1. BASF 4.0: Digital Business Models Scale-Up Approval Decks
April, 2016

2. Prototyping & Validation Planning & Solution Design
For funding, we match INNORATE® with IS Invest Guideline (ZZ) & Project Lifecycle (GS)
Main Project Phases & Decisions
Prototyping & Validation
Scale-Up
Explo-ration
Ideation
2-3 Months
6-12 Months
No IS efforts
INNORATE™
No IS efforts
Early IS consulting
Define
Lo-Fi Prototype
Hi-Fi
Prototype
Measure Evaluate
Prepare
Pilot (MVP)
Grow 1 2 3
Investment
Guidelines
Planning
Definition
Implementation …
Project
Lifecycle
Idea
Initiation
Planning & Solution Design
Execution …
Owner
BASF 4.0 ZF GS
Go Hi-Fi PT
Get notification
Prepare Approval
Pre-Study Approval (Appl. B)
Ready for Planning Approval
Pilot MVP Approval
Final approval (MVP)
Ready for Execution
Grow Approval
Final approval (Grow)
Ready for Execution
Key decision points

3. Prototyping & Validation
There are three key approval steps towards scale-up of new digital businesses
INNORATE® Project Phases & Decisions
2-3 Months
6-12 Months
Explo-ration
Ideation
Prototyping & Validation
Scale-Up
No IS efforts
No IS efforts
Early IS consulting
Define
Lo-Fi Prototype
Hi-Fi
Prototype
Measure Evaluate
Prepare
Pilot (MVP)
Grow 1 2 3
Key Approvals
Prepare Approval
Pilot MVP Approval
Grow Approval
Approving Instance(s)
BASF 4.0 GS
BASF 4.0 GS
BASF 4.0
Commission I
Required Format
Approval Deck ‘Prepare’
Application B + Cost Planning
Approval Deck ‘Pilot MVP’
Application B + Cost Planning + Benefit Case
Approval Deck ‘Grow’
Application A + Applications B* + Cost Planning + Benefit Case
*Appl. B (Prepare) + Appl. B (MVP) + Appl. B1-N (Grow)

4. Section Overview 1 ‘Prepare’ Approval 2
‘Develop and Pilot MVP’ Approval – Business Pitch
Appendix: GS/COM I - Relevant Information – To be included for Technology Pitch

5. Executive Summary of Approval Request (1/2)
Business Opportunity
Example
Short description of the business opportunity for the project’s deliverables (2-3 phrases)
In the frame of both the OASE customer service orientation strategy and BASF 4.0 vision, the OASE Gas Treating Business has identified specific potential connectivity and interaction points to our final customers which lead us to valuable data and information on their needs and interests on our technology offer, looking forward to an increased customization of the offers for an improved sustainable growth of the business.
The main identified connectivity and interaction points are the access to real process conditions at customer’s plants and process optimization possibilities as well as the corresponding state of the OASE solvent at customers site.
Further and advanced training on our gas treating expertise has been identified as an important customer need, meaning this for the business a potential service that complements and extents the offered OASE Gas Treating service portfolio.
See Documentation Deck:
Benefits
Benefits for BASF
What will the project provide?
Direct access to customer data: the knowledge on the customers needs and interests will be enhanced, leading to better personalized, differentiated offers and allows the OASE Team to convert key learnings into better process designs.
The OASE Gas Treating Simulation Tool gives the customer the possibility to lower their total cost of operations. By shifting direct trouble shooting possibilities OASE Tech service time can be freed-up to pursue new business
Increased customer loyalty: the customer will have a closer contact feeling to the OASE Business allowing it to give a better service and supporting a very good short, mid- and long term relationship.
The E-Learning offer will be part of the agreements for the customers and maybe directly or indirectly monetized.
Example

6. Executive Summary of Approval Request (2/2)
Objectives/ Deliverables ‘Prepare’
Develop funding pitch deck, i.e.
Business Opportunity, Market Analysis, Value Capture
Operational Plan, Team Requirements, Risks & Dependencies
Business Case
Clarify technology requirements (solution design), i.e.
tbd
Timeline, Resources, Budget
Timeline
Start date:
End date:
Resources needed:
Budget:
Internal:
External (Cash-out):

7. High-Level Project Schedule
- Month W1 W2 W3 W4
‘Prepare’ Activities
Prepare Business Approval
See Documentation Deck:
High-Level Scale-Up Plan “Pre-Study”
Business Opportunity
Market Analysis
Value Capture
Operational Plan
Business Case
Team Requirements
Technology Requirements
Risks & Dependencies
Prepare Technology Approval (Pre-Study)
Fill in GS/ COM I-relevant sheets
Secure Pre-Study Support from GS
Pre-Study Completed/ MVP Approval
For details on activities see Appendix p.31

8. Project Team Set-Up and Role Description
Steering
BU Sponsor (VP, BU)
Samy Jandali (VP, BASF 4.0)
Initiate project, sign of results, resolve escalated issues
See Documentation Deck:
Project Organization “Prepare Pre-Study”
Project Owner: Owns the ‘Prepare’ phase, consolidates and develops deliverables, manages other team members
BASF 4.0: Provides guidance and supports project owner as needed
BASF 4.0 Support
N.N. (BASF 4.0)
Project Owner
N.N. (BU)
Business Team
Technology Team
Own dedicated work stream deliverables
Role+Name
Role+Name
Role+Name
Role+Name

9. Scale-up Phase – Project Team Set-up and Role Description
Organizational Set-up
Role Description
Steering Committee:
BU Sponsor (VP, BU)
Samy Jandali (VP, BASF 4.0)
Steering Committee: Initiates and sponsors project, signs of results, resolves escalated issues, makes go/no go decisions
Project Owner: Owns the ‘Scale-up’ phase, has final accountability, requests and consolidates deliverables, distributes workload and manages work stream leaders, reports to steering committee
BASF 4.0 Support: Provides on-demand guidance and support to project owner / has no final accountability and responsibility
BASF 4.0 Support:
BASF 4.0 Manager
Project Owner:
BU Manager
Business Work Stream Lead*
Technology Work Stream Lead*
Work stream leaders: Own dedicated work stream deliverables, have final responsibility for work stream results, manage respective work stream members
Work stream members: Develop work stream deliverables, report to work stream leader
Work Stream Member
Work Stream Member
Work Stream Member
Work Stream Member
* number of work streams can differ per project – project owner determines suitable number when entering Scale-up

10. Work Stream Charter: Business
Lead
tbd
Members
xxx
Description
xxx
Deliverables Pre-Study
Contact Points xx
xxx

11. Work Stream Charter: Technology
Lead
tbd
Members
xxx
Description
xxx
Deliverables Pre-Study
Contact Points xx
xxx

12. Section Overview 1 ‘Prepare’ Approval 2
‘Develop and Pilot MVP’ Approval – Business Pitch
Appendix: GS/COM I - Relevant Information – To be included for Technology Pitch

13. This MVP/project is the solution to an important problem of -client-
Problem Statement
Our Solution

14. Size Of Related BASF Business
We expect a market share of x% and see significant future growth potential
Market Size and Growth
Implications
Size Of Related BASF Business

15. Our service offering responds to an unmet market need
Digital Ecosystem
Digital Service
See Documentation Deck:
Working Material – Idea Visualization
Digital Augmentation
Core Product

16. Benefits for Customers
This project benefits BASF and its customers from a strategic and financial perspective
Benefits for BASF
Benefits for Customers
Strategic Benefits:
e.g. positioning of BASF as digital thought leader in chemicals
Financial Benefits:
e.g. additional revenues, higher profitability, lower cost
Strategic Benefits:
Financial Benefits:
See Documentation Deck:
Benefits

17. We have successfully validated the market need for our offering
Prototype Description
Prototype Testing
Example
What was tested:
Customer Satisfaction
Customer Behavior ….
How it was tested:
x Customer Interviews
See Documentation Deck:
Description: Prototype Overview
Testing: TMRO and Questionnaires
Evaluation: Assessment by Criteria xx
Prototype Evaluation

18. We will capture value from…
Revenue and Cost Drivers
Monetization Model
Example
Revenues
Average Ticket Size USD 10,000
Build on Documentation Deck:
Cost/Benefit Potential
Commissions
15-25% Average Commissions
USD 2,000
SEM: USD2 CPC, Conversion 0,02%
CAC USD 1,000
Main Conversion Channels
Offline Partnerships, Conversion 20%
CAC USD 500
SEO – Content Marketing
CAC USD 0
nachbauen
Unit Profit
< USD 500

19. All technological requirements have been identified – the MVP is ready to be developed
Status
Text
See Documentation Deck:
- TMRO - Success Criteria

20. Our competitive …. will ensure a market-leading position
Competitive Landscape
Competitive Advantages 1
xxxx
Corporates
Start-Up Ecosystem 2
MVP
xxxx 3
xxxx

21. With our strategic market adoption approach, we will scale the MVP within x months in x nations
High-level scale-up roadmap
Prepare
xxx
xxx
Pilot MVP
xxx
xxx
xxx
Grow t M1 M2 M3 M4 M5 M6 M7 M8 …

22. We expect revenues of x by 201x and a total of x customers
Year 1
Year 2
Year 3
Year 4
Year 5
Performance KPIs
# Customers
# Units sold
⌀ Value per customer
# Employees
Revenue
Revenue by service/ product category 1
Revenue by service/ product category 2
Costs
Personnel (k€)
Technology (k€)
Marketing (k€)
Other (k€)
Profit
EBITDA
EBIT

23. With an additional funding of €x million, we will successfully launch our MVP
Budget Request
We need a budget of €x million in order to launch our MVP.
Budget Split
Personnel €x
Technology*
Marketing
*For detailed scope of Technology see Appendix
Our Targets
With this funding, we aim to achieve the following targets:
No. of users reached x
xxx

24. Mitigation Activities
We have managed all associated risks and identified mitigation activities
Risks
Risk Assessment
Mitigation Activities
Financial Loss xxx
Reputational Loss xxx
Management Control Loss xxx
Degraded Performance xxx
Impaired Growth xxx

25. Our dedicated team with proven track records will make the launch of this MVP a success
Project Core Team
Picture
Picture
Picture
Picture
Picture
N.N.
Project Lead
N.N.
Project Management
N.N.
BASF Business Unit
N.N.
BASF Business Unit
N.N.
BASF Business Unit
BASF 4.0 / External Support
Picture
Picture
Picture
N.N.
BASF 4.0
N.N.
External Support
N.N.
External Support

26. Key Reasons To Support Funding Approval
Additional funding will allow us to scale fast and help us write another success story for BASF 4.0
Key Reasons To Support Funding Approval 1 2 3
Text
-Conclusive Statement-

27. Section Overview 1 ‘Prepare’ Approval 2
‘Develop and Pilot MVP’ Approval – Business Pitch
Appendix: GS/COM I - Relevant Information – To be included for Technology Pitch

28. Executive Summary Value Offering Value Creation Value Delivery
Key People Involved
Motivation
Sponsor/ Requester:
Program Manager:
GS Project Manager:
Business Solution Consultant:
Business Model
Selected Process Model:
Idea Phase Results:
Value Offering
Value Creation
See Documentation Deck:
BM Canvas/ Project Team
Value Delivery
Value Capturing

29. Impact On Existing BASF Structure Internal Dependencies
This program impacts the internal organization and requires support across BASF
Impact On Existing BASF Structure
Geographical Impact
Functional Impact
Organizational Impact
Process Impact
Internal Dependencies

30. Project Scope (1/2) Geographical Scope Process Scope
Scope Definition
In Scope
Out of Scope
Geographical Scope
Process
Scope
Organizational Scope
Functional
Scope

31. Source of Requirements Assumptions & Constraints
Project Scope (2/2)
Source of Requirements
Stakeholders
Documents provided
Systems relevant for change
Assumptions & Constraints
E.g. External circumstances, assumptions and speculations. Also constraints that have to be considered during/for the project.

32. Project Approach Activity Description (Approach, KPIs, special topics)…

33. Project Organization Draft Core Team Steering Committee Sounding Board
Head
Member 1, Member 2, …
Member 1, Member 2, …
Core Team
Service Operation
Project Manager
Name
PO, Change Mgmt.,
Communication
Applications (GSI/A): SPOC, Service Transition Coordinator, Service Owner
Infrastructure (GSI/I): Service Architect
Service Desk (GSI/S): Service Architect
Member 1, Member 2,…
Member 1, Member 2,…
WS01:
WS02:
WS03:
WS04:
WS Lead Member 1, Member 2,…
WS Lead Member 1, Member 2,…
WS Lead Member 1, Member 2,…
WS Lead Member 1, Member 2,…

34. Key Figures General Figures Technical Figures Other Figures
No. of users
No. of ERP Users
No. of affected companies
Technical Figures
No. of affected systems (also see Operations and Service Transition Slides)
No. of impacted interfaces …
Other Figures
Any other project related figures with impact on IS project to provide a framework …

35. Operations and Service Transition
Impact on Infrastructure
E.g. Landscape
E.g. Technology
E.g. Licenses
Service Information
Describe the future service on a high level, highlight major changes to the existing service (if applicable)
E.g. new service / change of service / (dis-)continuation of existing service
e.g. Impact on existing services
Support Model
Central vs. Regional Support
Service Level …

36. Global Service Delivery Model (1/2)
Service:
service name
Service Owner: 1)
name of global service owner
Level
Tier AP
EMEA NA SA
Service Desk
1st Level Support
GSI/S
ATOS 1
Applications & Infrastructure
Application
Infrastructure
2nd Level Support
2 Remote
GSI/I
2 On Site
2 User Admin 3
GSI/A
TechM 4
Supplier
3rd Level Support 5
Lotus
IBM HP
Draft

37. Global Service Delivery Model (2/2) Regional Example
Service:
service name
Service Owner: 1)
name of global service owner
Level
Tier AP
EMEA NA SA
Service Desk
1st Level Support
GSI/S 1
Applications & Infrastructure
Application
Infrastructure
2nd Level Support
2 Remote
GSI/I
2 On Site
2 User Admin 3
GSI/A
TechM 4
Supplier
3rd Level Support 5 HP
Draft

38. Impact on Ongoing Draft Total Change Ongoing Cost p.a. Depreciation HW
XRM Service Demand
In year of project conclusion
Region
(NA; SA; AP; EU; BASF SE; BBS)
Year 1 after project conclusion
Year 2 after project conclusion
Year 3 after project conclusion
Total Change Ongoing Cost p.a.
Depreciation HW
Depreciation & Maintenance Licenses
Depr. Self-dev. SW
App. Support
Infrastructure (Dataservice)
Service Desk
Others
Draft