CIEX 2018 – Chemistry is not the problem but the solution!

Innovation plays a central role in the chemical industry and innovation is about much more than new molecules. Innovation in the chemical industry is about finding solutions together with other partners across value chains to solve some of the most pressing challenges in society and environment. Our environment is challenged by climate change and pollution and we have to do everything in our power to reduce our carbon footprint and pollutant emissions.

The chemical industry in Europe has reduced CO2 emission by over 40% in the past 10 years and is strongly committed towards further substantial reduction by another 40% by 2030.  New technologies play an important role here: it is about renewable feedstocks such as biomass, electrification of processes and about continuous improvement of efficiencies.

Innovation in the chemical industry is also about embracing new economical concepts such as circularity. Recirculating molecules and materials is expected to be an integral part of the circular economy of tomorrow. The chemical industry has a unique opportunity to contribute to new processes, molecules, and know-how to make this happening. Recyclability, durability, long-lasting performance are going to be success criteria for chemical products of the future to a much higher degree than today. We can also expect that digital technologies such as blockchain are going to be important enablers of circular business models involving chemical products. Chemical leasing and service offerings are already implemented today but we can expect blockchain to play a role in accelerating these models to spread much further in the future.

Finally, innovation in chemistry is about creating new materials and products for sustainable consumption as part of modern lifestyles. Future consumers in advanced economies are expecting sustainability and performance as integral parts of the value proposition. In developing economies, on the other hand, chemistry will be a key technology in the production of materials for housing, construction, infrastructure and basic consumer goods. Without chemistry, the pressing challenges in agricultural production, food preservation, sanitation & hygiene as well as health & nutrition cannot be solved.

CIEX 2018Chemistry is not the problem but the solution! At the 2018 CIEX conference, industry leaders will discuss many of the above challenges and opportunities, including new models of collaboration, innovation strategies, and new technologies. Dr. Marcus Remmers of DSM will be sharing how to align purpose and sustainability with innovation strategy to find science-based, innovative solutions that tackle societal challenges and Michael Gamber of Merck Group will be revealing how to strategically drive fast innovation across corporate culture. View complete conference agenda!

CIEX 2018 brings together the most creative minds in the chemical industry on 19-20 September 2018 in Frankfurt. Connect, discuss and discover the most compelling ideas emerging globally with an unmatched group of CXOs, senior leaders, investors, and innovators from across the chemical value chain. Reserve your seat today!

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Accelerating science-led innovation – Interview with Dr. Michael Doyle of BIOVIA

“In today’s experience economy, the ability to discover, design, and deliver breakthrough innovation at the molecular level creates transformational value for science-driven enterprises of all industries, and has the promise to provide exponential value to consumers” – Max Carnecchia, CEO, BIOVIA.

Committed to speeding innovation for science-driven organizations, from product ideation through commercialization, Dassault Systèmes BIOVIA provides a scientific collaborative environment for advanced biological, chemical and materials experiences that help science- and process-driven companies develop higher quality products faster and more cost effectively. Ahead of his presentation at CIEX in Frankfurt on September 19th, we had the pleasure of speaking with Dr. Michael Doyle, Senior Director Corporate Development and Principal Scientist of Dassault Systèmes BIOVIA.

Dr. Doyle’s informal title within Dassault Systemes, is “Innovation Wizard”! So innovation is directly important to him. BIOVIA, part of Dassault Systemes, has the mission to help improve products, nature and life through science and innovation-based understanding. The idea of innovation is also personally important to him, because his family came from a cotton weaving community in northern England and saw progressive innovation and modernization from hand to water driven, steam driven and then decentralized computer driven garment manufacturing.

He defines innovation as “the process by which societies and communities improve themselves in a sustainable way. Innovation can be about the next style, the next product, a new object, the next manufacturing approach for an object, or a complex combination of objects or materials, but most importantly innovation is about disruption.”

When asked about major challenges and opportunities facing the chemical industry and chemical value chain, he believes there are a number out there; it is sustainability, water, market volatility, increasing regulation, changing demographics and the shift to the east. To take these in order:

  • Sustainable products, processes and materials are critical aspects of both corporate and brand activities. Consumers want products, that are benign to the environment, that are safe to use and that provide the function or superior performance they expect.
  • Further much of the chemistry that constitutes or contributes to those products involves chemistry that occurs in a water. Water is the essential and key solvent in the modern chemical industry. Its ubiquitous availability, cost and safety have made it a good historical choice. However, with population growth and increasing demands on water resources for food production, this creates a questionable set of assumptions for the future. Sustainability is now mandating the development of alternative chemistry processes.
  • Market volatility, is disruptive both to the largest factor in the chemical industry i.e. energy costs, but also to the raw materials prices, and the economic consumer environment.
  • Finally, as we enter the era of specialty, performance, nano and additive manufacturing processes, the tailoring of niche advanced materials for micro-segmented markets will drive and enable a new wave of innovation in materials science and engineering.

Talking about the challenges impeding scientific innovation, Dr. Doyle explains: “Approximately 90% of the information we generate in chemical company laboratories is not used for any knowledge mapping. It is used for a certificate of analysis or a documentation process. This lack of use of in-house data inhibits the innovation process through modelling. In addition, many companies are seeing a dramatic increase in the amount of testing, the cost of testing, the regulatory needs for testing and the sustainability requirements, all of which take cross team and cross functional data. Converting so called dark data into information and knowledge helps with the reduction of experimentation, the accuracy of production and the compliance to procedure.”

The scientific innovation process is intrinsically multi-scale. It spans the micro scale of chemical atomistic attributes, through to the meso, voxel, bead or representative volume element to the macro scale of bulk materials, systems performance as well as laboratory, process and QAQC testing. This information then forms a feed into the product lifecycle management approach which in turn feeds systems such as financial forecasting, scheduling and supply chain models. In other words, a true platform approach is a derivative of a product lifecycle staged approach, a multi-scale simulation approach, a scenario planning approach and an open system integration approach. Therefore it is important to manage and connect scientific innovation processes and information with other product lifecycle systems.

We are currently at a convergence of high-throughput analytics with super-computing, and Dr. Doyle finds it very exciting: “Not only have unsupervised algorithms become so sophisticated, the availability of large domains of both structured and unstructured data allow some very complex and indirect models to be built. For example, Jennifer Goldbeck’s classical view of predicting someone’s IQ by their Facebook like of curly fries. These models, are not mechanistically deterministic but data deterministic, so they can be used to predict many important attributes and even people’s liking of a product however they cannot be used to screen a range of compounds or ingredients. In summary I am a strong believer in consensus modelling where the different strengths of large/big data models as well as other categories of models are combined to give the most stable and widest range of prediction capabilities.”

We asked Dr. Doyle how chemical industry can support innovation and sustainability with a unified solution and if it is possible. He said: “Innovation and sustainability make in my opinion similar calls on our predictive sciences. While it is true that sustainability is a more macroscopic model approach and innovation is often more microscopic, this is not always the same. Innovation is about insights leading to new approaches and new entities. Sustainability is about new approaches or reducing the impact, cost, complexity, variability of processes and products. However the two converge when you consider the designing for re-cycling or the circular economy. Mercedes for example has product processes and corporate plans to drive 80% recycling and reuse of parts within their products. This requires compromises in product design and in addition requires modifications and optimization of the product recycling process.”

Finally, when asked about one key point that CIEX attendees should take from his talk, he summarized: “It has been over 85 years since the book “Brave New World” was published. The rate of change and complexity required in the innovation process has never slackened or decreased. It is this relentless pressure on materials and chemical innovation that drives newer virtual and real ways of working. And the systems are here now.”

Along with BIOVIA, several international brands such as Air Liquide, Avantium, BMW, Evonik, Henkel, Honeywell UOP, Oriflame, P&G, PatSnap, PepsiCo are confirmed to speak at CIEX to explore innovation strategies and processes across the chemical value chain. Full details of the event can be found at ciex-eu.org.

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Innovation is about the ability to spot opportunities and take advantage of them

Image courtesy of Merck

Merck, the world’s oldest operating chemical and pharmaceutical company, as well as one of the largest pharmaceutical companies in the world, has been around for almost 350 years. Its 50,000 employees in 66 countries work together on innovative solutions and the newest technologies.  In 2016, the company invested a total of 2 billion euros in research and development.

Prof. Dr. Klaus Griesar

Our latest interview features Prof. Dr. Klaus Griesar, Head of Science Relations department at Merck whose responsibilities include strategic partnerships and cooperation with leading universities worldwide, start-up companies and research institutes. His portfolio also includes the elaboration and analysis of science & technology based megatrends.

He is a member of numerous scientific and industrial committees (President of the Association of Chemistry & Economics (VCW) within the German Chemical Society (GDCh) and a Member of the Editorial Board of Angewandte Chemie) and author of more than 50 publications in the topics of innovation management, business development and strategy.

How do you define innovation?
Innovation is always driven by the ability to see connections, to spot opportunities and to take advantage of them. Moreover, innovation is a result of curiosity. When one is willing to undertake risks, create change, and “shake-things up” due to curiosity, that will lead to innovation and therefore, unravel new markets. However, innovation is not just about opening up new markets, it can also offer new ways of serving established and mature ones. Consequently, innovation represents the core renewal process in any organization.

Where does innovation stand among your priorities and responsibilities?
Innovation is the key question for management. Every company has its own culture in which they define the level of innovation and the connection between success and innovation. Proper management of innovation will result in building and improving new/current routines over time. It is of great importance to manage and incorporate innovation into daily tasks, responsibilities, and essentially make innovation a part of your routine. Innovation is a process, not a single event, and needs to be managed as such, and therefore the influences on the process can be manipulated to affect the outcome.

What is the relationship between R&D expenditure and new developments?
R&D expenditure exhibits a significantly positive effect on the long term economic growth and therefore, new developments. At the firm level, R&D contributions are associated with the willingness to collaborate and create networks. On the one hand, with increasing novelty of the innovation more R&D input is required, but it is associated with greater market uncertainty. On the other hand, novel innovations are those that bring new developments to the surface.

How important are employees and cooperation for innovation?
Organization of innovation is more than just a structure or a process, it is a cohesive set of components that work together to create and strengthen the type of environment which stimulates innovations to flourish. Innovation is about learning, embracing change, and accepting the risks, costs, and disruptiveness. Moreover, innovation cannot be achieved without the ‘people’, the employees and members of other cooperation. Innovation is increasingly about teamwork and the creative combination of different disciplines and perspectives. Therefore, it is essential to coordinate the right teams together in order to be on the right and most efficient path towards innovation.

What are the major challenges and opportunities facing the chemical industry in 2018 – 2019?
Society experiences a rapid change from an industrial to a knowledge-based focus. For the chemical society, this transformation results in a shift “from materials and molecules to systems and solutions”. Hence, the challenge lies in the incorporation of material with complementing services, or even in creating new business models that back away from being a pure product manufacturer to become a value-creating solution provider.

As the often-cited Harvard chemist George M. Whitesides stated: “This prolific era is over, and chemistry is now facing classes of opportunities, and obligations to society, that are even more interesting, but entirely different.” (“Reinventing Chemistry” in Angewandte Chemie, 2015). With this statement, he predicted the ongoing shift from pure component and material innovations towards integrated system and novel all-in-one solution development. This alteration, of course, involves certain challenges but offers ample potential in re-creating a new chemical industry with the objective to become an integrator of the entire value chain.

Given the outlook of chemicals industry and global mega-trends, what is your strategy to keep and increase your company’s innovative position?
Innovation in our company already takes place on a level of integrated solution creation rather than single component or molecule development. To further amend this process, we need to concentrate on the value proposition of our innovations in an early phase. This can be done by early, strategic segmentation and efficient market selection. Often, the real value of the product is not the most obvious property of the material but a combination of characteristics which is beneficial for a specific market segment. Conducting this segmentation rigorously will help to improve the product’s value proposition and penetrate markets systematically.

What do you think your company should next focus on regarding innovation?
Our CEO, Stefan Oschmann indicated a significant business advantage: “If you think about the healthcare, then we’ve already got everything at Merck that Google would love to have.” (FAZ, July 4, 2016). Trends like personalized medicine, where treatments can be perfectly aligned with the patients’ needs, require novel technologies like Big Data analysis and self-learning algorithms. Also, in the laboratory business, the systematic digitalization will provide pioneering innovations regarding the interconnected workspace. Our mission is to further develop and sensibly apply novel technologies to foster digitalization throughout all our businesses and thereby enable groundbreaking innovations.

Prof. Dr. Klaus Griesar will be speaking at the upcoming CIEX 2017 Conference on September 19-20 in Frankfurt, Germany. He will talk about “The 4Ps of innovation: Old wine in new bottles?“.

Along with Merck, several international brands such as P&G, PepsiCo, BMW, Oriflame are confirmed to speak at CIEX. Together with leading pharma and specialty chemical manufacturers, they will explore innovation strategies and processes across the chemical value chain. Full details of the event can be found at ciex-eu.org.

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Sustainovations – Merging Sustainable Development with Consumer Insights

Third from Left: Dr. Thomas Förster, Image courtesy of Henkel

A new international study¹ revealed that a third of consumers are now choosing to buy from brands they believe are doing social or environmental good, and more than one in five  respondents said they would actively choose a brand  if it made their sustainability credentials clearer on its packaging and in its marketing. This represents a potential untapped opportunity of €966 billion out of a €2.5 trillion total market for sustainable goods.

Ahead of his presentation entitled ‘Sustainovations in FMCG: Merging sustainable development with consumer insights’ at CIEX 2017 in Frankfurt on September 19th, we spoke to Dr. Thomas Foerster, Henkel’s Corporate Vice President of R&D for Beauty Care. Dr. Foerster believes that sustainability is becoming one of the most important drivers for innovation.

Investing into sustainability

In 2016, Henkel employed around 2,700 people on average in R&D and invested €463 million in R&D activities. When asked about the importance of employees and cooperations for innovation, Dr. Foerster explained: “Innovation is at the heart of R&D – and probably the strongest growth driver for the business. So, it is our number 1 priority. But innovation is the responsibility of all employees. And very often teamwork and cooperation is needed to come to brighter ideas and faster developments”.

At Henkel, sustainability is a required element of the innovation process and is continuously reviewed. The Beauty Care business unit has linked this goal strategically to its innovative strength. As a result, every new product makes a positive contribution to at least one of six focal areas identified by Henkel, and impacts at least one stage of the value chain.

The strategic goal of sustainability combined with innovative strength sets Henkel Beauty Care apart from its competitors. The focus is on innovations that will help customers and consumers to reduce their energy use and thereby their own carbon footprint. Since 2011, Henkel has reduced the CO2 footprint of its raw materials by an average of 4 percent per year, relative to total sales. By using readily biodegradable raw materials the company also reduces wastewater pollution. Henkel’s aim is to save 50 million metric tons of CO2 emissions by 2020.

Henkel products are both innovative and sustainable in terms of raw materials, formulation and use – which forms the basis of the sustainovations concept. The comprehensive integration of raw material data into the development process has enabled the company to determine the CO2 footprint of over 165,000 product formulas. Based on the success of the raw material-based method, a comparable application is now being introduced for all packaging materials. The application, which is in the development stage, aims to help reduce the environmental footprint of cosmetics packaging and make it fully transparent as of 2017.

Managing the innovation pipeline

Dr. Foerster says that there is definitely no linear correlation between R&D expenditure and new developments. He continues: “You have to spend your money in an efficient – but even more important – efficacious way, betting on the right horse. It is well known that the innovation pipeline is more an innovation funnel. At the fuzzy front end you need enough input so that you get a constant flux of consumer relevant innovations out of the process”. In order to keep innovation and R&D pipeline healthy, Henkel manages 2 stage-gate processes; one for the mid-to-longterm advanced research, one for the launch initiatives. “Our focus has been more on product innovations; however, processes and services are becoming more important, especially in the digital world” he adds.

Fostering collaboration by rewarding suppliers

Henkel collaborates closely with its strategic suppliers to fully exploit its innovative potential and ensure the procurement of smart, sustainable raw materials. A number of awards help to recognize these efforts and to motivate suppliers. Henkel’s Adhesive Technologies business unit presented its sustainability award in 2016 to Evonik Resource Efficiency GmbH for its ongoing contribution to the sustainability of the product and project pipeline at Henkel. The Beauty Care business unit recognized chemical company Lonza in 2016. A collaboration with Lonza resulted in the development of more environmentally compatible ingredients for Dial brand antibacterial soaps. The Laundry & Home Care business unit presented BASF with an award in 2016 for the development of unique, high-performance ingredients that have gone into the development of phosphate-free automatic dishwashing products. As a result, Henkel premium brand Somat now contributes to a reduction in water pollution.

Given the outlook of chemicals industry and global mega-trends, Dr. Foerster says they are working with their marketing colleagues looking for evolving market trends, but of course also to upcoming technological trends: “We try to match them and validate our concepts with consumers to make our customers the centre of our innovation efforts”.

Along with Henkel, several international brands such as P&G, PepsiCo, BMW, Oriflame are confirmed to speak at CIEX. Together with leading specialty chemical manufacturers, they will explore innovation strategies and processes across the chemical value chain.

CIEX 2017 – The Chemical Innovation Exchange – will take place at the Jumeirah Frankfurt on September 19&20. See full details at ciex-eu.org.

¹ Unilever: Report shows a third of consumers prefer sustainable brands

 

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