Data, Digitalization, Decarbonization Do Disruptions Damage Durability?

Transcription

1 Data, Digitalization, Decarbonization Do Disruptions Damage Durability? Apu Gosalia VP Sustainability & Intelligence 22 nd ICIS World Base Oils & Lubricants Conference Park Plaza Westminster Bridge London 22 nd February 2018.

2 Data, Digitalization, Decarbonization Do Disruptions Damage Durability 01 Data Digitalization Decarbonization l 2

3 Data Development Global Lubricants Demand* l 3 *Million Tons / Without Marine Oils

4 Data Development Regional Lubricants Breakdown Demand (Million Tons)* Asia-Pacific & MEA Americas Europe % 19% Western Europe 11% (13%) Africa 6% (6%) Middle East 5% (4%) Asia Pacific 43% (35%) 32% 27% Eastern Europe 8% (10%) 2017 (2007) 45% 54% Latin America 9% (10%) North America 18% (22%) l 4 *Without Marine Oils

5 Data Development Regional Lubricants Demand 2017 : 2016 *Variance (%) North America 0.0 Latin America -2.0 Western Europe 1.5 Eastern Europe 0.5 Middle East -0.5 Africa -3.0 Asia-Pacific 3.0 World 1.0 l 5 *Rounded Up/Down

6 Data Ranking Top 20 Lubricant Countries* 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000,0 l *Thousand Tons

7 Data Development European Lubricants Breakdown Demand (Million Tons)* Western Europe 8.4 Eastern Europe Russia 18% (19%) Germany 14% (13%) 43% 6.8 Ukraine 5% (5%) UK 10% (10%) 45% Poland 4% (3%) 2017 (2007) France 8% (9%) 57% 55% Other Eastern Europe 18% (16%) Other Western Europe 23% (25%) l 7 *Without Marine Oils

8 Data UEIL Industry Statistics Committee l 8

9 Data, Digitalization, Decarbonization Do Disruptions Damage Durability? 01 Data Digitalization Decarbonization l 9

10 Digitalization Digit(al)ization Digitization Digitalization Automation of existing manual or paper-based processes enabled by the change of information from an analogous to a digital format Use of digitized technologies and digitized data for generating revenue improving, replacing and/or transforming processes creating an environment to make digital business practices more effective l 10

11 Digitalization Digit(al)ization Digitization Digitalization Automation of existing manual or paper-based processes enabled by the change of information from an analogous to a digital format Use of digitized technologies and digitized data for generating revenue improving, replacing and/or transforming processes creating an environment to make digital business practices more effective l 11 There is no Digitalization without Digitization!

12 Digitalization Lubricant Value Chain l 12 Data collection throughout the whole value-chain will be widened compared to todays standards Direct and automated usage of information generated at a later step of the process will affect all steps before An extended exchange in between customer and lubricants company will allow for new services and therewith add extra value to business

13 Digitalization Lubricant Development Tools Transform product development from being empirically-driven to using data and simulation approaches In doing so, application related information such as field data or test field results serve as a statistical backbone A more focused development will be granted by implementing the later application into product development by introducing simulation approaches into R&D l 13

14 Digitalization Lubricant Value Creation Turn exclusively empirical evidence driven product development into a digitally supported product development Apply simulation approaches and design of Experiments (DoE) Use data to predict future sales Introduce E- Commerce Tools Monitor fluids life and incorporate this information into e.g. product development Product Development Production Sales Distribution After-Sales Services Use data to enhance the production of lubricants Use simulation to optimize the location of production Introduce Track & Trace of Deliveries l 14

15 Digitalization Drivers Predictive Maintenance Track & Trace Delivery Big & Smart Data Data Usage & Analytics Sensor Technology Development Drivers Digital Business Model Innovation Simulation/Modelling Condition Monitoring Design of Experiments Cyber Physical System l 15

16 Digitalization Disruptors Third Party Third Party Third Party Third Party Third Party Third Party l 16

17 Digitalization Today l 17

18 Digitalization Tomorrow l 18

19 Digitalization Threat l 19

20 Data, Digitalization, Decarbonization Do Disruptions Damage Durability? 01 Data Digitalization Decarbonization l 20

21 Decarbonization Corporate Carbon Footprint* (in kilogramm CO 2 e per ton produced) l 21 *FUCHS Production Locations 2014

22 Decarbonization CO 2 -Distribution Combustion Engine l 22 Source: BMW / Status 2015

23 Decarbonization CO 2 -Distribution E-Mobility l 23 Source: BMW / Status 2015

24 Decarbonization Lubricant Specification l 24

25 Decarbonization Sustainability Initiative In 2016, the sustainability initiative NaSch* was established as a working group in Germany Members: AVIA BANTLEON, FUCHS, ROWE, KLÜBER LUBRICATION, ZELLER+GMELIN, German Lube/Oil Associations VSI & UNITI Objective: Establish sustainability standards, KPIs, benchmarks for the lubricants industry and emphasize its value for society (image campaign) UEIL cooperation with NaSch* carrying sustainability forward to the level of the European lubricants industry l 25 *Nachhaltigkeit Schmierstoffindustrie