This document discusses Process Performance Management (PPM) at DSM and how it is moving from reactive to proactive BPM using Up!BiZZ and Software AG's PPM tool. It provides an overview of DSM, introduces the SHAPE framework for BPM, and explains how Up!BiZZ and PPM can be used to scan processes, identify opportunities for improvement, and unlock potential value. Specific examples are given around optimizing the order to cash process, including reducing credit blocks and order changes, invoicing revenue leakage, and improving cash collection. The document outlines a roadmap to generate value through root cause analysis and continuous improvement initiatives.

1. Process Performance Management @ DSM
Going from Re-active to Pro-active BPM
Caspar TC Jans MSc
Manager Business Process Management
November 14, 2014

2. Page
TOPICS
• DSM
• SHAPE
• Up!BiZZ
• Up!BiZZ & Process Performance Management
• Road Map

3. DSM AT
A
GLANCE

4. Page
• Our purpose is to create brighter lives for
people today and generations to come
• We connect our unique competences in Life
Sciences and Materials Sciences to create
solutions that nourish, protect and improve
performance
Page 3
Mission

5. PagePage 4
Chemical synthesis &
biotechnology
Energy, chemistry &
polymer technology
Biotechnology
Hoffman La Roche’s
Vitamins (1930s)
DSM (1902)
Gist-Brocades (1869)
Vitamins
Omega’s
Carotenoids
Premixes for food & feed
Enzymes
Minerals
Cultures & Yeasts
Nutraceuticals
Pharmaceuticals
Cellulosic bioethanol
Biomedical materials
Bio-plastics
High Performance Plastics
Polyamides and precursors
Resins for coatings and
composites
Functional Materials
Solar – advanced surfaces
Life Sciences
Materials Sciences
Building on an impressive history

6. Page
DSM at a glance*
Page 5
Sales
~€10 billion
EBITDA
~€1.3 billion
Global
presence
~24,500 employees
worldwide
Listed at
Euronext
NYSE
Share price
quintupled
in 25 years
• DSM is a global Life Sciences and Materials Sciences company active in health, nutrition
and materials
• DSM delivers innovative solutions that nourish, protect and improve performance in
global markets such as food and dietary supplements, personal care, feed, medical
devices, automotive, paints, electrical & electronics, life protection, alternative energy
and bio-based materials
Sustainability
leader
Top ranking
Dow Jones
Sustainability Index
* 2013 numbers total DSM

7. Page
Leader in Health, Nutrition and Materials
Page 6
• Leading supplier of nutritional ingredients (including vitamins, carotenoids,
omega’s, food/feed enzymes, cultures, yeasts, nutraceuticals) for the feed, food and
personal care industries
• Leading supplier of sustainable high performance materials for the automotive,
electrical & electronics and building & construction industries
• Recognized as top innovator active in biomedical materials, advanced biofuels, bio-
based chemicals and advanced surfaces for solar systems
Health Nutrition Materials

8. Page
12%
4%
7%
2%
24%
3%6%
8%
7%
9%
11%
7%
Key
markets Food &
Beverages
PharmaE&E
Textiles
Automotive
Building &
Construction
Other
Infant
nutrition
Dietary
Supplements
Animal
Feed
Page 7
Personal
Care
2013 Sales by end-market
(Food)
Packaging
DSM offers products & solutions to a wide range of markets

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Latin America
~2,000
employees
North America
~5,000 employees
Europe
~12,500
employees
Strong & increasing global presence
World total ~24,500 employees*
Page 8
* 2013 numbers including employees Pharma cluster
China:
~3,500
employees
Rest of Asia:
~1,500
employees
41%
5%
34%
20%
Rest of the
World
High Growth
Economies
Western
Europe
North
America
2013 Sales by destination**
Increase in % of sales to
High Growth Economies**
22% 32% 41%
2005 2010
CSD
2013
** 2013 Sales from continuing operations

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TOPICS
• DSM
• SHAPE
• Up!BiZZ
• Up!BiZZ & Process Performance Management
• Road Map

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To support the DSM strategy “DSM in Motion, driving focused
growth” our key assets needs be fitter than ever…
“To my own big surprise, it is not the strongest nor the fastest but
the fittest who survives” – Charles Darwin
People
Plants
Knowledge & IP
Processes
& IT

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MASTER DATA
RISK
MANAGEMENT
REPORTINGIT SYSTEMS
BUSINESS
PROCESSES
1INTEGRATED
CONCEPTS
LEAN 6 SIGMA
2CONTINUOUS
IMPROVEMENT
FLEXIBILITY
WHERE
NEEDED
BEST
PRACTICES IF
POSSIBLE
STANDARDS IF
BUSINESS
INDEPENDENT
3BASIC
PRINCIPLES
SHAPE
SHARING SOLUTIONS

13. Page
SHAPE solutions model
GOVERNANCE
PEOPLE &
BEHAVIOR
KPI’S, RISKS, REPORTING &
MASTER DATA
BUSINESS PROCESSES &
CONTROLS
IT SYSTEMS
Single
Standard
Solution
Modular
Standard
Solution
Unique
Business
Solution

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SHAPE BPM
supports DSM businesses and enables us to choose between
flexibility where required and full standards where possible

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• DSM
• SHAPE
• Up!BiZZ
• Up!BiZZ & Process Performance Management
• Road Map
TOPICS

16. Page
SHAPE
EaZBiZZ Up!BiZZ
Up!BiZZ…
…an opportunity to unlock potential and becoming sustainably
successful…
Process
Promoter Score Value created
1BUSINESS
INSIGHTS
2IMPROVEMENT
POTENTIAL
3QUANTIFIABLE
VALUE

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• Inefficiencies COST money
• Process optimization is CONTINUOUS activity
• We need to become SMARTER
• BENCHMARKING, for better and worse
• Transparency on LINK between business process & value

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TOPICS
• DSM
• SHAPE
• Up!BiZZ
• Up!BiZZ & Process Performance Management
• Road Map

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First, some theory…

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Up!BiZZ & PPM
SOFTWARE AG PPM (“Process Performance Manager”)
… is a service that supports Up!BiZZ with full process insight. Detailed
process scanning reveals opportunities, benchmarking information, cycle
times, etc…
MANUFAC-
TURING &
SUPPLY
CHAIN
PROSPECT
TO ORDER
& ORDER
TO CASH
SOURCING
&
PURCHASE
TO PAY
SMART index alert!
OTC opportunities identified!
Scanning…
!

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Optimizing Business Processes
based on measured performance
DOCUMENTED
PROCESSES
IMPLEMENTED
PROCESSES
EXECUTED
PROCESSES

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Positioning Up!BiZZ & SOFTWARE AG PPM
23
Financial Managerial
Reporting
(periodically)
Process Performance
Management
(periodically)
Operational Process
Monitoring
(real time when required)
Financial KPIs and PPIs
• Revenue
• Profit
• Margins
• ….
Process KPIs and PPIs
• Order Cycle Times
• Analyze Order Blocks
• ….
Operational Reporting
• Manage Deliveries Due
• Manage Blocked Orders
• ….
SOFTWARE AG PPM SAPBusiness Warehouse
Up!BiZZ

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Up!BiZZ & BPM
PPM scans processes end to end, all BPM elements taken into
account
… other available
and used sources:
• Corporate
Reports
• Unit Reporting
• External
benchmarking
• PA&S & BG
process
expertise
• ….

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Up!BiZZ & Value Tree
MANUFAC-
TURING &
SUPPLY
CHAIN
PROSPECT
TO ORDER
& ORDER
TO CASH
SOURCING
&
PURCHASE
TO PAY
Process Performance Indicator
“SMART” Indicators !
“Value” indicators
Fictive Numbers

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From theory to reality…

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Up!BiZZ & OTC
Scanning the process 360°on cycle times, process efficiency and
effectiveness
CASH INBILLINGDELIVERY HANDLING
ORDER TO CASH
ORDER
HANDLING
Optimize Cash-flow and
minimize bad debt
Uninterrupted
order flow
Timely and accurate billing
with minimized revenue
leakage
Fast and successful delivery
with quality material from SCM
2. First time right:
More order
changes occur then
the actual number
of created orders
1. Credit blocks:
Orders with a
credit block take
xxx days longer
until cash collected
3. Revenue Leakage:
€ xxx mln in order
values have not
been invoiced
4. Overdue Accounts
Receivable:
X% overdue > best
in class for DSM
Globally (>XX%)
Scanning… Scanning
complete


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Same
day
1 Order Handling
Cycle time from order entry until cash received is xx days
longer for credit blocked orders.
28
… correlation is strong on business unit level
… 50% of all credit blocks
is released same day…
€ xx k cost in
handling direct
released orders
€ xx mln AR
reduction
!
∆ = 34%
1-2
days
3-5
days
6-10
days
10-30
days
>30
days

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29
2 Order Handling
# Order Changes > # Orders!
€ XX k worth of FTE costs
spent on order changes
related same day intervention
in 1 Business Group…
!
Create Change

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… Approximately
xx mln order
value confirmed
without invoiced
value. …
!
0m €
-xm €
0m €
-xm €
0m €
-xm €
Confirmed versus Ordered value
3 Invoicing
Revenue leakage identified. Potential impact on sales value
30
… up to xx% was
requested however
not confirmed and
therefore a missed
sales opportunity…
… > xx% is located in
two legal entities…

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4 Cash In
Overdue invoice analysis identified €MLN opportunity
31

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Unlocking the identified potential
by Root Cause Analysis and Improvement Initiatives
32

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Roadmap

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©2014 Software AG. All rights reserved.34 |
Up!BiZZ &
SOFTWARE AG Process Performance Management
• Proven Value generation
for DSM
• Business Connect required
• Strong driver for
continues improvement
• Think big, Start small
…
BG4
BG3
BG2
BG1
OtC PtP SCM …

34. Page
Caspar Jans

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