Walter Dissinger

8/2/2019 Walter Dissinger

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Santiago, ChileSeptember, 2005

Innovation by BASF - The Chemical Company

Walter H. Dissinger


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The worlds leading

chemical company

Help our customers to be

more successful one of ourstrategic pillars

Comprehensive portfolio of

chemical competencies to offer

solutions for a wide range of

industries and their needs

Environmental protection and

social responsibility at the core

of our activities

BASF: The Chemical Company


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PerformanceProducts

ChemicalActivities

Agriculture &Nutrition

Oil & Gas

21%

19%

Plastics

28% 14%

14%

Chemicals

2004 total sales: 37.5 billion Euro

BASFs Business Profile


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Innovation in BASFs History

1865 1901

Founding of BASF the age of dyes

1901 1925The age of fertilizers

1925 1945New high-pressure syntheses

1945 1953Reconstruction and new beginning

1953 1965The beginning of the plastics age

1965 2005From Ludwigshafen to the world


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BASF Innovation Strategy

ProductInnovations

ProcessInnovations

New Fields ofTechnology

- Materials Science- Nanotechnology- Energy

Management- Biotechnology

Tailor-made business models

Innovation Strategy Driven by the Market

MarketRequirements


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Roles & Responsibilities in the Innovation

Process


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BASF Innovation Scouting

Establishment and development of

market intelligence

Identification and verification of

potential opportunities

Evaluation of business approach to

the industry

Establishment of BASF industry innovation scouting teams

Evaluating strategic

positioning of BASF

in the key industies


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Research & Development Concept

OperatingOperatingDivisionsDivisions

SubsidiariesSubsidiaries

SpecialtyChemicals

Research

Polymer

Research

Chemicals

Research &

Engineering

Universities

High-techJoint Ventures

ResearchInstitutes

IndustrialPartners

CentralTechnologyPlatforms

BASF Plant

Science


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PlasticsPlastics& Fibers& Fibers

AgricultureAgriculture& Nutrition& Nutrition

PerformancePerformanceProductsProducts

ChemicalsChemicals

CorporateCorporateResearchResearch

%11

%11

%11

%11

%11

Markets and Businesses drive our R&D

World Class R&D Capabilities

R&D Expenditure 2004:R&D Expenditure 2004:

1.17 billion Euro1.17 billion Euro(incl.. Oil & Gas Exploration)(incl.. Oil & Gas Exploration)

> 6,800 R&D personnel> 6,800 R&D personnel

worldwideworldwide

1200 R&D cooperations1200 R&D cooperations

(Universities, research(Universities, research

institutes etc.)institutes etc.)

Global No 1 in chemicalGlobal No 1 in chemical

patents (1999 2004)patents (1999 2004)

R&D expenditures by segments


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Phase Gate turns R&D into Innovation

Management

Phase 4Pilot Phase

Phase 3Lab Phase

Phase 2Business

Case

Phase 1Opportunity Fields Phase 5

Launch

Gate1

Gate2

Gate

3

Gate

6

Gate

4

Gate

5

PhaseGate method to manage all innovation projects

Defined phases for the whole innovation process

Go / stop decision at each gate based on predefined

deliverables

Stronger involvement of marketing units in the idea

generation process

Introduction of Business Case phase


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Management Tools in Phase Gate

Portfolio Management Debriefing


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A Prime(r) Example of Customer Partnership

Innovative solution in close collaboration with customers

Shorter paint lines thanks to the Integrated Process II

Significant cost and time savings

E-CoatE-Coat Integrated ProcessIntegrated Process

Standard ProcessStandard ProcessClearcoatClearcoat


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AdBlue: Ideal Combination of Economy

and Ecology

AdBlue reduces

the environmental impact

of diesel-fueled

commercial vehicles

Advantages:

lower levels of pollutants

in exhaust gases and

lower fuel consumption

European commercial vehiclemanufacturers regard AdBlue

as a promising concept


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Opportunities offered by Plant

Biotechnology

Plants resistantto coldordrought

Plants resistantto diseaseand pests

New renewable rawmaterials in plants

Betterfoodquality due to

healthy ingredients


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What is different now?

Culture

Creativity Focus

Efficiency


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Innovation: Responsibility of the Whole

Company !

To turn market trends, customer needs and

technology ideas into BASFs economic success

even faster is and will be a challenge for the

whole company - not only for research anddevelopment, but also for production, logistics,

marketing and sales

Dr. Stefan Marcinowski

Member of the Executive Board

Research Executive Director, Ressort VI

Walter Dissinger

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