RoyalDSM.pptx

8/17/2019 RoyalDSM.pptx

1/18

Case Analysis On ROYAL DSM


2/18

Introduction

• Royal DSM is a Dutch Multinational, headquartered in H

active in the felds o health, nutrition and materials.• It was ounded in Netherlands in early 1!" as a coal m

com$any. Mined coal rom 1!% to 1&'. (irst $roduced#as in 1"1.

• In 1'!s e*$anded into $lastics and started +a$rolacta

$roduction in the 1!-s $olyethylene and melamine i1%!s.

• Started restructurin# and diversiyin# in the 1/!-s intchemicals.

• 1!-s saw DSM transormin# into $etrochemicals, lie

and $erormance materials.


3/18

+hallen#es

•Im$ortant +hallen#es0

• $#radin# the com$any-s I+2 to meet the demands odiversifed com$any

• 3na4le e*ecution o the com$any-s new 4usiness stra

• Standardi5ations o I+2 inrastructure to #ain o$eratio

e6ciency• Im$rove its a4ility to disentan#le an acquired 4usines

the $arent com$any and inte#rate them into DSMsimultaneously

• How to standardize technology infrastructure across departments a

units?


4/18


5/18

2imeline o an 3volvin# DSM• 1!" 7 DSM started with % wor)ers

• 1!% 7 (irst mined coal

• 1"1 7 Started $roducin# coke-oven gas (8y7$roduct o coal)

• 1" 7 8e#an $roducin# chemicals 9nitro#enous ertili5er and ammonia:

• ;ter 1roduction o Caprolactm (used in $roduction o nylon)

• 1%!-s 7 =$ened polyethylene an! melamine $lants

• 1&' 7 +losed its last mine and e*ited +oal Minin#

• 1/!-s 7 Restructurin# and e*$ansion o its $roducts 9 inclusion o specialit

• 1/ 7 ?ent >u4lic on the Amster!am Stock "#change (A"$)

• 1/ 7 ;cquired Royal %ist-&roca!es '9(ood in#redients and $enicillin:

• "!!! 7 @aunch o Aision *++, .ocs an! ale-

/o van !en 0anenberg was hired to the new cor$orate +I= $osition

• "!!1 7 ;cquired Catalytica 9>harmaceutical intermediates, sterile ormulatio$ac)a#in#:

• "!!" 7 Sold $etrochemical 4usiness to Sa!i Arabian &asic 1n!stry Corp9S

;cquisition o Bitamins and (ine +hemicals Division rom Roche

• "!! 7 @aunch o 2ision *+3+ &il!ing on Strengths4 and $urchased 'eoRe


6/18

;quisitions• 35560 Cist4rocades 9ood in#redients, $harmaceuticals, yeast and en5yme4a

$rocess technolo#y:.

• *+++0 +atalytica >harmaceuticals 9$harmaceutical intermediates:.

•

*++70 Roche-s vitamin division.• *++,0 NeoResins 9water4ased coatin# resins:.

• *+330 Marte) 9nutritional $roducts derived rom microal#ae and ermentation t

• *+330 Bitatene 9natural carotenoids derived rom ermentation o 8la)eslea tris

• *+3*0 Berenium-s ood en5ymes and oilseed $rocessin# 4usiness.

• *+3*0 Eensey Nash 94iomedical re#enerative medicine:.

• *+3*0 =cean Nutrition +anada 9fshoil derived nutritional $roducts:.• *+3*0 +ar#ill -s cultures and en5ymes 4usiness.

• *+3*0 (ortitech 9customi5ed nutrient $remi*es:.

• *+370 nitech 9micronutrient $remi*es and macronutrient 4lends:.

• *+370 ;ndre >ectin 9ood hydrocolloids:.

• *+370 2ortu#a 9nutritional su$$lements or $asture raised cattle:.

• *+3,0 ;land 9vitamin +:.


7/18

Concept•Divest in petrochemicals and

increase foothold in life science

products and performance

materials industries.

Value•Diversify portfolio for long termgrowth and sustainability.

Capab•Decentralized ICT is

changing business env

•ICT has a cross-indusable to support innova•!mall reliable supply•"#ne-$ump% strategy

immediate transition a•&'IT( program brou

attention and resolutio

Business Model


8/18

89OSA'ALYS1S

S2R3NCH2HS• Newer and chea$er $roducts in

the mar)et• Bision "!! and Bision "!1!• =ne 7 Gum$ Strate#y• 3BI2; >ro#ram

?3;EN3SS3• @ac) o in

control• Massive e

additiona$etrochem

• Decentral

Standardi• I2 de$art

O::OR8;'181"S• 1t col! stay in "rope or

e#pan! globally• Change in global tren!s• 8echnological a!vances• Realign bsiness by

acth• 'o stan!ar!i?e! 18

in=rastrctres among 18!epartments

OPPORTUNITY – STRENGTHS

STRATEGY

• Increased ocus and valuetowards critical 4usiness unitsthrou#h Bision "!!.

• Clo4ali5ation.• Crowth in @ocal Strate#ic

>artnershi$9@S>:.• ;cquisition o 4usiness units

which $rovides a strate#icadvanta#e.

OPPORTUN

STRATEGY

• Standardi• Restructu• Im$lemen

a$$ro$ria

80R"A8S•

Di@erences in 18in=rastrctre among

THREAT – STRENGTHS

STRATEGY • 2ransition and Inte#ration o

THREAT – W

STRATEGY • Divestme


9/18

I2 IM>;+2 M;>


10/18

>ro4lems (aced 8y DSM

•

I+2 was decentrali5ed.• ;cquirin# royal #ist 4rocades made the I+2

inrastructure more com$le*.

• Need to 4uild I+2 ocused on ' im$ortant conce$

Clo4al standardi5ation o I+2 inrastructure andenter$rise model

Service delivery oriented I+2.

• +om$lete transormation o the I+2 was needed


11/18

Royal DSM chooses nisys

•

>rovided I2 su$$ort service to the em$loyees o DSM

• >rovided sin#le $oint o contact service des) to rto end user-s I2 issues.

• Service was $rovided in seven lan#ua#es.

• sers were mana#ed throu#h a Goint #overnanceramewor) en#ineered to $rovide end users withuniorm service e*$erience or all $rovisionin# asu$$ort.


12/18

Bision "!!

•

(ocus on Crowth =$$ortunities• Divest >etrochemical 4usiness acquire new

4usinesses com$ara4le in si5e to the divested 4

• 2ar#et sales 0 1! 4illion 3uros

• 3*$and in lie sciences $erormance material m


13/18

Divestin#

•

3ntire $etrochemical section.• +om$lete disentan#lement o I+2 o $etrochemi

rom DSM

• Sold to Saudi ;ra4ian 8asic Industry +or$ 9S;8I+"." 4illion 3uros

• Si#nifed a move rom 4ul) commodity $layer tos$ecialty $layer


14/18

;cquirin# Roche =ne um$ 2ransition Strate#y

•8ou#ht the Bitamins (ine +hemicals Division Roche or 1.& 4illion 3uros.

• ;cquisition dou4led DSM-s lie sciences 4usiness

• 2he BI2;@ >ro#ram Inte#rated a.w.a 2ransormeRoche-s B(+

• 2he eBita Initiative 7 3verythin# 4ased on DSMstandards


15/18

Recommendation

•

Im$lementin# +RM to im$rove customer relation>ull strate#y.

• Im$rovin# inormation and communication techn

• Im$rovin# eJectiveness in each de$artment 7 im$roductivity 7 minimi5in# waste.

• Introducin# Si* si#ma.


16/18

>resent scenario

•

Since "!1 0 Nutrition, Materials and Innovation • Nutrition Bitamins, ood en5ymes etc.

• Materials S$ecialty $lastics and resins

• Innovation DSM 4iomedical, 4io 4ased $roductsservices


17/18

•

@atest acquisition "!1• +u4ic 2ech 9hi#h $erormance ultrali#htwei#ht F

laminates and a4rics:

• ! countries K// million $roft 9"!1:

• >harmaceutical com$any in haryana


18/18

2H;NE L=

Documents

RoyalDSM.pptx