1. BASF 4.0 – INNORATE® Cellasto Crowd-selling
Prototyping & Validation
Kick-Off & Define meeting - July 13th & 14th, 2016

2. Agenda Day 1 Day 2 Introductions & INNORATE Process 14:00 – 14:30
Review Workshop Results (4 pitched BMs)
14:30 – 15:00
Refine Business Model Idea (Templates 1 & 2) – Team Split
15:00 – 16:30
Coffee Break
16:30 – 16:45
Refine Business Model Idea (Templates 1 & 2) – Compilation
16:45 – 18:00
Day 2
Final Version of Business Model Idea & Features Discussion
08:30 – 10:30
Define Hypothesis to be tested in Prototyping & Validation Phase
10:30 – 11:00
Draw Business Scout Journey
11:00 – 12:00
Open Questions & Next Steps
12:00 – 12:30

3. Together, Cellasto® & BASF 4
Together, Cellasto® & BASF 4.0, will prototype the chosen idea over the next 3 months
Produce innovative digital Business Models in Workshops
Use prototypes to get feedback from customers & improve business model
Pilot Minimum Viable Product in test market and roll-out subsequently
Exploration with OD/BU
Canvas
Pitch
Ideas
Hi-Fi Prototypes
Lo-Fi
Prototypes
Ideation
Prototyping & Validation
Scale-Up
Pilot MVP & Grow
>40
1 Prototype
~1 MVP 4 8
Completed April 2016

4. Objectives of today Our Meeting:
1. Define
2. Lo-Fi Prototype
3. Hi-Fi Prototype
4. Measure & Evaluate
Our Meeting:
Review the INNORATE® Process & how we will work together
Refine & finalize business model idea
Identify stakeholders & users of our offering (customer & industry)
Identify perceived customer pain points & align on key questions for customer interviews
Agree on scope for low-fidelity prototype
Review timeline & next steps

5. In the prototyping phase, we typically conduct 5-8 sprints along the INNORATE® sub-phases
SPRINT ILLUSTRATION
Prototyping & Validation within INNORATE®
4-6h
4-6h
2+ weeks
1-2 weeks
Kick-Off Project & Define Business Model Meeting
Define Prototype Meeting
Develop
Prototype
Measure & Evaluate
Start next level of prototype
Ideation
Scale-Up
2-5 iterations
Introduce new implementation team & onboard non- workshop attendees
Agree on clear business model concept, incl. rough idea of value drivers
Define success criteria & project plan
Clarify concept among 4.0 & BU
Define form & fidelity of prototype together with design team
Define nature of validation
Define Timeline
Build prototype according to defined criteria
Gather additional feedback from team, if necessary*
Quick internal iteration between designers, 4.0, and BU for 20%*, 60%*, 90% version
Conduct user/ customer interviews (internal & external)
Review and analyze success criteria
Evaluate prototype success
Summarize learnings
Start next prototype
Re-iterate until positive market validation -> decisive for scale-up
If mature enough, “Go/No Go” decision for scale-up
Depending on project location, time between sprints may vary
Sprint
Break
*Does not need to be a physical meeting, can be a WebEx meeting

6. Workshop Summary – 4 new business models pitched, 4 more developed
“Crowd-selling”
Extend salesforce and idea generation base for Cellasto applications
via business scouts. A
“Sillence® - Silence by Cellasto®”
Offer a silent kit / label for key “white goods” applications. B
“Seatlasto®” or Smart Cellasto®
Leverage smart feedback to enable better designs and healthier lives. C
“Digillasto® – your fast track to NVH solutions”
Provide digital platform for expert network, customized design, rapid prototyping and delivery of your NVH solution. D
Ideas involve creating a broader scope of Cellasto® applications via a platform/app and expanded sales force as well as performance enhancement through sensors.

7. Crowd selling Pitch Presentation

8. Implementation Team Cellasto: Cornelia Willnat (Project Leader)
Marc Ingelmann
Benjamin Raeth
Kambiz Yahosseini
Dirk Kreienburg
BASF 4.0:
Jennifer Schmitz
Jennifer Kint

9. Templates to optimize and finalize the Crowd- selling business model
Refine Business Model
Template #1
Template #2
To whom are we offering?
What exactly are we offering?
Target user/ industry
Description & Features
Pain points
Perceived values / benefits
Template #1
Write down crowdselling canvas bullet points on post-its and sort in relevant category
Add additional inspirational inputs from promising ideas included in other, non-selected canvasses
Clearly formulate the USP of your offering – how does it differ from existing solutions?
Template #2
Via what channel(s) are we offering?
USP

10. To whom are we offering (Team 1)

11. To whom are we offering (Team 2)

12. To whom are we offering (FINAL VERSION)

13. What exactly are we offering (Team 1)

14. What exactly are we offering (Team 2)

15. What exactly are we offering (FINAL VERSION)

16. First ideas on ways for BASF to capture value

17. Templates to optimize and finalize the Crowd- selling business model
Prototype Preparation
Template #5
Template #6
What is our hypothesis to be tested?
User Journey
Pain points
Our unique
offering
User journey (scout + end-user)
Old vs new way of selling, current vs new sales approach
Our hypothesis
YOUR TARGET USERS want/need a YOUR OFFERING to solve their existing problem of ADDRESSED PAIN POINTS

18. Crowd-selling Idea & Business Model – Hypothesis to be tested with Potential Business Scouts
BASF can incentivize and enable students to become business scouts for Cellasto.
Testing this hypothesis will involve gaining validation on the following assumptions:
 Students (material science, MBA, mechanical engineering, “duales stadium”, others?) are interested in becoming Cellasto business scouts;  Students can be motivated/incentivized by BASF to become Cellasto business scouts;
 BASF can incentivize students by giving them an opportunity to build their network, connect with BASF & other companies, combine education with earning money, explore their entrepreneurial & creative side, enrich their CV, get credit points and get some 'real world' experience;
 BASF can enable students to become business scouts (discover new Cellasto use-cases and make sales) by onboarding them with the right training (on sales techniques, Cellasto technical info, application examples) and giving them a digital sales support tool.

19. Illustration of Hypothesis

20. Illustration of Business Scout Journey

21. Value Creation & Coordination
Refined Business Model Idea after Kick-off & Define Meeting - Business Model Canvas
“Crowd-selling”
Extend salesforce and idea generation base for Cellasto applications via business scouts.
Value Offering
Value Creation & Coordination
Value Delivery
Value Capturing
BS Preparation / On boarding:
In person training + videos & tutorials (sales, technical, communication, negotiation, coaching)
Cellasto material info
Application/ Use case examples
BS Sales-Enabling:
User-friendly App (great UI/UX)
Pre-invested iPad
Compare feature (with vs. without Cellasto)
Yellow box + QR Codes
Selling support tool (videos)
Examples of success stories
Basic sketching functionality
Access to water-jet prototype
BS Community:
Inspirational input (use cases & customers)
Cross inspiration (facebook sharing feature)
Access to BASF & other BS’s
Gamification & Rewards
BS Profile
Customer access (network)
Incentivizing program for new applications
Commission payment for Cellasto Sales
Incentivizing program for on boarding
Expert community & network
Kit Business Scouts
User-friendly App
Sample box
Inspiring skills/ product targeted training with certification
Healthy competition via transparent ranking system (Gold model)
University contests
Business Scouts “Milenas” are the target users of our solution (App):
Mechanical engineering students
Material Science students
MBA students
“Duales Studium”
To customers
Phase I: standard parts
Phase II: Lego-approach (tbc)
Phase III: Design Tool / capability (tbc)
Additional Business from previously untapped market segments
New talents
Discovery of new applications
Market Reach (expanded sales force)
Targeted steering of sales activities
Increased product/brand awareness
New market insights
Quick scalability of successful ideas

22. Work streams & Responsible Team Members (1/2)
Work stream background
Responsible
Focus Applications & Catalogue
What are the examples of possible use case applications and products BS should focus on? Multi use of developed parts / non-engineering parts. Define complexity / scope of suitable applications (low end). List of application examples needs to be developed.
Benjamin Raeth
Recruiting & Training Program
How should we recruit BS?
What are the minimum requirements/ qualifications for a BS candidate? How do we manage BASF and BS reputation. What would be the best training plan? Certification program (theory + practice). Include “better than rubber” approach in training concept.
Marc Ingleman
Incentive System for BS
How do we realize the incentive program within BASF? How can we explore credit points’ possibility? Opportunity cost?
Dirk Kreienborg
Interaction with Universities & Professors
How can we align university interests with Cellasto Crowd-selling objectives?
Could Cellasto challenges be introduced to BS via professors?
Distribution of Products
How do we cope with the complexity of a high number of additional customers? Who will be our customer (e.g. Gym? Or the water-jet cutter?) Will it be delivered by BASF or a 3rd party to the end consumers? Will the end consumer cut and apply the material himself?
Cornelia
Willnat
Commercial
How will the transaction take place? How would the pricing strategy/ management be? Sales support content? Legal aspects?
Cornelia Willnat
Development of 4.0 Sample Box with QR codes
What are the right products to be included in the box? How do we make the sample box a smart / 4.0 box?
Kambiz Yahosseini

23. Work streams & Responsible Team Members
Work stream background
Responsible
Interview Questionnaire
Define necessary questions to validate our hypothesis via the Lo-Fi prototype.
Jennifer Schmitz
Phase II (Lego Approach) – Going beyond semi-finished goods
How do we go beyond semi finished goods?
Benjamin Raeth
How should BS approach customers
How can we support BS by giving them some guidance on how to start approaching customers? Personal network, BASF network, Professors, etc. Cold calling. Who are the target customers? Who are the target group at customers?
Kambiz Yahosseini
Leads / Inspirational Inputs to BS
How are we going to provide the leads / inspirational inputs to the BS? How frequent? Is it going to be through the App only? How are they going to share their findings with the other BS and BASF?
Dirk Kreienborg