Innovation for Further Growth - Eppendorf Corporate
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Eppendorf Annual Report 2017 Content 1 Our Competence Areas in the Life Science Laboratory Liquid handling, cell handling, and sample handling – Eppendorf is a life science company that develops, produces, and distributes systems for use in laboratories worldwide. Its product range includes pipettes and automated pipetting systems, dispensers, centrifuges, and mixers as well Content as consumables such as tubes and pipette tips. In addition, Eppendorf offers ultra-low temperature freezers, fermentors, bioreactors, CO2 incubators, shakers, and cell manipulation systems. Con sumables such as pipette tips, test tubes, microtiter plates, and single-use vessels complement the range of highest-quality premium products. Liquid Handling Cell Handling Sample Handling epServices for premium performance Annual Report 2017 Pipettes Fermentors Centrifuges 2 Foreword and Management and bioreactors and vacuum concentrators Application Support Our specialists advise you if you have application questions about Eppendorf instruments Pipette tips Single-use reactors Rotors and accessories or consumables. 6 Innovation for Further Growth 8 Shaping cultural change from a position of strength Mixers and 12 Prepared for the future thanks to innovation Cell culture temperature control systems Automated Seminars and Training liquid handling and imaging consumables Expand your laboratory expertise 16 Digitalization as a development driver in the laboratory in theory and practice. 20 Digital laboratory organization with VisioNize® Thermal cyclers Dispensers CO2 incubators 24 Innovative pathways to the customer echnical Support T Photometers Contact your local service organization Combitips® Biological shakers with all your technical questions. 30 Sustainability Ultra-low temperature freezers 36 International Presence Pipette controllers Micromanipulators aintenance and Certification Service M and injectors We offer services for maintenance, 38 Management Report Multiwell plates calibration, vertification, Installation Qualification and Operational Qualification 48 Consolidated Financial Statements (IQ / OQ) and to meet your quality and Bottletop dispensers Electroporators legal requirements. 51 Report of the Supervisory Board and burettes Sample prep tubes 52 Boards and Committees
Eppendorf Annual Report 2017 Content 1 Key Financials Content (IFRS) +/− previous Annual Report 2017 2013 2014 2015 2016 2017 year in € Total net sales thousand 502,677 531,080 629,141 651,544 690,336 +6.0 % North / South America % 35.2 35.8 38.5 37.8 37.7 2 Foreword and Management Europe % 39.9 40.5 36.7 35.7 36.3 Asia/Pacific/Africa % 24.9 23.7 24.8 26.5 26.0 in € Operating profit thousand 101,813 100,943 123,196 140,139 156,362 +11.6 % Operating profit % 20.3 19.0 19.6 21.5 22.7 6 Innovation for Further Growth in € EBIT thousand 93,768 95,658 119,256 139,619 145,511 +4.2 % 8 Shaping cultural change from a position of strength EBIT margin % 18.7 18.0 19.0 21.4 21.1 12 Prepared for the future thanks to innovation in € Net income1 thousand 67,461 65,746 80,835 96,265 92,112 -4.3 % 16 Digitalization as a development driver in the laboratory Net income 1 % 13.4 12.4 12.8 14.8 13.3 in € 20 Digital laboratory organization with VisioNize® Cash flow thousand 82,221 90,577 111,085 125,509 131,448 +4.7 % 24 Innovative pathways to the customer Equity ratio 1 % 63.6 60.8 65.2 63.2 67.5 in € Total assets thousand 630,006 716,784 810,877 846,465 869,981 +2.8 % in € R&D expenses thousand 28,177 29,369 31,911 34,787 36,489 +4.9 % 30 Sustainability Earings per share in € 1.31 1.28 1.58 1.87 1.79 -4.3 % Number of employees, 36 International Presence annual average 2,798 2,880 2,969 3,029 3,134 +3.5 % 1 incl. non-controlling interests 38 Management Report 48 Consolidated Financial Statements Our competence areas in the life sciene laboratory 51 Report of the Supervisory Board 52 Boards and Committees
2 Eppendorf Annual Report 2017 Foreword 3 Foreword Eppendorf can look back at 2017 as a very satisfactory business year. The company increased its Group sales by 7.9% (at constant exchange rates), with accelerated growth in the second half of the year. That means Eppendorf’s development was better than the global market's, which grew by approximately 5%. The growth Eppendorf experienced was broadly based, with all market regions and all major product groups contributing to the positive development. As expected, our operating profit (EBIT) increased at a lower rate than sales, since Eppendorf invested heavily in the further development of the company through-out the reporting year. The investments focused mainly on research and develop ment as well as on new business models and processes in the modernization of our infra structure and in additional human resources. Our successful business and strong market position offer ideal conditions for setting our course for the future. Under the banner of be Eppendorf 2021, we worked intensively on various initiatives and projects in 2017 to ensure our company’s stability and competitive ness and to position ourselves for continued successful development over the long term. From a financial point of view, our goal is to achieve organic growth well above the market average over the years. Our efforts concentrated in particular on three strategic subject areas: sales, innovation, and corporate culture. And we have managed to reach important milestones in all those areas. With the “Going-to-Market” initiative, we are working on our sales strategy and sales structure to account for changed market and customer require ments. The aim of the “Innovation” initiative is to accelerate the development of products using an agile methodology to optimally meet these requirements. All of this makes new forms of internal cooperation necessary. The third initiative of be Eppendorf 2021 there- fore focuses on the further development of our strong corporate culture, which we want to use to create a dynamic, adaptable work environment. Our new mission statement, which consists of vision, mission, and values, is being communicated to all our employees worldwide. Thomas Bachmann Eva van Pelt Dr. Wilhelm Plüster Detmar Ammermann President & Chief Commercial Officer Chief Technology Officer Vice Chairman of the Chief Executive Officer Management Board and Chief Financial Officer
4 Eppendorf Annual Report 2017 Foreword 5 »Our premium products, systems, and services enable, simplify, and improve research and routine work in every laboratory around the world. They impress and inspire through innovation, quality, performance, ergonomics, value, smart solutions, and design.« Part of the new Eppendorf mission statement Addition to the Management Board and organizational orientation toward market requirements An important result of be Eppendorf 2021 is the new organizational structure that we devel- oped in 2017 and that has been effective since January 1, 2018. Our new structure allows us to improve the alignment of our business with current and future market requirements. Outlook for 2018 Among the most important changes is the creation of two new Management Board man- By launching be Eppendorf 2021, we have laid a solid foundation that will enable us to better dates: Business Portfolio and Commercial Organization. Headed by Thomas Bachmann, the exploit the company’s enormous potential in the future. In 2018, our aim is to consistently Business Portfolio unit defines the strategic orientation of Eppendorf: What are our greatest and sustainably implement the projects we have started. Thanks to our new structures and strengths? How do we generate new product ideas? And how can we join forces to develop attractive product portfolio, we are in a good starting position for another successful busi- these products quickly and launch them successfully? The Commercial Organization unit ness year. We expect to achieve solid growth once again, not least thanks to the new products has been headed by our new colleague Eva van Pelt since October 1, 2017. She is respon- introduced in 2017. Their full impact on sales will be felt in the current year. We have budgeted sible for the market regions of Europe and North America as well as Asia Pacific, Africa, further substantial investments in our organization, infrastructure, and production capac and Latin America in addition to overseeing the Global Key Account Management, E-Busi- ities as well as in training and continuing education so as to actively forge the company's ness, Global Service, and Operational Marketing units. intended transformation. In view of the higher costs planned for this, we estimate our oper- ating profit adjusted for currency effects will remain at the same level as 2017. Innovative products and processes These organizational changes are closely linked to our innovation initiative. During the year Thanks under review, we launched several pilot projects on the basis of agile development so we Dr. Michael Schroeder, a member of the Supervisory Board since December 2015 and a for- could provide the products that are currently in demand even more quickly. Agile project mer member of the Management Board, decided in January 2018 to step down from his posi- teams involve customers in a dynamic, ongoing process. Agile development is not, however, tion for personal reasons. The Supervisory Board and Management Board of the Eppendorf just a method; it is also an attitude and part of our corporate culture. Group would like to thank Michael Schroeder for his great entrepreneurial commitment and wish him all the best for the future. We see the areas of digitalization and device networking as offering the greatest opportuni- ties in our industry. To manage and drive forward the topic of software and networking The many new projects and initiatives, in addition to our daily business, demanded a great throughout the company, we established Software Development as a new global function in deal of energy, courage, and willingness to change from our employees. We would like to 2017. On the product side, we introduced VisioNize®, a new system that allows users to cen- thank them all sincerely for their great commitment and valuable contributions. Our com trally monitor a variety of Eppendorf instruments at the same time. Our new Mastercycler ® pany’s positive development would have also not been possible without our loyal customers, X50 PCR device, the CryoCube® F740 ULT freezer, and the Innova® S44i shaker all feature who once again placed their trust in us in 2017. To them as well, we extend our heartfelt the full range of VisioNize functionalities. Some twenty new products were launched in gratitude. 2017 and made an important contribution to Eppendorf’s growth. So we can provide our services quickly and in the premium quality our customers expect, we have to be in good shape not only on the market but also behind the scenes: with a modern infrastructure and contemporary processes as well as highly skilled internal service providers. Thomas Bachmann Detmar Ammermann Eva van Pelt Dr. Wilhelm Plüster During the reporting year, we managed to take important steps in this context, too.
6 Eppendorf Annual Report 2017 Innovation for further growth 7 Innovation for Further Growth Shaping cultural change from a position of strength 8 Prepared for the future thanks to innovation 12 Digitalization as a development driver in the laboratory 16 Digital laboratory organization with VisioNize® 20 Innovative pathways to the customer 24
8 Eppendorf Annual Report 2017 Shaping cultural change from a position of strength 9 Shaping Cultural Change from a Position of Strength Eppendorf has been a successful The new Eppendorf mission state These events imparted a positive atti company for many years and enjoys a ment – consisting of vision, mission, tude toward the future, strengthened very strong brand, loyal customers, and values – forms the foundation for team spirit, and generated considerable and global growth accompanied by the company’s cultural change. What energy. However, the new mission state healthy revenue. Among other factors, direction does the new value compass ment also calls for and fosters a great a strong corporate culture fuels this indicate, and how does Eppendorf willingness to change and a high level success. At first glance, the situation intend to shape the dynamic, adaptable of commitment. does not call for any kind of action. work environment it envisages? And yet the continuation of our success Vision and mission point to the goals Vision, mission, and values will be in- story cannot be taken for granted. Eppendorf wants to achieve by 2021, troduced at all Eppendorf companies The global markets Eppendorf serves and they provide answers to the by the end of the first quarter of 2018. are growing more and more dynamic questions: What sets Eppendorf apart? To ensure the values are not just per and experiencing increasingly fierce What can customers rely on? The ceived as fancy words, each and every competition. To remain successful, values provide guidance and serve as a person in the company needs to live the company must be willing and able compass for how Eppendorf will meet by them. All employees are therefore to adapt to changing markets and its goals and aspiration. Some central asked to play an active role in the new customer requirements even more points are these: Eppendorf employees changes, since we can only reach the quickly and flexibly in the future. One assume responsibility, act reliably, and goals we have set ourselves by work- of the three major strategic initiatives show respect and appreciation for their ing on them together. Employees are that were launched as part of the colleagues. They are empathetic, open, also invited to evaluate their managers be Eppendorf 2021 program during and eager to help. They have the cour on the basis of the mission statement’s the reporting year has, for this reason, age to drive forward changes and fur values – an invitation that extends to been dedicated to the further develop ther developments. They show an the Management Board. ment of our corporate culture. This is exemplary willingness to perform, and a prerequisite for Eppendorf to be able they expect high performance from to seize the many opportunities at the others. In the course of 2017, the new right moment and generate sust ainable, mission statement was presented to profitable, and above-average market managers worldwide during regional growth. workshops. These managers then held their own workshops for their teams, elaborating how the vision, mission, and values can be communicated and integrated into everyday working life. »We rely on each and every Eppendorf employee to continue to write the success story of our company.« Thomas Bachmann, President & Chief Executive Officer
10 Eppendorf Annual Report 2017 Shaping cultural change from a position of strength 11 Mission Our Feedback from International Kick-Off Workshop Participants Eppendorf contributes to improving Our premium products, systems and human living conditions. services enable, simplify and improve » I appreciate the amount of time research and routine work in every and resources Eppendorf has Building on a foundation of collective laboratory around the world. They im- invested in this topic, which is experience, history and knowledge, press and inspire through innovation, so important to our future.« we are committed to the future. We quality, performance, ergonomics, value, place our customers at the center smart solutions and design. » When Mr. Bachmann described of our activities. By being innovative, Eppendorf as a matter of the sincere, reliable and efficient, we offer We continually invest in innovating heart, I had to smile because our customers positive experiences our products, services and business it’s so true: I am Eppendorf.« and a sense of confidence. We take solutions, also by engaging with on responsibility and show courage. partners and customers in strong net- works, focused on applications in the fields of sample, cell and liquid han- dling. We are with our customers. We are committed to professionalism, flexibility and individuality in partner- ships. We all are Eppendorf – shaping the ongoing success story together! » Time and again, I come across colleagues talking about be Eppendorf 2021 and especially about our new values. I find that very encouraging because it shows the process of integrating the new corporate culture into our everyday life is already well underway.« By the end of the first quarter of » The commitment of the Management Board members really impressed me. Eppendorf is investing in its employees and has a clear plan for the future.« 2018 the vision, mission and values will be introduced in , all Eppendorf companies.
12 Eppendorf Annual Report 2017 Prepared for the future thanks to innovation 13 Prepared for the Future Thanks To Innovation »We consider innovation an essential key to readying and developing our company for sustainable success. That is why we use the latest devel opment methods and invest heavily in almost all areas of R&D. The con- tinuing education of our employees, the consistent expansion of software development, and the creation of intelligent IoT solutions are matters particularly close to our heart.« Dr. Wilhelm Plüster, Chief Technology Officer
14 Eppendorf Annual Report 2017 Prepared for the future thanks to innovation 15 »We continually invest in innovating our products, services and busi- ness solutions, also by engaging with partners and customers in strong networks, focused on applications in the fields of sample, cell and liquid handling. We are with our customers.« From Eppendorf`s new Mission Eppendorf instruments and solutions are well known and development relies on speed, flexibility, and an intensive As a premium provider, Eppendorf is bound by its brand popular among laboratories worldwide. Under its strong dialog with customers. The aim is to receive user feedback promise to provide top-quality products that make work in Eppendorf benefited from some very motivating brand, the company traditionally offers a wide-ranging port- at an early stage so it can be used to improve the product. laboratories easier and more productive. In the reporting acclaim for its product folio that includes tried-and-tested products as well as con- For this reason, agile project teams complete a protot ype year, the company introduced VisioNize®, a system that allows design. The German tinuous developments and groundbreaking innovations. every 15 weeks and place it in the trusted hands of selected users to centrally monitor a variety of Eppendorf instruments Design Award was conferred Our successful business year in 2017 is just one testament customers for testing. Cutting-edge technical development at the same time. This networking offers tremendous added on no less than two Eppendorf products, the to the attractiveness of Eppendorf products. But the need methods such as 3-D printing and numerical simulation sup- value, as confirmed by our initial customers in Europe. For Mastercycler® X50 for new methods and instruments for use in the life sciences port this process of rapid prototyping and agile develop- further information on VisioNize, see page 20-23. Many of the and the Eppendorf and in medical research is greater than ever. Pharmaceutical ment. The innovation process is continuously evaluated to products launched in 2017 can be networked with VisioNize. pipetting system. companies are advancing their own innovation at a rapid increase the frequency of developing market-oriented pro- The new Mastercycler® X50, the CryoCube® F740 ULT freezer, pace, for example in the battle against cancer or neuro ducts and the benefits to users – and always with the pre and the Innova® S44i shaker, for example, feature the full degenerative diseases – two areas of particular importance mium quality customers expect from Eppendorf. range of VisioNize functionalities. All three also have other given the growing number of older people worldwide. unique selling points that help them stand out in a highly The success of this method depends on good internal competitive market. The Mastercycler X50 features extremely Next steps These pronounced market dynamics are leading to changed cooperation, which includes active communication among fast heating and cooling rates, a unique 2-D temperature Eppendorf sees digitalization and networking as two of requirements for innovation at Eppendorf. To continue helping the Eppendorf competence centers, the business units, gradient, and maximum energy efficiency. The ULT freezers the most important future market requirements and areas to improve people’s living conditions – as the Eppendorf and the regional sales organizations that stay directly in from the new CryoCube F740 series offer maximum sample with the greatest growth opportunities. To manage and founders stated early on – the company must drive develop- touch with customers. Agile development is more than just safety and energy efficiency as well as intuitive operability. advance the areas of software and networking throughout ment processes forward and become faster than ever before. a method; it’s also a fundamental attitude that plays a role And the new S44i shaker combines top mixing performance the company, Eppendorf established Software Development “Innovation” was therefore also one of the three central in the new corporate culture that places a higher priority on with user-friendly handling. as a new global function in 2017. Over the course of this strategic initiatives launched as part of the be Eppendorf 2021 team spirit, transparency, self-motivation, and individual year, Eppendorf intends to further develop digitalization and program. Focusing on product development, “Innovation” responsibility. networking on the basis of VisioNize. And the company is also closely linked to the other two initiatives: “Going-to- also aims to incorporate agile development into its everyday Market,” which is exploring new ways of reaching the Market success with new products operations. Great progress has already been made on the customer, and “Corporate Culture,” which is looking into In fiscal year 2017, Eppendorf made substantial investments technical side, so now the focus lies on aspects pertaining new forms of internal and external cooperation. to introduce agile development. And the company has already to our corporate culture. begun reaping the first rewards: Eppendorf was able to Agile development: the order of the day launch a total of nearly twenty new products on the market To increase the speed of innovation, Eppendorf launched last year. These products contributed to the company’s suc- several pilot projects in 2017 that focused on agile product cessful business year and are expected to have an even »New innovations should focus on digital solutions, which are development. This methodology from the world of software greater impact on sales in the coming years. becoming an integral part of our research lab management. From the moment a research problem arises to the positive out- come, the solution must help increase our throughput and tangibly improve effectiveness and flexibility for researchers.« r. Pavan Jutur, Group Leader, Omics of Algae Group, Integrative Biology Interna- D tional Centre for Genetic Engineering and Biotechnology (ICGEB), New Delhi (India) At the beginning of the year under review, we received official confirmation that customers value us for both our »For many years, I worked on gene and protein expression in cell culture and products and our services: During the 2017 Pittcon® Expo in Chicago, Illinois, U.S., Eppendorf was honored by organ specimens. Throughout my life as a researcher, I’ve looked for innovation SelectScience® not once but twice. We received not only the award in the category “Best New General Laboratory and, more importantly, connectivity between instruments and techniques in Product” for the Eppendorf Centrifuge 5920 R, but also the Scientists’ Choice Award® for “Customer Service of order to set up efficient, quick workflows that are free of human error.« the Year.” And there was even more cause for celebration: In 2017, the Eppendorf Training Center marked its 20th Fabio Mangiarotti, Recordati Industria Chimica e farmaceutica S.p.A., Milan (Italy) anniversary and epServices its 10th.
16 Eppendorf Annual Report 2017 Digitalization as a development driver in the laboratory 17 Digitalization as a Development Driver in the Laboratory The laboratory world is changing at a rapid pace, and everyone is talking about digital ization. But what is happening specifically? What must the industry prepare for, and how is Eppendorf positioned in this overall trend? Two experts discuss these questions in the interview below. Günther Tolkmit is a founding partner of Trufa, a company that offers software solutions to support strategic decision-making. Since January 2018, he has also been supporting Eppendorf in the area of Emerging Business Opportunities. Dr. Matthias Arnold was a founding partner and Chief Technology Officer of DASGIP, a provider of bioprocess systems and software solutions for the life science industry. DASGIP has been a part of Eppendorf since 2012. We all know digitalization from our private lives. What approaches to digitalization are there? What significance does digitalization have in the Which direction will Eppendorf choose to take? life science industry? Günther Tolkmit: Besides the Internet of Things Günther Tolkmit: In our private lives, too, we (IoT), i.e., the digitalization of objects, the key- often perceive digitalization as both a blessing words here are artificial intelligence and machine and a curse. At present, we still swallow the bait learning. The general public often associates this of convenience – and do this more and more fre- with replacing humans by machines. We don’t be- quently. At the same time, we feel increasingly lieve in that though. For one thing, people who uneasy when we think about what happens with think this is possible have completely unrealistic our private data. To what extent can we trust those expectations about what technology can really who are collecting data? do. And for another, it’s our philosophy to assist Dr. Matthias Arnold: The situation is even more and support humans. We’ll therefore consciously contradictory in the life sciences. On the one hand, control our digital solutions and limit them where there's mounting pressure to improve efficiency necessary. (speed and costs), for example in the area of phar- maceutical research; on the other, there's a very pronounced need for security. After all, we're deal- ing with humans. Günther Tolkmit, above Dr. Matthias Arnold, left
18 Eppendorf Annual Report 2017 Digitalization as a development driver in the laboratory 19 What will change for Eppendorf’s customers? advanced analytics. In 2017, Eppendorf placed from digitalization. While developing VisioNize, lab-digitalization solutions. Our customers’ IT How does digitalization in the lab differ from such “talkative” lab devices as the CryoCube® we therefore paid particular attention to ensuring departments also make themselves available as digitalization in our private lives? F740i ULT freezer, the Innova® S44i shaker, and excellent usability and a modern user experience. digitalization partners for internal laboratories. Günther Tolkmit: In the lab, the aim is to relieve the Mastercycler ® X50 as well as related software We are thus taking a particular hallmark of the And, not to be forgotten, all the device manufac- employees from having to carry out routine tasks under the name VisioNize® on the market. More Eppendorf product world and carrying it forward turers are also active in this field, usually by rather than to entirely replace humans. Any rela- products will follow in 2018. These devices already into the age of digitalization. acquiring more or less traditional software manu- tively simple task that a human repeats again and feature all the capabilities for digitalization – facturers. Companies with similar interests are again can potentially be taken over by a computer. VisioNize on board. Eppendorf products are used in a variety of pro- forming new consortia almost daily with the aim Dr. Matthias Arnold: First of all, lab devices Günther Tolkmit: The second step is to then con- cesses in the laboratory. The aim of digitalization of launching further IoT platforms. Not to men- have to learn to talk. They must provide a steady nect the laboratories to the cloud. That’s some- and networking is to make work steps simpler tion the various efforts to standardize things that stream of electronic information on their status thing our customers aren’t accustomed to, but it’s and processes more transparent. Do you think aren’t even entirely understood yet. and in particular on their use. That sounds sim- unavoidable. Digitalization is an industrial revolu- there's a need to integrate the devices and pro- Dr. Matthias Arnold: People always have trouble pler than it is. Machines talk much more and a tion. It’s no coincidence that the term Industry 4.0 grams of other manufacturers into Eppendorf exploiting new technology opportunities because lot more quickly than humans. This means we face has taken root. And with Pharma 4.0, these products as well? What would be necessary for that only works if you’re able to live with the uncer- a new class of technological challenges that can thoughts are now also finding their way into the that to work smoothly? tainty. And we are currently right in the middle of only be mastered through achieving an in-depth life science industry. Günther Tolkmit: At the end of the day, no single such a phase of upheaval. understanding of the devices and leveraging the Dr. Matthias Arnold: To allay any fears our cus- manufacturer will be able to master digitalization Günther Tolkmit: The worst thing you can do opportunities offered by modern software. They tomers may have, we must guarantee state-of-the- alone. It’s therefore important that all players in right now is wait. It would also be wrong to try key words here are IoT, cloud, big data, and art security standards as well as absolute transpar- the market find their intrinsic place. And the first and keep up with every little detail of what’s hap- ency concerning the collected and processed data. step is to realize that not every company can or pening in the market, since that inevitably leads In fact, we have initially decided to only process should do everything itself. We feel very well posi- to analysis paralysis. Our suggestion would be to usage data – i.e., “How am I using the device?” – tioned as far as having an understanding of the start with those things that will definitely be rather than content-related data – i.e., “What am devices is concerned. We know how to build them needed: the digitalization of devices and the col- I doing with the device?”. and how they are used on a daily basis. We pro- lection of usage data. That will give you a feeling duce the data we want to analyze. We are at the of what could be possible through digitalization. »We believe that digitalization What is the most important added value that digi- source. We understand what laboratory operations Will you make mistakes in the process? Sure. But of laboratories will lead to faster talization and networking offers customers? What are really like. mistakes are the only way to learn. More specifi- data exchange and increased advantages does it offer the user in the lab? And Dr. Matthias Arnold: And, generally speaking, cally, our customers and we as a company will transparency between research what are the advantages for decision-makers such this knowledge also applies to lab devices that learn together. partners all over the world. This as purchasing officers and lab managers? aren’t produced by Eppendorf. In this sense, we Dr. Matthias Arnold: The picks and shovels are will be a key success factor in Günther Tolkmit: Our approach targets the people consider the connection of third-party devices an ready, and the technological foundation has been the race for innovation.« who use the devices as well as those who order inherent part of our area of expertise. But we’re laid. We look forward to tackling the future to- »Having several research and educational projects and manage them. Thanks to our modern analysis not able to make everything available to every- gether with our customers. in parallel in the same laboratory area is often very methods, we increase lab efficiency in two ways: one, of course. That’s why we confine ourselves challenging to organize. Therefore connectivity and We give lab managers and purchasing officers to usage data, which we’re happy to share with digital follow-up of data are great assets for us.« new ideas to help them get the most out of their our customers and other manufacturers. Prof. Dr. Harald Hundsberger, Vice Dean and Head of Biotechnologi- cal Institute, FH Krems, University of Applied Sciences (Austria) laboratory. We also gain new insights into how our devices are used in daily practice and thus The range of global digitalization options avail »I n our lab we develop innova- obtain valuable information to continuously opti- able to Eppendorf customers seems practically tive assays to evaluate potential mize them. limitless and is unwieldy in its complexity. What stressors' toxicity using comple- Dr. Matthias Arnold: We have given a lot of thought would be the best starting point for an Eppendorf mentary animal models. The to the users of our devices. The usual approach customer? success of our work depends involving digitalization is to serve the end user Günther Tolkmit: It really is reminiscent of a gold on a parallel development of through PCs or mobile devices. But a PC is located rush. Traditional business-management software digitalization to read and con- somewhere in the lab, which means I have to go manufacturers like SAP® have a variety of IoT textualize the results obtained there to use it for my work. And I may not be able options available. And traditional automation on animal models.« to use a smartphone because my hands aren’t companies, such as Siemens® and GE®, consider free. That’s why we’re bringing digitalization digitalization an extension of MES (manufactur- Dr. Margherita Romeo, Laboratory of Human Pathology in Model Organisms, Department of Molecular Biochemistry and Pharmacology, directly into the device or onto the lab bench so ing execution system) solutions. A bewilderingly The Mario Negri Institute for Pharmacological Research, Milan (Italy) a single free finger is all that’s needed to benefit large number of start-ups are offering novel
20 Eppendorf Annual Report 2017 Digital laboratory organization with VisioNize 21 Digital Laboratory Organization with VisioNize ® »W hen you run long-term experiments, such as kinetic and real time assays, or when you need to store biological samples for a long time, the digital information and monitoring of instru- ments, even remotely, is crucial, particularly in the management of limited-entry laboratories, such as BSL3 labs.« Franco Cardone, PhD, Department of Neurosciences, Istituto Superiore di Sanità, Rome (Italy)
22 Eppendorf Annual Report 2017 Digital laboratory organization with VisioNize 23 data in the lab operator‘s network infrastructure provides Since March 2017, Eppendorf has held for optimum utilization of the devices. And the installation a majority interest in Bio-ITech, and connection of VisioNize is no more difficult or risky than which is headquartered in Groningen, adding a new network printer. Netherlands. This leading provider of software solutions for laboratory Eppendorf developed VisioNize in intensive cooperation workflows ideally complements with reference customers in Germany, the Netherlands, and Eppendorf’s areas of expertise. Great Britain. The first customers to use the innovative sys- At LABVOLUTION, Eppendorf and tem already successfully incorporated it into their everyday io-ITech jointly presented the digital operations in 2017. The global commercial rollout will take laboratory journal eLABJournal and place this year. In parallel, we will continuously enhance the sample management solution VisioNize by working together with our customers to opti- eLABInventory – innovations that mally adapt it to various requirements found in everyday show great potential. laboratory practice. Launched in 2017, Mastercycler ® X50 is equipped with full VisioNize® features VisioNize functionality as are the CryoCube® F740i ULT a cross-product and cross-platform user freezer and the Innova® S44i shaker. In the interest of sus- interface design. tainability, Eppendorf also enables older devices to be easily integrated with the help of a decoder. Besides the accelerated changes in the market, digitali What added value does VisioNize offer? Featuring a zation and networking comprise the biggest challenges user-friendly design, this system not only provides the life science industry faces. At the same time, they information on instruments’ current status, it also indi- are opening up enormous opportunities for lab-equip- cates the cause of problems. For example, users are ment providers. Thanks to a broad range of products notified by e-mail if the temperature of a ULT freezer and the required software know-how, Eppendorf is exceeds a critical threshold. With the help of VisioNize, ideally equipped to assume a leading role in these devel- they can then determine the cause and, for example, opments. In May 2017, Eppendorf introduced its first arrange to have the door closed without being on-site device networking system at LABVOLUTION® in Hannover. themselves. The new functionalities of this system do, Called VisioNize®, the system provides users a simulta however, offer more than just convenience: The status What will the laboratory of neous overview of a variety of Eppendorf instruments of connected devices can be viewed remotely, allowing the future look like? Eppendorf and allows the instruments to be monitored centrally. users to quickly find a free device or plan to use the Customers as well as other market players responded very remaining time efficiently for other activities. In addi- held workshops on this topic favorably to the presentation. Many visitors affirmed tion, the devices can be organized according to when with customers and other mar- that Eppendorf was a step ahead when it came to inno- the next maintenance is due so maintenance times can vative lab technologies. be planned well in advance. These and other VisioNize ket players at LABVOLUTION® features enable Eppendorf customers to save a consid- in Hannover. Thanks to its erable amount of time and money. That applies in particular to laboratory services provided in a strictly strong market position, the regulated environment: In cases where a clean room company is predestined to no longer has to be physically entered by a person to docu drive development of this key ment data, remote monitoring significantly boosts effi ciency. Furthermore, central collection and archiving of Smart. Connected. Nize. This was the motto under which topic for the entire industry. Eppendorf invited visitors to LABVOLUTION 2017.
24 Eppendorf Annual Report 2017 Innovative pathways to the customer 25 Innovative Pathways to the »Eppendorf is able to develop innovative pathways Customer to the markets from a clear position of strength by drawing on a strong brand and excellent customer relationships.« Eva van Pelt, Chief Commercial Officer
26 Eppendorf Annual Report 2017 Innovative pathways to the customer 27 Which products offer Eppendorf the regions. This enables Eppendorf to working in different countries or even best opportunity to reach which cus- increase the customer focus of all cus- on different continents over the course tomers in which markets using which tomer-related functions and align itself of their careers. Users who have come sales channels and which specialists? with the requirements of the market. to appreciate Eppendorf in their labs can In the beginning, the company focused stay in touch with us in a similar way on comprehensive analyses: Which A significant change in the area of sales, at their new workplaces. Furthermore, products are already doing well and for example, involves the introduction customers can purchase products where is there potential for improve- of a standardized global structure for using their preferred channels – wheth ment? In what areas are new customer cooperation between Eppendorf and er this is through an Eppendorf sales requirements arising – and with them its customers. The new structure takes organization, a retailer of their choos further opportunities for sustainable, into consideration both the regional ing or, more and more frequently, Sales through the Eppendorf How do customers obtain their prod- profitable growth? Eppendorf was able and local circumstances of markets and using an online platform. Eppendorf e-shop have been noticeably ucts? Traditionally, Eppendorf has to tackle the initiative from a clear posi- customers. The standardization of is planning to intensify its cooperation increasing for years now. offered a wide range of products that tion of strength by drawing on excel- the sales structure streamlines internal with new, globally active retailers to the company has sold through its own lent, long-term customer relationships. and external processes, thus increasing accomodate purchasers of lab sales organizations or selected retail Studies show that both the Eppendorf efficiency. And it also offers consis- equipment worldwide. partners. This model has worked well brand and the products themselves are tency and convenience to customers for a long time, but new market condi- associated with high quality and that tions have eventually resulted in a need consulting and services are considered for further development. In past years, excellent. for example, the life science industry has experienced tremendous consolida- New organizational structure tion and dynamic growth with a corre- for new market requirements sponding increase in competition. A market-oriented sales structure was Customers today expect lab-equipment developed in line with the changes in manufacturers to quickly provide a our product innovation process and our steady stream of innovations targeted corporate culture. Delivery channels specifically at them over their choice play a key role in ensuring new prod- of channel. In addition to this, digitali- ucts find their way to our customers zation is opening a variety of new chan- as efficiently as possible and provide nels both for the distribution of prod- optimum benefit once they're in the ucts and for the exchange of knowledge laboratory. The projects launched as between customer and provider. part of be Eppendorf 2021 resulted in a new organizational structure for To stay abreast of all these changes and the entire Eppendorf Group. Effective to be able to find innovative ways to January 1, 2018, this structure com- reach customers, Eppendorf launched prises two newly created Management the strategic Going-to-Market initiative Board mandates: Business Portfolio in 2017. As one of three cornerstones with strategic business responsibility of the be Eppendorf 2021 program, for the entire product portfolio and this initiative aims to develop innova- Global Commercial Organization with tive multichannel sales strategies so responsibility for major market regions the company's great potential can be and the global e-Business, Marketing, fully realized to the benefit of customers. Key AccountManagement and Service The fundamental question here is this: units that act in concert with the m arket
28 Eppendorf Annual Report 2017 Innovative pathways to the customer 29 In touch with the markets An internal Eppendorf team is respon Our new Global Key Account Manage- sible for further refining the e-shop ment also faces the challenges that come while also working on new e-commerce with globalization. Both Eppendorf’s models as part of its work to actively major retail partners and key players participate in customers' marketplaces. in the pharmaceutical, diagnostics Other Global Commercial Organization and biotech industries work globally. units will sharpen their focus on gather- To better support them, Eppendorf ing targeted customer feedback so is creating globally harmonized sales it can be evaluated and made available processes and establishing specialized worldwide to continuously optimize our sales teams that provide assistance global approach to reaching customers. across different regions. A team like In this context, Eppendorf benefits both this is already available to customers at a strategic and an operational level in North America, while the European from the strong customer relationships team is in the process of being set up. that result from its close contact with purchasers of lab instruments and To offer customers further options, employees in the lab. Eppendorf is using digital tools to sup- Today, Eppendorf’s customers are globally networked plement its traditional sales channels with new channels to sell its products. and engage in dialog at scientific conferences and In addition, these channels will also on social media. Eppendorf promotes new contacts be used for a targeted exchange with among its customers, successfully connecting refer- customers and other market players. ence customers and prospective buyers, for example. Eppendorf stays in close contact with its customers over social media, exchanging information and gaining valuable insights into customer needs. »For us, it’s necessary to work with reliable, robust and versatile equipment that allows us to improve our investigations every single day. To keep up with innovation, it’s important to lean on the support of a quality provider who helps us find solutions that meet our needs and budget.« Dr. Santiago Ramón-Maiques, Department of Genome D ynamics and Function, Centro de Biología Molecular Severo Ochoa (CBMSO), Madrid (Spain)
30 Eppendorf Annual Report 2017 Sustainability 31 Sustainability Social, Ecological, and Corporate Aspects.
32 Eppendorf Annual Report 2017 Sustainability 33 23 The topic of sustainability has a big influence on all of Eppendorf’s business Promoting young talents early on: Called Eppendorf Family Network, the Cooperation with the Louisenlund program has enjoyed great popularity decisions. For Eppendorf, sustainability generally encompasses social, ecological, Foundation ever since its inception. Many enthusi- and corporate aspects. Sustainability is expressed in many small steps in our A career in science requires great astic reactions confirm that people daily business and is apparent in all of our processes – from product development personal commitment and a lot of stay- perceive the intercultural exchange as ing power. It’s important to recognize an enriching experience. In 2017, a to production and sales and all the way to the product’s disposal. And Eppendorf and promote the talent of young people total of eighteen children from six differ- expects the same from its suppliers and sales partners around the world. We apply as early as possible so they can realize ent countries applied for a stay abroad. their full potential during their later Most of the exchanges so far have taken stringent ecological standards throughout the company, not just where they are studies and career. Against this back- In 2017, Eppendorf made a commit- place between families from Germany, required. In terms of social sustainability, Eppendorf’s commitment takes a variety drop, Eppendorf entered into a coopera ment to supporting the four-year train- the United States, and China. In coopera tion with the Louisenlund Foundation ing course with a substantial financial tion with the outside organization of forms depending on the facility and country in question. in May 2017. The charitable foundation contribution. In addition, the partner- CoFam, Eppendorf brings suitable runs a boarding school in the German ship also enables a broad range of employee families together in a trans- state of Schleswig-Holstein that helps various exchanges between Eppendorf parent process and takes care of plan- students develop not just their intellec- and the school, including students ning, airfare, and insurance. tual abilities but also personal respon- invited to participate in internships, sibility and social and intercultural Eppendorf helping with entries to com- Social sustainability competencies. In 2016, the Louisen- petitions, and employees offering to Social commitment is near and dear to Eppen- also takes part in smaller initiatives to get young lund boarding school introduced a serve as personal mentors. dorf, especially when it comes to promoting people interested in science and the company, training course for students who have future generations of scientists. Eppendorf has such as the international student competition a special gift for what is known in Intercultural exchanges among been recognizing young scientists with awards “Biology Olympiad,” the German initiative “BIO- Germany as MINT subjects (MINT: employee families for more than twenty years. The company specifi- Technikum,” and the Science Slam, which has mathematics, IT, natural sciences, tech- Eppendorf wants to promote not just cally supports the research community with the become immensely popular not just among sci- nology). The training is supported by the academic interests of young people “Eppendorf Award for Young European Investiga- entists. In addition, Eppendorf supports schools science, research, industry, and politi- but also their understanding of other tors” and “Eppendorf & Science® Prize for Neuro- and school projects at many locations by donat- cal partners, and the learning objec- cultures. By having a presence in many biology,” both of which are presented annually to ing devices and consumables to make science tives are defined in accordance with different countries, the company can tap applicants under the age of 35. But Eppendorf instruction more concrete and practice-oriented. the nationwide plus-MINT program. its own potential. Since 2013, children of A scholarship fund has been set up to Eppendorf employees at all locations enable young students to take part in have the opportunity to spend a few the program regardless of their family’s weeks with an Eppendorf host family. Every year, Eppendorf and two well-respected social status. The requirement is to agree to a two- scientific journals present two science awards way exchange; that is, every family to young scientists in the fields of biomedical benefiting from another family’s hospi- and neurobiological research. tality later serves as a host family itself. Participants must be between 14 and 18 years old and able to communicate in English.
34 Eppendorf Annual Report 2017 Sustainability 35 Ecological sustainability The products launched on the market by view of processes in the laboratory to develop Brand management Aware of its responsibility for people and the en Eppendorf in 2017 fulfill these high environmen- application- and solution-oriented devices designed The company’s long tradition, extensive portfolio vironment, Eppendorf strives for active, compre- tal standards in a variety of ways. For example, for a long service life: In laboratories all over the of quality products, and image as a premium hensive, and innovative environmental protection. the Mastercycler ® X50 and the ultra-low tempera world, you can find individual Eppendorf devices brand are among the reasons why Eppendorf is This is why the company has had an environmental ture freezer from the new CryoCube® F740 series that are no longer produced but still continue to per- so well-known and enjoys such broad appeal management system for years that conforms to are characterized by the highest in energy effi form their tasks reliably. Maximum functionality, worldwide. In this respect, Eppendorf even out- the DIN EN ISO 14001 international standard. ciency. And the innovative device networking optimal sample handling, intuitive operation: All performs much bigger market players. The Eppendorf’s goal is not just to optimize this system system VisioNize® makes an important contribu- this is just the visible part of a high-quality labora- strength of the brand cannot, however, be taken continually, but also to improve its environmental tion to sustainable laboratory work: not only is tory device. Only when our materials and manu- for granted. We must deliver on our brand performance over the long term. Our employees it compatible with the latest generations of lab facturing processes uphold the highest standards promise to our customers again and again: with are the foundation of our environmental manage- instruments, it also enables the simple integration of sustainability can we as a manufacturer be new or proven products that offer premium ment system, so Eppendorf promotes their environ of older devices through a decoder. satisf ied. But customers, too, are increasingly quality and top performance to users and re- mental awareness through targeted information, focused on finding the most sustainable solution earchers in the laboratories. In addition, it is training and continuing education, integration, In its global competence centers, Eppendorf when they buy lab equipment. essential we manage our brand globally with the and leadership. focuses on two main sustainability issues: increas- help of internal experts and suitable measures. ing energy efficiency and reducing the company’s For example, Eppendorf has a global network of Wherever it is economically feasible, Eppendorf carbon footprint. But a focus on ecology often also internal brand ambassadors who passionately orients itself toward the goals of sustainable busi- pays off economically: Rigorous optimization of a promote the rigorous implementation of our ness and continuously identifies, implements, and company's environmental balance is often accom- corporate identity. improves measures that help reduce environmental panied by improvements in business efficiency. damage. The high quality, efficiency, and long ser- Uniformly managed around the vice life of the products we offer help us make a Corporate sustainability Further information on sustainability world, the Eppendorf brand plays contribution to the careful use of resources. This Eppendorf was founded in 1945 by Dr. Heinrich a significant role in the company’s at Eppendorf: corporate.eppendorf.com/en/ is also why Eppendorf ensures that environmental Netheler and Dr. Hans Hinz and is still in the long-term success. company/sustainability requirements are defined for each stage in the life hands of the founding families today. In this stable cycle of its products as early as the development ownership culture, the focus has always been on process. long-term thinking and solid growth rather than short-term success. And all along, Eppendorf has relied on premium quality. We apply a holistic »We have been ardent users of Eppendorf products since the inception of GROW research labs; the product quality across all instruments, consumables, and services provided has reaffirmed our faith in Eppendorf. We therefore recommend the company to our friends and collaborators across the nation. Research data production is scaling up as we progress, and its management is becoming an important parameter for efficiency, so we welcome digitalization efforts for laboratory processes. Particularly in the age of omics and convergence of clinical and basic research, connectivity and digitalization solutions for easy data access and monitoring will be increasingly important.« Arkasubhra Ghosh, PhD, Director, GROW laboratory (genes, repair and regeneration at ophthalmic workstation), Reduced consumption Pallet recycling Improved waste Narayana Nethralaya Foundation, Bangalore (India) of plastic management
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