Regulatory / Scientific

Developments and

Emerging Issues© Siemens AG 2018

Non-restricted© Siemens AG 2018

“There will be more change in CPG in the next five years than there was in the last 50” Nielsen

The Era of

Guessing is Over…

knowwhat will happen

…enforce that instead

Non-restricted© Siemens AG 2018

Consumer

Response

Enabling a “Live” Model of YOUR Innovation

Digital ExhaustDigital Fuel

Consumer

Voice

Products & Production must

Speak to Each Other. Enable a Digital Thread.

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• Fewer Surprises in R&D. Alerting at the time the event occurs

• More Signal and Less noise. Filtered results

• An Early Warning Radar System: I would like to track well-defined issues that I know about and receive targeted alerts

• A portfolio of ingredients• Key topics of concern• Product recalls or alerts

• Trend Analysis and Prediction. Where is this issue going? What risk does it pose to my business?

• Netflix for the Food & Beverage Industry. Tell me what I should be worried about. How can I discover emerging and yet unidentified issues within categorical topics?

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Needs

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Decernis Horizon Scanning Components

Regulation

Advisory Committees

Technology

Chemical manufacturing

Change in legislation Plant extraction

Consumer Biotechnology

NGO’s Education

Retailers Screening tool for safety

& efficacy

Public Health Formulation expertise

BPC

Global Regulatory

Compliance

Trade

Certifications Halal,

Cosmos…

Human & Environmental

Safety

Standards (ISO)

Claims Competitor activity

Sustainability Labeling

Naturals

Specific

Substances

or Key

concepts

Specialty or commodity

Quality

Raw materials

specification

Substances from the

Annexes

Packaging Endocrine disruptors

Labeling Nanomaterials

Traceability CMR

Supply Chain

robustness

Product Recalls and

Alerts

Lexicons Create Global Coherence in Monitoring

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Decernis has developed a 5-million term lexicon of substances,

commodities, and hazard classes across 40-languages.

Confidential & Proprietary

Result: Alerts Filtered by the Profile Query & Summarized

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Examples of Trend Analysis

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An Example: Increasing Market Attention to Artificial Ingredients

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Causes Response By Food Companies

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The Clean Label Initiative is a Follow-On Consequence

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Clean Label Movement Follows the Rejection of Artificial Ingredients

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How Can We Evaluate Issue Momentum?

Interest in Titanium Dioxide From Public Sources

Of Note: The level of attention by the public is increasing but 1/10th of the interest in artificial ingredients

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How Can We Evaluate Issue Momentum?

Interest in Titanium Dioxide From Governmental Sources

Much higher interest by governmental agencies over a longer period of time

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How Can We Evaluate Issue Momentum?

Example of Ratio Analysis

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What Defines a Viral Issue?

Public Interest in Beta-Carotene

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What Defines a Viral Issue?

Governmental Interest in Beta Carotene

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What Defines a Viral Issue?

The ratio of public attention to governmental attention may be considered a metric of likely future action

• Viral issues emerge from multiple drivers that increase issue momentum

• Influencers

Prioritizing Risk and Predicting the Future: Toward a More Consistent Methodology

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• Viral issues emerge from multiple drivers that increase issue momentum

• Pressure

Prioritizing Risk and Predicting the Future:

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• Viral issues emerge from multiple drivers that increase issue momentum

• Velocity

• Pattern of attention

Prioritizing Risk and Predicting the Future: Toward a More Consistent Methodology

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• Viral issues emerge from multiple drivers that increase issue momentum

• Global effects

• Across languages

Prioritizing Risk and Predicting the Future: Toward a More Consistent Methodology

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• Standard scores and metrics can be defined to prioritize risk and measure change

Prioritizing Risk and Predicting the Future: Toward a More Consistent Methodology

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• Prioritize risk:• Automated monitoring and analysis to prioritize risk and resource

• Define a plan for Horizon Scanning/Predictive Analytics:• Identify known or important issues

• Ingredients in use: Reformulation Risk.

• Topics to be monitored. E.g., Ultra-processed foods, obesity

• Perform weak signal analysis

• Combine corporate metrics with external event monitoring

• Integrate horizon scanning with process to achieve speed-to-market:• Link management + horizon scanning + PLM

• Actions to be taken

Developing Corporate Action Plans

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• The Food and Beverage industry faces global, dynamic issues of great complexity and unpredictability that present brand risk

• Signal-to-noise ratio is critical to avoid information overload

• The search for standardized means of discovering emerging issues in a systematic way can provide substantial benefit

• KPI’s of issue development and trend analysis can lead to prioritization and improved risk management

• Remember that dynamic events events represent both risk and also market opportunity

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Key Messages

Confidential & Proprietary

Non-restricted© Siemens AG 2018

Embedded Intelligence Eliminates Guessing in

Label & Artwork Management

System promotes

compliant assets &

specs directly to label

Rapid assembly using

rules embedded smart

template

Enable a “Digital

Thread”

The Era of

Guessing is Over…

knowwhat will happen

…enforce that insteadVisit us at booth 7 0 5