1. The document discusses implementing an e-business platform to digitally integrate business processes between Evonik and its business partners. 2. It evaluates different e-business solutions before recommending Elemica, which offers the most flexible integration layer and global network to quickly establish e-business structures at Evonik. 3. The implementation roadmap proposes a three gear approach starting with efficiency, then agility, and finally leveraging data for advanced analytics to drive value over time.

1. Heinz-Günter Lux
The path to an e-Business
Process Integration Platform

2. Seite 2
Traditional info flow between business partners
Requester ERP
System
Customer
Service
ERP
R11…
Produktion
Customer/Supplier Evonik
Procurment Mail, Fax,
Telefon
IT Process & Technologiekongress 2015 – Heinz-Günter Lux

3. Seite 3
The chemical industry is still a digital laggard but
has started to address the topic
?
Digital maturity curve
Stage I:
Not yet started
Stage II:
Early awareness for
Digital
Stage III:
Strong awareness for
Digital
Stage IV:
Digitally integrated
Stage V:
Digitally transformed
CPGUtilities
Retail
Pharma
Banking
Chemicals1
Construction
High Tech
Automotive
Agro
Outside-in-perspective
1. Advanced on technical side (e.g. automatization)

4. The future is already here! —
it's just not very evenly distributed
William Gibson; Count Zero (1986)

5. Seite 5
The e-business strategy project has to find
answers for important questions
Procurement Logistics Marketing & Sales
Case for change Why is e-business relevant for Evonik and what is the aspiration level?
e-business architecture
What is the best architectural option considering current situation and
future developments?
Operating model
What are process, capability and organizational requirements to
successfully enable e-business?
Business case
Is the implementation of e-business reasonable based on tangible
benefits and cost for Evonik?
Way forward
How should Evonik implement e-business considering an appropriate
implementation logic (sequencing and timeline)?
Project scope
Marketing &
Sales
LogisticsProcurement

6. Seite 6
External developments drive e-business across
the value chain
• Shift of employee time from trans-
actional to strategic procurement
by automation
• Focus on strategic procurement
• Intensified use of supplier
collaboration and platforms
• Use of analytics to further optimize
decisions
• Higher acceptance for e-business
by shipping companies
• Increasing transparency, early
warning and agility
• More paper work for int’l business
due to regulations
• Shift of CSO time from trans-
actional to sales support service
through automation
• Customers implement portals
• Heterogeneous customer
integration requirements
• Increased need for SC
transparency and responsiveness
• Industry platforms are emerging with not clear leaders yet
• Emerging solutions for e-collaboration are driving cross-company productivity
• Work becomes further computerized, automated and mobilized less error-prone
IT/service
providers
Summary of external developments
Procurement/suppliers Logistics/LSPs1 M&S/Customers
DTP: Neue Folie aus Mail 2
Work-in-progress
1. LSP is “logistics service provider”

7. Seite 7
To ensure a common understanding we agreed a
joint definition of e-business
Evonik definition for e-business
„e-Business bezeichnet die digitale Geschäftsprozessintegration und umfasst
den vollständigen elektronische Informationsfluss zur effizienten Durchführung
jeglicher operativer Geschäftsprozesse zwischen allen Geschäftspartnern“
Definition German:
„e-business represents the digital integration of business processes including
the entire electronic information flow to efficiently execute all types of
operational business processes between all business partners“
Definition English:

8. Seite 8
Customer
Order
Order
confirmation
Border
crossing inf
Order
changes
Delivery
notice
Weight and
Packaging
lists
Quality
documents
Goods
receipt
Invoices
Gelangens-
bestätigung
Carrier
Tracking
Information
Planning
Forecast
Inventory
level
Remittance
Customer
Confirmation
of changes
Distur-
bances
Forwarder
return inbound
outbound
Many information are exchanged between business
partners
Evonik
IT Process & Technologiekongress 2015 – Heinz-Günter Lux

9. Seite 9
The maximum value is only possible with full
integration of all relevant business processes
between all business partners
Requestor in his system System ExecutionConnector
Interoperabilität
Connectivity
Manual intervention
for faults
Manual intervention
for faults
This requires:
100% flawless data quality in customer and supplier
Complete end to end process integration with customer and supplier
Process synchronization at the interface between customer and supplier

10. Seite 10
The architecture has to connect the efficient
internal ERP world with a dynamic external world
e-business architecture overview
1. MD is „master data“
Customers
Customer
Customer
Customer 1
Suppliers
Customer
Customer
Supplier 1
Customer
CustomerService
provider 1
Logistics
Evonik SAP R11 etc. MD1 TMS FunctionalityERP functionality
e-business integration layer
(enables integration of different e-business platforms)
e-business platforms
(provides specific functions)

11. Seite 11
We screened 15 available e-business solutions
based on a set of requirements
Screening of e-business solutions
15 11 8 3 1
Functional
fit
Coverage of procure-
ment, logistics, sales
Global
scale
Footprint chemicals/
customer industries
Elemica
Multiplatform
capable

12. Seite 12
Elemica offers the most flexible solution to
quickly shift to get into gear
Solution recommendation
+
+
+
–
–
Foodprint on chemicals
Global network
Flexibility to integrate further applications
Negative image at Evonik
No cross-industry standard
Functional coverage
+
• Provides an off the shelf integration
layer including an eBusiness platform
• Quick realization leveraging existing
application
• Expand e-business and gain
experience in the new way of working
• No fundamental barriers to integrate
other solutions
Tool to establish e-business structures at Evonik
+ Multiplatform capable

13. Seite 13
Elemica 2.0 e-business platform
(order & order changes, invoices, logistics, VMI, Tolling, etc.)
e-business integration layer – “powered by Elemica 2.0”
provides e.g. Supply Chain Visibility, Freight Cost Management applications, Multiplatform capability)
1. MD is „master data“; 2. illustrative examples only; 3. CEP is „courier, express and parcel“;
Further developing the architecture supports
plug-ins for new channels and functionalities
Advanced e-business architecture
Other systems e.g. CEP2,3,
marine data4, e-bill of lading2
Customer
portals
Evonik SAP R11 etc. MD1 TMS FunctionalityERP functionality
Customers
Customer
Customer
Customer 1
Suppliers
Customer
Customer
Supplier 1
Customer
CustomerService
provider 1
Logistics
- new -- new -

14. Seite 14
The e-business platform integrates partners with
different interfaces and other applications
Customer/supplier manual
data entry
• Limited integration with
double work on partner side
• No cost for Evonik
• Appropriate for small
partners or purely paper-
based processes
Options to connect partners – Overview
Portal
EDI
Customer/supplier email
exchange of documents
• Medium level of integration
based on automated
processing of documents
• Low one-time cost to set
up data structure
• Appropriate for medium-
sized partners or limited
degrees of electronic
processing
Customer/supplier Portal or EDI
• Highly integrated and automated
• Medium cost for one-time set up of interface
• Appropriate for large/strategic partners
For discussion
QuickLinc
e-mail
Platform
Other
applications Further functionalities/connections
• Potential Integration with other systems and
platforms
• Provision of additional segment-specific
functionalities beyond standard

15. Seite 15
E-business can be implemented in steps –
Efficiency is the first gear for a “digital sprint”
Roadmap: Three gears toward e-business excellence
Increase agility using real-time
value chain transparency to
avoid interruptions and enable
customer information
Drive automation and reduce
data errors in administrative
processes enabling focus on
value-adding activities
Efficiency
gear
Agility
gear
Leveraged
value gear
~2016 ~2017 ~2018 – 2020Start
Leverage data pools for supply
chain performance reporting,
enriched data and advanced value
chain analytics

16. Seite 16
BASF
eBusiness PlattformTeamShell
eBusiness PlattformTeam
Set up a network of key people – enabler – on a
company level integrated into the internal structure
Evonik
eBusiness PlattformTeam
e-business contact person
e-business key user
customer service, order
management, operational logistics
Internal
eBusiness execution
External
eBusiness Network

17. Seite 17