excellence creates added value. in ﬁscal year 2016, heraeus continued its con- certed effort to implement programs and projects designed to improve the competitiveness and earning power of its businesses. and the effort succeeded: the measures are showing a positive effect. heraeus has heightened its excellent market and customer orientation as well as its innovative capacity throughout the company and has boosted productivity in important functions and business processes. on the following pages, you can learn more about how this was achieved. delivering value through excellence
02 delivering value through excellence an overview of the various excellence initiatives at heraeus. 04 diverse, successful businesses interview with heraeus ceo jan rinnert about the future of heraeus and his plans to develop the company into a portfolio organization. 06 teamwork as the key to success heraeus is investing in a new precious metals factory in nanjing, china, and is counting on teamwork. 10 our 2016 highlights heraeus highlights from 2016. 12 purchasing 4.0 a simple overview when purchasing, despite many different data sources: new software helps with better data evaluation at heraeus. table of contents 14 enabling cutting- edge research innovations from heraeus make customer- oriented applications possible in many ﬁelds, often for the ﬁrst time. 26 training for change heraeus continues to develop its global production landscape. this includes not only extensive investments in new tech- nologies and locations, but also in training employees. 16 making the right connections with the materials solutions department, heraeus electronics is developing from a materials supplier to a solution provider. 20 proximity to our customers around the world a global network of strategically important locations helps heraeus maintain the best market presence and proximity to our customers. 22 heraeus in the 2016 ﬁscal year dates, facts, and ﬁgures for the 2016 ﬁscal year and the heraeus group’s ﬁve ﬁelds of activity. 24 courage brings opportunities eugen mate has taken on many responsi- bilities at heraeus in romania, following the principle of “sharing your courage with others.” 28 smart planning, big impact the introduction of a group-wide sap system is a major achievement, and not only for it. at heraeus medical, there were also special challenges and particularly effective project management. 30 advancing development of the innovation culture @ heraeus dr. andré kobelt, chief commercial & technology ofﬁcer, explains the develop- ment of the culture of innovation and heraeus start-ups. 32 how ideas become innovations everyone contributes: a report about the innovation process at heraeus medical components. 34 and the award goes to … every year, heraeus recognizes its bright- est minds and most talented employees with the heraeus award in a range of categories.
delivering value through excellence 2 excellence creates added value operations excellence was just the beginning. in the last 24 months, heraeus has systematically launched excellence initiatives at all levels and in all functions across the company. excellence is becoming part of the corporate dna. globally oriented industrial companies pursue in order in his book “hidden champions,” management consul- companies have in common. these “hidden champions” tant hermann simon describes the strategies that to achieve lasting success. among the aspects cited in his studies, he identiﬁed several attributes these company wants to maintain through the shareholder structure and family ownership. and this is a long-term goal: ultimately, the company wants to remain in family hands for its 200th anniversary in 2051 and beyond. “therefore, excellence is not a short-term project that we will someday complete,” says jan rinnert. “the effort to set very high goals for themselves and strive to be regarded take and hold the lead in all our activities must become as the benchmark in their markets. and although their part of our company dna.” as a result, the idea of businesses are often diversiﬁed, they have a strong focus excellence can also be discerned in many rules set forth on the relevant skills and deep expertise about structures in the heraeus corporate guiding principles. and processes. in simon’s view, however, these attributes are not merely goals; they are vital criteria for sustained giant steps success. the pursuit of excellence was not always at the forefront for the essence of these attributes can be summed up in a heraeus. but changes in customer requirements, substi- single concept: excellence. speciﬁcally, excellence at all tutes for precious metals, and digitalization are creating levels of the company. “to ensure our long-term indepen- increasingly stiffer competition. heraeus had to respond. to dence as a family-owned company, heraeus must have close the gaps, in 2015 the company introduced heraeus proﬁtable growth. this will happen only if we continually fit, a series of projects to make it more competitive. the improve our processes and the performance of our goal was to quickly reach and, if possible, surpass the businesses,” explains heraeus ceo jan rinnert. “other market standard. at the same time, the company launched important success factors are a common understanding a number of initiatives to instill excellence in all departments of management principles that focuses on performance, for the long term. a total of six different programs have the and a constant striving for innovation,” he continues. in goal of broadly embedding the idea of excellence at all levels. other words, heraeus must be at the forefront in all areas excellence in production processes was just the beginning; of its activity so that it can hold its ground against the programs followed in purchasing, human resources, competition. the company must operate with excellence innovation processes, support functions and sales. the across the board. combination of short-term projects and long-term initiatives is paying off. the positive results of this development at the same time, excellence is not an end in itself; are evident in the improved key ﬁnancial indicators for rather, it always serves a greater whole. in the case of ﬁscal year 2016. excellence has become a fundamental heraeus, the incentive is the independence that the and lasting component of the heraeus corporate dna.
heraeus | magazine 2016 3 procurement excellence procurement excellence operations excellence operations excellence competitive prices, high availability and quality, and close world-class production: since 2015, heraeus has cooperation with suppliers: as an integral component of made vigorous efforts to modernize its global production the value chain, procurement strengthens heraeus’ com - landscape through the operations excellence program. petitive position in many areas. since the procurement a team of internal production experts has been providing organization was centralized in 2014, intensive efforts on-site support for individual locations and divisions as have been made to promote excellence in purchasing they strive for further improvement. as a result, many of the through process standardization and automation, increased global business units were able to make their production data transparency, and employee training. areas more competitive in 2016. while the operations excellence initiative focused on german sites in 2016, it is being launched worldwide in 2017. innovation excellence innovation excellence commercial excellence commercial excellence innovation was once again a focus topic at heraeus in commercial excellence focuses on processes and work- 2016; after all, innovation is essential for sustainable ﬂows to improve marketing and sales activities within the growth. the close connections between development, heraeus group. the marketing and sales board plays sales, and marketing are especially important for success- an important role, bringing together heads of sales from ful innovation. within the framework of the innovation all business units. the board’s responsibilities include excellence initiative, the company devoted a great deal deﬁning standards for improving customer satisfaction and of effort to strengthening those ties in 2016, as well as increasing proﬁtability. they also make important deci- to promoting a culture of innovation. heraeus’ innovation sions like establishing an overarching customer relation culture is distinguished by an international focus, creative management system or uniform customer segmentation employees, a strong customer orientation, and global net- and the resulting market prioritization. working. the new innovation center in hanau, which will open in september 2017, is a symbol of that culture. service & ofﬁce excellence service & ofﬁce excellence people excellence people excellence since 2012, heraeus has been working within the outstanding management, processes, and standards: with magellan program to create uniform group-wide business numerous projects and initiatives in such areas as talent processes based on a standardized sap landscape. the management, employee development appraisals, and magellan program plays an important role in achieving change management, heraeus is introducing a consistent the goals established in the corporate guiding principles approach to hr management worldwide. to that end, it 2020. it also provides the necessary basis for further has established a modern leadership culture based on the digitalization projects in a number of areas. additional heraeus leadership model and is increasing the level of heraeus sites in more than ten countries went online with digitalization of its tools and processes. a wide variety of the new system in 2016. initiatives are helping heraeus reach its growth targets and reinforcing the future-oriented focus of its business, organization and workforce.
diverse, successful businesses »our goal must be to hold a leading global position in all of our operating businesses.« jan rinnert chairman of the board of management, heraeus holding excellence is the key to long-term success we continue to develop the heraeus group, making the company ﬁt for the future. an interview with heraeus ceo jan rinnert about the current status of the company and the importance of excellence. mr. rinnert, where does heraeus stand in 2017? dynamic to the company. this is also conﬁrmed by the key ﬁgures for ﬁscal year 2016, which were considerably jan rinnert: we have made signiﬁcant progress in further better than those for 2015. developing the company over the last 24 months. our business units are much more market-oriented, both why is excellence so important? organizationally and functionally; our innovation activities are more strongly focused and have accelerated enormously. jan rinnert: first of all, excellence quite simply describes with our leadership model, we have established a common the absolute determination to achieve outstanding results global leadership culture that focuses on performance and in all our activities. to do this, we not only need our highly results. lean management, and particularly excellence, motivated and well-trained employees. we must also are now taken for granted as basic principles of what we ensure that these employees are equipped with the means do. all these measures have brought an increased positive and the opportunities to do excellent work. this requires 4
heraeus | magazine 2016 5 transparent and quick decision paths through ﬂat hierarchies, businesses and the group's portfolio in response to a superb work environment, and the necessary knowledge, changes in the market and competitive environment, as as well as reliable decision-making through clear processes well as in our own needs and opportunities. any other and rules of conduct. we are convinced that excellence approach would mean no progress at all. across all departments and functions is the central key to sustained success. what additional steps have you planned? what measures has heraeus already introduced? jan rinnert: heraeus should still be a family-owned company when it celebrates its 200th anniversary in jan rinnert: we have launched various programs and 2051. this is still nearly 35 years away. if we are to reach projects in recent years that are moving us along our this long-term goal, we must set the course now. even path to excellence. in our existing production areas, today, we see how rapidly markets are changing worldwide, we implemented 25 optimization projects last year and for example through digitalization or disruptive technologies. schooled more than 800 employees in lean methods new competitors spring up. this means that we must at our training factory. at the process and it levels, we constantly question whether our existing businesses still are currently introducing a uniform customer relation have the right business model and whether they are active management (crm) and enterprise resource planning in promising future markets. we must be prepared to (erp) system. we have already come a long way with respond with agility and ﬂexibility to changing conditions. the latter project. more than half of sap users are already working with the new platform. in addition, we this year we introduced the topic of organizational excel- are now building a new innovation and communications lence to our managers worldwide. all of our businesses will center in hanau for our developers. this will enable us more closely deﬁne their strategic orientation, building to ﬁll our innovation pipeline even more effectively and their organization and selecting the right employees introduce new products to the market more quickly. accordingly. our goal must be to hold a leading global and in the coming years, we will open two state-of-the- position in all of our operating businesses. art precious metals factories in nanjing and in hanau, constructed according to cutting-edge standards and this also entails the further development of our portfolio. following the latest workﬂows. along with developing startups, we want to supplement our existing businesses with additional areas of expertise the interplay of all these measures is changing the culture and technologies. by acquiring the remaining shares of within our company in a very positive way. our employees argor-heraeus, we have taken a decisive step in this are dealing more quickly and intensively with the challenges direction. its expertise in gold and silver ﬁts very well that arise. with the heraeus precious metals expertise in platinum group metals. this makes us the world's largest provider there have also been some changes in the operational of industrial precious metals services. units. could you outline these for us? where will heraeus make future investments? jan rinnert: at the start of this ﬁscal year, we completed the measures that were initiated in 2015 and continued in jan rinnert: under the umbrella of heraeus holding, 2016 to realign the company’s organizational structure we manage a portfolio of different businesses that are and strengthen the functions of the global business units extremely well positioned in their respective markets. (gbus). we are now very well positioned organizationally, we will continue to maintain this broad diversity. diver- with eight market-oriented gbus, one gbu for startup siﬁcation protects us from ﬂuctuations in the individual businesses, and the incubator platforms for developing markets. we invest only in ﬁelds that demonstrate attractive new ideas. our focus is now on fully tapping the potential growth prospects. conversely, we will separate ourselves that we see in our companies. at the same time, it is clear from businesses that could grow better under a new owner. that we will continue to develop the organization of our this, too, is a component of excellence.
teamwork as the key to success operations excellence as the chinese economy continues to see strong growth of 6.9% in 2016, the market’s needs for precious metal chemical products and recycling are increasing. that is why heraeus is investing in a new precious metals plant in nanjing, china, using the best processes in the world as well as the latest production and environmental standards. a team effort. teamwork as a key to success 6
catherine wang purchasing manager albert joubert production manager matthias dornhecker project manager dr. daniel zhang operations director 7heraeus | magazine 2016
8 the core team gather around project manager every wednesday, around 30 employees from until production begins in 2018. the new factory will matthias dornhecker. they are planning construc- tion for the new precious metals plant in nanjing, china. it is an extensive project that will continue energy consumption; and the high environmental stan- dards exceed legal requirements. even the materials ﬂows throughout the entire plant are being optimized for short distances and efﬁcient logistics. as a german native, matthias dornhecker has been working signiﬁcantly enhance the company’s capacity to recycle abroad for many years. since 2013 he bears responsibility precious metals and broaden the portfolio of chemical for heraeus’ group engineering projects. in 1994, he went products. the new facility is a major opportunity for to china for a long-term assignment for the ﬁrst time and heraeus in china. has lived most of his professional life abroad ever since. he ﬁnds it exciting to work in a country that is undergoing “there are a lot of beneﬁts to building a new greenﬁeld so many changes. “i can be much more involved and plant,” explains dornhecker. “we are collecting all the assist to shape things. in my role as project manager, i best technologies and processes from heraeus sites coordinate all activities within the project and bring the around the world for our new factory. in this sense, we team together.” are really creating a world-class plant.” the new factory is equipped with the latest technologies. an advanced ventilation concept ensures high air quality for employees; insulated facades and plenty of natural light minimize the new factory will signiﬁcantly enhance the heraeus’ capacity to recycle precious metal products like catalysts. daniel zhang: »the plant will meet current and future business needs.« daniel zhang is one of the project’s members and has a dual role in the company. “as operation director for the current recycling site and also the future facility, i am deeply involved in every phase, from design to con- struction, to commissioning and operation yet to come.” joining heraeus in june 2016 after working in operations of international chemical companies for more than 10 years, daniel has been able to leverage his experience and know-how to make sure that the factory will meet business needs in future. he is especially keen to see through fresh eyes to ﬁnd room of improvement in the designs. “the new plant is like a chain. one single weak link will reduce the performance of the whole process. as a project team, everyone tries to utilize his and her strength towards the same goal. by working together, we are actually making a strong chain and striving to build an excellent factory.” albert joubert: »automation is a topic near to my heart.« different from daniel zhang, albert joubert has been at heraeus for 15 years. he helped to build the facility in port elizabeth, south africa in 2002 and has been
heraeus | magazine 2016 9 responsible for the production of chemical products ever experience levels. matthias dornhecker is proud of his since. he has been supporting the project in china since team, and their team spirit encourages him. “everyone 2016, contributing his extensive experience in building a wants to accomplish something, everyone is enthusias- new factory. “our production in south africa is 70 percent tic,” he says. “the project’s success is the sum of so automated,” says joubert. “we want to achieve the same many great ideas and that will help us create an excellent goal in nanjing. we are implementing the latest technolo- precious metals plant.” gies and are developing standardized processes.” this will ensure the same results in every production run, reducing shortfall batches and processing time while increasing employee safety. “we are creating something that has never existed before,” joubert says about the team’s work. “it’s demanding but also an extremely satisfying experience.” catherine wang: »the quality of our vendors is important for the performance of our new plant.« catherine wang, as purchasing manager, has been working on the project since she was on board in july 2015. “i fully support our team’s goal of building a world-class factory. it is my role to ensure the quality of vendors’ services while keeping expenses within the budget. it is a heraeus in nanjing huge project involving many vendors who help us to bring in september 2016, heraeus has begun construction the blueprint into reality. their quality, price and perfor- on the world’s most advanced precious metal factory mance are very relevant to our desired success.” in nanjing, china. the new factory will signiﬁcantly enhance the company’s capacity to recycle precious for example, prices of iron and other building materials in metals, especially platinum group metals. in addition, china keep rising since october 2016, which poses chal- the plant will increase the output of chemical prod - lenges for budget control of the project. by working with ucts and precious metal colours. amongst others, the legal and controlling colleagues, catherine has managed product range includes homogeneous catalysts and to secure an agreement with the construction company to covers solutions and salts based on precious metals. lock in a favorable price without incurring extra cost, which has helped to run the 100-million-usd project heraeus’ new precious metals factory is located at within budget. matthias dornhecker: »the project’s success is the sum of many great ideas.« the nanjing chemical industry park and will open at the beginning of 2018. it will comprise an area of 84,000 m2. the factory and ofﬁce buildings are designed to apply and even exceed latest ehs standards, codes and regulations by all levels in the country. with its advanced technologies, heraeus will support china’s 13th 5-year plan (2016 – 2020) in innovation daniel zhang, albert joubert, catherine wang, and and green development, as well as socially: more than matthias dornhecker are all experts in their ﬁelds. the 200 highly skilled experts will be working at the new project thrives on the variety of expertise, the diversity of site by 2020. nationalities, and the contributions of employees at all
our 2016 highlights our highlights for 2016 january | customer orientation may | customer orientation the magellan program, an it-based business process standard- ization platform, is launched at three sites in germany. the program’s largest rollout to date will connect over 2,000 of the 5,000 users around the world to the system. heraeus photovoltaics opens a new research and development center, the asia-paciﬁc technology development center (apac tdc) in shanghai, china. march | innovation heraeus photovoltaics establishes a regional product develop- ment laboratory in tokyo, japan – one of the most important markets for the pv industry. june | customer orientation through its new technology partner- ship with exmet, a swedish startup, heraeus expands its 3d printing portfolio to include the amorphous metals material group. april | customer orientation july | customer orientation heraeus establishes a new company in korea to better serve key regional customers, especially in the electronics industry. april | customer orientation the topping out ceremony for the heraeus innovation center in hanau. approximately 200 employees from research & development will move into the building when completed. heraeus electronics and the technology company danfoss conclude an exclusive cooperation agreement to market the die top system – an innovative advance for power modules. 10
september | innovation november | awards groundbreaking ceremony for the new heraeus medical production facility in wehrheim/taunus. at 2,800 square meters, the eagerly awaited building expands capacity to support the above-average growth that heraeus medical is targeting in the years ahead. the total invest- ment cost amounts to approximately €20 million. heraeus south africa wins the eastern cape top green organi- sation award for outstanding environmental management. november | awards the heraeus awards are presented for the ﬁrst time, combining the innovation awards and hps awards, along with the new best commercialization award. september | innovation heraeus precious metals: ground- breaking ceremony for the new heraeus precious metals factory in nanjing, china. the factory will meet the very latest production and environmental protection standards. december | customer orientation heraeus sells its global target businesses to the materion corporation, a technology group headquartered in mayﬁeld heights, ohio. october | awards december | customer orientation heraeus ranks among the top ten family businesses in germany: heraeus receives recognition as a top 10 family business from the foundation for family businesses. heraeus expands its expertise in platinum recycling, acquiring vino plasma gmbh in karlstein, germany. 11heraeus | magazine 2016
purchasing 4.0 12 procurement excellence purchasing 4.0 in procurement, the data transparency is a vital basis for strategic decisions and negotiations with suppliers. at heraeus, an innovative new software ensures that buyers like monique rieger can easily keep track of everything despite numerous different data sources. artiﬁcial intelligence and modern language processing makes this possible. »where we were previously just an unremarkable mid-level customer, we are now supported as a global key account.« monique rieger purchasing manager heraeus precious metals
business maxim. because as the logic goes, every euro that you don’t spend lands on the bottom proﬁt lies in purchasing, at least according to the systems at heraeus often made it impossible to line. “in the past, the decentralized structure and heraeus | magazine 2016 13 supplier, who had previously supplied heraeus using a decentralized approach. “where we were once an insignif- icant medium-sized customer at ten different sites, we are now considered a global key account,” rieger enthuses. another colleague was able to use to the data to rene- gotiate the global agreements with headhunters and to see where we were spending money,” says monique rieger, purchasing manager of heraeus precious metals (hpm). efﬁciently bundle part-time stafﬁng companies in germany. she also has global responsibility for purchasing chemical “by integrating the data, we can ﬁnally see where it products. even today, there are over 14 different purchasing makes sense to meet with the suppliers and to work out systems in use at over 100 sites within heraeus. in addition, a better deal for heraeus.” the point is not always to get each global business unit (gbu) uses its own product lower prices or more service: “because we work in some groups, descriptions and serial numbers for the individual industries with very few highly specialized suppliers, products. “since the data was not compatible, it was security of supply plays a crucial role,” states witte. in the extremely difﬁcult to get an overview of our purchasing future, buyers will be able to deﬁne much more effectively activities within the group. sometimes we were not even the number of suppliers we should be cooperating with in aware that different areas were buying the same product from certain industries or regions. the same supplier at different prices,” rieger recalls. this makes strategic decisions like joint selection of suppliers or artiﬁcial meets human intelligence joint purchasing in order to negotiate better terms difﬁcult. better deals by using a wide range of data sources data. but that does not mean that we can do that without artiﬁcial intelligence makes it possible to integrate the human intelligence. “in the early stages, in particular, since 2014, heraeus has been working on harmonizing its the system frequently asked when it was unsure,” rieger it infrastructure and process landscape with the magellan reports. does the product description “automobile” always program. procurement systems are being standardized as refer to the company car – or could it sometimes be a well. yet the entire changeover will not be completed until promotional gift for eur 3.90? each human response is 2019. “too long, when you consider the savings – and translated into a rule that will be applied going forward other strategic advantages, too – we will lose during that when a similar situation arises. “our system generated time,” says dirk witte, chief procurement ofﬁcer. over two million such rules in the ﬁrst four weeks alone, only a fraction of those with human assistance.” working with the italian software specialist creatives, they introduced a solution in 2016 that can obtain an aston ishing in this way, the software will – in a manner of speaking amount of information from the existing data for heraeus – make itself redundant over the medium term. because buyers. state-of-the-art language technologies and artiﬁcial in addition to the daily strategic analyses carried out by intelligence make it possible for the system to combine the the buyers, it is also now being used to transfer data from data from all 14 systems currently in use – thus allowing the the 14 legacy systems into the new, single sap system. buyers to analyze it. what companies supply heraeus in a does that mean it is only a temporary solution, even if product group worldwide? do other gbus buy the same a highly intelligent one? in the words of dirk witte: product? what suppliers offer the highest discounts? “we “especially when it comes to acquiring new businesses, could already generate group-wide analyses after only a few which heraeus intends to do in the next few years, rapid weeks,” says rieger, “and use them to identify areas where integration of the procurement data and processes will we could negotiate more favorable terms.” be key. our tool would speed up the categorization of different types of data so that we could utilize advantages chemical products, for example: using the data, buyers quicker,” witte continues. “it just knows heraeus too were able to get signiﬁcantly better terms with a global well already.”
enabling cutting- edge research 14 enabling cutting-edge research innovations from heraeus make excellent research and customer-oriented applications possible in many ﬁelds, often for the ﬁrst time. this is evident once again in ﬁscal year 2016, with outstanding contributions ranging from improving a classic product to helping prove einstein’s theory of relativity. the culture of innovation at heraeus is distinguished by its international orientation and by creative and globally networked employees. the clear focus on customer needs and the conscious decision to look beyond the project at hand provide fertile ground for innovations. this combination of expertise and curiosity steadily delivers new ideas for developing solutions for a better future in exciting areas of application, including ﬂexible touchscreens, electromobility, medical implants and even research in outer space. awarded: best innovation 2016 in 2016, the heraeus award for best innovation went to an american developer team from heraeus medical components for the development of a spring coil guidewire design that offers signiﬁcant improve- ment in clinical performance. with the new guidewire that is used to facilitate catheter implantation, heraeus has developed a new kind of medical product for minimally invasive medical procedures. the coil- wound guidewire is made of a kink-resistant patented nitinol alloy. guidewires enable the correct positioning of therapeutic catheter products within blood vessels for the infusion of medications directly into the heart. one major problem with traditional guidewires made of stainless steel is their tendency to kink or bend. the new guidewire technology from heraeus eliminates this problem, taking the burden off doctors which accelerates treatments and reduces costs. a new window on the universe: high-purity optical quartz glass proves einstein was right albert einstein’s theory of relativity is no longer merely a theory. by supplying a super-high-tech material made of quartz glass for gravitational wave detectors, heraeus contributed to the proof of einstein’s general theory of relativity. in february 2016, experts from the laser interferometer gravitational-wave observato- ry (ligo) announced their sensational detection of waves, which einstein had postulated more than 100 years earlier, a discovery certain to be nominated for a nobel prize. gravitational waves – “wrinkles” in the space-time continuum – are emitted by distant astrophysical events such as supernova explosions, neutron stars, and black holes. for its elaborate measurements, ligo utilizes highly sensitive optical interferometers with perpendicular arms 4 km long. these optical instruments, which can measure very precise changes in length, are considered the most accurate “rulers” in the world. they contain heraeus suprasil® 3001 quartz glass, which boasts extremely high transmission values and optical homogeneity.
printing digitally on glass with real gold for the ﬁrst time precious metal colors have been part of the standard heraeus repertoire since 1896. heraeus was able to astound even in this traditional product segment in 2016, and the world of creative decorations is now richer by one innovation: with heraeus inkjet gold, substrates such as glass or ceramics can now be printed digitally with real gold. previously, industrial precious metals decoration was limited to direct screen printing, direct thermoplastic printing, or decals. now, the liquid precious metal preparation can be applied to smooth surfaces, such as tiles or perfume bottles, in a digital printing process. this makes it possible to produce high-quality and sharply contoured ﬁnishes readily and with almost no odor. after printing, the products are ﬁred at approximately 800°c, resulting in a lustrous gold ﬁlm about 150 nanometers thick. new carbon gives electromobility a boost heraeus is developing materials for energy storage in highly efﬁcient high-performance batteries and supercapacitors, such as ones used in electric and hybrid vehicles. porocarb®, a conductive, porous and ﬁnepore carbon powder, is revolutionizing battery techno logy as a functional additive that boosts performance. porocarb can increase the energy density in batteries for electromobility while still maintaining their charging capacity. in pilot projects with customers, heraeus has demonstrated that this carbon powder, when used as a battery additive, increases the storage density and performance of lithium-ion batteries by 20 percent – a veritable milestone for electromobility. conductive polymers make rollable and foldable touchscreens possible within the next ﬁve years, it may not be unusual to sit back and read the latest news on a rollable and foldable touchscreen, as curved three-dimensional displays become part of our everyday lives. heraeus is accelerating the development of these touchscreens with clevios™, a line of innovative conductive polymers. in 2016, researchers developed a ﬂexible, fully functional 7-inch (17.8 cm) touch panel on a polyimide ﬁlm substrate only 12 micrometers thick in collaboration with the industrial technology research institute (itri taiwan). the research project yielded an improvement for the mass production of clevios™- coated ﬁlms. with this conductive coating, manu- facturers can produce touchscreens with improved functionality on an industrial scale for ﬂexible, curved, and three-dimensional touchscreens as well as wearable functional apparel, for example.
making the right connections commercial excellence making the right connections 16
heraeus | magazine 2016 17 martin sattler heraeus electronics, head of customer solutions dr. muriel thomas heraeus electronics, head of material systems with materials solutions, heraeus electronics has created a department that further develops the company from a materials supplier to a solution provider. more than ever, the market is seeking system solutions and one reason is that the growing segment of power electronics is becoming more important all the time.
18 “we have to develop further.” dr. thomas, whose ﬁeld just supply materials,” declares dr. muriel thomas. if we want to grow as a materials supplier, we cannot is engineering, joins her colleague martin sattler in overseeing the new materials solutions department. as head of material systems, dr. thomas is responsible for sattler adds: “there’s not much room for innovation if you just focus on the material. but when you think about how the materials interact, entirely new possibilities open up.” in terms of the booming power electronics sector, this means that a company like heraeus which manufactures solders, sinter pastes, bonding wires and metal-ceramic all the technical aspects, while sattler manages customer substrates and also has in-depth knowledge of connection solutions, the marketing and business development of the technologies can offer more than just the individual new solutions. three questions for… components. and that is precisely why the application center was built at the hanau site. or, as sattler puts it: “materials solutions is a strategic orientation that takes concrete shape in the application center.” tailormade modules for customers worldwide at ﬁrst glance, these look like quite conventional labora- dr. klemens brunner, tories: gray esd ﬂoors, 5s labels everywhere, clean-room head of marketing & sales, lights on the ceiling. the space holds a wide array of heraeus electronics head-high machines that look like the ovens in an industrial bakery if it weren’t for all the monitors, cables and what does the application center mean for heraeus? microscopes. these machines are used to create the new this area exempliﬁes the group’s movement toward connections, combining metal-ceramic substrates, solders close cooperation with customers in resolving their or sinter pastes, semiconductor chips, bonding wires and speciﬁc problems and managing development casting compounds in precisely the right combination to projects. furthermore, with the application center, produce modules perfectly tailored for each heraeus heraeus goes beyond simply selling materials and electronics customer. material systems; now we can also be a service provider. that’s evident in constructing prototypes as well as these power electronics modules are ultimately used supporting the customer in the design and simulation in a variety of applications, particularly in the ﬁelds of of ﬁnal applications in power electronics. electromobility and renewable energies. for a provider of high-quality products such as heraeus, it’s the perfect ﬁt is the application center a blueprint for the market because high durability, reliability, and a long lifespan are worldwide? the most important demands placed on the modules in the application center, as it was built here at the these two ﬁelds of application. hanau site, develops solutions for customers all over the world. but in fact, given the importance of the furthermore, electromobility and renewable energy pro - chinese market, we are going to build another labo- duction are experiencing a global boom. “as a result, our ratory like this in shanghai. people working there will customers can’t satisfy the demand if they keep on making be in a better position to meet the local demand for system solutions. what role will cooperative projects play in the future? a company that evolves from a materials supplier to a solution provider automatically moves closer to its customers. after all, close cooperation is the key to success in the development of complex customer- speciﬁc system solutions. this means that cooperative projects with key customers, to include jointly devel- oping and marketing products, will be increasingly common in the future. »we cannot continue to be a product supplier if we want to grow as a product supplier.« dr. muriel thomas
heraeus | magazine 2016 19 »we are expanding our innova - tions portfolio by expanding into system solutions.« martin sattler everything themselves,” explains sattler. “they need a supplier who offers more than just delivery of the materials. and that’s exactly who we are.” to offer this added value from simulation to prototypes to low-volume series the team identiﬁed and systematically closed capability gaps, muriel thomas explains. “we new subsidiary in south korea brings heraeus closer to the customer seoul is a city of superlatives. with over 25 million inhabitants, the greater metropolitan area is among the ﬁve largest urban areas in the world expanded our machine park and also set up a laboratory and is one of the world’s leading economic regions. in for testing and qualifying the modules.” to obtain infor- june 2016, heraeus established a new subsidiary in mation about the reliability and lifespan of materials and south korea and opened ofﬁces in suwon, around connections, the modules are also destructively tested in 48 km south of seoul. steve jang, president of the application center. this can be seen in the next room. heraeus korea, explains the advantages of the new overalls, hoods and booties pulled over shoes are required subsidiary: “as a home to large conglomerates and in this laboratory as well, and the room is likewise ﬁlled important sectors such as the automotive supply and with rows of head-high machines. dr. thomas explains: electronics industries, south korea has long been “here, we test how high the operating temperatures can go an important market for heraeus. thanks to the new before the systems fail, that is, when wires come loose or structure, we can conduct business more efﬁciently solders give way.” but the modules aren’t just “cooked.” and provide our customers with better service.” they are also exposed to electric voltages and heat/cold, and their progress toward failure is even tested nonde- heraeus korea is not only an advanced base of structively using acoustics. increased diversity for better innovations heraeus electronics. the new subsidiary in suwon is also consolidating the sales and marketing activ- ities for various other business units. furthermore, the customers of both heraeus emerging business instead of materials, heraeus now offers booming markets and heraeus noblelight beneﬁt from an application around the world precisely tailored modules that do exactly laboratory. what the customer wants. this is known as forward integration. or, as sattler puts it: “we’re not just selling closer proximity to customers, shorter response materials, we’re selling solutions.” times, and a strong market presence should also help heraeus gain additional market share. “the but building the application center required more than customers are more aware of our entire portfolio merely investing in new machines or infrastructure. it now,” steve jang is pleased to note. however, the also called for advanced training, as well as recruiting head of the new subsidiary wants to establish more employees with skills that were not yet available within the than a name. steve jang has set grand objectives company. and it involved changes to the work itself, says for south korea, and this founder’s spirit extends to dr. thomas: “the diversity of skillsets and the interaction the design of the new ofﬁces in gwanggyo business in common laboratories and workgroups – all of this leads center, which exude a bit of a start-up atmosphere. to new ideas and innovations. this is a great example of the rooms are open plan and there are almost no how to overcome the silo mentality.” and as she looks out assigned workspaces: for jang, this provides the best the laboratory window at the new innovation center under framework for ﬁnding creative solutions that beneﬁt construction right next door, she adds: “i’m quite certain the customer. that this concept will take off there as well.”
proximity to our customers around the world 20 proximity to our customers around the world commercial excellence is an important component of the overall concept of heraeus excellence, which drives forward processes and procedures that improve marketing and sales activities. heraeus has been promoting this since 2016, presenting heraeus excellence awards in the “best commercial initiative” and “best sales strategy execution” categories. “we want to emphasize the important role our sales and marketing community plays at heraeus,” explains dr. andré kobelt, chief commercial ofﬁcer and a member of the heraeus holding board of management. at heraeus, the concept of commercial excellence is applied worldwide. a global network of strategically important locations enables heraeus to be as close as possible to its customers as well as its markets. this is the only way to offer the customers the best possible solutions. our employees work together with our customers daily on-site and really listen to them. this helps us understand their problems and requirements so well. for example: heraeus photovoltaics must fulﬁll speciﬁc requirements in the fast-paced solar industry to maintain a leading position in this changing market. having a global network allows heraeus to react to market trends and optimize its prod - ucts in the shortest possible time while meeting current customer demands. heraeus is not only a supplier of materials but also a sought-after development partner, and we are directly involved in the customers’ projects. heraeus electronics is also involved in the development process of a major japanese semiconductor manufacturer and signiﬁcant player in the power electronics market. building on rela - tions with strategically important customers is invaluable for breaking into the japanese market. by providing development services, heraeus takes on responsi bility, successfully building up a sense of trust, a cornerstone of successful business relationships, and not just for japanese customers. »the heart of our success as a business is giving customers an unmatched level of service and support. since heraeus sensors are used in so many different industries and appli- cations, our team has to be knowledgeable in every one of those businesses, and i believe that’s what sets us apart from our competitors. as a simple example: we always answer our phones; it never goes to voicemail during working hours. and we respond immediately to customer emails, even if we do not have the ﬁnal answer. hst is not about sales transactions; to us, it’s all about trust. our employees have decades of experience and expertise, and it is important that they are available and accessible to share their knowledge and support our customers. we do not view customer service or technical support as a business cost, it’s an investment in our customer relationships.« viren pathare vice president and general manager, heraeus sensor technology americas america 2,088 527.4
»the profound application knowledge at heraeus is the key to helping our customers with problem solving. as a former employee of a strategically important customer, i am very familiar with our customers’ needs and market demands. exchanging experiences in an open and reciprocal manner paves the way for trusting cooperation that beneﬁts both companies. heraeus is directly involved in the cus tomer’s development projects, which gives us a sustainable relationship with the customer and provides inspiration for our own product innovations. « peter dietrich product manager material systems, heraeus electronics heraeus | magazine 2016 21 »we do not take customers for granted. there is plenty of competition and options. every time we meet with a prospective or existing customer, our goal is the same: to identify the needs in their businesses where a heraeus noblelight product or system can add mean- ingful value to their operation. everything we do and everything we produce is focused on how it can generate beneﬁts for their processes. while we are a technology company, our business ultimately comes down to the personal relationships we have with customers. that means truly listening to their needs and looking for ways where we can apply our expertise and technical innovation to help - ing them solve those challenges. to me, that’s how we earn their trust and earn their business.« ian bartley uk business manager, heraeus noblelight »our photovoltaics customers need to be agile and innovative because the market changes so quickly. that is why we hyper- focus on customer relationships. we engage our entire local team, from r&d to production to support staff, to work with customers, understand their needs and requirements and deliver quality and innovation quickly. commercial excellence has so many different dimensions, but we all embrace the fundamental guiding principles: listen to their needs, and anticipate their future needs; be responsive and work with a sense of urgency; and deliver what we promise, every time. that’s the way to measure success: when you make a customer’s business successful.« dan zhang global sales head, heraeus photovoltaics »commercial excellence means to me to be successful, no matter the circumstances. it means to meet exceptional levels of service by being sustainable in planning, commitment and passion in all situations. in order to achieve a high level of customer satisfaction, you need good business ethics and a strong and motivated workforce on all levels. moreover, it is about surpassing expected company work standards and reﬂecting professionalism in character, approach and resolve. this is what distinguishes heraeus as a preferred supplier. « kirsti kuhn sales account manager, heraeus south africa europe (excluding germany) 1,560 344.8germany 4,703 227.6 number of employees as of dec. 31, 2016 revenue excluding precious metals in million € in 2016 africa/australia 134 47.1asia 3,884 857.9
heraeus in the 2016 fiscal year 22 heraeus in 2016 revenue excluding precious metals by region€2,005million revenue excluding precious metalsgermany 12%americas 26%asia43%africa/australia2%europe excluding germany17%12,369 employees>6 ,000 patents and patents applications
heraeus | magazine 2016 23 heraeus our areas of expertise in the ﬁscal year 2016, heraeus holding comprised the following areas of expertise healthheraeus carries on the group’s long tradition in this area as it continues to be one of the world’s most in-demand suppliers of medical technology and medical components.industrial applicationswith this area and its expertise in dealing with high-temperature processes and the industrial pro-cessing of precious metals, heraeus has long been a sought-after and reliable partner for industry. electronicsthis area supplies to consumer electronics customers worldwide and offers outstanding solutions for the automotive, information-technology, and telecommuni-cations sectors. environmentheraeus products from this area make a signiﬁcant contribution to efﬁcient energy production. this area also impresses with its power of innovation. corporatethis area of activity focuses on the group’s ground-breaking and future-oriented activities. the group has bundled its ground-breaking and forward-looking activ i- ties in its corporate area. this area is also home to heraeus’ corporate functions that perform inter-divi-sional functions for the group’s operating companies..revenue excluding precious metals in million €2016 2015 399.7 356.7revenue excluding precious metals in million €2016 2015 564.8 579.0revenue excluding precious metals in million €2016 2015 630.4 592.1revenue excluding precious metals in million €2016 2015 100.5 115.7revenue excluding precious metals in million €2016 2015 309.4 285.6
courage brings opportunities people excellence courage brings opportunities eugen mate has taken on many responsibilities at heraeus in romania. he is convinced that courage is contagious. and courage is a great motivator. years ago, he was beginning a new chap - when eugen mate joined heraeus four ter in his career. his ﬁrst responsibility was transferring a production location from france to romania and establishing a new production facility. as the team leader for production, he from experience. fortunately, he is able to discuss any major challenges with his super visor, who has been very helpful, and his team goes above and beyond their job description to give him support. “we make decisions together and share our opinions like a family,” he smiles. learned a great deal during the transfer and oversaw tackling the difﬁcult tasks ﬁrst the start-up of production. “there were just a handful of people on the team and we were compiling the when hrom implemented the hps system – speciﬁcally documentation, processes, and volumes for our globally uniform production standards – mate was customers,” explains mate. “although the french involved in the standardization of 5s and the align- colleagues were very cooperative, that was a major ment of the entire department. after achieving positive challenge for us, and the results weren’t always clear. audit results, heraeus offered him the position of lean but together as a team we concentrated on the manager. “accepting this position meant changing the possibilities of success, not failure.” mindset of my colleagues, giving them direction, and developing new ideas that would impact all of our after that, mate worked simultaneously as a process employees,” states mate. he is the kind of person who engineer and team leader. a year and a half later, gladly shares his knowledge and experience with heraeus romania (hrom) opened a competence others, so he accepted the job. center for solder powder. mate was tasked with intro - ducing new technologies for production and developing “throughout all these years i have followed an import - new methods at an affordable cost. he was also ant principle,” explains mate: “share your courage with involved when the romanians helped their chinese others.” he ﬁrmly believes this is the way to overcome colleagues from heraeus (zhaoyuan) precious metal obstacles and inspire people who need motivation. his materials to build two new production lines and move advice: “start your day with whatever task seems most to a new location. “with new challenges, you always challenging and complicated, and your other responsi- feel a bit like you’re on your own,” says mate, speaking bilities will seem effortless by comparison.” 24
»together as one team we concentrated on the possibilities of success, not failure.« eugen mate heraeus romania, timis¸oara, lean manager 25heraeus | magazine 2016
training for change 26 training for change heraeus continues to develop its global production landscape. this includes not only extensive investments in new technologies and locations, but also in training employees. the excellent leadership in production program provides one example, as managers gain the right tools for tomorrow. christopher dürhold shift leader hpm schmelze, hanau
heraeus | magazine 2016 27 »the only way we can comprehensively modernize our production is if we equip our management team with the necessary knowledge.« michael werth, group excellence ofﬁcer participants’ needs. “i was able to apply a lot of what i learned in my project directly to my work, and i also built a good network across the company, since managers from various gbus took part,” says dürhold. in addition, the project’s beneﬁts have more than made up for the cost of his training. heraeus is investing 18 days of training for each of the participants, with a clear goal in mind. as group excellence ofﬁcer michael werth puts it: “the only way we can comprehensively modernize our production is if we equip our management team with the necessary knowledge.” the program is linked closely with the modernizing oper - ations with the operations excellence program (see page 3), which launched in 2015. “the managers are spe - ciﬁcally trained in connection to a module,” says werth. around 300 employees will complete the program in just the rhine-main region by 2018. the international rollout of the program began at the start of 2017. theory and application coming together: as part of the training program, christoph dürhold worked together with colleagues to develop a new approach for supplying crucibles used in melting precious metals. when it comes to melting precious metals, the vessel used is essential. a crucible, as these containers are called, can often only be used once. at the same time, different alloys each require their own crucibles. “since we process so many different products, we needed a lot of storage space,” explains christopher dürhold. as shift leader, he is one of the people responsible for materials procurement, equipment, and resources for the smelter at hmm in hanau. the problem is that storage space costs money, and the crucibles tie up a great deal of capital in the warehouse. as part of the excellent leadership in production program, dürhold developed a new approach for supplying crucibles, together with his team and colleagues from other gbus: in the future, the entire process will be mapped in sap. logistics will automatically restock when inventories get low, which will help to reduce the overall inventory and make it no longer necessary to keep extensive stocks on hand. this will save around 60,000 euros annually. continuing to develop the leadership culturedürhold is one of the nearly 120 managers to have already completed the program since the start of the year. the program is aimed at the ﬁrst two levels of managers on the shop ﬂoor. the excellent leadership in production program emphasizes that participants actually take their newfound knowledge and apply it to their daily work. “the theoretical phase is followed with two practical phases, in which participants implement their own optimization projects, supervised by a trainer,” explains georg remmers, head of people and organizational development and hr marketing. the program also makes the leadership model easier to grasp, as heraeus has deﬁned what a leadership culture that supports the long-term growth targets looks like. all four pillars of the model are involved: additional lean knowledge, for example, supports skills in the “leading the organization” area. in the practical phases, special emphasis is placed on reﬂecting on the role of leadership, and thus also improvement in the “leading myself” area. the program’s topics can also be tailored precisely to
smart planning, big impact 28 service & ofﬁce excellence smart planning, big impact the introduction of a group-wide sap system is a major achievement, and not only for it. it means the revision of all the business processes in each business unit. at heraeus medical, there were also special challenges – and particularly effective project management. ments of the regulated environment we work in, while also supporting our own sales activities.” this is especially important here, as heraeus medical markets its products in many countries directly. each day, hundreds of shipments leave the production sites in wehrheim and are transported via external warehouses and logistics service providers to reach hospitals and pharmacies all over the world. for the project known within heraeus as magellan, reﬂecting its global nature, this meant additional requirements placed on the software, corresponding to the legal require- ments in the healthcare market. it also meant mapping a host of interfaces to logistics service providers all over the world. or, to put it another way: petermann and her team had two major additional hurdles to overcome. the formula for success: transparency it should come as no surprise: they rose to the challenge, and more. the introduction of the sap platform at heraeus medical set the standard group-wide for the future con - nection of additional operational units. what was the key to their success? petermann thinks for a moment, then quickly sketches a clear picture of the complex project: “we laid the cornerstone for our success right in the kickoff event. from the beginning, we had open commu- nications with everyone involved, and talked about the changes to come, the necessary process adjustments and potential stumbling blocks.” the overall process also beneﬁted, petermann says, from the fact that her team is open to changes: “we see change not as a threat, but as a challenge, almost a game,” she explains. after all, heraeus medical is growing rapidly. organizational adjustments are almost a matter of routine, and the constantly changing regulations in the healthcare big it projects don’t run on their own. nicole peterman of heraeus medical explains why successful project management and leadership are intertwined. she says: “clear communications, close cooperation, and the great dedication of everyone involved were the most important factors for the success of this project. good planning, precise control and careful follow-up are secondary.”but the planning came ﬁrst. in that regard, nicole petermann beneﬁted from the fact that as head of finance, commercial services & operations at heraeus medical, she is very familiar not only with her own depart - ments, but also with the heraeus group. she joined the company in 1995 to complete her dual studies program, then worked in a variety of other positions before ﬁnally coming to the heraeus medical global business unit (gbu) in 2008. as the project manager when the sap platform was intro - duced in her department, petermann quickly identiﬁed the unique characteristics of her gbu as part of the overall process: “we had to take into account the special require-
heraeus | magazine 2016 29 »close cooperation with everyone involved was the most important factor for the success of this project.« nicole petermann head of finance, commercial services & operations, heraeus medical market require a certain degree of ﬂexibility as well. “we’re accustomed to adapting our structures to meet new demands. but we also know this: we implement any changes only in ways that are appropriate for our business.” to ensure exactly that, heraeus medical deﬁned its requirements for the new software early on, and potential effects on its business were carefully analyzed: how will our processes change as a result of the sap standard- ization and business process harmonization in the new software? what are the implications of these changes, and where could they become critical for our business? “we deﬁned more than 130 of what we called ‘change impacts,’ that is, factors that have major effects on our processes as a result of the introduction of the platform. then we systematically tackled these challenges,” petermann explains. this entailed numerous training sessions, informational events, and workshops establishing new processes, revising operating procedures, and drawing up extensive documentation that forms the basis for val- idation of the software. in some cases, the software tem- plate had to be ﬁnally adapted to meet the speciﬁc needs of heraeus medical, after which the comprehensive test phase began. “ultimately, we had made a ﬁrm commitment: we would not launch the system until it was working perfectly.” and it did. “our customers hardly even noticed the rollout – and that’s the way it should be,” petermann says. and is there anything that she would do differently today? “there’s always room for improvement, and that goes for this project too,” petermann replies. however, she still has to stop and think before she replies. “we gave out plenty of information at the start and throughout the course of the project. still, in the next project i would pay even more attention to a carefully considered and ongoing process of communication. because well-informed and dedicated employees are the key to success.” magellan a common and largely standardized sap enterprise resource planning system (erp) will help to improve and harmonize business processes in every area of the heraeus group – this is the purpose of project magellan. the ambitious goal: to manage the organization better, boost efﬁciency, strengthen competitiveness and accel- erate growth. the project has already been rolled out in 6 out of 9 global business units.
advancing development of the innovation culture @ heraeus 30 innovation excellence advancing development of the innovation culture @ heraeus as of january 1, 2017, the three startups (fuel cells, additive manufacturing, battery technology) were removed from the structure of the heraeus new business- es global business unit. dr. andré kobelt, chief commercial & technology ofﬁcer, explains why the change was made. part of an operative unit. instead, as “incubator platforms,” they now report directly to the dr. kobelt, the heraeus startups are no longer holding board of management. how did this step come about? do you hope that our startups will create synergies for our established gbus? andre kobelt: by their very nature, startups are like lions in the wild, trying to make the most of their scant resources. they do this by networking, working with external partners. andre kobelt: startups are young entities with great ideas their agile way of working can be an inspiration to our and enthusiastic employees but they have yet to identify established businesses. at the same time, the startups their successful business model. this search proceeds can also learn from the gbus’ experiences – in short, the dynamically. our operational units, the global business interaction is very beneﬁcial. units (gbus), have already found their model. this basic difference calls for different treatment, whether it has to do you intend to establish new startups, and should these do with supervision, planning, releases or other details. be managed as independent entities outside the gbus? therefore, after about 20 months we have taken the start- andre kobelt: when we want to establish a new startup, we ups that have been successfully launched and moved them examine the idea and explore its technical feasibility, the out of the heraeus new businesses gbu, with the clear patent situation, and whether there is an attractive market. goal of giving them more focus. as a result, all startups if our analysis comes up positive, we consider establishing now report directly to the holding board of management. a startup. such a startup can be managed either as an every three months, we hold a meeting to review their independent entity or within a gbu. the decision is made ﬁnances, business practices and scientiﬁc status and to on an individual basis. we currently also have startup discuss their future prospects. structures within the gbus, whether it's the materials so the management of their business takes place at short heraeus noblelight, or, especially, regenerative medicine intervals, very efﬁciently. we hope that we are building at heraeus medical. i think it’s terriﬁc that some dedicated new, attractive businesses with the startups. but we must employees have sought me out in recent months and asked also clearly acknowledge that not all startups will succeed. for the green light to establish such a startup. i hope that accepting failures is also a part of this culture. this interest is long-lasting. solutions at heraeus electronics, the topic of leds at
»we want to grow sustainably.« dr. andré kobelt member of the board of management, heraeus holding how long are the innovation cycles within the gbus? department for the heraeus group; the projects are andre kobelt: starting in july 2017, for all the gbus we will also look quarterly at the entire product life cycle, the whole thing is supported by a new approach to space from the initial idea to marketing. the process includes and work that makes greater use of digital resources for the head of the gbu, the heads of innovation and collaborative efforts. we purposely intend not to have marketing, and the holding board of management. it individual ofﬁces, but modern, open spaces for collabora- selected, developed and ﬁnanced by the respective gbus. is important to close the gap between research and tion. development and marketing and sales. what sort of expectations do you have for the new gbus is important. the most signiﬁcant development communication with the employees in the respective innovation center? projects must be known across the organization, and there must be a steady ﬂow of information about their progress andre kobelt: basically, it was conceived as more of a and anticipated launch dates. we spend approximately communications center. our goal is to intentionally pro- 150 million euros on research and development and we mote interaction among the various developers and across must have transparent reporting about its use. their skillsets. this will also strengthen our innovative capacity. employees from different gbus work in ﬁve areas at the same time, it is also important to communicate of expertise. innovation doesn't happen in just one place, our lighthouse projects to the outside world, though only and it's more than just the physical product innovation. we those for which we already have something to report. this intend to use the new building to break up isolated islands communication helps us in positioning the company, of knowledge, by bringing a critical mass of knowledge recruiting new employees, preparing for product launches, holders together in one location to share their experience. and ultimately in motivating ourselves. we can be proud of this is by no means the central research and development the great projects we are working on at heraeus. 31heraeus | magazine 2016
how ideas become innovations 32 turning ideas into healthcare innovations at heraeus medical components we are convinced that the ideas of our employees make a very valuable contribution, because innovation in the health care sector is vital. our staff continuously analyzes customer needs and industry trends to discover new technologies and solutions to improve treatment and patient care. their product “pipeline.” it is clear why these pipe- companies place enormous resources and attention on in healthcare, device manufacturers and pharmaceutical lines are such a coveted asset: product development is a long, challenging and highly-regulated process. a robust pipeline is vital to bring promising life-changing technologies to market. globe, employees bring forward their best new ideas in four primary categories: best product innovation, best inno- vation cooperation, best manufacturing process and best business process & lean initiative. since its inception the innovation program has collected over 180 projects from employees in the americas, europe and asia. submissions range from ways to improve ofﬁce procedures to supply chain operations to complex engineering initiatives and as a leader in the development of high-value functional new product development. components and finished devices solutions for the medical device industry, heraeus medical components every idea counts (hmc) has created an innovation culture with a vital purpose: to cultivate a “pipeline” of new ideas throughout to guggenheim, the program strengthens the organization’s every department of the organization. hmc president patient-ﬁrst mission. as for the criterion for evaluating nicolas guggenheim believes this approach is the best projects and ideas, the management team has a surpris- way to ensure the company’s competitiveness and success. ingly agnostic perspective. “every idea that comes forward, guggenheim says, “innovation happens when each whether it is large or small, positively contributes to our individual thinks about new ways to work, to solve issues, mission to improve the lives of patients. it does not matter to improve things.” by being open-minded, approaching whether that innovation impacts an ofﬁce, an r&d lab, an things creatively and thinking critically, he adds, “that engineering initiative or our manufacturing and operations, next idea could make a difference in helping our customers they all add up.” improve outcomes and patient care.” the hmc idea pipeline goes beyond traditional product oriented culture and high-performing workforce. according focus, emphasizing a holistic approach. in 2014, the or- to roycie eppler, senior vice president of human ganization launched an hmc innovation award program to resources, the program has galvanized employees across encourage and engage employees at all functions to bring every function to challenge the status quo and seek new fresh thinking and imagination to their work. across the ways to do things better. to eppler, one of the program’s this focus also enables hmc to create an achievement-
heraeus | magazine 2016 33 biggest successes is that “it has allowed us to re-deﬁne innovations like this are rewarding to nicolas guggenheim the meaning of innovation. it’s not just the exclusive because every idea, every project and every initiative domain of our r&d scientists and engineers. the program enables the organization to deliver greater value to medical re-enforces the message that every employee is empowered device customers, healthcare providers and, most impor- and encouraged to bring forward innovative solutions tantly, patients. “to all of us, the ultimate well-being of and ideas.” patients is a sacred responsibility. a single, simple idea can make all the difference.” one example of the impact of heraeus medical components innovation can be seen in the critical area of guidewires, which are ultra-thin metal wires (with a thickness of about 0.014 inches) that help guide catheters through a delicate network of blood vessels to safely reach treatment zones. in critical cardiac treatments such as an angioplasty, surgeons need to safely navigate medical devices from a needle entry in the leg through the blood vessel and into the heart at the exact obstruction in the artery. two questions for… heiko specht, senior vice president innovation, heraeus medical components dave liebl, executive vice president of finished devices innovation is often focused of r&d, scientiﬁc and said, “blood vessels have many branches similar to a tree. engineering functions. how did you make hmc’s as the surgeon steers the guidewire through this complex approach more holistic? network of twists, turns and blocked arteries, the guide- innovation is not the sole responsibility of the hmc wire often kinks and requires the process to be repeated. innovation group. we encourage every employee, we want to reduce and eliminate this risk.” at every site, at each level and at each function to contribute new ideas and solutions. one of the hmc project teams helping to address this challenge is led by jason albers, the director of product if everyone at hmc is asked to contribute to the inno- development for procedural devices. along with project vation process, what is the responsibility of the hmc engineer dustin andrist and r&d technician no thao, innovation group? brian dukart and ciaran hood, albers and his team we continue to add new technologies to our portfolio, worked on developing a guidewire with a new alloy with offering our customers a broader range of products a balanced stiffness that could be easily pushed through and solutions. we also practice open innovation. inno- the blood vessels without kinking. albers said, “once a vation together with customers and external partners stainless steel guidewire kinks, it’s difﬁcult to remove and is critical to us. therefore the hmc innovation group the clinician has to remove the bent guidewire and all the has a dedicated scouting team which is continuously devices and components to start over. we needed to create exploring new needs, trends, technologies and oppor- an alloy that would enable the guidewire to perform better tunities. to ensure customer focus and drive commer- under this demanding environment.” cial success we also create startup ventures based on innovations and technical developments. progress through new material combinations albers and his team capitalized on heraeus’ expertise in materials science to develop a new alloy derived from nickel, cobalt and titanium. using a specialized and proprietary material processing technology, the new guide- wire essentially removes complications due to kinking since the shape memory alloy is more kink-resistant and improves the safety of the procedure. albers adds, “my team and i are personally gratiﬁed that our work will have positive beneﬁts to patients and clinicians alike.”
and the award goes to … 34 and the award goes to … 40 ﬁnalists in 18 teams eagerly awaited the results at the 2016 heraeus awards ceremony excellent innovations, production processes and marketing and sales initiatives are crucial to the sustained long-term success of a technology company such as heraeus. a total of 74 applications were received for the six awards. “this high number demonstrates that our employees are performing exceptional work in many areas,” emphasized andré kobelt, chief commercial & technology ofﬁcer and the mentor for the heraeus awards. “we want to showcase the great projects and the strong teams behind them and to honor their achievements.” the centralized event with participants from all over the world provides the right setting. the innovation award symbolizes the breakthroughs that heraeus developers accomplish with their innovations. kink-free guidewires for catheters, new and success-ful marketing strategies for better customer retention, cost reductions in production or optimizations in production processes – they all have one thing in common: they are among the winners in the 2016 heraeus awards. each year, heraeus recognizes its brightest minds and most talented employees with awards in various categories, honoring the best teams across the company. for the 2016 awards ceremony, the jury could choose from a wide variety of new technologies, cooperative projects, marketing ideas, and excellent improvements in produc-tion. in addition to the established awards for innovation (research & development) and operations (production & supply chain), a new category was introduced this year: commercialization (marketing & sales). two prizes are awarded in each category. the prize-winning projects demonstrate the skills of heraeus employees all over the world. highlighting excellent projects and the teams behind thema total of 40 employees in 18 teams made it to the ﬁnal round. the winners were recognized and celebrated at a large event in a central location at the end of november. “we realigned the awards in order to recognize the extra-ordinary commitment of our employees, who take real pleasure in competing with each other. our sustained success depends on their innovative ideas in research and development, production and marketing,” remarked jan rinnert, ceo of heraeus holding, as he lauded the ﬁnal-ists at the awards ceremony.
category: innovation best innovation new market entry with novel patented guidewire team: jason albers, dustin andrist, brian dukert, nou thao and ciaran hood (heraeus medical components) heraeus | magazine 2016 35 best cooperation die top system: a triple win for heraeus, danfoss and the market team: andreas klein, anton z. miric, andreas hinrich, peter dietrich, michael schäfer (heraeus electronics) the kink-free bendable guidewire for catheters is a the new heraeus die top system offers new assembly completely new medical product on the market for and joining technology for silicon and silicon carbide minimally invasive surgery. the spring shaft guidewire power semiconductors. the innovative system is used offers a signiﬁcant improvement in clinical functionality. in power electronics modules for renewable energy, in guidewires are movable tracks for transporting thera- electromobility and in other demanding industrial peutic products within catheters to their desired applications. position in the body. category: operations best lean initiative an innovative lean approach to reduce variations team: karim el harif, javier perez, helene david, sasa markovitch (heraeus medical components) best hps achievement buford best hps achievement team: tim jenkins, emily bailey, chris urry, peter craymer, levon fattal (heraeus quarzglas) pacemaker is a production model for the production site in yverdon (switzerland), which reduces the impact of unexpected orders. at the same time it brought signiﬁcant production ﬂexibility and quality improve- ments for heraeus medical components. a very challenging process was transformed into a simpler system. category: commercialization production employees in buford introduced the heraeus production system (hps) at their site with great success. implementing the necessary cultural transformation presented a major challenge, and the project succeeded as a result of continuous, dialogue-oriented communication and the team’s strong commitment to the program. best commercial initiative quik-spec: direct analysis in converter team: gilles déléry, joël gammaitoni, marc vergauwens, jan cuypers, luc lammerant (heraeus electro-nite) best sales strategy execution challenger sales approach team: samantha buitendag, lothar kiontke, meike zimni (heraeus medical) quik-spec is a sensor measuring system for the steel challenger is a marketing strategy that focuses on what industry that makes it possible to conduct chemical the customer wants, with the goal of strengthening analyses directly during smelting and faster than ever customer retention and thereby creating sustained before. this completely new approach allows us to growth. after the successful introduction of this conform to the customer’s process more closely. approach, many new customers were gained.
36 legal notice publisher heraeus holding gmbh communications & marketing heraeusstraße 12–14 63450 hanau germany phone +49 (0) 6181 - 35 - 5100 fax +49 (0) 6181 - 35 - 4242 firstname.lastname@example.org www.heraeus.com concept and design edelman.ergo gmbh frankfurt am main, berlin, hamburg, cologne, munich picture credits heraeus xijan / e+ / getty images photography wonge bergmann, frankfurt am main wolfgang hartmann, heraeus xiao nan, china ma yaogang, china mike krivit, usa britta hüning, fotorismus printing schleunungdruck gmbh, marktheidenfeld, germany this annual report is also available in german. reproduction is permitted in whole and in part, provided the source is acknowledged in all cases. print compensated id-no. 1763917 www.bvdm-online.de