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The tension of design
between Scenarios and Raw Materials




BMS – CD – New Business – Creative Center
Ralph Schneider
Forward Looking Statements

This presentation contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management.


Various known and unknown risks, uncertainties and other factors could lead
to material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here.
These factors include those discussed in our public reports filed with the
Frankfurt Stock Exchange and with the U.S. Securities and Exchange
Commission (including our Form 20-F). The company assumes no liability
whatsoever to update these forward-looking statements or to conform them to
future events or developments.




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Who is Bayer MaterialScience




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Do You know us ?


    Will you know us tomorrow?




    Polyurethane                Polycabonate   Films   Sheets


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Bayer MaterialScience at one glance




                                                Employees*                                   15,100
                                                Sales**                                      € 9.738 billions
                                                R&D investments                              € 340 millions ***
                                                New products in the past 5 years             > 20 %



                                              * Converted to equivalent of full-time staff
                                             ** 2008
                                            *** Including R&D projects with customers




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
What is Innovation in simple words?




                                            2001 – Space Odyssey

Innovation by pressure to survive


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to see that change is coming?


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to see that change is coming?


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to see that change is coming?


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Seeing what still remains unclear…




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to make an opportunity out of change?

Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to make an opportunity out of change?

Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The evolution model driven by trends




How to make an opportunity out of change?

Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Business Units and New Business:
Partners for innovation


                                            As part of strategic
                                            Corporate Development

                                            New Business develops
                                            / Future Oriented
                                            / Outside existing portfolio
                                            • Material /-modification
                                            • Technologies
                                            • Applications

                                            NB – Creative Center
                                            develops
                                            • Scenarios +15 years,
                                            • feasibilities,
                                            • rough business cases


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Challenges for the future
Opportunities for New Business




                                                        Society demands
Will we be prepared?




                                            Te
                                            Te
                                               ch
                                               ch




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                                                                              ul
                                                  no
                                                  no




                                                                           tp
                                                     llo
                                                       og




                                                                        ke
                                                         gy
                                                          y




                                                                      ar
                                                         pu
                                                         pu




                                                                    M
                                                            sh
                                                            sh


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Inventing the future
Listen carefully to the market


Designer, direct link to
• customer needs
• consumer desires and wishes

                                            Society demands


                                                    Design – Approach


                Technology push                         Market pull




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Communicate - Connect - Create
Best Practice Approach of Creative Center

 Step1
   Pictures of the                                       Knowledge projects
   future
                                              Open
                                            Innovation

 Step 2
   Market structure
                                                          Network projects


 Step 3
    Applications

                                             „Closed“       Cooperation
 Step 4                                     Innovation    Internal projects
   Business Case


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Innovation fits to market

                                                                                                             Scenarios


                                                 Future Living - Scenario 2020
                                             Source: 2004, Bayer MaterialScience AG & Network Partners




                                                                                                           Market Needs



e.g. KitchenConcepts - Scenario 2015                      e.g. Bathroom - Scenario 2015
       Source: 2005, Hettich GmbH, Germany                         Source: 2004, Grohe AG, Germany




                                                                                                         Innovations @ BMS


    Ralph Schneider, Innovation Manager @
    BMS – CD – New Business – Creative Center           e.g. Easy-to-Clean Coatings
                                                           Source: New Business – New Technologies
Strategic Focus Areas




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
BAYER's focus on Global Challenges:


Longer life expectancy                                   Supply alternative
results in increasing                              energy feedstocks such
demand for innovative                               as biofuels to meet the
medicine and therapies                          increasing energy demand

longer life                                              energy
Ensure sufficient food                                Reduce greenhouse
supplies while acreage                                gas emissions while
per capita is decreasing                           economies are growing


food                                            emissions

    Ralph Schneider, Innovation Manager @
    BMS – CD – New Business – Creative Center
…driven by Trends
   Roadmaps into the future

                                    Climate Change                                    Healthcare Revolution
                                                                     Globalization
Accelerating Technologies           shortage of fossil resources                      Artificial Intelligence
                                                                     Urbanization
                                    energy efficient systems




    Light & Optics                        Green Buildings          Future Logistics         Robotics


   Ralph Schneider, Innovation Manager @
   BMS – CD – New Business – Creative Center
Design
                                            Network




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
One example




                                            Design
                                            Network




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
CargoPacks 2020



BMS – CD – New Business – Creative Center
Ralph Schneider
Why focus on CargoPacks

                                                                                       CargoPacks


                                Degree of Innovation
                                                              Logistic                      Containers



                                                       High
                                                              Processes                     and
                                                                       Transport vehicles and
                                                                                            Packaging
                                                                       Infrastructure



                                                                                   Warehousing
                                                                                   and freight
                                                                                   handling
                                                       Low




                                                                       Recycling

                                                                   Low                        High

                                                              Potential for material based Solutions


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Future Logistics Process Steps

                  Future Living 2020                                People in Motion Award

                 E/E Automotive 2015
                                              Trend                   Future Construction
                                             Reports                     Storygroups


      Future                                       Picture of the
                                                      Future

                                                     Expert
                                                    Workshop
                                                                                        Storyg
                                                   CargoPacks
                                                                                        roups
                                                      2020

     Market                     Feasibility Study Robust
                                                                         Zukunftsbuch
                                    Transponders

                                                                                         Future Bizz
                                       M-Lab Study RFID                                    Group
                                                                                         CargoPacks
                     Koffer                                                                                  Design Award CargoPacks

   Customer                                                              Foldable
                                                                         container                Scout for feasibility Studies in three areas:
                                                                                                  • Autonomous transportation
                                                                                                  • Intelligent packaging for consumer added service
                                                                                                  • Individualized standards


                                                                                                                                              Feasibilities
                                                                                  Scouting field Robotics

   Business                                                                                 Care Robot
                                                                                                                                                              Customer
                                                                                                                                                               projects



                                        2006                           2007                              2008                          2009
        Design related
Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Future Living 2020
Project Results

      Polycenters                                    Oligocenters
     • Regional principle                            • Megacities
     • Zones of growth                               • Growth
                                            versus
     • Subsidy of families                           • Concentration
     • Self-confidence                               • Unequal distribution
     • Healthy living                                • Aging population




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Various mega trends will impact logistics



                 Urbanization - Megacities

                 Aging society

                 Globalization

                 Climate Change

                 Limited Energy resources

                 Ubiquitous Computing and robots
                                                   Quelle: Arup, Dongtan Eco-City




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
The logistics of the future is
framed by two major factors



      Degree of process digitalization




              www.ottogroup.com



                                            Degree of Mobility




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Expert Workshop -
Picture of the Future „Logistics 2020“

    efficient towards economy and environment

    carbon footprint index of products is unique
    selling proposition

    individualized products and delivery services

    CargoPacks become high-tech business:
       –    Autonomous transport systems, self-organizing
            logistic- und transportation networks, integrated
            communication technologies




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Ideation Project Categories
CARGO PACKS 2020

 The Last Mile




 Sustainablity




 Intelligent Solutions




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Future customer needs?




    Storygroups



Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Renato Montagner

Thorsten Frackenpohl

Christopher Stillings
Ralph Schneider
 BMS – CD – New Business – Creative Center
 Ralph Schneider
Two sides of every story


BMS – CD – New Business – Creative Center
Ralph Schneider
Final Results
Concepts, Ideas and a different twist in CargoPacks




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Package Mobile Energy by Jennifer Murphy




                                            © by Jennifer Murphy


Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Needs and Company-Fit analysis


                                            Analysis:

                                              Consumer needs

                                              application solution

                                              system modules

                                              material needs

                                              BMS opportunities
                                              and USPs




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Round-Up, Perspectives, Outlook




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Our diversified toolset
       Methodology and partner for shaping the future

        Supporting Tool                              Target group         Method


     Market &                                         Explore with         Ideation Project
    consumer                                                               VisionWorks Award
       needs
                                                     Universities


      Expected
       Material                                                            Concepts /
                                                     Transform with        Diploma thesis /
   properties &
   development                                         Young               Target projects
        targets                                     Professionals


 Performance                                                               Material libraries /
                                                   Commercialize with      Feasibility studies
   Catalogue
Product portfolio &
                                                      Innovators           Technology push
                                                                           projects
       processing                                   Designer & Engineer
     technologies
                                     sampleBOX

       Ralph Schneider, Innovation Manager @
       BMS – CD – New Business – Creative Center
Open Innovation Network




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Perspective matters

About Design

Classical Design vs. DesignThinking

Design will become an ambient profession
like the others

Form follows Service - Service follows Experience


About our surrounding

The lack of Resources will drive us constantly

Quick and dirty vs. Slow and precise!



Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center
Thank You for Your attention!




 For further questions:


 Ralph.Schneider@bayerbms.com
 +49 214 30 24380


 www.SampleExplorer.com




Ralph Schneider, Innovation Manager @
BMS – CD – New Business – Creative Center

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The tension of design between future scenarios and raw materials

  • 1. The tension of design between Scenarios and Raw Materials BMS – CD – New Business – Creative Center Ralph Schneider
  • 2. Forward Looking Statements This presentation contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 3. Who is Bayer MaterialScience Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 4. Do You know us ? Will you know us tomorrow? Polyurethane Polycabonate Films Sheets Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 5. Bayer MaterialScience at one glance Employees* 15,100 Sales** € 9.738 billions R&D investments € 340 millions *** New products in the past 5 years > 20 % * Converted to equivalent of full-time staff ** 2008 *** Including R&D projects with customers Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 6. What is Innovation in simple words? 2001 – Space Odyssey Innovation by pressure to survive Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 7. The evolution model driven by trends How to see that change is coming? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 8. The evolution model driven by trends How to see that change is coming? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 9. The evolution model driven by trends How to see that change is coming? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 10. Seeing what still remains unclear… Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 11. The evolution model driven by trends How to make an opportunity out of change? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 12. The evolution model driven by trends How to make an opportunity out of change? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 13. The evolution model driven by trends How to make an opportunity out of change? Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 14. Business Units and New Business: Partners for innovation As part of strategic Corporate Development New Business develops / Future Oriented / Outside existing portfolio • Material /-modification • Technologies • Applications NB – Creative Center develops • Scenarios +15 years, • feasibilities, • rough business cases Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 15. Challenges for the future Opportunities for New Business Society demands Will we be prepared? Te Te ch ch l ul no no tp llo og ke gy y ar pu pu M sh sh Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 16. Inventing the future Listen carefully to the market Designer, direct link to • customer needs • consumer desires and wishes Society demands Design – Approach Technology push Market pull Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 17. Communicate - Connect - Create Best Practice Approach of Creative Center Step1 Pictures of the Knowledge projects future Open Innovation Step 2 Market structure Network projects Step 3 Applications „Closed“ Cooperation Step 4 Innovation Internal projects Business Case Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 18. Innovation fits to market Scenarios Future Living - Scenario 2020 Source: 2004, Bayer MaterialScience AG & Network Partners Market Needs e.g. KitchenConcepts - Scenario 2015 e.g. Bathroom - Scenario 2015 Source: 2005, Hettich GmbH, Germany Source: 2004, Grohe AG, Germany Innovations @ BMS Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center e.g. Easy-to-Clean Coatings Source: New Business – New Technologies
  • 19. Strategic Focus Areas Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 20. BAYER's focus on Global Challenges: Longer life expectancy Supply alternative results in increasing energy feedstocks such demand for innovative as biofuels to meet the medicine and therapies increasing energy demand longer life energy Ensure sufficient food Reduce greenhouse supplies while acreage gas emissions while per capita is decreasing economies are growing food emissions Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 21. …driven by Trends Roadmaps into the future Climate Change Healthcare Revolution Globalization Accelerating Technologies shortage of fossil resources Artificial Intelligence Urbanization energy efficient systems Light & Optics Green Buildings Future Logistics Robotics Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 22. Design Network Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 23. One example Design Network Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 24. CargoPacks 2020 BMS – CD – New Business – Creative Center Ralph Schneider
  • 25. Why focus on CargoPacks CargoPacks Degree of Innovation Logistic Containers High Processes and Transport vehicles and Packaging Infrastructure Warehousing and freight handling Low Recycling Low High Potential for material based Solutions Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 26. Future Logistics Process Steps Future Living 2020 People in Motion Award E/E Automotive 2015 Trend Future Construction Reports Storygroups Future Picture of the Future Expert Workshop Storyg CargoPacks roups 2020 Market Feasibility Study Robust Zukunftsbuch Transponders Future Bizz M-Lab Study RFID Group CargoPacks Koffer Design Award CargoPacks Customer Foldable container Scout for feasibility Studies in three areas: • Autonomous transportation • Intelligent packaging for consumer added service • Individualized standards Feasibilities Scouting field Robotics Business Care Robot Customer projects 2006 2007 2008 2009 Design related Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 27. Future Living 2020 Project Results Polycenters Oligocenters • Regional principle • Megacities • Zones of growth • Growth versus • Subsidy of families • Concentration • Self-confidence • Unequal distribution • Healthy living • Aging population Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 28. Various mega trends will impact logistics Urbanization - Megacities Aging society Globalization Climate Change Limited Energy resources Ubiquitous Computing and robots Quelle: Arup, Dongtan Eco-City Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 29. The logistics of the future is framed by two major factors Degree of process digitalization www.ottogroup.com Degree of Mobility Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 30. Expert Workshop - Picture of the Future „Logistics 2020“ efficient towards economy and environment carbon footprint index of products is unique selling proposition individualized products and delivery services CargoPacks become high-tech business: – Autonomous transport systems, self-organizing logistic- und transportation networks, integrated communication technologies Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 31. Ideation Project Categories CARGO PACKS 2020 The Last Mile Sustainablity Intelligent Solutions Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 32. Future customer needs? Storygroups Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 33. Renato Montagner Thorsten Frackenpohl Christopher Stillings Ralph Schneider BMS – CD – New Business – Creative Center Ralph Schneider
  • 34. Two sides of every story BMS – CD – New Business – Creative Center Ralph Schneider
  • 35. Final Results Concepts, Ideas and a different twist in CargoPacks Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 36. Package Mobile Energy by Jennifer Murphy © by Jennifer Murphy Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 37. Needs and Company-Fit analysis Analysis: Consumer needs application solution system modules material needs BMS opportunities and USPs Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 38. Round-Up, Perspectives, Outlook Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 39. Our diversified toolset Methodology and partner for shaping the future Supporting Tool Target group Method Market & Explore with Ideation Project consumer VisionWorks Award needs Universities Expected Material Concepts / Transform with Diploma thesis / properties & development Young Target projects targets Professionals Performance Material libraries / Commercialize with Feasibility studies Catalogue Product portfolio & Innovators Technology push projects processing Designer & Engineer technologies sampleBOX Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 40. Open Innovation Network Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 41. Perspective matters About Design Classical Design vs. DesignThinking Design will become an ambient profession like the others Form follows Service - Service follows Experience About our surrounding The lack of Resources will drive us constantly Quick and dirty vs. Slow and precise! Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center
  • 42. Thank You for Your attention! For further questions: Ralph.Schneider@bayerbms.com +49 214 30 24380 www.SampleExplorer.com Ralph Schneider, Innovation Manager @ BMS – CD – New Business – Creative Center