Enabling daily R&D work with digital tools

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1 BASF R&D Roundtable on June 28, 2017 Enabling daily R&D work with digital tools Dr. Richard Trethewey Head of Digitalization Bioscience & Knowledge

2 Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These forward-looking statements are based on current estimates and projections of the Board of Executive Directors and on currently available information. These forward-looking statements are not guarantees of the future developments and results outlined therein. Rather, they depend on a number of factors, involve various risks and uncertainties, and are based on assumptions that may not prove to be accurate. Such risk factors particularly include those discussed on pages 111 to 118 of the BASF Report The BASF Report is available online at basf.com/report. BASF does not assume any obligation to update the forwardlooking statements contained in this presentation. 1

3 Enabling daily R&D work with digital tools By integrating digital technologies into BASF s everyday R&D operations, we will boost effectiveness of research, increase efficiency, and open up new innovation opportunities. Directly enabling all R&D staff with digital tools for everyday work is an essential component of the BASF approach to digitalization 2

4 Enabling digital R&D work: What does this entail? Enabling R&D decision making Digital tools for all researchers Supporting digital transformation Connected knowledge 3

5 Enabling R&D decision making Example: Data sciences enables faster catalyst selection Collecting and integrating relevant data Interpretation compound A stock solution compound B compound C process + + Mini plant catalyst carrier Pilot plant Production Process information Analytical information Performance data Knowledge graph Interactive interfaces Testing time reduced by 3 times through accelerated performance ranking 4

6 Enabling R&D decision making Example: Visual machine learning for herbicide discovery Impact 95% accuracy 90% time saving No operator bias Cost-effective User-friendly Enhancement of decision making in routine laboratory workflow 5

7 Enabling R&D decision making Example: Modeling to select crop protection candidates Target Identify compounds with an optimized on-target versus off-target profile Challenge High number of expensive and time-consuming experiments to test potential side-effects of active ingredients on environment required Contribution Statistical methods and computer models used to predict side-effects and prioritize candidates On target: Plant Off target: Environment Optimize balance between targeted effects and unwanted potential side-effects 6

8 Enabling R&D decision making Example: Developing polymers for complex formulations Target Bi-functional polymer to enable formulation of new active ingredient (a.i.) Xemium fungicide Challenge 23 monomers 3 adjuvants 10 solvents 10 4 polymer compositions >10 8 formulation compositions Contribution Multiscale modeling predicted polymer with improved formulation performance 1. Co-solvent for a.i. in oil 2. Dispersant for oil droplets in water Prepare & test formulation Synthesize polymer Simulate in water (dilution) Calculate interactions Select components Simulate in concentrate Monomers, adjuvants, solvents Faster, more effective product development via modeling 7

9 Enabling R&D decision making Example: Visualization to support enzyme selection Bioinformatics Patents Linked Advanced visualization enables interactive identification of opportunities 8

10 Digital tools for all researchers Introduction to apps at BASF Key parameters App platform Cloud-based Scalable throughout R&D Ecosystem of apps Accessible data Useable by all R&D employees Essential to drive adoption of digital technologies throughout R&D 9

11 Digital tools for all researchers Example: Machine learning app for enzyme engineering Target Accelerate enzyme engineering proposals Challenge Integrate data, apply machine learning and interactively visualize results Contribution Faster deployment of new scientific methods Apps bring advanced capabilities directly to R&D project teams 10

12 Digital tools for all researchers Example: App with utility from R&D to the market Impact Deep learning technologies enable highly accurate detection of major wheat diseases from images Technology adapted from medical applications Provides fungicide recommendations Pictures collected for further training of the algorithm Successful application of deep learning for wheat diseases 11

13 Supporting digital transformation Adopting agile approaches in R&D Example: Hackathon Example: Employee dialogues App development with end-users Intense focus on working software Dialogue essential to drive transformation Supported with specific training programs Success requires evolution in the working culture 12

14 Connected knowledge Accelerating innovation by connecting knowledge The most important contribution management needs to make in the 21st century is.. to increase the productivity of knowledge work and knowledge workers. Peter Drucker, 1999 California Management Review 41 No. 2 13

15 Connected knowledge Enabling all R&D employees with knowledge Unparalleled internal knowledge Scientific and patent literature + + Internal reports Extracted metadata Relationships Full-text publications Commercial indexes Chemistry, Material Sciences, Bioscience > 400,000 internal reports from decades of research Fast access State-of-the-art search Connecting internal and external knowledge offers BASF R&D a competitive advantage 14

16 Connected knowledge Example: Machine learning for knowledge Question How to increase abiotic stress tolerance of corn by use of microorganisms???? Initial data set ~48,000 candidates Machine learning Ontologies Small selection of papers (38) relevant for specific question Machine learning and ontologies accelerate and improve literature assessment 15

17 BASF R&D is going digital! Digital technologies drive decision making in R&D Apps are key to enable digitalization broadly across R&D and beyond New digital working methods adopted Connecting knowledge is key for competitive success 16

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