

ment, com

panies are moving tow

ards di-rect sales to farm

ers, with product sales

supported by

companion

product and

service offerings provided by business

partners. T

he w

inners in

this m

arket are those w

ith wide partner ecosystem

s w

ho bundle agricultural products with

things like customized crop insurance,

!nancing, weather services, agronom

ic advice, equipm

ent maintenance servic-

es, even planting and application servic-es – all of w

hich may com

e from partner

companies. C

ompeting as an ecosystem

requires a new

mindset and close col-

laboration betw

een business

partners

facilitated by supply chain collaboration, business netw

orks, and close customer

engagement.

(see Fig. 6)

Traditional ScenarioA N

ew W

orld with SAP

Fig.: 6aFig.: 6b

22 | | 23

Adopt strategic agility in response [V�T

HYRL[�K`UHTPJZ

Increasingly, chemical com

panies’ over-all perform

ance, pro!tability, growth and

competitive position w

ill be based upon enhanced speed and agility to adjust strat-egy and product &

service portfolio, to grow

into new m

arkets or segments, and

to realize synergies of mergers, acquisi-

tions, and spin-offs. This goes far beyond

the product and manufacturing expertise

the chemical industry has show

n in the past. It requires the "exibility to apply B

2C sales &

product managem

ent capa-

bilities to the B2B

world, and the ability to

manage diversi!ed product and applica-

tion portfolios frequently in a „segment of

one“ relationship. (see F

ig. 7)

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24 | | 25

How to get there

The journey to becom

ing an intelligent chem

ical company begins w

ith digital and leverages a transform

ation road map.

How

to plan your path to the Intelligent Enterprise

In the digital economy, intelligent technolo-

gies and integrated business processes are now

driving digital transformation. To do

this effectively requires an end-to-end plan for becom

ing an intelligent enterprise. This

includes creating an intelligent enterprise roadm

ap and implem

entation plan with

proven best practices and deployment op-

tions that optimize for continuous innova-

tion with a focus on intelligent outcom

es. (see Fig. 8)

To move forw

ard with speed and agility, it

helps to focus on live digital data, combine

solution know-how

and industry-speci!c process expertise w

ith data analytics so that the right digital reference architecture is de!ned and delivered. In that context, a

model-com

pany approach (see  Fig.  9) is aim

ed at simplifying and increasing the

speed of

digital transform

ation journey.

Model com

panies represent the ideal form

of standardization for a speci!c line of busi-ness or industry. T

hey are built on pre-con-!gured SA

P solutions based SAP best prac-

tices along with the business content that

encompasses our experience and expertise

relevant for the industry. They provide a

comprehensive baseline and com

e with the

accelerators to jump start the digital trans-

formation projects.

How to ensure a successful transfor-

mation to your Intelligent Enterprise

SAP D

igital Business Services has a broad

range of services to cover the end-to-end digital transform

ation journey, ranging from

consulting on a digital innovation road map

and implem

entation plan with proven best

practices to the ability to run all deployment

options and ultimately optim

ize for contin-uous innovation (see Fig. 10). W

e provide both choice and value w

ithin our service

offerings, allowing you to tailor the proper

approach based on your speci!c company

expectations and industry requirements.

!

25,000 professionals in 70 countries

!C

ustomers in 130 countries

!

Outcom

es delivered as one team in one

contract

!Projects connected in real tim

e to a global

network

of support

functions through SA

P Mission C

ontrol Center

!

SAP M

axAttention™

and SAP A

ctiveEm

-bedded services to safeguard investm

ent

!C

onsistent experience – on premise, in

the cloud, or a hybrid

!Standardized

adoption of

processes and tools

!

Streamlined onboarding and ram

p-up of stakeholders

From proposing a com

prehensive digitali-zation proposal to realizing and running it, SA

P delivers on the digital transformation

promise to its custom

ers on time, w

ithin budget, and on value.

Value delivery

from

SAP

is possible

due to our many unique, differentiating

assets:SA

P D

igital B

usiness Services

deliver digital innovation w

ith simpli!cation and

accelerated implem

entation, which is key

to adoption and value realization. Contin-

uous improvem

ent is supported through the ongoing assessm

ent of real-life data insights and joint governance w

ith cus-tom

ers (see Fig. 11).

Value delivery from SA

P focuses on the follow

ing deliverables:

Fig.: 8

Fig.: 9

Fig.: 10

26 | | 27

SAP Is Com

mitted to Innovation

Ten-year innovation visionD

eliver fully intelligent business solutions and netw

orks that span across company

boundaries and promote purpose-driven

businesses. These solutions w

ill be the m

ost empathic sym

biosis betw

een m

a-chine intelligence and hum

an ingenuity.

!Self-running enterprise system

s

!Self-organizing business ecosystem

s

!N

ew m

arkets and business models

Com

prehensive industry coverageSA

P enables

the com

prehensive cover-

age of the complete chem

ical value chain across the enterprise. W

ith its clear indus-try road m

ap, SAP is the partner of choice

for the chemical industry.

!

More than 7.000 chem

ical manufactur-

ers in 97 countries innovating with SA

P solutions

!

95% of the chem

ical companies in the

Forbes G

lobal 2000 are SAP custom

ers

!A

ll lines of business supported on a single platform

7YV]LU�ZLY]PJLZ�VɈLYPUNB

y bringing together world-class innova-

tors, industry and emerging technology

expertise, proven use cases, and design thinking m

ethods, we help chem

ical com-

panies develop innovations that deliver im

pact at scale.

!

Use proven m

ethodologies to drive in-novation, from

reimagining custom

er experiences to enhancing operations

!

Fuel your innovation through a m

an-aged innovation ecosystem

from SA

P

!B

uild your own innovation capability

and culture

Only SA

P delivers support for the intelli-gent enterprise for chem

ical companies

– providing integrated business applica-tions that use intelligent technologies and can be extended on SA

P Cloud Platform

to deliver breakthrough business value.

Com

prehensive SAP Ecosystem -

Orchestrating the w

orld to deliver faster value

Our com

prehensive chemical ecosystem

(see Fig. 12) offers integration into:

!

A

wide

range of

business services

(merchandising, PO

S, supply chain, an-alytics, om

nichannel, and so on)

!

Open architecture: choice of hardw

are and softw

are

!C

omplem

entary and innovative third- party solutions

!

Reach – partners to serve your busi-

ness of any size anywhere in the w

orld

!F

orum for in"uence and know

ledge

!Large skill sets

Our partner ecosystem

includes, among

others:

Continuous Improvem

entBusiness Insights

Digital Business Foundation

· Joint value governance

· Sustainable engagement m

odel

· Innovation without disruption

· Simpli!cation

· Digital boardroom

· Predictive customer insights

· Value realization dashboard

· Agile decision-making and

· executive support

Run better:Operate

Use better:Harvest

CorporateStrategy

Extend use:Invest

Build new:

Innovate

· Digital business model

BusinessInnovation

Re-imagine

DesignTransform

DigitalArchitecture

ValueGeneration

· Flexible, scalable enterprise architecture

· Platform for the digital future

· People and culture transformation

DigitalDream

ZoneBusiness

Model Design

Business Model

Implem

entation

DigitalStrategy

EnterpriseArchitecture &

Roadmap

BusinessTransform

ation

ValueProposition

ValueDesign

ValueGovernance

Please read also:

„An Industry Point of View:

The Digital Chem

ical Industry – <USVJRPUN�UL^

�)\ZPULZZ�=HS\L�w

ith Intelligent Technologies”

“Industry White Paper:

The Intelligent Enterprise for the C

hemicals Industry”

“Infographic: 9 Investments

Chem

ical Com

panies are THRPUN�[V�ILJVT

L�0U[LSSPNLU[�Enterprises”

Fig.: 11

Fig.: 12

28 | | 29

Emerging Business M

odels in the Chem

ical Industry00V;��(Y[PÄJPHS�0U[LSSPNLUJL�HUK�)SVJRJOHPU�HYL�[OL�.

HTL�*

OHUNLYZ

With the rapid grow

th of the Industrial 0U[LYUL[�VM�;OPUNZ��00V;��HUK�YLJLU[�HK-]HUJLZ�PU�0UK\Z[Y`�����[LJOUVSVNPLZ�SPRL�cloud com

puting, machine learning and

remote sensing, there’s been a lot of de-

bate about the impact that digitalization

will have on the process industries over

[OL�UL_[�ML^�`LHYZ��=VSRLY�6

LZ[YLPJO�ZH[�dow

n with Stefan G

uertzgen, senior di-YLJ[VY�·

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micals at SAP in W

alldorf, Germ

any, to discuss relevant trends.

CH

EM

anager: Mr. G

uertzgen, what are

today´s major trends for the C

hemical

Industry?

Stefan Guertzgen: F

irst of all, I see an accelerated globalization. Supply centers are shifting due to the advent of shale gas in the U

S or coal to ole!ns in China.

Also, dem

and centers are shifting thanks to a rapidly grow

ing middle class in the

emerging

countries. In

addition, new

m

arket entrants

challenge incum

bents w

ith innovative

products and

services, hence contributing to shortened lifecycles and rapid com

moditization of products.

Next com

es the circular economy. K

ey raw

materials are getting scarce. R

egula-tory requirem

ents exponentially increase as the environm

ental impact of em

issions and w

aste be comes m

ore and more evi-

dent. Chem

ical companies are seen to be

in the driver’s seat to respond to this, and som

e are already extending their ecosys-tem

s with the purpose to estab lish end-to-

end recycling concepts.

Which changes are caused by the rap-

id developments in IIoT, cloud com

put-ing, m

achine learning and other digital technologies?

S. G

uertzgen: D

igitalization w

ill drive

a tremendous w

ave of innovation. Recent

advancements

in digital

technology of-

fer unprecedented levels of connectivity, granularity, and speed in accessing, pro-cessing, and analyzing huge am

ounts of data. B

esides mobility, cloud and in-m

em-

ory computing, the Industrial Internet of

Things, m

achine learning and blockchain w

ill start acting as game- changers in the

chemical industry.

All three trends are com

ing together to challenge existing strategies and create a perfect storm

for the chemical industry.

Customer and feedstock proxim

ity, intel-lectual property, and technology know

-how

may no longer secure a sustainable com

-petitive advantage. E

arly adopters of in-novative business m

odels have the unique opportunity to act as digital disruptors.

Which innovative business m

odels and processes are em

erging for companies

in the chemical industry?

S. Guertzgen: I see four m

ajor develop-m

ents. First, com

panies will start to adopt

strategic agility. The need to rapidly trans-

form product and service portfolios in re-

sponse to dynamically changing m

arket and stakeholder needs w

ill continue un-abated. Preparing for ongoing m

ergers, acquisitions, and divestitures w

ill be a critical success factor.

Second, we’ll see m

ore companies go-

ing beyond their traditional value chains and

start com

peting as

entire ecosys-

tems. Such ecosystem

s are presently built around hot topics like for exam

ple preci-sion farm

ing or the circular economy.

Third, w

e’ll see companies be com

e more

customer-centric

and focus

on selling

business outcomes instead of products. In

that context, think about delivering !rst-pass

quality products

or sem

i-!nished goods instead of paints, coatings, or reac-tive resin com

ponents.F

ourth, com

panies w

ill get

an other push tow

ards operational excellence and business process autom

ation. With digital

technologies becoming scalable and com

-m

ercially feasible,

companies

can now

realize concepts like “lights-out m

anufac-turing” and “touchless order ful!llm

ent.”

You mentioned blockchain as a gam

e changer. H

ow w

ill this impact today´s

businesses?

S. Guertzgen: Let’s !rst look into som

e general bene!ts blockchain brings to the table. First of all, it raises the level of trust and security am

ong collaborating stake-holders in a netw

ork. Second, it allows to

disintermediate non-value adding parties

in a value chain, like brokers, authorities etc. T

hird, it creates a fully auditable trail of product, docum

ent or !nancial "ows

through capturing all transactions, chang-es in ow

nership etc. as imm

utable records along the entire value chain. T

his provides big opportunities for sim

pli!cation and in-novation in a global and m

ore and more

complex w

orld.

How

does this affect the chemical in-

dustry?

S. Guertzgen: B

lockchain could have an im

pact on almost any line of business in

a chem

ical com

pany. Just

think about

collaborating in an open or closed com-

munity in R

&D

(permissioned private or

public blockchain), tracking and tracing engineering

changes and

maintenance

activities on a manufacturing asset (safe

operations, book value accuracy, insur-ance claim

s etc.), ensuring full integrity of a m

ulti-modal product shipm

ent to a custom

er, or trading derivatives of a phys-ical product and set the foundation for clear ow

nership, once the critical mass

for building a physical plant has been reached.

30 |

Are there other new

avenues for man-

ufacturing — and are there also new

risks?

S. Guertzgen: 3D

printing, also called dis-tributed m

anufacturing, is proving to be a revolutionary technology that is m

oving m

anufacturing closer to mass custom

iza-tion. In particular, the chem

ical industry can bene!t from

developing tailor- made

proprietary formulations and system

s.H

owever, a m

uch-discussed but unre-solved issue is intellectual property pro-tection. Sim

ilar to the way digital m

usic is shared, 3D

printable digital blueprints could be shared illegally and, for exam

-ple, print m

olds from a scanned object

which is protected by copyright, trade-

mark, and patent law

s can be replicat-ed

in large

volumes.

With

blockchain, data

and rights

holders could

store m

etadata about any substance, from hu-

man cells to pow

dered aluminum

, on the blockchain, in turn opening up the lim

its of

corporate m

anufacturing w

hile also

protecting intellectual property. New

mar-

kets could enable buyers and sellers to con tract m

ore easily in an open market.

How

can chemical com

panies best capi-talize on all technologies you m

entioned before?

S. G

uertzgen: To

leverage and

scale aforem

entioned technologies across all of their business functions, chem

ical com-

panies need to turn into “intelligent en-terprises.” Intelligent enterprises operate w

ith visibility, focus, and agility to achieve gam

e-changing outcom

es. T

hey do

more w

ith less and empow

er em ployees

through process automation. T

hey deliv-er

a best-in-class

customer

experience by

proactively responding

to custom

er expectations. T

hey invent new business

models and revenue stream

s.

First published in CH

EManager International:

https://ww

w.chemanager-online.com

/en/topics/inform

ation-technology/emerging-

business-models-chem

ical-industry.

stefan.guertzgen@sap.com

w

ww.sap.com

/industries/chemicals.htm

l

powered by

ww

w.ch

em

anag

er.co

m

:(7�7HY[ULY�7YVÄSLZBearingPoint ...................................................................... 32C

amelot ITLab

................................................................ 35Deloitte

....................................................................................... 39enow

a AG / iCD. ................................................................ 43

Ernst & Young .................................................................. 46

IBM Deutschland

........................................................ 50Intense

........................................................................................ 53M

ovilitas Consulting

............................................... 57O

SIsoft .........................................................................................60O

vinto.............................................................................................63

32 | | 33

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A Connected Supply ChainT

he C

onnected Supply

Chain

Cockpit

tackles the challenges of increasing com-

plexity in

the supplier,

production and

customer netw

ork of chemicals and life

sciences companies. B

uilt on top of the existing IT

landscape, it links structured as w

ell as unstructured data intelligently, and like being in a cockpit, a user takes control of the supply chain, a chain that runs from

the raw m

aterials to customers.

Data is king in our digital w

orld, and the C

onnected Supply Chain C

ockpit harness-es your data so that you can predict the future w

ith greater certainty: what cus-

tomers w

ill order and when; how

much

inventory is needed and where; as w

ell as the tim

ing of maintenance and replace-

ment parts. It also m

eans more transpar-

ency and massive savings by reducing

the time spent on retrieving inform

ation. T

hrough technology and data, you !nally

have more control over your supply chain

from beginning to end.

Supply Chains in Real Tim

e Save Tim

e and Money

A tarpaulin truck is carrying hum

idity-sen-sitive goods to your production site. Sched-ule and quantity deviations are identi!ed and revealed at an early stage based on real-tim

e data

transmitted

by B

luetooth Low

Energy devices that accom

pany the goods. T

he devices are paired with the

relevant delivery data so that further anal-yses can be executed, and these devices also transm

it conditions such as humidity,

temperature and light to an onboarding

unit. The onboarding unit – found in new

-ly produced trucks and easily installed on older ones – transfers this inform

ation to the cloud w

here the data is interlinked with

other data and becomes part of the analysis

for estimating arrival tim

e (ETA

) based on traf!c and w

eather conditions. It can recal-culate stock coverage and initiate counter m

easures if the stock coverage drops un-der a certain de!ned threshold. A

lso, as the devices record conditions, it w

ould identify hum

idity in the tarpaulin truck as it drove through rain. A

s the tarpaulin truck is car-rying hum

idity-sensitive goods, the freight m

ay be affected and not useable, which

would have negative consequences for the

planned production. Reordering w

ould take several days. T

he Connected Supply Chain Cockpit identi!es the possible reduction in the quality of the goods that w

ill arrive and initiates a new

purchase order as soon as the threshold for hum

idity is exceeded. The

early reorder through the connected supply chain drastically reduces the tim

e for the provision of goods in the needed quality.

Furthermore, based on G

PS information

that is also transmitted w

hen the devices are paired w

ith the delivery, the localization of the goods can be identi!ed. A

s an exam-

ple, with the de!nition of geo fences around

a plant, subsequent tasks can be initiated: w

hen the truck is 80 kilometers from

its destination, all registration docum

ents can be generated and electronically transm

it-ted to the driver. Considering truck drivers often do not speak the local language, the registration and instruction docum

ents can be provided in the driver’s language, reduc-ing w

aiting time for the driver.

Advantages of a connected supply chain:

!

Fast and easy identi!cation of supply

chain incidents

!Intuitive

user experience

within

one central view

!

Increased data and information availa-

bility for all supply chain partners

!E

nhanced automation level decreases

lead and order processing times

A Digital Twin of Your Supply C

hain

Big

Data,

cloud-based platform

s and

in-mem

ory processing allow data handling

and modelling for a one-to-one copy of an

entire supply chain: the digital twin is born.

The digital tw

in is based on operational data and re"ects all the speci!cs of a supply chain. A

s the system is fed by E

RP data, it

is always up to date and sim

ulations can be run w

ithout simpli!cations. Com

parisons and benchm

arks between actual and w

hat-if scenarios are possible on the "y. You ben-e!t from

several features:

!E

nd-to-end transparency: all steps and legs of your supply chain are re"ect-ed. G

ain full transparency as network

data/business rules are merged w

ith daily transaction data

!

Multi-dim

ensional: the

trade-off be-

tween

costs, lead

times,

inventories and ecological goals becom

e visible

!Supply chain analytics: fact-based deci-sion-m

aking support down to the prod-

uct/customer level

!

Optim

ization/simulation:

run w

hat-if- scenarios w

ith real data – no simpli!-

cation is needed, so results are three to four tim

es more accurate

A Use C

ase From C

hemicals –

Cost C

utting in Supply Chains

A m

ajor chemical m

anufacturer was ques-

tioning its

national distribution

strategy. Tw

o business units were operating separate

distribution networks in one country. Prod-

ucts and clients were different. H

ow to as-

Advantages of a Connected Supply C

hain

34 | | 35

Next Level Supply Chain Managem

ent >O`�º+LT

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Demand-Driven Supply C

hain Manage-

TLU[��++:*

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to control variability across value chains – to m

aximize contribution m

argin by in-creasing service levels and decreasing inventory. In several industries, the De-THUK�+YP]LU�(KHW[P]L�,U[LYWYPZL��++(,��

model already has been successfully em

-ployed to m

aster complex and volatile en-

vironments. The chem

ical industry faces Z[YVUN�JOHSSLUNLZ�PU�Lɉ

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global customer dem

and – demands that

DDSCM

has been proven to meet in a

range of manufacturing enterprises. As a

pioneer in the successful implem

entation of DDSC

M, w

e explain why that is and

ZOV^�PUK\Z[Y`�ZWLJPÄJ�\ZL�JHZLZ��

Intelligent Enterprises operate ‘Dem

and-Driven’

The Intelligent E

nterprise is an umbrella

concept de!ned by SAP to leverage auto-

mation and data insights, not only to boost

ef!ciencies and achieve better results but also to support enterprises in reinventing business operating m

odels. We believe the

DD

AE

concept is the cornerstone for any com

pany to become an Intelligent E

nter-prise. C

amelot is a pioneer in this area,

providing deep conceptual expertise, soft-w

are and industry insights to make this a

reality for next generation enterprises. C

amelot has a unique relationship w

ith SA

P that spans more than 20 years. It’s

best described

as a

360° partnership:

co-innovation partner, global implem

en-tation partner and custom

er of SAP. W

e

are currently working w

ith SAP as a stra-

tegic development partner to bring our

Dem

and-Driven

Material

Requirem

ents Planning (D

DM

RP) expertise into the core

SAP Integrated B

usiness Planning (IBP).

Cam

elot will also be a global im

plementa-

tion partner for this new solution.

:PNUPÄJHU[S`�PUJYLHZLK�WLYMVYTHUJL�

Ful!lling the dem

ands of end customers

has always been at the heart of supply

chain managem

ent. So, what is new

? Tra-ditional supply chain planning approach-es use forecasts of future custom

er de-m

and to specify what is to be delivered,

produced and

moved,

when

and how

– both for suppliers and factories. A

fore-cast-based system

only works w

ell if the dem

and forecasts very accurately meet

actual customer requirem

ents. How

ever, given the com

plexity and volatility of to-day’s m

arkets, a steadily increasing num-

ber of products for sale and ever shorter product lifecycles, it is sim

ply no longer possible to com

e up with accurate de-

mand forecasts.D

emand-D

riven Supply Chain M

anage-m

ent (DD

SCM

) is a new approach that fo-

cuses on the variability in today’s supply chains rather than forecasting. T

he culmi-

nation of all these components of D

DSC

M

is the Dem

and-Driven A

daptive Enterprise

(DD

AE

). It is the way intelligent enterpris-

es will operate in the 21st century. T

he disruptive character of the D

emand-D

riv-en Supply C

hain Managem

ent approach requires com

panies to radically rede!ne

6$3�3DUWQHU��&DP

HORW�,7/DE

sess the bene!t of merging? T

he digital twin

brought both business units together in one virtual supply chain. D

ata of daily transport and handling operations w

ere simulated

and optimized and as a result, capacity

was found suf!cient even in a m

erged and dow

nsized distribution network. T

he sim-

ulation pointed out a two-digit percentage

savings potential. Implem

entation realized the feasibility and savings.

A Use C

ase From C

hemicals –

Cost to Serve

A global chem

ical manufacturer w

as keen to

understand the

correlation betw

een order

pattern, supply

frequencies and

supply costs per customer/product. W

ith the help of a digital tw

in, these multiple

dimensions w

ere brought into one mod-

el. Simulations show

ed the cause for cost peaks driven by order pattern. A

s correla-tion w

as obvious and the impact on costs

and carbon

footprint w

as transparent,

the chemical m

anufacturer was able to

convince his customer to change his or-

der behavior. It was a w

in-win at its best.

A Use C

ase From Life Sciences –

Carbon Accounting

A large m

ultinational life sciences com-

pany used the digital twin approach to

re"ect the carbon emissions for its fully

outsourced transport operations. Interfac-es provided E

RP data at the transaction

level. The E

RP data w

as validated and gaps w

ere closed automatically by apply-

ing business rules so that an end-to-end transparency w

as achieved. Carbon data

is now updated and available daily – car-

bon accounting at its best.

Contact:

BearingPoint1LUZ�9HZJORL

Partner 7OVUL!��� ������������������

4HPS!�QLUZ�YHZJORL'

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eb: ww

w.bearingpoint.com

Digital Twin of the Supply C

hain

36 | | 37

their planning and execution processes. C

ompanies w

ill greatly bene!t from that

concept by

signi!cantly im

proving key

performance indicators (see F

igure 1). Im

plementing

DD

MR

P into

SAP

IBP

is a milestone for D

emand-D

riven Sup-ply C

hain Managem

ent because the De-

mand-D

riven approach can now be re-

alized for many parts of the value chain,

including the following:

1. Dem

and-Driven M

RP

: As a key pillar

of future operating models, the concept

reduces the variability of supply and de-m

and by using the inventory in the val-ue chain as a buffer. T

hese buffers are replenished based on actual consum

p-tion rather than forecasted dem

and. 2. D

emand-D

riven Rhythm

Wheel P

lan-ning: Com

panies need to schedule or-ders based on this dem

and in the pro-duction system

. Dem

and-Driven R

hythm

Wheel Planning follow

s the repetitive cyclical

production approach

to level

production over time, to reduce dem

and "uctuations on the upstream

stage and

to increase the visibility and reliability of relevant signals in the supply chain.

3. Integration: Integration

of both

De-

mand-D

riven MR

P and Rhythm

Wheel

Planning can further amplify bene!ts

from these tw

o concepts.4. D

emand-D

riven S&

OP

: E

nsure con-

tinuous review and updating of the pa-

rameters of the value chain and adap-

tive S&O

P (sales & operations planning)

to reconcile

and align

the corporate

strategy and business plans down to

the operational horizon and execution.

What the chem

ical industry can learn from

other industries

Alm

ost all ER

P or SCM

/APS system

s in the chem

ical industry today are still working

with the m

aterial requirements planning

(MR

P) processing logic from the 1960s.

But that only w

orks with very accurate

demand forecasts – an im

possibility in today’s

lightning-fast global

economy.

Dem

and-Driven

Supply C

hain M

anage-

-PN\YL��!�)LULÄ[Z�MYVT�+LT

HUK�+YP]LU�:\WWS`�*OHPU�4

HUHNLTLU[

ment (D

DSC

M) w

ith DD

MR

P at its core is a new

approach to mastering the exten-

sive variability in today’s digital supply chains. A

lready, pharmaceutical and con-

sumer packaged goods industries that use

DD

SCM

have seen inventory reductions of up to 30 percent on average, along w

ith 20 percent shorter delivery tim

es and sig-ni!cant service level im

provements.

An

effective im

plementation

of D

e-m

and-Driven Supply C

hain Managem

ent – w

ith DD

MR

P at its core – is only possi-ble if it’s based on the latest technological support. C

amelot IT

Lab, as the strategic developm

ent partner of SAP in this area,

is jointly developing Dem

and-Driven M

a-terial R

equirements Planning (D

DM

RP) in

SAP IB

P, supporting DD

MR

P end-to-end, including steps one to !ve as illustrated in F

igure 2. We also provide additional m

i-croservices based on SA

P Cloud Platform

, extending SA

P IBP standard capabilities

and meeting speci!c custom

er require-m

ents.

;OL�Ä]L�Z[LWZ�VM�++497

The !rst step of the D

DM

RP concept is

about the strategic positioning of decou-

pling points. De-coupling the supply chain

creates independence between processes

or entities and is the only way to stop the

bullwhip effect, m

itigate variability and com

press lead times.

Steps two and three concern the buffer

pro!les and levels as well as dynam

ically adjusting the buffer levels. B

uffer sizing is the shock absorber to ease both sup-ply and dem

and variability and reduce or elim

inate the bullwhip effect.

Within step four order recom

menda-

tions are generated by evaluating actual inventory, stock that has been ordered but not received, and quali!ed sales order de-m

and.F

inally, in

the execution

part –

step !ve – users have visibility into inventory through alerts that track usage, so order-ing lead tim

es and material delivery can

be synchronized.

Use cases in the

chemical industry

There are m

any potential use cases and references. W

e present a few to highlight

the bene!ts of DD

MR

P in the chemical in-

dustry:

-PN\YL��!�;OL�Ä]L�Z[LWZ�VM�[OL�++497�JVUJLW[

38 | | 39

Use case 1 – Just in tim

e packing of pig-m

ent SKU

s: To successfully handle "uctua-tions in dem

and, it is best to delay the !nal packaging of the !nished goods into SK

Us

with delivery driven by custom

er demand.

DD

SCM solves the m

ismatch of SK

U stocks,

thus safety stocks are signi!cantly low-

ered. Based on custom

er demand, these

SKU

stocks can be replenished, while the

need for unplanned repacking from one

SKU

into another is avoided.

Use case 2 –

Reducing

planning com

-plexity in specialty chem

ical intermedi-

ates: Applying D

emand-D

riven planning cuts the com

plexity of uneven planning scenarios

by decoupling

inventory and

allowing

an independent

scheduling of

stock replenishment. T

he amount of the

buffer stock can be adjusted to mid-term

dem

and trends and planned shutdowns,

based on demand, sales and operational

planning.

Use case 3 – Sequencing in plastics pro-

duction: Change-over effort and off-spec volum

es in

plastics production

are de-

pendent on the sequence of the products. D

emand-D

riven Rhythm

Wheel Planning

incorporates an optimized, prede!ned se-

quence as the basis for production sched-uling in connection w

ith capacity planning. T

his leads

to a

signi!cant reduction

in change-over m

aterial and an increase in capacity.

Driving success as Demand-

Driven Adaptive Enterprise

One of C

amelot’s custom

ers has made it

its mission to be the w

orld’s best-perform-

ing supplier to the printing and packaging industry through high value creation, con-

sistent quality and continuous innovation. H

owever,

an increasingly

complex

and uncertain m

arket environment m

ade it dif!cult to accurately predict custom

er de-m

and. The com

pany experienced higher than expected inventory levels in its quest to ensure custom

er demand could be m

et. W

ith the introduction of the Dem

and-Driv-

en Rhythm

Wheel approach and support

from C

amelot IT

Lab, the company is now

able to react to dem

and "uctuations in a "exible and agile w

ay and to be a reliable partner for its custom

ers in the future.B

ecoming

a D

emand-D

riven A

daptive E

nterprise (D

DA

E)

starts w

ith applying

the Dem

and-Driven principles to the sup-

ply chain. Companies that have realized

the Dem

and-Driven principles experience

a signi!cant increase in performance. T

he potential for the chem

ical industry is like-w

ise enormous and can be leveraged today.

Contact:

Cam

elot ITLab Gm

bH

Florian Sämann, H

ead of Com

petenceC

enter Integrated Business Planning, C

amelot ITLab

Dr. Jörg Schmid, H

ead of Com

petenceC

enter Supply Chain M

anagement and

Operations Strategy,

CAM

ELOT M

anagement C

onsultants

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agining digital transformation in chem

icals

Despite the

current challenges

of an

increas ingly VUCA environment, the global

chemical industry has experienced strong

performance

over the

last tw

o years,

enjoying healthy

cash reserves,

strong aggregate m

argins, and noteworthy reve-

nue growth. These favorable tailw

inds are providing oppor tunities for com

panies to THRL�Z[YH[LNPJ�PU]LZ[T

LU[Z��LUOHUJL�[OLPY�portfolios, and explore options for further grow

th and

productivity im

provements.

3LHKLYZ�PU�[OL�PUK\Z[Y`�HYL�[HRPUN�HK]HU-tage of the current environm

ent and exploi-ting strategic opportunities to sustain and enhance this positive m

omentum

. Deloitte HUK�:(7�HYL�^

VYRPUN�[VNL[OLY�[V�OLSW�com

panies reimagine their digital futures.

One of the m

ain long-term developm

ents identi!ed in the recent D

eloitte Insights chem

ical multiverse study is digital trans-

formation, w

hich has the potential to be a different kind of catalyst that w

ill alter m

any key aspects of the global chemical

enterprise. The study indicates that w

hile m

any organizations are beginning to use m

ore advanced digital technologies to en-hance their perform

ance, others are lagging behind because of a lack of understanding, overenthusiastic m

arketing, inertia of cur-rent processes, m

isaligned talent, inade-quate returns on early digital investm

ents, or just sim

ply not knowing w

here to start.A

dd to that the fact that many chem

ical com

panies have signi!cant technical debt

��*\S[\YH�*YLH[P]L�ZO\[[LYZ[VJR

40 | | 41

weighing dow

n their ability to modern-

ize and innovate core IT platform

s and it leaves the industry in a challenging posi-tion to plan and execute the digital trans-form

ation needed to reimagine their busi-

ness and unlock exponential value. This

technical debt comes in the form

of aging and

highly custom

ized E

RP

platforms,

disjointed or poor-quality data across and w

ithin IT system

s, out-of-date infrastruc-ture, and talent focused on the current platform

s instead of new and innovative

possibilities.H

owever, the abil-

ity to

build align-

ment

and support

for investm

ents in

the digital core and for innovative digital capabilities

around that core is not out of reach for chem

i-cal enterprises. C

IOs

and other

business leaders

must

think differently

about these digital opportunities and m

ake spe-ci!c plans for sm

art investments.

Leaders in

this industry

have long

mem

o ries, and many have !rst-hand ex-

perience with the m

ega-ER

P projects of the past. O

n the other hand, those same

leaders hear every day about the need to “go digital” and feel som

e sense of urgency to “do som

ething”. Prudence and a well-

thought-out strategy are needed on both ends

of that

spectrum.

Leaders should

certainly use what they have learned from

those experiences, but also learn about new

strategies for modernizing the digi-

tal core and for innovating around that core and envision novel uses of digital. For

instance, chem

ical com

panies are

migrating to SA

P S/4HA

NA

to refresh the digital

core, adopting

simple,

standard processes to support global transactions and reporting. U

sing a “clean core” strat-egy, D

eloitte is helping these companies

to adopt and implem

ent data models and

process "ows w

ith little or no customiza-

tion while developing innovations around

the outside of that core for more strategic

or unique capabilities. These innovations

come in the form

of off-the-shelf cloud applications and from

specialized appli-cations such as the D

eloitte R

eimagine

Platform

powered

by SAP Leonardo to

drive improvem

ents in

planning, trans-

portation, procure-

ment,

global trade,

shared services

transaction process-ing, custom

er collab-oration,

analytics, plant

maintenance,

and m

anufacturing. T

his strategy eliminates the technical debt

living in legacy systems, provides a sim

-pli!ed transactional core, enables innova-tion around that core, and adds im

portant business value w

here it counts. Integrated platform

s that enable real-time visibili-

ty, higher computing pow

er, cloud-based archi tectures, and advanced analytics ca-pabilities are the goal.

Exam

ples of these digital innovations are

predictive and

self-adapting plan-

ning processes, predictive sourcing, and proactive supplier risk m

anagement. In

the production

arena, real-tim

e pro!t

per hour optimization is achieved by al-

gorithms that provide optim

al setpoints for controls at the level of unit operations,

production lines, and plants, and even at the overall site level. In distribution, w

e see

touchless processes

and connected

supply chain cockpits that allow supply

chains to remain robust in the light of ex-

ternal in"uences. On the custom

er side, chem

ical producers and distributors are increasingly using A

I to segment the cus-

tomer

base, developing

price guidance

applications for sales people in the !eld and using recom

mendation engines for

cross- and upselling purposes. O

ne important aspect of digital transfor-

mation is that it de!nitely is a transform

a-tion, w

ith a strong element of organiza-

tional development, including structures,

processes, culture, and rewards, as w

ell as incentives and leadership approaches. W

ithout this transformation, there is no

business case. This also m

eans that we

need to tread carefully with all the tech-

nologies and digitalization capabilities we

have today. We should not sim

ply digital-ize the solutions w

e once invented in a dis-tant past. It is good practice to understand w

hich user stories are behind a legacy solution and reevaluate w

hat this solution w

ill look like for its speci!c audience in the light of current and future available technologies. A

t Deloitte w

e do this with

Deloitte D

igital, which provides us w

ith the creative ‘agency’ and design thinking approaches

needed to

accomplish

this. F

or instance, in building a digital twin for

the manufacturing environm

ent, it means

we

look at

technical docum

entation at

the plant such as P&ID

s and engineering speci!cations, and transform

these into solutions for the future, applying w

orker augm

entation technologies.A

nother important elem

ent in success-ful digital transform

ation is talent. As in

other manufacturing sectors, the chem

ical

industry can bene!t from new

skills and perspectives w

here the technologies and new

concepts such as agile development

may

seem

untenable or

impractical

to m

any leaders. Organizations should inten-

tionally recruit and develop digital talent in IT

as well as in m

anufacturing, engi-neering, com

mercial, and other support-

ing functions to seed innovative thinking and advance digital capabilities. C

hemical

companies seeking to attract these talents

and become an irresistible organization

need to provide a seam

lessly intuitive, real-tim

e, and

personalized experience

not only to their customers, but also to

their employees and business partners.

Deloitte’s

research into

the future

of w

ork indicates that a higher level of tech-nology "uency w

ill be required of leaders. E

xecutives may w

elcome ideas on how

to im

prove back of!ce productivity, enhance custom

er engagement, or increase w

ork-ing

capital ef!ciency,

but have

a tim

e-stam

ped view of w

hat digital technology can achieve. Likew

ise, within IT

the talent m

ay have proven domain expertise in the

organization’s existing platforms and ap-

plications but

little experience

working

with an agile developm

ent environment or

with

potentially disruptive,

leading-edge digital innovations.

Beyond speci!c talent and skills, cre-

ating a “digitally

mature”

culture w

ith active senior leadership support is also needed. D

igitally maturing organizations

have cultures that actively encourage em-

ployees to take calculated risks, be agile, and collaborate m

ore effectively. Senior leadership

in chem

icals organizations

can proactively espouse such a culture. E

vidence also points to the fact that fu-ture digital initiatives w

ill be increasingly driven by the C

-suite instead of by IT or

© Deloitte

42 | | 43

6$3�3DUWQHU��HQRZD�L&

'�

a separate digital function. For exam

ple, to kick-start digital thinking, the C

EO

of one global chem

ical company gave his

team the task of preparing proposals on

how to apply digital solutions to a list of

business challenges

and opportunities

facing the

company. T

he team

studied

the opportunities

and developed

ideas on how

to apply digital solutions to them

to deliver quick improvem

ents. The C

EO

m

et with the team

and reviewed one-page

outlines that described six- to eight-week

digital sprints to make quick advances in

the speci!c business opportunities. The

CE

O and leadership team

selected and funded one of the digital sprints and it be-gan im

mediately. Learning from

that !rst sprint, the organization has expanded the use of the digital tools em

ployed in that sprint and is continuing to experim

ent w

ith new digital ideas, investing in and

expanding the ones that advance its strat-egy.T

his is what w

e at Deloitte m

ean with

our overarching Imagine – D

eliver – Run

approach to digital transformation. In the

imagine and deliver phases a great deal

should be possible as long as we m

ake im

provements, learn fast, and are w

illing to fail. A

s soon as we w

ish to scale a pilot beyond our digital accelerator, how

ever, w

e need a business case and full own-

ership by a business unit that is going to em

bed it within its operations.

Digital w

ill be a disrupter not only in internal

processes and

capabilities but

also with custom

ers and their end mar-

kets. Certain chemical industry segm

ents that are closer to consum

ers might !nd

themselves m

ore exposed to digital dis-ruptions and should take a m

ore proactive approach to digital transform

ation – with

the added bene!t of meeting or exceeding

their customers’ expectations. Innovations

downstream

in the value chain through digital collaboration and planning can in-crease the pace and quality of decisions for chem

ical companies.

What is im

portant now is for industry

leaders to be catalysts for the digital jour-ney and intentionally reim

agine the future of their enterprises – a future that is not fully in focus but one that offers exciting opportunities to accelerate the innovation cycle w

hile strengthening the core.

Contact:Deloitte

4HYR�)Y`ZVU

Principal, Oil, G

as & Chem

icalsDeloitte C

onsulting LLPPhone: +1 404 631 3798

E-Mail: m

bryson@deloitte.com

Stefan van ThienenPartner, Sector Leader O

il, Gas & C

hemicals

Deloitte Germ

any7OVUL!��� �����������������

E-Mail: stvanthienen@

deloitte.de

Stephan Hutter

Partner, Leader Service Line EA/SAPDeloitte G

ermany

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ail: sthutter@deloitte.de

ww

w.deloitte.com/de/oil-gas-chem

icals

“ConnectedLab” – Our answ

er to the necessity for a com

plex IoT infrastructure In the future, com

panies will realise sig-

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a AGs and iC

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duction and laboratory, vertical integrati-on and new

analysis and control capabili-ties. W

ith it, chemical and pharm

aceutical com

panies can lay the cornerstone for a digital supply chain.

The IoT

is already an entirely available and affordable technology. It can be used to tap into a w

ide range of potential im-

provements along the length of the supply

chain. In the vast !eld of digitalisation, IoT

offers the requisite requirements for

taking further steps in digitalisation. It’s only w

hen all information along the sup-

ply chain exists in digital form that further

possibilities of digitalisation open up.In com

parison to other industry sec-tors, the chem

ical and pharma industries

have som

ething special:

the m

anufac-tured product itself cannot be digitalised. A

ll the more reason w

hy the supply chain form

s the core for all strides in digitalisa-tion. T

he supply chain is key to process optim

isation and

achieving com

petitive advantage.

At enow

a AG

, we provide our custom

-ers w

ith the experience of digitalisation for

the chem

ical and

pharmaceutical

industries, in that we offer concrete IoT

solutions for these industries. T

he Con-

nectedLab solution is the result of our partnership w

ith iCD

. Our application can

be integrated with existing custom

er solu-

tions with a m

inimum

of effort, conforms

to speci!c landscapes and is completely

scalable to a cloud solution. It offers our custom

ers the possibility, on the basis of standard application, to further their de-velopm

ent of vertical integration, realise process im

provements and to lay the cor-

nerstone of an open and expandable IoT

infrastructure.

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ConnectedLab

In m

any cases,

laboratories, and

lab equipm

ent in particular, are not yet con-nected w

ith the business applications of the

companies’

ER

P system

s. D

ata ex-

change is often done manually, or not at

all. This presents great potential for opti-

misation and process controlling. T

he ConnectedLab, based on the M

id-dlew

are LAB

S/QM

® of the LA

BS Suite of

iCD

. and the SAP IoT

platform “Leonardo,”

closes this loophole and creates addition-al possibilities for vertical integration and analysis of lab and production data.

With our IoT

prototype, we show

how

smoothly the direct connection of m

eas-urem

ent devices

and system

s can

be achieved and how

by using the resultant G

xP/FD

A-com

pliant work"ow

, the auto-m

ation level of the laboratory will be en-

hanced. W

e succeed in making the lab data avail-

able in a structured and analyzable for-m

at on the level of a batch or batches. We

readily talk about digital twin technology

in the chemical-pharm

aceutical industry. W

ith the integration data from production

44 | | 45

(ConnectedProduction) w

e can

establish correlations, and increase value proposi-tions and control capabilities once m

ore.

Quality control and process reliabi-

lity from the connection of m

easu-rem

ent devices with paperless lab

Measurem

ent devices are attached using differing interface technologies. T

his de-term

ines which data can be exchanged.

With sim

ple lab devices, all essential in-form

ation is transferred automatically, as

determined by the device softw

are. With

complex m

easurement system

s, addition-al

spectra and

chromatogram

s can

be directly transferred and archived via the device interface. T

his makes centralised

quality control possible. T

he use

of m

obile devices

for data

capture reduces the amount of m

anual

records and

calculations of

intermedi-

ate results. They support the scanning

of barcodes and QR

codes. Measurem

ent devices, chem

icals, measuring equipm

ent and the like can provide inform

ation from

barcodes, thus avoiding mistakes and at

the same tim

e, documenting all essential

process data. Com

ments and tips guide

the user. The online display of the stand-

ard operating procedures on the tablet also increases quality control.

Freely scalable and expandable IoT solution

We use the SA

P Cloud Platform

(SCP),

which is available as an open platform

. In contrast to the frequently !xed struc-tures of an E

RP system

, the structures of the SC

P can be customised to m

eet the requirem

ents necessary for the m

eas-

urement results of a laboratory.

This "exible platform

also allows

the lab data to be brought in con-nection w

ith data from other ar-

eas. The

integration of

lab and

production data is still not stand-ard, although this is exactly w

here diverse

optimisation

potential lies. It brings to light problem

atic constellations dow

nstream, w

hich can then be avoided in the future. T

he direct transmission of infor-

mation

from

production affords

the managem

ent of the testing of the laboratory, so that additional tests can be planned or obsolete tests can be cancelled directly.

Our C

onnectedLab is a freely scalable solution that is expandable to use w

ith other data sources.

In addition to vertical integration with

laboratory data, merging w

ith production data and all associated analytics, C

on-nectedLab also includes:

!

Autom

atic recognition of product and quality variations on the basis of raw

and m

easured values, and knowledge

managem

ent in SAP A

nalytics

!R

eal-time alerts and direct real-tim

e noti!cations to appropriate em

ployees via SA

P

!D

igital risk

managem

ent: com

plete evaluation

of all

production, quality

and R&

D data; recognition of correla-

tions and causes of failure

!C

omm

unity: integration of R&

D/Tech-

nical C

entre for

potential im

prove-m

ents in the production process

!Proactive: prevention of larger problem

s (recalls, incidents, loss of production)

Digitalisation in the chem

ical industry is based for the m

ost part on the IoT. Our

ConnectedLab m

akes optimal use of the

latest technology available and is our an-sw

er for the complete digitalisation of the

entire supply chain.

Contact:

enowa AG

;OVTHZ�/

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�7OVUL!��� ������������� ��

Mobile: +49 174 3036226

E-Mail: thom

as.haendly@enow

a.agW

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w.enowa.ag

iCD. Vertriebs G

mbH

+Y��6SHM�+VT

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Phone: +49 2234 96634 29,�4

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Web: w

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46 | | 47

SAP Partner: EY

<USVJR�[OL�WV^LY�VM�KH[H�

New

technologies put to new uses in chem

icals

Summ

ary

The digital revolution w

ill move the chem

-icals industry tow

ard new business and

operating models, driven by the disinte-

gration of classical industries and the for-m

ation of digital ecosystems that com

bine products and services enabled by technol-ogies such as SA

P’s solutions.

Optim

izing intelligent enterprise

What do you need to be a pioneer in the

chemicals sector? T

he answer lies in to-

day’s intelligent

technology. “Intelligent

enterprise” is an approach that applies technology and new

service paradigms

to improving business perform

ance. This

has become m

ore important across both

discrete and process manufacturing busi-

nesses.To rem

ain viable in the future, it is cru-cial for chem

ical companies to be able

to take data and translate it into an in-form

ation set to use in making business

decisions. The tools are there, but it is a

signi!cant leap from just having the tools

and having

data analyzed. A

utomating

business processes allows com

panies to gain deeper insights and m

ake quicker decisions w

hile employees are freed to

focus on more im

portant critical-think-ing tasks. B

y leveraging SAP S/4H

AN

A

and other SAP solutions, businesses can

achieve these

capabilities, accelerating

growth and transform

ing into intelligent enterprises.

An established, end-to-end relationship

The E

Y organization’s strategic partner-

ship with SA

P is an important asset for

clients, as it has created strong relation-ships that w

ill allow for pow

erful teaming

around implem

entation. We engage key

facets of SAP, including its active global

support, development, services, education

and executive leadership. As a global SA

P partner, w

e co-create innovative answers.

Together, we guide com

panies on a jour-ney to innovate and transform

, while still

running their business every day.A

s both a customer and alliance partner

of SAP, w

e have extensive experience in the follow

ing areas:

!D

eploying SAP for chem

icals and oth-er process industry clients from

R/3

through S/4

!D

eveloping a broader SAP S/4 footprint

globally across industries that are mi-

grating faster than the chemicals in-

dustry

!Leading !nance transform

ation and its enablem

ent in SAP S/4 C

entral Finance

!

Working w

ith a thorough understand-ing of SA

P BP4C

HE

M (chem

icals tem-

plate)

An intelligent, automation-focused

approach to migration

Our E

Y Intelligent M

ove Solution for use w

ith SAP S/4H

AN

A®

, a new generation of

SAP B

usiness, allows businesses that use

SAP solutions to m

igrate to SAP S/4H

AN

A

in less time and use few

er resources, min-

imizing business interruptions.W

e are among the !rst SA

P alliances to incorporate

robotic process

automation

(RPA

) tools to help accelerate and stream-

line the move to SA

P S/4HA

NA

. Arti!cial

intelligence (AI) is used throughout, in-

cluding in the time- and labor-intensive

data migration w

ork stream. T

he EY

In-telligent M

ove Solution was developed to

streamline the process of data m

igration. A

I capabilities help optimize the identi-

!cation of data objects and help reduce dependencies from

SAP solutions to low

er data load cycle tim

es. Further, the testing

cycles are executed using robots instead of people, w

hich frees up employees to fo-

cus on key projects and business resourc-es. A

utomated testing has the additional

bene!t of identifying and mapping R

PA

opportunities for other processes.T

hroughout the

migration

process, our

proprietary m

igration tools

identi-fy custom

code and remediate potential

problems,

enabling faster

completion

times and reducing costs and disruption

for businesses that need to migrate their

data.

This solution:

!A

utomates m

igration to a cloud environ-m

ent with greatly enhanced capabilities

!

Drives value in process and organiza-

tion transformation

!

Focuses energy on the design and de-

ployment

of transform

ed processes,

controls and organizations

By

helping organizations

manage

their data, w

e know that the functions involved

in a

big enterprise

resource planning

(ER

P) move —

such as con!guring the new

system —

can be automated. T

his can dram

atically increase RO

I and build a business case for digital transform

ation, rather than just m

igration.R

ecently, the

EY

organization

was

ranked #1 in RPA

services by HF

S Re-

search and named a leader in innovation

consulting services by Forrester R

esearch.

48 | | 49

Our

internal and

go-to-market

ap-proach w

ith RPA

applies technology to an end-to-end process transform

ation, with a

strong focus on rationalizing and re!ning upstream

and downstream

functions im-

pacted by change. This includes strategy,

processes, controls, change managem

ent, talent and governance elem

ents. This re-

al-world use of R

PA inform

s the develop-m

ent of IP and tools and accelerators.

0U[LNYH[LK�I\ZPULZZ�WSHUUPUN��0)7��m

ade easy through EY SAP IBP *LU[LY�VM�,_JLSSLUJL��*

V,�

Through our joint IB

P CoE, w

e have over 50 consultants trained in SA

P IBP/sales

and operations

planning (S&

OP)

across the globe, w

ith an average of more than

10 years of experience. Our rapid proof-

of-concept (POC) approach provides a cli-

ent with a speci!c w

orking S&O

P model,

where w

e develop an end-state solution ar-chitecture and im

plementation road m

ap; deliver rapid value w

ith a phased SAP

S&O

P implem

entation and process trans-form

ation; and integrate with on-prem

ise system

s. Because planning is critical in the

chemicals sector, Central Finance m

ust be at the core of all S/4 deploym

ents.W

e offer a leading-class intercompany

pro!t elimination and reporting solution

that calculates, manages and reports in-

tercompany pro!t as a consolidated cost

at the SKU

level. This data is used to book

all elimination entries in C

entral Finance,

creating a single source of truth for both internal m

anagement reporting and ex-

ternal !nancial reporting.

Depth of chemical experience utili-

zing SAP software solutions

EY

teams com

pleted a number of pilots

across all four major w

ork streams as part

of the assessment/design phase, including

the S/4HA

NA

POC

. The follow

ing is a brief description of a subset of the PO

C and the

associated business challenge.T

he POC

utilized S/4HA

NA

Central F

i-nance to collect all transactions related to elim

ination of intercompany pro!t. T

he PO

C also leveraged SA

P Product Costing

to develop a global consolidated cost or group valuation to facilitate elim

ination of

unrealized pro!t

in inventory.

The

S/4HA

NA

POC

consisted of real examples

of 10 end-to-end trade "ows or produc-

tion streams around the globe and started

with an as-is assessm

ent identifying key data elem

ents required from each legacy

SAP and non-SA

P system.

We developed the S/4H

AN

A Central Fi-

nance component for both general ledger

and product costing; loaded real produc-tion costing data into S/4H

AN

A to develop

the global consolidated cost using a global bill of m

aterials across the entire supply chain; sim

ulated the entry of transactions for tw

o !nancial periods; and demonstrat-

ed the accounting and elimination of pro!t

in inventory. The PO

C included !ve different SA

P source systems and !ve non-SA

P leg-acy system

s across 15 countries (in North

Am

erica, South Am

erica, Europe and A

sia). W

e also employed cross-industry leading

practices to address complex auto industry

supply chain issues that affect planning, ac-counting for and reporting !nancial results. To im

plement these leading practices in a

practical way, w

e relied on our real-world

experience on other client engagements;

a comm

itment to train and educate client

staff; and the use of POC projects, pilots and

agile implem

entation techniques.Contact:

Ernst & Young Global Lim

ited

+Y��0UN��-YHUR�1LUULYPhone: +49 621 4208 18000

,�4HPS!�MYHUR�QLUULY'

KL�L�̀JVT

Jade RodysillPhone: +1 214 969 8650

E-Mail: jade.rodysill@

ey.com

Website: w

ww.ey.com

/SAP

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WVULU[Z

Category

,@�VɈLYPUNDescription

SAP Cloud

SolutionsSAP S/4 on M

icro-soft on Azure

EY teams bring advisory, architecture and integration

capabilities to deploy S/4 on Azure, bringing intelligent autom

ation elasticity.

SAP )SVJRJOHPU�Solutions

EY Ops C

hain,@�6

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® Leonardo. It supports end-to-end sup-ply chain processing on enterprises’ existing infrastructure.

SAP S/4 Industry Tem

plates

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ith clients, built on S/4

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des process diagnostics, compliance and control, supply

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security assessment and code quality. ReSQ

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50 | | 51

SAP Partner: IBM

Chemical production m

eets IBM W

atson AIAI im

proves product quality and replenishm

ent accuracy

The

collaboration betw

een a

chemical

engineer or production expert and a data scientist can push established processes into a new

quality of insights. IBM

helps m

any chemical com

panies using state-of-the-art A

I tools like machine learning and

modern assistants’ system

s to increase the insight from

production and SCM

data in order to m

ake better decisions. The

usage of AI can im

prove a replenishment

process or, as shown below

, predict prod-uct quality.

The Cognitive Enterprise –

Production Engineers and Data Scientists becom

e friends

Process Industry Plants have been heav-ily autom

ated and optimized. N

everthe-less, m

ost operators run the production line w

ithin standard parameters. D

ue to this autom

ation, a data history collected over years is available and can be used to im

prove settings and with that - qual-

ity, output and safety. In several projects, w

e brought

together client

engineers w

ith our data scientist. After overcom

-ing the !rst shock that this w

ell-educat-ed but young consultant should help to solve problem

s which som

etimes exist for

longer time, the engineers and data sci-

entist !nd a base using data visualization to !nd root causes of a problem

. With the

help of todays analytics tools, structured as w

ell as unstructured data can be used. C

onnecting data from SA

P systems, M

ES

or historians is not an issue anymore and

can be realized in ef!cient manner.

IBM is in of the largest

SAP Services Provider

IBM

has a long-lasting relationship with

SAP and w

as recently awarded w

ith the E

ME

A/M

EE

Service Partner Excellence

Aw

ard 2018 for SAP

S/4HA

NA

“. With our

consulting approach we drive enterprises

to the next level of insight by combining

the knowledge of existing data in the SA

P system

with the goal to support faster and

better decisions based on this data and IB

M’s A

I capabilities. In conjunction with

SAP and the data stored in the system

, we

see a lot of opportunities to support a bet-ter decision-m

aking process and as well

as to preserve the best knowledge in an

AI system

. A key bene!t of this preserved

(and digitized) knowledge is that a lot of

information, w

hich is collected over time,

is norm

ally never

used again

for new

challenges. F

or example, a problem

which

was solved in the past in South A

merica

will be re-solved w

ith the same effort in

Europe again, because nobody w

as know-

ing the existing solution. An A

I system can

easily overcome this problem

as shown in

example 1.

Use C

ases - Product Quality is Key

Every client invests intensely into im

prov-ing, stabilizing and understanding in"u-encing

factors regarding

their product

quality. Of course, chem

ical and process engineers are required !rst to achieve this goal. B

ut over time, an additional

component can be used to get deeper in-

sight into the chemical / physical process

during production- data. Batch and reci-

pe data, incoming product quality checks,

LIMS data, w

eather data and a lot more

are gathered and cumulated over tim

e. C

ombining this data w

ith chemical and

physical knowledge can leads to new

in-sights for com

panies regarding the im-

provement of their product quality.

,_HTWSL��!�0UÅ\LUJL�VM�PUNYLKPLU[Z�

for coatings formulations

Analyzing SA

P Recipe D

ata and Recipe

Test Data

Coatings for cars, furniture or for covering

pure plastics are a mixture of m

any dif-ferent ingredients out of m

any available chem

icals. Nevertheless, a com

mon struc-

ture with binders, pigm

ents and solvent is needed to have a usable (and saleable) form

ulation. Let’s take so called soft touch coatings.

To form

ulate soft-touch

coatings that

meet expectations for both, haptic and

mechanical perform

ance properties, re-m

ains a challenge. Softer coatings tend to have a reduced chem

ical and abrasion resistance. F

inding the right combination

of resins that impart a desired rubbery

or velvety feel while exhibiting long-term

scratch and stain resistance typically in-volves trial and error and can be a lengthy process.

Chem

ical companies are testing m

any of these form

ulations to measure the in-

"uence of

the different

ingredients on

expected product properties. These tests

are complex and producing endless row

s of num

bers describing the level of the ex-pected result. B

y using advanced data analytics, a data scientist is able to cor-relate ingredients and behavior. O

n the w

ay to the !nal formulations m

any tests lead to results w

hich are normally never

used again. IBM

helps clients to re-use this know

ledge in a very ef!cient way and

Quality range before and after usage of AI tools

52 | | 53

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In times of industry 4.0 and digital trans-

formation, com

panies have to answer

VUL�X\LZ[PVU�PU�HU�PUJYLHZPUNS`�KPɈLYLU[-iated and target-oriented m

anner: How

can optim

al output be generated with m

i-nim

al use of energy and resources? 09,:��[OL�0U[LSSPNLU[�9LZV\YJL�,ɉ

JPLUJ`�Solution, developed by IN

TENSE AG

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ith SAP and DELL EMC

, creates the optim

al prerequisites for this w

ith its SAP integration and use of mo-

KLYU�0V;�-YHTL^

VYRZ�PU�[OL�:(7�*SV\K�

Not only in the chem

icals industry does future-proo!ng

require im

proved ef!-

ciency in the use of energy and resourc-es, as w

ell as in production. Digital tool

support is a good choice here. Therefore,

IRE

S permits precise tracking of energy

and resource use in respect of the pro-duction rates of speci!c plants in various locations, e.g. in process industry. T

he ef-fects of relevant in"uencing factors, such as tem

perature, humidity, substance pa-

rameters, etc. are also considered in nor-

malisation, analysis and forecasts. T

hese, and m

any other details that can be se-lected as desired, can be used to derive further speci!c optim

isation potentials in turn.

Is there a „Golden U

se Case“ for

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There cannot be any single use case that

meets all of these requirem

ents, due to the diverse scenarios. IR

ES is therefore

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can lead a scientist easy to an unexpected side effect, w

hich was not relevant in the

past but has maybe a huge im

pact for new

products with other properties.

With this know

ledge and a large amount

of test data, new and adapted form

ula-tions can be developed in a shorter tim

e.

Example 2: Predictive product quality for

chemical com

poundsR

ealtime operator advice based on

machine learning system

An industrial products client of IB

M raised

the question, if the product quality vari-ance, w

hich was already in the com

mitted

range, can be minim

ized. The chem

ical production step is in this case the !rst of several steps to produce sealings. H

ere, the goal w

as to reduce the variance and the risk that later steps are im

pacted from

a quality which is m

ore on the edge of the com

mitted quality band.

First, data from

the last two years w

as used to correlate different factors in"u-encing the quality. T

he data came from

SA

P modules as w

ell as from the inbound

quality checks (also stored in SAP) and

from real tim

e sensors, measuring the

"ow behavior of the chem

ical compound.

The production process itself cannot be

put into a !xed algorithm, a m

achine learn-ing approach w

as used to cover all aspects of the production process. A

s a key element

of the initiative, the service shall comple-

ment existing process control system

s by providing expert advisory to process op-erators. R

ecomm

endations are supposed to look beyond the tim

e horizon typically covered by process control and take into account the speci!c conditions and overall behavior of the m

ixing process. The result

was a Cognitive Plant A

dvisor (CPA).

With the know

ledge about the in"uenc-ing factors, the C

PA provides a dashboard

to calculate and advice production oper-ators. T

he depicted information w

ill help to m

aximize product quality, keeping var-

iances in quality to an absolute minim

um.

Contact:

-YHUR�2LY[ZJOLYIBM

Deutschland Gm

bHPractice Leader Industrie 4.0 and IoT

-YHUR�2LY[ZJOLY'KL�PIT

�JVTw

ww.ibm

.com/iot

54 | | 55

not primarily targeted at individual !elds

of optimisation but pursues an integrated

and holistic approach – fully in alignment

with the SA

P philosophy of „smart com

-panies“.

The

driving forces

essentially are:

!

energy cost reduction & purchasing op-

timisation

!

standard conformity &

positioning in the supply chain

!

identi!cation of dependencies & pro-

ductivity increases

!resource conservation &

protection of the environm

ent

!im

plementation of IoT

and industry 4.0 scenarios

Typical use cases of IRE

S customers are,

e.g., the reduction of power consum

ption or optim

isation of the use of resources, se-curing of peak loads, dem

and forecasts and purchasing optim

isation, certi!cation and positioning in the supply chain as w

ell as productivity increase/usage optim

isation. IR

ES m

akes it possible to combine these

use cases in order to clearly increase the added value for the com

pany.

Of course, the costs are alw

ays at the focus!

IRE

S comprehensively supports ef!cien-

cy and optimisation program

s. Optim

isa-tion of the use of pow

er and resources w

ill reduce consumption, and thus the

costs. Transparency, comparability and

the ability to forecast in detail improve

the portfolio in energy procurement, as

well as possible ow

n generation scenari-os. In the context of "exible pow

er tariffs and

new

load m

anagement

programs,

load peaks are minim

ised and low-load

times are optim

ally used. Implem

enta-

tion of the requirements of the E

ED

(En-

ergy Ef!ciency D

irective) and the ED

L-G

(Energiedienstleistungsgesetz;

energy service act) as w

ell as ISO 50001 / 50006

conformity, builds the basis for auditing

the energy

or environm

ental m

anage-m

ent systems and consequently ensures

peak compensation and avoids contrac-

tual penalties.

How

to create a „Closed Loop“ in

WYVK\J[PVU�HUK�YLZV\YJL�LɉJPLUJ`&

IRE

S is

completely

integrated into

the SA

P logistics

and production

modules.

Hence, product-speci!c resource/energy

pro!les are available as part of the plan-ning. Individual as w

ell as accumulated

energy and resource demands are availa-

ble in real time according to the produc-

tion plans and current production/man-

ufacturing !gures. The connected costs

may be used as a further in"uence factor

to the classical product optimisation al-

gorithms.

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increase productivity?

As part of a sm

art factory approach, ad-ditional IoT

data are considered as in"u-encing factors in addition to consum

ption data;

speci!c consum

ption values

are standardised and m

ay be used as a basis for

comparison.

EnPIs

(Energy

Perfor-m

ance Indicators) are used to compare

similar

machines,

sites, m

anufacturers, etc. and to identify anom

alies and trends (e.g. quality of m

achinery, rejects, wrong

machine con!guration, etc.). T

he perma-

nent real-time com

parison of actual data to expected consum

ption data can secure and increase production ef!ciency by opti-m

isation of the production chain & m

anu-facturing param

eters. Use of IR

ES increas-

es productivity in speci!c areas by 2 to 5%.

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software products?

IRE

S has been consistently developed in a use-case-oriented m

anner to create an op-

timal corporate value w

ith a solution-ori-ented approach. B

ased on a highly "exible data m

odel and data managem

ent, IRE

S m

ay consider any in"uencing factors and w

ork fully integrated into the company‘s

structure, logistics and production plan-ning functions – w

hile staying 100% com

-pliant w

ith your SAP platform

strategy. IR

ES is delivered as a core softw

are solution in the SA

P Cloud Platform

(SCP),

which is then custom

ised and integrated. T

his tool box alignment perm

its indus-try-com

prehensive use. At the sam

e time,

any user will pro!t from

innovations and digital solution scenarios of other users and industries.

SCP features such as data m

anagement,

data privacy & security, analytics, integra-

tion & orchestration, Leonardo, pattern

recognition, machine learning &

KI and

mobility are consistently integrated into

the IRE

S functional spectrum. A

s a result, IR

ES is the new

standard for resource ef!-ciency optim

isation in the SAP C

loud.A

re you looking for a contemporary type

of energy and resource ef!ciency for your Figure 2: C

losed loop of production and YLZV\YJL�Lɉ

JPLUJ`

Figure 3: Use-case-oriented integration into process m

anagement and technological platform

56 | | 57

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company? D

o you want to use non-redun-

dant SAP-based data m

aintenance as a basis for your analyses? T

hen IRE

S, the IoT-based, ISO

50000ff-compliant energy

and resource managem

ent softw

are, is the optim

al tool for you.Leonardo conform

ity with full H

AN

A &

PA

L (Predictive

Analytics)

performance

from the SC

P and integration into your SA

P-ER

P & S/4 functions (C

loud/OnPrem

-ise) create further synergies as w

ell as reduce your integration effort – and thus your costs.

INTEN

SE AG – W

e digitise custom

er business models

Energy

and

resource ef!cien

cy is

not only part of sustainable econom

ic ac-tion, but also a central challenge of the future.

INT

EN

SE A

G is a leading provider of

SAP ef!ciency solutions – w

ith more than

20 years of experience in energy man-

agement, developm

ent of innovative or-ganisations, processes and solutions, and

more than 15 SA

P-based software solu-

tions for ef!ciency increase.IN

TE

NSE

, SAP and D

ell EM

C – a strong partnership to secure resource and pro-duction ef!ciency in the chem

ical industry.

Contact:

Intense AGM

ichael Heinze

Board Mem

ber INTEN

SE AG7OVUL!��� ����� ����������

E-Mail: info@

intense.deW

eb: ww

w.intense.de

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edge to core

Supply Chain Integrity and Security/V^

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Chem

ical companies carry a trem

endous responsibility as their products directly affect both hum

ans and the environment.

At the sam

e time, chem

ical research is m

aking rapid progress, further adding to the increasingly com

plex and demanding

regulatory requirements such com

panies face. T

herefore, com

pliance as

well

as global anti-counterfeiting protection are key issues in the chem

ical industry. The

chemical sector is, how

ever, not only chal-lenged to m

eet regulatory requirements,

but also to increase quality and ef!ciency, w

hile further minim

izing operating costs and product prices. T

hese diverse chal-lenges and key issues can be tackled w

ith SA

P Track & Trace solutions. In the case

of a leading chemical pesticides com

pany, the im

plementation of Track &

Trace even turned com

pliance into a supply chain value proposition through the introduc-tion of a supply chain loyalty program

.

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Track & Trace is the process of identi-

fying past and current incidences of a

uniquely identi!ed

item,

including

its form

s, transform

ations, positions

and

characteristics. This m

eans that events

related to the unique item

are meticu-

lously recorded

throughout th

e entire

supply chain, so th

at companies are al-

ways able to an

swer questions such as

what, w

here, why, w

hen

, and sometim

es even

how som

ething has h

appened to

their items.

In order to reach full traceability three different aspects of Track &

Trace need to be taken into consideration:a) W

ith exact

documentation

tracking chem

ical companies are able to better

predict and react to potential disrup-tions in their supply chains.

b) Ensuring w

ell-recorded product gene-alogy enables businesses to im

prove product quality and security and al-low

s extremely precise actions to be

performed, e.g. in case of a product re-

call process.c) A

nd !nally, clear event and unit track-ing helps identify product properties and statuses of uniquely m

arked prod-ucts at any given tim

e.

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58 | | 59

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Turns Com

pliance into Supply C

hain Value Propositions

Our custom

er in the chemical pesticides

industry also had to deal with increasing

compliance requirem

ents as well as sup-

ply chain protection against counterfeit-ing, and !erce com

petition. The com

pany decided, how

ever, to use Track & Trace

not only to tackle these issues, but also to utilize other em

erging bene!ts of end-to-end supply chain processes. Particular focus w

as given to the company’s supply

chain relationship with distributors and

wholesalers. W

ith the help of item level

tracking a supply chain loyalty and re-w

ard program w

as implem

ented. By cap-

turing and analyzing traceability infor-m

ation, including supply chain partners‘ events, the com

pany was able to im

prove the precise planning of activities and tim

e to m

arket, as well as to reduce stock out-

ages, while rew

arding the loyalty of its supply chain partners.

The 18-m

onth-long project was based

on thorough process analysis, in-depth

screening of

downstream

supply

chain partners,

and detailed

!t-gap analysis.

SAP Track &

Trace technology proved to be the right choice, as it com

bines doc-um

entation tracking and the tracking of m

aterial, and logistic events. The corre-

sponding full traceability and increased transparency not only led to increased loyalty of supply chain partners, but also to im

proved sales and better consumer

con!dence. The com

pany is now able to

con!rm the authenticity of products, re-

sulting in higher brand reliability. In a next step, the leader in the chem

ical pesti-cides industry aim

s to provide individual-ized inform

ation for its customers and, in

doing so, improve consum

er loyalty and end user experience.

Founded in 2006, Movilitas is a niche

and premium

SAP partner, as w

ell as an expert

in the

domains

of Serialization/

Track & Trace, W

arehouse Managem

ent, M

anufacturing, and Mobile Solutions. A

ll these dom

ains combined m

ake Movilitas

a key player in achieving Supply Chain integrity. M

ovilitas helps companies solve

problems along the entire supply chain

and turn compliance into supply chain

value propositions.

Movilitas

empow

ers

organizations to

accelerate their

digital transform

ation journey with IoT

and move

from a reactive to a proactive state by

transforming data into real-tim

e insights. W

ith regards to Track & Trace, M

ovilitas has been im

plementing SA

P based T&

T

solutions in 65+ successful projects for over 10 years across m

ultiple industries including Pharm

a, FMCG

, Food, Chemi-

cals, Explosives.

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arehouse operations transparency and m

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Scan the QR

-Code to discover m

ore bene!ts of Track & Trace

and deep dive into the Movilitas story.

https://ww

w.m

ovilitas.com/

track-trace-chemanager

Have a nice day!

Contact:

Movilitas C

onsulting Gm

bH4HYJV�:[LPURHT

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At OSIsoft, w

e believe data is your m

ost valuable asset.For nearly 40 years, O

SIsoft has been WYV]PKPUN�RUV^

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panies across a KVaLU�KPɈLYLU[�PUK\Z[YPLZ�^

OV�HYL�SVVRPUN�to m

aximize the value of their operational

data. OSIsoft is the creator of one of the

most w

idely deployed Internet of Things �0V;��HUHS`[PJZ�HUK�PUMVYT

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ment platform

, the PI System. The PI

System captures, cleanses and context-

ualizes operational data so that users can understand their operations and im

prove them

in real time, and over tim

e. The PI System

pulls in information from

a ran-NL�VM�KPɈLYLU[��ZVT

L[PTLZ�PUJVT

WH[PISL�sources, creating a single source of truth for operations m

anagers, engineers, sup-ply chain partners and others that enables them

to improve quality, increase yield,

reduce costs and create new products.

Digital transformation

in the chemicals industry

Data and technology are transform

ing the chem

icals industry, and fast. But digitally

transforming a business is no sm

all feat. M

any existing tools were not designed

with enhanced data analytics or m

achine learning capabilities, and becom

e easily overw

helmed by large data sets. E

xcel spreadsheets

and traditional

historians can only do so m

uch. When devices and

sensors start collecting terabytes worth

of data,

customers

need trusted

and m

arket-proven tools like the PI System

that can provide operational intelligence quickly and intuitively.

The PI System

helps companies to sur-

vive and thrive in this rapidly changing w

orld of data and analytics by offering a foundation for operational data that is ro-bust, "exible, secure and accessible by a w

ide spectrum of em

ployees. The PI Sys-

tem’s "exibility allow

s it to easily adapt to the speci!c needs of chem

ical logistics. It can help com

panies ef!ciently manage

complexity

when

handling dangerous

goods and supports the integration of all entities involved in the chem

ical supply chain. M

any users also discover hidden or added bene!ts beyond w

hat they could have im

agined. For exam

ple, after using the PI system

to lower costs on a produc-

tion line, new insights from

the platform

can also help improve w

orker safety, or provide insights to help m

eet changing regulatory

requirements.

Such insights

allow custom

ers to become em

powered

rather than overwhelm

ed by their data.Today, nine out of the top 10 chem

ical com

panies rely on the PI System to deliver

critical operations data integration, applica-tions and analytical infrastructure, allow

ing m

anagers and engineers to monitor pro-

cesses and assets in real time. For exam

ple:

Covestro: O

SIsoft’s PI System helped the

specialty polymers producer C

ovestro re-duce energy consum

ption by 20% and C

O2

emissions by 39%

per ton of product.

Sartomer:

A

subsidiary of

the global

chemical

company

Arkem

a, Sartom

er uses

200 different

recipes each

with

its own process param

eters to produce acrylic and m

ethacrylic monom

ers. They

use the PI System to detect and rescue off-

track batches and minor deviations in re-

al-time, leading to substantial savings by

minim

izing loss of product.

Air Liquide: T

he industrial gas conglom-

erate Air Liquide uses perform

ance data captured and synthesized by the PI Sys-tem

to help it determine the optim

al pa-ram

eters for individual plants or process

lines. In the !rst three months of opera-

tions, Air Liquide recovered its initial in-

vestment in and achieved a 10x return on

investment w

ithin the !rst year. Some in-

dividual plants have saved over $5 million

since 2017.

BA

SF: Building a R

eliability Center con-

necting a majority of all m

achines from 17

plants allowing B

ASF

to increase opera-tions by reducing dow

ntime, detect prob-

lems before they generate failures, build

condition and

predictive m

aintenance

and improve quality. T

his is part of BA

SF

DriveE

Operational E

xcellence which con-

tributes to €1 billion in yearly earnings.

The PI System and SAP

Merging m

ultiple systems into one com

-prehensive database can often take a tre-m

endous amount of tim

e and resources. B

ut with the SA

P HA

NA

IoT Integrator

tool by OSIsoft, any enterprise can have

its information technology and critical op-

erational technology systems talking in no

time, leading to faster, m

ore actionable in-sights. T

he SAP H

AN

A IoT

Integrator joins the pow

er and advanced analytics of the SA

P HA

NA

platform w

ith the OSIsoft PI

System to create an enterprise infrastruc-

ture for

connecting sensor-based

data, operations and people to enable real-tim

e intelligence.

Since 1995, customers from

chemicals,

oil and gas, manufacturing, utilities, life

62 | | 63

6$3�3DUWQHU��2YLQWR

sciences, metals and m

ining, pulp and paper, and m

any other industries have relied on O

SIsoft’s partnership with SA

P to connect data from

existing automa-

tion and control systems w

ith data from

transactional and business process sys-tem

s. T

hese connections

can increase

situational awareness, add transparency

into industrial operations and business processes, and help you preem

pt prob-lem

s and identify opportunities for im-

provement.

The SA

P HA

NA

IoT Integrator by O

SI-soft helps to address O

T-IT challenges by

providing the ability to cleanse, augment,

shape and

transmit

(CAST

) operation-

al data sets that include preprocessed transform

ations such as ef!ciencies, run tim

es and period totalization to the SAP

HA

NA

platform in real tim

e so that SAP

applications such as the SAP A

nalytics C

loud and

the D

igital B

oardroom

can consum

e the data in the appropriate for-m

at. M

any customers have already realized

the many bene!ts of connecting the ro-

bust technologies from SA

P and OSIsoft.

One exam

ple is Marathon O

il, a for-tune 500 com

pany, who took control and

optimized its assets in the face of fall-

ing com

modities

prices by

connecting the O

SIsoft PI System w

ith SAP H

AN

A

through the SAP H

AN

A IoT

Integrator by O

SIsoft. Connecting the tw

o systems,

Marathon oil used its real-tim

e, cleansed, norm

alized and contextualized OT

data from

the PI System to create a digital oil

!eld production and surveillance system

on the SAP H

AN

A platform

. Together, the PI System

and SAP H

AN

A provided engi-

neers with a single source of truth for IT

/O

T data and m

ade insights available in near real-tim

e. The platform

also helped

engineers apply analytics and visualiza-tion to all their IT

and OT

data. With a

comprehensive view

of all its assets and perform

ance data,

Marathon

can now

m

ake necessary

changes quickly

and easily to optim

ize production. The result

is a visual system and a trustw

orthy pro-cess that has increased productivity and decreased dow

ntime, reducing their an-

alytic cycle from three m

onths down to

two w

eeks. Interested in learning m

ore why our joint

customers are saying “O

SIsoft and SAP –

Better together”? Please visit us at https://

ww

w.osisoft.com

/solutions/advanced-inte-grations/sap-hana/ to learn m

ore.Contact:O

SIsoftRainer M

uhmPartner Alliance Principal

Phone: +49 69 951555 247E-M

ail: rmuhm

@osisoft.com

Web: w

ww.osisoft.com

4HRPUN�9HPS�*HYNV�ZL_`�

An intelligent enterprise is, as w

e know,

data and process driven. The data feeds

intelligence which in turn feeds process

automation and innovation.

This im

plies that the available data at least has to be connected. A

statement

that seems very logical but sadly not al-

ways is the case.T

he chemical industry is know

n for its professionality

and innovation.

Chem

i-cal industries are used to spending large am

ounts of money on R

&D

year by year, but som

etimes certain aspects of business

doing tend to be forgotten when it com

es to innovation.

One

of those

aspects is

rail freight

transport. Rail cargo is still being handled

and executed like 100 years ago, heavily depending on m

anual, human interven-

tions.W

here all other transport modes are

connected and

being autom

ated, rail

freight mostly is not, often rem

aining a blind spot to the chem

ical companies.

In a way this is very strange as rail

freight stands for ‘bulk in & out’ m

eaning that m

ost of all invoiced goods will travel

via rail implying that how

ever ef!cient the production m

ay become, the real capacity

will be dictated by the bottleneck called

‘rail’. So why hasn’t there been a m

uch stronger focus on the rail transport ef!-ciency until now

?Just im

agine that rail freight transport tom

orrow w

ould suddenly become 30 %

‘easier’…

the effort to ramp up production

and sell more product w

ould be marginal

making that the im

provement in rail or in

other words the innovation in rail trans-

port could be real driver for sales and rev-enue im

provement.

Large industrial

players invest

very heavily in back of!ce softw

are platforms,

connect trucks, planes and ships but of-ten forget to connect and autom

ate rail freight.

From

this came the idea and m

ission for O

vinto to develop a platform, dedicated to

��RI�WKH�WRS��� chem

ical companies rely

on the 3,�6\VWHP.

64 | | 65

help the existing software infrastructure

in these industries when it com

es to rail freight.

The goal and purpose of this platform

is to connect all relevant internal and ex-ternal data sources, digitize all data, au-tom

ate repetitive manual actions, enrich

and preprocess the gatherered data to feed the results into the relevant existing softw

are modules that w

ere before con-stantly w

aiting for manual input.

By doing so w

e drastically reduce re-petitive m

anual labor and by doing so we

also drastically reduce errors. T

he existing software infrastructure is

able to speed up and become even m

ore ef!cient as it doesn’t have to w

ait for in-put all the tim

e.Sum

marized this m

eans that Ovinto has

developed a platform dedicated to feed

and be of service to existing SAP m

odules to enable them

to speed up with less in-

put errors when it com

es to rail and inter-m

odal freight of course.

Some exam

ples and use cases:

Condition based m

aintenance

Imagine

an industrial

player operating

6000 rail

cars…im

agine the

manhours

necessary just to keep track of something

so simple…

the mileage.

At O

vinto we have developed a digital

‘rail &

interm

odal’ m

ap, including

not only all public rail tracks but also all the private rail tracks in the w

orld.B

y connecting the planning data with

the bill of lading we can im

mediately ex-

actly calculate the correct amount of kilo-

meters per trajectory, w

ithout deviation, w

ithout risk of errors and without m

anual tim

e loss.

These calculated kilom

eters can imm

e-diately be pushed and integrated in the asset m

aintenance module to allow

a bet-ter, sm

oother and more ef!cient m

ainte-nance planning.

This exam

ple is only a very !rst and sim

ple step.A

s from the m

oment w

e are able to ‘un-leash’ critical param

eters on driven tra-jectories w

e can start to take into account aspects

such as:

topography, am

ount of kilom

eters in fully charged situation, am

ount of kilometers em

pty, amount of

curves taken, how m

any to the left, to the right, how

much tim

e in the neighbor-hood of salt w

ater, etc.…A

nd suddenly a real ‘driving analysis’ per rail freight car becom

es possible ena-bling an easy shift from

‘reactive and time

based m

aintenance’ tow

ards ‘condition based and predictive m

aintenance’.A

recent study from M

c Kinsey learned

that only the shift from reactive tow

ards condition based m

aintenance will already

result in a 15% m

aintenance cost reduc-tion w

hich is a very substantial amount

knowing that m

aintenance covers approx. 50%

of the total operational cost of the rail car!

Predictive ETA services

As from

the mom

ent we start to analyze

rail freight trajectories, the generated data can also be used to create intelligence that is being fed back to the planning system

.B

y analyzing all historical transports/trajectories of a "eet of rail cars it be-com

es possible to calculate the exact av-erage speed per speci!c segm

ent of rail track in the grid. N

ext to the speed, also the percentage of risk of having a delay can be calculated leading to the possibili-

ty of comparing actual data to calculated

and analyzed historical data to !nd out how

the current trajectory is related to the planning and the created intelligence out of the history.

By doing this, predictive services can be

created to warn shipper, operator but also

the customer about possible delays and

anomalies during transports. B

ecause of the repetitiveness of the transports, pre-dictions only becom

e better in time of-

fering a better and better accuracy to all stakeholders taking the biggest pain aw

ay in the rail freight sector = the blind spot.

Integrating ETA

analysis back into the planning softw

are module w

ill allow a

higher rotation because of a much faster

adaptation to new situations as the trans-

port planning module w

ill be informed

sooner and better.So not only m

aintenance can be im-

proved but also transport rotation aka real business can be im

proved.

:HML[`�Z[VJR�HUK� production planning

As from

the mom

ent anomalies can be

predicted and planning is improved this

can be connected to the production plan-ning of the com

pany.U

ntil today, industrial production facil-ities often encounter near shutdow

ns or even shutdow

ns because of hitches in the supply of raw

materials.

Trains come in late, don’t com

e in at all or don’t carry all planned rail cars.

To cope with these irregularities, com

-panies tend to increase their safety stock but even that is not alw

ays suf!cient.Predictive

services allow

production

facilities to

anticipate quicker

enabling them

to prevent costly shutdowns.

Because of the already m

entioned im-

proving character of predictive services, the ‘peak’ anom

alies constantly become

smaller leading to the situation w

here

66 |

B2B Portal and Business New

spaper for executives in the chem

ical and pharmaceutical industry

© guteksk7 | Andrei Merkulov - Fotolia.com - stock.adobe.comww

w.chem

anager.com

Information is Key!

companies can start to low

er their safe-ty stocks as the irregularities becom

e sm

aller.A

reduced safety stock will have an im

-m

ense impact on the business as next to

the !nancial impact there w

ill often also be a ‘safety related im

pact’ when consid-

ering dangerous goods.W

e could continue to list use cases, but the above-m

entioned examples should al-

ready give an impression of the phenom

-enal im

pact on business we can generate

when m

aking rail cargo sexy again!

SAP Cloud Platform

As

we

want

to connect

as m

uch data

sources and feed existing SAP softw

are m

odules we deliberately chose to build

our platform in the SA

P Cloud Platform

using the pow

er of the in mem

ory data-base H

AN

A.

The cloud platform

is the ideal devel-opm

ent environment enabling us to start

very small and sim

ple but always keeping

the possibility of scaling up and connect-ing m

ore and more com

ponents.

Summ

arized

At

Ovinto

we

are dedicated

to supply

complem

entary services to existing SAP

modules w

hen it comes to rail &

inter-m

odal freight. Our goal is to connect data

sources, enrich

the data,

analyze and

preprocess it to feed the results to the relevant SA

P modules that are w

aiting for input.

In this way w

e enable the customer to

bene!t even more from

the SAP technol-

ogy he already deployed and we w

ill mo-

tivate him along the process to activate

more SA

P components if necessary to in-

crease overall performance and optim

ize the

ef!ciency of

his rail

&

intermodal

freight supply chain.

)YVHKLY�ILULÄ[

Making rail &

intermodal freight trans-

parent and more ef!cient is not only help-

ing the supply chain of the stakeholders involved.

Did you know

that studies of the Euro-

pean Union show

ed that if we w

ere able to put 4%

more freight in rail transport,

this w

ould imm

ediately result in more

than 9% less road transport!

So, making rail freight m

ore ef!cient w

ill drastically help us in reducing our em

issions and

improve

our congestion

and mobility problem

s.A

ll of the above are the reasons why

we at O

vinto are dedicated to making rail

freight sexy again!

Contact:

Ovinto cvba

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STARA IS A BEST-RUN BUSINESS. 6WDUD�IDUP�HTXLSPHQW�XWLOL]HV�DQ�OR7�SODWIRUP�SRZHUHG E\�6$3®�/HRQDUGR�WR�DSSO\�RQO\�WKH�SUHFLVH�DPRXQW�RI�IHUWLOL]HUɧɪɧSUHFLVHO\�ZKHUH�LWɭV�QHHGHG��&RQWULEXWLQJ�WR�VXVWDLQDEOH�IDUPLQJ�ZKLOH�LQFUHDVLQJ�IRRG�\LHOGV�IRU�D�ZRUOG�WKDW�GHVSHUDWHO\�QHHGV�LW��THE BEST-RUN BUSINESSES MAKE THE WORLD RUN BETTER.For more, go to sap.com/agriculture

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