Chemical Business Engineering? A Program Concerning Engineering Chemical Businesses!

Copyright 2007 Wolfgang Runge2 Relationships with Chemical Business Administration (“Wirtschaftschemie”)? Note the “interpunction” in the sense of language psychology and communication: Chemical [Business Administration] versus [Chemical Business] Administration. [Chemical Business] Administration is not seen as chemistry or “chemical engineering” and business administration (BA) (“business administration for chemists, chemical engineers”), but as a part of Chemical Business Engineering. Chemical Business Engineering is not a part of “Industrial Chemistry”, but there is overlap. The subject comprises the whole context of engineering “chemical businesses”. Cf. the management approach of the “Delft School of Business Engineering and Management” (University of Technology in Delft (NL)).

Copyright 2007 Wolfgang Runge3 Foundations and Scope: “Objects” Engineering including chemical engineering is the (academic) discipline dealing with the art or science of applying mathematical and scientific knowledge to practical problems, here initiating, supporting and promoting chemical businesses of Individuals –Entrepreneurs (academic and technical entrepreneurs) –Chemical and chemistry-related startup companies Chemical Enterprises –Individuals in firms and (non-profit) organizations and their interconnections and interactions with each others –Businesses and technologies and research and innovations of chemical firms (small to large) –The industry (and key directing and exemplary historical events) –Firms in the context of national societies and on the global level. “Scientific knowledge” - from “hard” and “soft” sciences. Tangible and intangible resources

Copyright 2007 Wolfgang Runge4 Foundations and Scope: Processes Discipline: (applied, industrial) chemistry and related fields People-centric Entrepreneurship Research and innovation Core competencies and learning Management (planning, organizing, leading, coordinating and controlling) and people Intelligence Information & communication technology (I&CT) (“man- machine” systems) supporting research and innovation Technical (chemical) skills are vital, “soft” skills initiate and implement change (and advance careers).

Copyright 2007 Wolfgang Runge5 A Systemic Business Engineering Model PURPOSE INTELLIGENCE ORGANIZATIONAL UNIT BUSINESS PROCESS RESOURCES RESULT Human, Information, Financial, I&CT; Corporate-Internal and External DecideMeasure FeedbackLearn Vision, Mission, Objectives, Strategy, Tactics THE “ENVIRONMENT”

Copyright 2007 Wolfgang Runge6 Mission and Program Structure Corporate & Functional Cultures People Management & Leadership Intelligence Management & Technology Intelligence “Man-Machine” Interactions (Information&Communication Technology – I&CT) Human and Entrepreneurial Behavior Technology and Systemic Innovation Industry and Value Chain Industry Analysis & History Company Structure & Business Administration Corporate Businesses and Functional Interfaces Systemic Innovation Intelligence-Based Companies Corporate & Technology Strategy, Resource Allocation Innovation Architecture and Configuration Research & Technology Management Chemical Business Engineering Mission: To understand and learn shaping and relating interactions between people, technologies, organizations and societies to found or develop and establish sustainable growth of chemical enterprises on a global level through innovative and demanding teaching and applied research. (Business engineering combines differentiated approaches for the systematic transformation of companies.)

Copyright 2007 Wolfgang Runge7 The Systemic Innovation Configuration Value Drivers (External Parameters) Organizational Drivers (Internal Variables) Corporate Culture (including Learning) Human Resources Core Technical and Organizational Competencies Business and Functional Interfaces Operational Discipline Megatrends Industry Foresight Market/Customer Insight (Actual and “Latent”) Technology Forecasting New Strategies New Competencies New Relationships New Operational Practices New Business Models New Products (and Other Offerings) - NPD New Markets New Businesses - NBD Managed Innovation Processes Strategic and Business Alignment Insights & Understandings Idea Generation & Opportunity Identification Project Assessment (“Peers”) and Selection Planning Implementation Work Processes Learning from Project Success and Failure Intelligence Sustainable Innovation INNOVATION ARCHITECTURE Organizational Drivers Managed Intelligence Processes Managed Innovation Processes

Copyright 2007 Wolfgang Runge8 Who May Take Advantage From It? You, for your (first) job and career in a (chemical) firm. You, looking for a new job in another firm. You, if you are thinking about creating your own business and do it (“entrepreneurship”). You, even in your private life, if you look into your “resource, financial and change management” But Does the chemical industry needs it (and wants it)? Is there a consistent opinion of small and large firms about it? Does “Higher Education” wants it. Is it an idea of an individual, probably to create a “position” or a “discipline” (and related earnings)? Is the program a “handbook” for consultants’ offerings?

Copyright 2007 Wolfgang Runge9 Post-Educational Environment and Conditions Very few students of chemistry (chemical engineering) will start and succeed in a scientific career (in a university or research institute) After graduation the majority of students will work in the chemical or another industry. Few will join state-owned (research or other) organizations. –Even, if you start in the Research function of a large (chemical) corporations the majority of people will switch career into other functions or roles and responsibilities (technical service, marketing, planning etc.) –More graduates will be employed in small and medium-sized chemical enterprises rather than large chemical companies More graduates may think of founding their own firm (“entrepreneurship”)

Copyright 2007 Wolfgang Runge10 Entrepreneurship We live in an economy of new, rapidly growing (and sometimes rapidly declining) entrepreneurial companies. Much job growth and new technology comes from entrepreneurial companies. We all worked and would continue to work in gigantic organizations insulated from risk and structured for efficiency. Does this mean big companies are dying? Not at all. They are adapting. Behind the familiar names are hundreds of alliances with independent and relatively new firms. In a world in which knowledge and imagination have joined labor, capital and materials as factors of production, entrepreneurial companies often provide the creativity and take on the early risk while big companies chip in financial and marketing muscle when it is finally time to go national or even global. Entrepreneurship – also within big companies - is an "indispensable component" of growth and prosperity. We must respect and learn it - and teach it.

Copyright 2007 Wolfgang Runge11 Current Status and Thinking Content available, corresponding teaching modules based essentially on this content under development: –What –How –When (and where). Principle and structures to organize useful knowledge about the chemical industry and its paths to innovation – more educational abstraction and aggregation for teaching purposes needed. Approaches to problem-solving for technical and organizational innovation (“unit operations”) – more “tools and techniques” details and teaching-specific examples to be elaborated (“lessons learned”). Questions (inspiration) for research to fill in the gaps in knowledge for the subject – to be structured. Open question: also (applied) research by incumbent(s)?

Copyright 2007 Wolfgang Runge12 Issues What? The exposure of “students” to a large variety of subjects, including economics and business administration, accounting, finance, human resources management, organizational behavior, strategy, competitive/technology intelligence, market research, marketing, operations management, international business, information technology management, and government policy. How? Independent and “complete” vs. modular and integrated (into other programs, such as Industrial Chemistry or “Wirtschaftschemie”; Business School programs). Mix of methods: e.g. problem based learning, self-organized leaning, lectures, reflection exercises, online discussions, case studies, projects, business games. Co-operative education to integrate on- site (campus) studies with practical work experience (intership). When? A parallel (during education, job) or “build up” approach, for instance, aimed at individuals who already have training in a technical field (a postgraduate program) or three (?) years’ relevant work experience and are looking to further their careers; an “extended” separate program (1 semester undergraduate, 2 semesters graduate/postgraduate)

Copyright 2007 Wolfgang Runge13 Fundamentals for Teaching Provide the minimum, but for the specific context sufficient core knowledge, skills, tools and techniques for a given subject, uncommon to people with a chemical (chemical engineering) education or background. Balance breadth with depth. “Business Essentials for Chemical Research and Innovation” Derive concepts and approaches out of the context of (current and historical) cases. A General Remark Concerning “Strategy” and “Strategic Planning”, Applicable to Other Areas of Chemical Business Engineering. “A great deal of business success depends on generating new knowledge and on having the capabilities to react quickly and intelligently to this new knowledge. … I believe that strategic thinking is a necessary but overrated element of business success. If you know how to design great motorcycle engines, I can teach you all you need to know about strategy in a few days. If you have a Ph.D. in strategy, years of labor are unlikely to give you the ability to design great new motorcycle engines.” (Richard Rumelt (1996): California Management Review 38, 110)

Copyright 2007 Wolfgang Runge14 Tentative Teaching - Structure INTRODUCTORY Basic Course (Grundkurs) CORE COURSES Advanced Courses (Aufbaukurs) SPECIAL COURSE (Optionaler Zusatzkurs) The Chemical Industry – Basic Structures and Business Processes Research and Development in the Chemical Industry Management Essentials for Chemical Innovations Entrepreneurship and Intrapreneurship Technology Intelligence Essentials for the Chemical Industry 2 Days – 16 hours per Course

Copyright 2007 Wolfgang Runge15 … More Wolfgang Runge INNOVATION, RESEARCH AND TECHNOLOGY INTELLIGENCE IN THE CHEMICAL INDUSTRY Integrated Business, Technical and Systems Approaches Fraunhofer IRB Verlag, 2006 ( Net In Germany Johann F. A. Göttling was the first professor who could represent chemistry outside a medical faculty. He was appointed 1788 at the philosophical faculty of Jena University as “Professor for Philosophy, Chemistry, Pharmacy and Technology” (“Gewerbekunde”). It was, in particular, Goethe (in his function as Minister for Mining in the corresponding German state), who himself being very interested in chemistry and also practicing chemical experiments had organized this appointment. “Gewerbekunde” around 1800: essentially Mathematics, “Science of Machines and Inventions”, History of Technology