Royal DSM N.V.

:
Information Technology
Enabling Business
Transformation

GROUP NO-8
Bishal
Angsuman
Kavya
Preethi
Natarajan

Royal DSM N.V.: IT enabling Business

Transformation
Diversified Netherlands-based company
Coal mining, industrial chemicals, life science products
Strategic shift from highly cyclical businesses to

high growth and stable businesses

Rapid demerge and acquisitions

Use IT to enable rapid growth and acquisition

integration
IT infrastructure and applications
IT function shifts from support to strategic

Facts
DSM founded in 1902 ,and in 1906 first coal mine produced in Netherland.
In 1921, DSM started to produce coke-oven gas.
DSM began to leverage its position and capabilities to produce chemical in

1929.
After World War II, DSM opened its first research lab.
DSM began to produce caprolactam during the 1950s.
DSM built polyethylene and melamine plants in 1960s.
In 1970, DSM stopped coal mining business and closed its last coal mine in

1973.

 During the 1980s, DSM restructured and extended

its product through acquisitions.

2002- Sold its petrochemicals business to SABIC.
2000: Acquisition of Catalytica Pharmaceuticals .
2015: Aland (vitamin C).
2015: Cubic Tech
Challenges: How can DSM upgrading the companys

Information and Communication Technology (ICT) to

meet the demands of the new diversified
company ?

Business model

IT Impact Map

Symptoms & Problems

Alternatives & Evaluation Criteria

Solution & Implementation Plan

Solution: VISION 2005
Vision 2005 is the best solution to solve the current situation of the
company because it focuses on establishing operational efficiency by
implementing IT enabled operations which are standardized and
flexible. It allows the company to have periodically change without
costing too much time or reducing its productivity. The company can
also develop a long-term technology plan which accommodates
changes in operations and strategic changes with time.
Implementation Plan
Set up a qualified analysis team consisting of experts from various
business units
Develop a cross-industry outlook and benchmark strategies from
successful mergers
Create a benchmark to keep track on quality of operations (Six Sigma
practices)
Keep track of international supply chain practices by adopting
proactive outlook and, in the same time, learn from the best world wide
practices

Evaluation
Evaluation Criteria
1. The effectiveness of each department can be evaluated
by the Kaizen strategy continuous process
improvement in order to improve productivity in the
work place by minimizing and eliminating waste.
2. Ensure the goal of standardized IT infrastructure to be on
the right track by controlling the business group not to
influence network requirements.
3. DSM to be capitalized on its core capabilities, proactively
adding value creating through innovation, getting the
required return on their investment and in effect creating
a competitive edge over their competitors in order to
evaluate the solution.

Review of the case

As DSM creates the new business as a core

part of its growth strategy, the processes its

ICT group developed to performance materials
and life science product business to make its
company more stable with high growth
opportunities.
The successful strategy of Vision 2005 leads
DSM to the same high level of achievement of
probably Vision 2010 in the future and
became the business-oriented management
organization.

Current Status

In 2005, DSM starts using the Vision 2010 which

builds on the strong foundation of the former vision
2005 program.

Current Status
In 2009 - Opening of DSM China Campus and

being the first company to endorse the

'Roadmap to End Global Hunger
In 2010- DSM sells DSM Agro and DSM Melamine
to Orascom Construction Industries (OCI)
In 2011 - acquisition of majority share (91.75 %)
in China-based UHMWPE fiber manufacturer
In 2011, DSM acquired 51% stake in AGI
corporation of Taiwan.

Current Status (Contd)

2011: DSM Sinochem Pharmaceuticals, joint venture

[50%] manufacturer of generic anti-infective

molecules.
2014:Patheon, joint venture (49%) withJLL Partners. pharmaceutical manufacturing and development
company.
2015: ChemicaInvest, joint venture (35%) withCVC
Capital Partners. 3 business units - AnQore (acrylonitrile
Aliancys (composite resins),
Fibrant (caprolactam).

BUSINESS PLAN - 2015

Decentralize
Focus on emerging business > USD
Conc. China 13 B USD
Organic sales growth 5-7%
Innovation sales growth 12 20%
Strengthen regional capabilities

1B

Thank You