1. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 1 Presentation of the eBusiness project of the Business Unit Paper Jürgen Hackenbroich Global eCommerce Coordination Business Group Specialty Products Juergen.Hackenbroich.jh@Bayer-AG.de

2. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 2 SolutionsforPaper.com - The global online home for the paper industry eStrategy eBusiness Model eTransactions eOutlook eDesign Agenda

3. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 3 Business Unit Paper - part of Bayer´s Business Group Specialty Products Health Care Agriculture Polymers Chemicals Pharmaceutical Diagnostics Consumer Care Specialty Prod. Fine Chemicals Animal Health Crop Protection Polyurethanes Rubber Plastics FibersWolff Walsrode H.C. Starck H & R EC Coatings & Col. Ion Exch. Resins Polymer AdditivesPaper Textile Auxiliaries Leather Material Protection

4. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 4 Key facts 1999 Strong market position Global reach Wide product and service range Business driven by large international key accounts Sales (m Euro) Market Share (in %) No. Employees Share of sales (in %) Product Groups 237 11% 450 Europe: 45% Americas: 34% Asia Pacific: 21% Europe: 45% Americas: 34% Asia Pacific: 21% Optical Brighteners Dyes Pigments Processing Chemicals Finishing Agents Products for Carbonless Copying Paper Optical Brighteners Dyes Pigments Processing Chemicals Finishing Agents Products for Carbonless Copying Paper Customer Service Applications Advice In-house Simulation and Testing Logistics services Applications Advice In-house Simulation and Testing Logistics services Main Customers Top ten customers account for approx. 50% of the business Top ten paper manufacturers account for approx. 30% of the world paper production Top ten customers account for approx. 50% of the business Top ten paper manufacturers account for approx. 30% of the world paper production

5. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 5 eStrategy Approach The internet year has three months, therefore the project builds on continuous learning through creating a recurring plan. Determine the eStrategy eBusiness opportunity assessment Identification of the To-Be eCommerce portfolio and services eAlliancies / eMarketplaces / own Portal High level business case Key enablers “Think” “Build” “Run” Conceptual design of the “To-Be” eCommerce services Information Communication Transaction/Interaction Prepare for the implementation of targeted eCommerce models and services Implement and host Technical implementation Run and host Plan Do Review

6. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 6 eBusiness trends within the paper chemicals industry Intermediaries are stealing value from traditional distributors Papermartuk.co.uk offers paper products to the end customer markets, thus eliminating traditional wholesalers and their margins. Founding members are StoraEnso, UPM Kymmene, Haindl, Contract Paper, … New marketplaces offer value added services to the industry PrintBid.com offers automated requests for quotes PaperExchange.com offers credit and logistics facilities Pulpandpaper.net has strategic alliances with publishers and news services worldwide to supply industry information Traditional competitors are forming eAlliances Hercules and its 13 partners (e.g. Eastman Chemical, Rohm and Haas, Solutia, Occidental Chemical, Sunoco Chemicals, etc.) founded a global, internet-based B2B marketplace called Enerva. The main purpose of this website is the optimisation of relationships of joint ventures and the integration of supply chain processes

7. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 7 Competitive position assessment Paper Chemicals Basic/Static Website Basic/Static Website Interactive Website Interactive Website Transactional services Transactional services Marketplaces eAlliance Int. Paper Int. Paper Georgia- Pacific Georgia- Pacific Ciba BASF Nalco Hays Nippon Kayaku Nippon Kayaku BU PAP Scope of the eCommerce project within BU PAP Scope of the eCommerce project within BU PAP

8. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 8 The focus areas cover the realization of 4 eBusiness models Targeted eBusiness Models BU PAP static website, offering information services online to its target user groups BU PAP transactional web services, offering existing processes through the net (e.g. online order transactions, technical support) BU PAP process and channel creation, creating new interactive consultation, fully integrated customer channels (chat rooms, open forums, online tutorials) New business creation, through participation in existing chemicals and paper chemicals marketplaces vs. the creation of ePartnerships and Alliances BU PAP static website, offering information services online to its target user groups BU PAP transactional web services, offering existing processes through the net (e.g. online order transactions, technical support) BU PAP process and channel creation, creating new interactive consultation, fully integrated customer channels (chat rooms, open forums, online tutorials) New business creation, through participation in existing chemicals and paper chemicals marketplaces vs. the creation of ePartnerships and Alliances Basic/Static Website Basic/Static Website Transactional Services Transactional Services Interactive Website Interactive Website eMarketplaces/ eAlliances eMarketplaces/ eAlliances

9. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 9 32 services will form the basis for the initial website personalizing core target groups All groups Vision and mission statement BU PAP Calendar for events and trade fairs Company news from the press/paper news Industry statistics Glossary of eCommerce terms Case studies Technical specification sheets Promotional materials Who´s who Safety policies Environmental information Vision and mission statement BU PAP Calendar for events and trade fairs Company news from the press/paper news Industry statistics Glossary of eCommerce terms Case studies Technical specification sheets Promotional materials Who´s who Safety policies Environmental information Comment/feedback and FAQs Online tutorials technical & general Comment/feedback and FAQs Online tutorials technical & general R & D Legal information & responsible care Product information Safety data sheets Legal information & responsible care Product information Safety data sheets Product alerts Private rooms for discussion Links to key contacts in the BU PAP Product alerts Private rooms for discussion Links to key contacts in the BU PAP Purchasing General financial performance Bayer AG Product information Terms and conditions General financial performance Bayer AG Product information Terms and conditions Product alerts Order enquiries Invoice tracking Product alerts Order enquiries Invoice tracking Online ordering Offer requests for quotes Order tracking Shipment tracking Online ordering Offer requests for quotes Order tracking Shipment tracking Manufacturing Legal information and responsible care Product information Terms and conditions Legal information and responsible care Product information Terms and conditions

10. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 10 Website channel system - Services Secure Password Main Navigation Facts & Figures Products & Services Orders & Support News & Highlights Research & Development Business Unit Paper Vision & Mission Corporate Information Environmental Protection & Safety Locations & Contacts Job Service Product Information Product Announcements Case Studies Product Applications Technical Services Logistics Services Literature & Images FAQs Product Catalog Request for Quote Online Ordering Demo Order Management Center Registration General Selling Terms What’s new on the website Paper News Industry Statistics News about Business Unit Paper News about Bayer Events & Trade Fairs General Information Objectives Structure Facilities Open Forum Forum Technology All about eBusiness FAQs

11. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 11 Business Center Create Inquiry Create Order Product Catalogue personalized areaunpersonalized area Login / logoff Product Catalogue My Catalogue Inquiry List Offer List Order List Contract List Customer Data Terms & Conditions Agencies & Sales reps. Service Analysis Create Inquiry Agencies login select transaction list display generate e-mail Fill in form sheet R/3 will be realized with standard BAPI Request for quoteOnline Ordering Center eC R/3 Catalogue Order entry History Tracking CRM eC Accounts eC Documents R/3 eC Shopping basket eC area for registered customer area for non-registered customer SAP R/3 functionality R/3 eC eCommerce-application RfQ Articles already purchased from our customers including price information etc. Shop. basket Direct Ordering Shopping basket eC

12. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 12 Transactional services Online ordering Online planning tools Order Tracking and Tracing Exception handling/ complaint management Service level analysis Contact management Payment conditions/contract management Requests for Quotes/offers Product catalogue Customer data „Pre-Sales & After Sales Service“ „Sales“ LowHigh Value to the customer

13. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 13 IT infrastructure Backend systems R/3 ISV RW Realtime Data Warehouse (asynchronous data exchange) Domino and Application Server browser Web- Server User Frontend eC Application Middleware Backend ATP / Pricing and order entry (synchronous data exchange) User Management Personalisation Transactions Content Management (Imperia) Marketplace Customer system Supplier System

14. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 14 Design Principles Topicality A degree of topicality and user- friendliness that is as high as possible Easy updating and maintenance of the site by integrating a very user-friendly editorial system Provide a modular expandable basis for future online projects Use the latest, trend-setting techniques Service Exploit the internet as a service and advertising platform Dynamic database solution for easily locating product and service information A transparent and intuitive navigation Clearly highlight the interactive and communication functions Integrate eBusiness and eCommerce solutions into the online marketing channel to simplify transactions and improve operational efficiency Image/Distinctive Brand Positioning Create a Bayer BU Paper Brandworld with consideration of the Bayer Corporate Design Image promotion of Bayer by development of a UCP (Unique Content Proposition)

15. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 15 Website - structure, navigation, design Main navigation Main navigation Roll over Support navigation Announcement and teaser Dynamic generation of content, based on specifications of each target group Online ordering and transactional services Personalisation Relevance Convenience Speed Characteristics

16. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 16 myWebsite Principle Personalised Channel Systems Sales Purchasing Research Production Process Engineering Content Configurator Principle Characteristics Personalised Web site The content configurator draws together content appropriate to identified target groups It increases the appearance of a specialised website tailored to a target group’s direct needs (Quick to define and adjust to keep relevance) Users can move swiftly from the tailored site to the general view for other occasional needs (Fast access to frequently used information; no loss of overall richness of site) Monitoring reports will identify who is interested in what on the site, without the users having to identify themselves or type in information

17. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 17 Overview project timeline Go live 2000 Think Determine the eStrategy for the BU PAP eBusiness opportunity assessment To-Be eCommerce portfolio and services High level business case (Focus: investments in hard, middle, software) Key enablers Determine the eStrategy for the BU PAP eBusiness opportunity assessment To-Be eCommerce portfolio and services High level business case (Focus: investments in hard, middle, software) Key enablers Build Conceptual design of the “To-Be” eCommerce services Information Communication Transaction/Interaction Prepare for the implementation of targeted eCommerce models and services Conceptual design of the “To-Be” eCommerce services Information Communication Transaction/Interaction Prepare for the implementation of targeted eCommerce models and services Test/Run Implement and host Technical implementation Run and host Implement and host Technical implementation Run and host March April May June July August September October Go Live of Transactional Services in April/May 2001

18. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 18 Next steps: Global roll out assuring identical Look & Feel worldwide

19. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 19 Corporate log in (dot.com) - Go regional

20. Praktiker-Reihe „Medienmanagement“ Uni-Köln, 21.Nov.2000 20 Our Screensaver for take-away: The art to make fine paper