DIGITALISATION OF THE CHEMICAL INDUSTRY IN ASSOCIATION WITH
EVONIK INDUSTRIES
DIGITAL REPORT 2020
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DIGITALISATION OF THE CHEMICAL INDUSTRY
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EVONIK INDUSTRIES
Henrik Hahn, CDO Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH, on the importance of technology in the chemical industry, the impact of COVID-19 and digitalisation
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A
fter graduating with an engineering doctorate in the field of fluid dynamics and Rheology, Henrik Hahn, Chief Digital
Officer of Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH, began his career at Evonik Industries more than 20 years ago, in the process technology and engineering department. Afterwards, he moved to chemical research and development, headed a corporate start-up, later joining the corporate strategy department before taking his current role. When it comes to establishing a digital innovation strategy, Hahn says that Evonik Industries first approach to establishing a strategy is to establish how the strategic business unit and functional departments can benefit from the use of digital technologies and take advantage of a data centric approach. “Innovation is not fulfilling any self purpose. We are trying to make it a part
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EVONIK INDUSTRIES
BRINGING IN NEW TECHNOLOGY MEANS CHANGE, THEREFORE YOU COULD ARGUE THAT DIGITAL TRANSFORMATION IS NOTHING MORE THAN A BIG CHANGE MANAGEMENT PROGRAM 06
of the strategy for a specific strategic model, putting people at the heart of this realisation. While I believe it is unlikely that the chemical industry will see a real disruptive transformational change, it will be lifted into the digital age. So we are looking to see how new technologies and data centric approaches can support our overall strategy and drive efficiency.” However, Hahn emphasises that “bringing in new technology means change. Therefore, you could argue that digital transformation is nothing more than a big change management program. As a result, everything starts
— Henrik Hahn, CDO Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH
with being aware that we are about to change not only internal processes but processes relating to external operations.” Breaking down digital transformation into four elements: create, communicate, deliver and exchange offerings, Hahn explains that along this journey, each element must be informative and inspirational for people as well as understandable as to why the transformation is taking place. “The people dimension is key. It’s not just about technology, it’s much more about people, trust and
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07 explaining why we believe that digital
where other industries have been
transformation is something that will
lost.” Hahn further comments that in
occur in our industry. Without people
today’s digital era, “representatives
even the best technology will never
of our industry have broadened the
materialise if people do not under-
technology discussion from a produc-
stand the benefits.”
tion or R&D standpoint, to harnessing
In the chemical B2B space, Hahn
technology in the administrative
reflects on the industry’s technology-
space relating to the digitalisation
centred approach. “With engineering,
of corporate finance and human
technology and sustainability at the
resources, taking advantage of artifi-
heart of most industries, being an
cial intelligence (AI), robotic process
early adopter - particularly when it
automation (RPA) and blockchain.
comes to production and technol-
With every aspect of our business
ogy - has ensured that the chemical
being affected by technology, we
industry has sustained its place,
need to ensure that we have the www.c o rpo ra t e .e vo n ik. com
21 GIobal Regions 63 Availability Zones Available Region Overseas Innovation Program
NO.3
1M+
2800+
Global Market Share
Paying Customers
CDN NODES Worldwide
200+
63
21
Countries and Regions
Availability Zones
Global Regions
Advantage Backbone of Alibaba group,the world leading retail commerce company. *source: Gartner Market Share: IT Service, 2019
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foundations in the form of data to enable this technology.” When it comes to digital transformation at Evonik Industries, Hahn details that “looking into the production space, everything is centred around smart operations and interconnectedness. As a result, network and IoT solutions can be utilised to improve the flow of information and improve access to insights within the production plants by taking advantage of sensor technol-
BEING AN EARLY ADOPTER - PARTICULARLY WHEN IT COMES TO PRODUCTION AND TECHNOLOGY - HAS ENSURED THAT THE CHEMICAL INDUSTRY HAS SUSTAINED ITS PLACE, WHERE OTHER INDUSTRIES HAVE BEEN LOST
ogy and data exchange. From a supply 09
chain perspective, machine learning models increase the efficiency of the entire supply chain network. Then, from a marketing and sales perspective, ecommerce is becoming increasingly important in the B2B space and chemical industry, not only to benefit from transactional efficiency gains, but
— Henrik Hahn, CDO Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH
also the ability to operate and engage almost 24/7 with potential and existing customers.” Another key aspect for Evonik Industries, that has only increased with the impact of COVID19, is the ability to enable remote interaction. “Not only in the current pandemic situation it is advantageous to utilise immersive technologies like www.c o rpo ra t e .e vo n ik. com
EVONIK INDUSTRIES
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augmented and virtual reality to con-
where do trends come from and where
duct interactions with our customers
are they being driven forth? Which led
remotely providing expertise on prod-
me to Alibaba and IBM, for example.
ucts and applications.”
Partnerships in my view are really
In order to drive the company’s
essential in order to develop innovative
digital transformation, Hahn explains
business model components, driving
that as part of his role as CDO, he is
collaboration and learning from others.”
tasked with looking into opportunities
Expanding on the impact of
for partnerships within the industry and
COVID-19, Hahn reflects that “in
cross industries. “We have a couple
comparison to other sectors the
of partnerships with large technology
chemical industry is doing relatively
companies as well as smaller compa-
well. I believe that the reason for this
nies and startups. When we started our
is that the industry is still generating
transformation journey, I asked myself:
output. At Evonik Industries we are
taking it very seriously to comply with
where a company finds itself isolated.”
social distancing while maintaining
Post COVID-19, Hahn explains that
our production. A particular challenge
“it’s of course very hard to tell what
that I have seen within the industry
the future will look like, but I think the
is isolated supply chains. At Evonik
chemical industry itself is robust and
Industries – probably as well as in
we will more or less manage to get
other companies – we need to ensure
through 2020 without too much trou-
that we mitigate the risk of having an
ble, as our world relies on the chemical
isolated supply chain. When it comes
industry. Without chemistry the world
to international supply chains, it is very
would be dull, dark, and simply dis-
important not to undergo a situation
astrous. We would have no iPhones,
E X E C U T I V E P R O FILE :
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Henrik Hahn Title: CDO
Company: Evonik Industries
Industry: Chemicals
Location: Germany
Henrik Hahn (52) is Chief Digital Officer at Evonik Industries and Chairman of the Management Board of Evonik Digital. Hahn studied Process Engineering and within his Doctorate research in the field of fluid dynamics and rheology he developed a framework for turbulence phenomena using data analytics and modelling techniques. He also obtained a degree in Business Administration and Industrial Engineering and is experienced in information economics and game theory. He has previously worked in various management positions in the area of innovation and technology including the responsibility for a Corporate hightech startup and joined Evonik in 1999. www.c o rpo ra t e .e vo n ik. com
EVONIK INDUSTRIES
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INNOVATION IS NOT FULFILLING ANY SELF PURPOSE. WE ARE TRYING TO MAKE IT A PART OF THE STRATEGY FOR A SPECIFIC STRATEGIC MODEL, PUTTING PEOPLE AT THE HEART OF THIS REALISATION 13
— Henrik Hahn, CDO Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH
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EVONIK INDUSTRIES
AT EVONIK INDUSTRIES WE ARE TAKING IT VERY SERIOUSLY TO COMPLY WITH SOCIAL DISTANCING WHILE MAINTAINING OUR PRODUCTION
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— Henrik Hahn, CDO Evonik Industries and Chairman of the Management Board of Evonik Digital GmbH
2007
Year founded
€13.1bn+ Revenue in Euros
32,000 Number of employees
no LED lighting, no almost anything. Almost everything in our world is centered around chemistry, from the food we eat to health care to mobility. The chemical industry, in other words, acts as the industry of the industries. Therefore I’m really optimistic that even if we face challenges we will have a bright future and act as an innovation engine, to enable new or better product solutions.”
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EVONIK INDUSTRIES EVONIK INDUSTRIES AG RELLINGHAUSER STRASSE 1-11 45128 ESSEN GERMANY T + 49 201 177-01
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