LANXESS' Dr. Werner Breuers on Innovation


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LANXESS board member responsible for R&D presents on innovation as a key driving force - even in a crisis

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LANXESS' Dr. Werner Breuers on Innovation

  1. 1. Innovation – a key driving force, even in a crisis Werner Breuers Member of the Board of Management of LANXESS AG American Chamber of Commerce, NY, January 2010
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  3. 3. Innovation means rethinking something you already know “All intelligent thoughts have already been thought; what is necessary is only to try to think them again” Johann Wolfgang von Goethe 3
  4. 4. Creativity and innovation are key to securing a viable future – particularly in times of crisis “There's no bad time to innovate. You should be doing it when times are good and when times are tough. […] it’s such a deep-seated belief, I'm not sure we have Jeff Bezos, a choice.” founder of Source: Business Week, April 17, 2008 4
  5. 5. Innovative strength does not depend on the size of the budget Performance Disconnect Of the 1,000 companies with the highest R&D budgets, less than 10% achieved significantly better performance per dollar spent on R&D than other companies in the same sector. No direct correlation between R&D expenditure and commercial success Source: The Booz Allen Hamilton Global Innovation 1000, 2005 5
  6. 6. A vibrant corporate culture drives innovation  Pinpoint simple working principles Corporate culture and working principles to promote a vibrant culture at LANXESS of innovation  Ensure these principles are developed consistently as part of the day-to-day working environment - Space for creativity Seek solutions, Take - The courage to make decisions not problems ownership quickly - More individual responsibility Keep it Think new, simple act fast 6
  7. 7. At LANXESS, we support innovation by improving our creative culture!  Support from top management Innovation network  Strategy Trust  Responsibility Integration  Trust Open communication Transparent innovation Interdisciplinary Innovation approach culture Innovation processes  Implementation of R&D  Stage Gate  Integration of business units  Project management  Focus on market needs  Idea generation 7
  8. 8. LANXESS – blazing a new trail in chemistry History  Independent company following spin-off from Bayer in 2004  Stock market listing in January 2005 Global success  46 sites in 23 countries  14,400 employees  Sales in 2008: EUR 6,576 million Proactive crisis management  Challenge09 and Challenge12 initiatives  Savings of around EUR 360 million by 2012 8
  9. 9. Cost-efficiency is the decisive factor in all R&D activities R&D setup at LANXESS  Central coordination department for boosting interaction and knowledge sharing between the business units  First-class support departments to ensure optimal implementation  Industry-oriented R&D in each of the business units for maximum customer and market proximity  Integration of existing development networks  Optimized project management for maximum added value with a reduced workload 80% of R&D projects are market-ready within two years 9
  10. 10. Targeted investment in innovation  Further 10 % increase in R&D R&D expenditure [EUR million] budget in 2009  110 R&D projects implemented + 10 % in 2008, with a further 100 projects + 10 % 97 in the pipeline 88  Number of new patents granted quadrupled between 2006 and 2008  Numerous successful innovations e.g. the high-performance rubber additive Nanoprene® 2007 2008 2009 Sustainable program of innovation 10
  11. 11. Innovation at LANXESS – Nanoprene® Nanoprene® – a rubber additive  Improves the properties of tires: - Improves wet grip and abrasion resistance - Increases service life - Reduces rubber particle emissions  Increases the efficiency of engines as a component in fuel cells: - Increases the reaction temperature from 60 ° to 200 °C Innovation in response to the increasing demand for mobility 11
  12. 12. Innovation at LANXESS – Baynox® Baynox® – an additive for modern biofuels  Prevents the formation of insoluble polymers in biodiesel  Stabilizes biofuels for long-term storage and transportation  Enables cooking oil and other spent oils to be processed into biodiesel incl. Baynox® Innovation in response to the increasing demand for energy 12
  13. 13. Innovation at LANXESS – Therban AT® High-performance elastomer Therban AT®  More effective and efficient oil field exploitation through optimized drilling technology : - Improved oil and abrasion resistance of drilling heads - Longer service life of drilling materials through improved adhesion to metals Innovative contribution to efficient extraction of energy reserves 13
  14. 14. Agreement on tire labeling Tire labeling adopted by the European Commission  Label clearly detailing their fuel efficiency as of 2012  Cut CO2 and noise emission and protects the environment  Positive boost to the innovative tire industry  Business driven by innovation Tire labelling – Initiative of the European Union 14
  15. 15. Innovation is a key factor in achieving success in a globalized world  Establishment of structures and conditions that promote innovation  Global R&D projects to heighten the worldwide profile further still  Cutting-edge R&D and technology centers in growth markets Creativity is capital 15
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