commerce germany OFFICIAL PUBLICATION OF THE AMERICAN CHAMBER OF COMMERCE IN GERMANY

June 2016 • VOL 14 • ISSUE 2 €7.70

Digitization of the Workplace 113th Annual Membership Meeting

Innovation: Driver of Growth Business Barometer: Set for Growth Baden-Württemberg: Musterländle High-Tech: German Delegates Visit US West Coast amcham germany viewpoint Innovation – Key Factor on the Road to Success

As long ago as the Middle Ages, silver ore mining and its associated metallurgic industries made Saxony incredibly rich and – most of all – incredibly rich in innovative metal forming tech- nology. When, in the late 18th century, Saxony became a continental pioneer of the Industrial Age, it soon established itself as an industrial and scientific leader in Europe, especially as a manufac- turer of innovative production machinery. A major reason for this was prudent private and pub- lic investment in education, science and technology that fueled business growth and success. Today, the vibrant spirit of entrepreneurship and innovation, which has been a defining ele- ment of the Saxon economy for more than eight centuries, is still our most important resource. Moreover, the success of the Saxon economy still hinges on our education system, a well-trained Stanislaw Tillich workforce, excellent public infrastructure and competitive research and development institutions. Prime Minister of the Free State of Saxony We see education and science as tools that empower people to create innovative sustainable so- lutions to various challenges. To this end, Saxony funds hundreds of technology projects every year, strongly supports application-related research and generally adopts solid financial and pro-business policies. This is the road to success. Take, for example, materials science innovations: Three hundred years The spirit of ago, Saxon scientists discovered the manufacturing process for porcelain. Today, ceramic materials entrepreneurship engineered in Saxony’s research institutes replace teeth, enable fuel cells and batteries, improve the and innovation is performance of heavy duty tools and automotive parts and serve as energy-efficient sources of light. our most important Saxon science and industry have applied their knowledge to other materials as well, such as sili- resource con. “Silicon Saxony” is Europe’s largest network in the microelectronics sector, and for good rea- son: every second chip produced in Europe comes from Saxony. This achievement is, in part, thanks to the US-based investor and chip producer AMD who came to Saxony in 1996 – just as more than a hundred other US investors did and continue to do. Like all foreign investors in Saxony, more than one hundred US companies have taken root in the fertile Saxon economy and represent some of the most competitive and innovative brands in the world. Meanwhile, Saxony’s hallmark business sectors – manufacturing technology, automotive and energy technology as well as ICT – are merging into Industry 4.0, bringing forth solutions for fully automated and fully digital produc- tion as well as electric mobility and renewable energy. At the Hannover Messe, Chancellor Merkel and President Obama strongly committed to supporting in- novations as the way forward for the transatlantic partnership. Here in Saxony, we are contributing to this transatlantic innovation push. Come visit us and have a closer look!

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June 2016 commerce germany 3 11 th Edition of Corporate Responsibility Publication Available Now

Diversity & Inclusion Diversity & Inclusion for a company’s culture More Information and success. It confirms that Diversity & The American Chamber of Commerce in Inclusion are increasingly important for busi- For further information, please contact: Germany e.V. (AmCham Germany) and nesses. Lena Verbeek Frankfurt Business Media – Der F.A.Z.-Fach- T +49 30 288789-28 verlag have published their annual Corpo- Book Launch in April 2016 E [email protected] rate Responsibility Publication. The publication was launched at This year, the focus is on “Diversity & Inclu- the AmCham Germany Annual sion – Gelebte Vielfalt in global agierenden Membership Meeting in Leipzig in Unternehmen”. The 11th edition portrays April 2016. best practice examples of Diversity & Inclu- sion measures and strategies from a variety Available online of AmCham Germany’s member companies. These include diversity networks, initiatives The Corporate Responsibility Publi- for the support of refugees as well as activi- cation 2016 is available online: ties regarding individual career promotion for both genders.

Expert articles on issues such as unconscious biases and inclusive leadership complement the companies’ perspectives. Trend survey

The Corporate Responsibility book also Hardcopies can be ordered via includes a trend survey on Diversity & Inclu- [email protected]. sion that was conducted among AmCham Germany’s member companies. The survey focuses particularly on the relevance of www.amcham.de

2016 Anzeige CR cg2-2016.indd 2 20.05.2016 17:43:01 contents

cover story

6 Innovation – Driver of the Growth / PricewaterhouseCoopers AG; Evonik Industries AG; Klöckner & Co SE

from amcham germany members

21 member know-how: Aligning Business and IT to Drive Innovation / Damovo Deutschland GmbH & Co. KG; Pharma Dialogue for the Future of Healthcare / MSD SHARP & DOHME GmbH

amcham germany member support

17 access your global network: Italy – More than Food and Fashion

20 investment region: Baden-Württemberg – Musterländle

22 policy highlights: Let's Talk Digital Transformation – Visiting High-Tech Companies

amcham germany events

8 event report

12 special report: 113th Annual Membership Meeting

18 key studies: XIII AmCham Germany Business Barometer – US Companies in Germany Set Again for Growth

chamber news

11 special report: US-German Internship Program

24 Atlanta Business Day

26 special report: AmCham Germany Board of Directors Meeting

25 new members 27 chamber calendar

Cover (from left): Kate Johnson of GE Digital; AmCham Germany Vice President Isabel Hochgesand; and Kathleen B. Fish of Procter & Gamble at the 113th Annual Membership Meeting

June 2016 commerce germany 5 cover story

Collaborative innovation Transforming business Driving growth

Innovation

Five Basic Rules for Mastering Innovation

nnovation has become a key differentiator and innovation was the preserve of research and de- Innovative companies do not only rely on their needs to be on top of every boardroom agenda velopment (R&D) units at the sidelines of the internal capabilities but take advantage of the to deliver on a capabilities-driven strategy and business are gone. Successful companies recog- wealth of knowledge that exists outside of the or- provide sustainable growth. Innovation is an nize that innovation is a mainstream process, ganization. On top of that, conversely, they share Iessential competitive advantage, since innovative which brings together frontline teams, custom- their knowledge when doing so does not jeopard- companies have proven to grow quicker, generate ers and a range of different partners from be- ize their own competitive position. higher margins and therefore be more successful. yond the organization. Of course every company has a different ap- Unfortunately, being innovative does not Seek to come up with breakthrough and proach to innovation, and there is no golden rule come naturally to every company, but has to be radical innovations. Think big – this seems to to guaranteed success. But reflecting on the five fostered and actively promoted. While most com- be the case for innovative companies. Rather than key factors above might bring you one step clos- panies nowadays seem to have understood the trying to find slightly better products, they focus er to not only standing in awe of companies like importance of innovation, some are acting on it their innovative energy and budgets on whole ­Google, Apple or General Electric, but actually fol- more successfully than others. How come? new sources of revenue. lowing in their innovative footsteps.  Based on a large global study on innovation Explore and use a conducted by PwC, there are five key factors differ- vast variety of innova- entiating innovative companies from their peers. tive business models. Innovative companies have Take them as basic rules on how to survive and Not only are innovative proven to grow quicker, win in a disruptive world: companies looking for prod- Commit on a clear-cut innovation strat- uct innovation but further- generate higher margins and egy. In order to build and sustain an innovative more explore different inno- therefore be more successful culture encouraging innovation in all areas, inno- vative business models, for vation strategy has to be put right at the heart of example when it comes to Armin Slotta every strategic decision. pricing or service delivery. Head of Business Development & Innovation PricewaterhouseCoopers AG Handle innovation like any other es- Invest in relation- www.pwc.de tablished business process. The days when ships and collaborate.

6 commerce germany June 2016 © worldofvector/iStock/Thinkstock

Innovation can drive the economy primarily in two ways: by expanding the number and value of new products and services and by improving processes to increase productivity and make better use of resources. Traditional models of innovation are no longer sufficient to deliver future growth; companies strive for digital approaches to create disruptive products and services and entirely new business models.

Open Innovation – Digitally Tapping into the Crowd

he main driver for creativity and inno- Some industries, par- vation in recent years has been the in- ticular B2C industries, have Digital transformation will crease in connectivity of people all over even been including end- drive innovation – more than the world. This, in a nutshell, is also what consumers in their inno- anything else before TStephen Johnson already predicted in 2010 in vation processes for many his groundbreaking book “Where good ideas years. New is the fact that come from”. Thus, for the years to come, we ex- more and more companies pect the digital transformation of society and are starting to connect digi- Prof. Dr. Georg Oenbrink industry to drive innovation of organizations – tally with their customers, Corporate Innovation Evonik Industries AG more than anything else before in the history the customers of their cus- www.evonik.com of mankind. tomers and with end-con- Open Innovation has been generally accept- sumers. Internet-based idea ed as a convincing answer to decreasing product contests, digital open innovation portals and world. It is equally important for big, multinational life cycles, increasing individualization of prod- lounges offered by companies on their websites enterprises to efficiently­ utilize and leverage the ucts and a growing complexity of innovations. are established crowdsourcing initiatives that knowledge and expertise contained inside their ­Transparent innovation ecosystems that include ­enable one to tap into the wisdom of the crowd own organizations. Including the whole organi- external partners from academia, industry and and to connect with experts who might not be zation with its broad range of knowledge, exper- service providers and even include non-profit or- known to the company, but might own that miss- tise and skills in idea generation and maturation, ganizations, are developing successfully in many ing piece of knowledge one is looking for. in problem solving and business case develop- industrial value chains. Research and develop- Digital collaboration will be the standard of ment has become ­increasingly important over the ment project consortia with academic and indus- the future. A digital innovation ecosystem con- last years, especially in B2B companies. Ideation trial partners, with or without public funding by nected 24 hours a day, seven days a week, with jams, idea contests and seeker-solver communi- the government, are one way to build such eco- partners and experts all over the world will be ties pushed forward on social business platforms systems. But there is more to come: for example, the driving success factor for innovation. But it are just some of the approaches companies have industry ­innovation alliances and consortia. is not only a matter of connecting to the outside developed over the past few years. 

June 2016 commerce germany 7 cover story

A Digital Platform for the Steel Industry

he steel industry is burdened by overca- and cost savings in logistics pacities, falling prices, competition and along the entire value chain. The open industry platform fragmented markets – especially in steel Klöckner is planning to can integrate all players, distribution. In short, the industry needs to roll out the new platform in Treinvent itself. “Business as usual” will no longer 2017. However, before the from the producers all the get the job done. launch, several challenges way to the customers Klöckner & Co is currently showing how such remain – for instance, get- a reinvention could work – by transforming a ting customers on board. To Gisbert Rühl margin-based offline business to a transaction engage customers, Klöckner­ CEO Klöckner & Co SE fee-based platform business. The company is de- is already inviting them at www.kloeckner.com veloping an open industry platform to create an an early stage to take part end-to-end data flow at every link in the supply in the development of new chain, from the producers all the way to the cus- online tools – by using Silicon Valley-approved pany took its first steps along the road to digitiza- tomers. Such a platform can even integrate com- methods such as design thinking and building tion, Klöckner is now planning to set up its own petitors and provide numerous advantages for all minimum viable products. coworking space for SMEs, also in Berlin, inviting participants of the value chain. In addition, the company is also aiming to in- SMEs to an open collaboration to prepare them- While suppliers can benefit from improved uti- clude small and medium-sized enterprises (SMEs) selves for the digital transformation. lization of cost-intensive production assets due to in their approach to digitization. SMEs often do Klöckner is convinced that this initiative will an increased transparency of demand, custom- not have the capacity to take on the challenges make a difference. Their own lesson learned in ers will enjoy a broader range of materials avail- of digitization by themselves. the process was: It is okay to start small, but it is able and a higher price transparency. Furthermore, Based on its own positive experiences at Ber- vital to start right away in order not to miss the transparency will lead to lower inventory levels lin’s coworking space betahaus, where the com- boat. 

event report

TRANSATLANTIC DATA TRANSFER

Frankfurt/M, Feb. 24. At this Expert Briefing, Dr. Thomas Schürrle and Dr. Friedrich Popp of Debevoise & Plimpton LLP in Frankfurt/M gave speeches on data transfer to the US and provided an overview of the – at that time upcoming – Safe Harbor II regulation.

LOOKING AT US AND GLOBAL POLITICS

Cologne, Feb. 24. At this Business Luncheon with US Consul General Michael Keller, the Consul STRENGTHENING TRANSATLANTIC TIES shared his view on recent developments and de- cisions in US and global politics. Pictured here are Munich, April 26. Guests attended this Busi- was followed by a networking reception with (from left): Keller and Dr. Hermann Hollmann, ness Luncheon with event partner Bristol-­Myers a flying buffet. Pictured here are (from left): Cologne Regional Committee Chair. Squibb to hear Tom Donohue, President of the ­Christian von Sydow, Bavaria Regional Commit- US Chamber of Commerce, give a speech on tee Co-Chair; Andreas Povel, General Manager,­ the transatlantic relations and draw ­conclusions ­AmCham Germany;­ Donohue; Han Steutel,­ from this year’s Hannover Messe with Partnerland­ ­Senior Vice President and General Manager USA. Donohue also spoke about the US as a busi- ­Germany of ­Bristol-Myers Squibb GmbH & Co. ness location, the challenges and opportunities KGaA; Burkhard­ Linke, ­AmCham Germany Rep- of digitization­ and Industry 4.0 as well as the resentative Bavaria; and Andreas Würtenberger, ­latest developments regarding TTIP. The speech Bavaria Regional Committee Co-Chair.

8 commerce germany June 2016 event report

OIL BUSINESS GLOBAL POLITICAL CHALLENGES AND THE ROLE OF RUSSIA

Hamburg, April 26. During a Business Dinner with Stuttgart, March 8. What are the biggest political A Digital Platform for the Steel Industry Lord Browne of Madingley, Executive Chair- challenges in 2016? Guests attending this Busi- man of L1 Energy, Chairman of Huawei UK and ness Luncheon with Prof. Klaus Mangold, former former CEO of BP, the guest of honor spoke about Member of the Board at Daimler and Chairman of his decades-long experience in the oil and gas in- the Ostausschuss der Deutschen Wirtschaft, heard dustry. Pictured here are: Lord Browne (left) and his view on current developments and took the op- Dr. Henning C. Schneider, Northern Germany Re- portunity to ask the seasoned Russia expert ques- gional Committee Chair. tions on the challenges for – and with – Russia.­ Pictured here are (from left): Matthias ­Kopka of ­Ebner Stolz; Mangold; Baden-­Württemberg Re- gional Committee Chair Prof. Gerhard ­Wegen; and Bernd Schäfer-Surén of Le Méridien Stuttgart. © Stefan Obermeier LAWYER WITH SPEED KEY SUCCESS FACTOR INNOVATION Stuttgart, April 25. Monisha Kaltenborn is the team principal of the Sauber Formula One team Munich, March 17. At this AmCham Germany panel discussion with Federico Ghizzoni, CEO and also the team’s CEO. At this Business Lunch- Forum with event partner Hypovereinsbank, of ­UniCredit, was moderated by journalist and TV eon, she spoke with Prof. Gerhard Wegen, Baden- more than 500 guests listened to Dr. Wolfgang presenter Nina Ruge. Pictured here are (from Württemberg Regional Committee Chair, about her Büchele, CEO of Linde AG, talk about innova- left): Ghizzoni, Ruge, Büchele; and Christian von role as a female legal expert in the Formula One tion as a basis for business success. Afterwards, a Sydow, Bavaria Regional Committee Co-Chair. and the challenges she faces in this male-domi- nated sport. Guests attending the event heard a very personal dialogue, and Prof. Wegen painted an INTERNATIONAL TAX ISSUES US ELECTIONS inspiring portrait of an extraordinary woman. Pic- tured here are (from left): Ulrich Schwer­ of Althoff Munich, March 23. KPMG experts addressed cur- Stuttgart, March 21. Who will be the next US Hotel am Schlossgarten; Kaltenborn; and Wegen. rent developments in tax legislation and their im- president and what are the impacts on the trans- plication for investments between Germany and atlantic relationship? This question was particu- the US regarding tax planning at this ­Expert Brief- larly interesting to those AmCham Germany mem- ing. In their presentations, Sam Riesenberg, bers and guests who came to this Business ­After Managing Director at ­KPMG USA; Dr. Oliver Hours event with event partner Südwestrund- Heinsen, Partner at KPMG in Frankfurt/M; and funk (SWR). Radio journalist Sabrina Fritz from Christian Schmid, Senior Manager at KPMG­ in the ARD Hörfunkstudio in Washington, DC share Munich, explored the impact of the OECD’s initia- her view on the current primaries and upcoming tive on Base Erosion and Profit Shifting (BEPS) on US presidential elections. The outcome remains foreign direct investments. to be seen.

A DAY AT SCHOOL THE FUTURE OF COAL, OIL AND GAS

Böblingen, Feb. 16. Members and friends of Düsseldorf, Feb. 3. At this Business Luncheon, ­AmCham Germany were invited to tour the guests listened to Michael Schmidt, Chair- ­recently opened American military school in Böb- man of the Board of BP Europa SE, talk about the lingen – including an elementary and high school ­Paris agreement on climate change and its conse- for more than 1,300 students from the Stuttgart quences for coal, oil and gas. Pictured here are: area. Bill Harvin, Operations Manager, gave par- Schmidt (left) and Dr. Alexander Schröder-Frerkes, ticipants insight into a day at school. North Rhine-Westphalia Regional Committee Chair.

June 2016 commerce germany 9 event report

INVESTING IN CULTURAL HERITAGE

Munich, April 20. An Expert Briefing in the Ba- varian capital with event partner Rittershaus ­Rechtsanwälte discussed opportunities of foster- ing the cultural heritage of Europe through invest- ments in historical buildings. Helen­ ­Prinzessin zu Oettingen-Wallerstein, CEO and Head of INTERNATIONAL TAX HIGHLIGHTS Design at HOW Signature Properties GmbH, ad- vised on the commercial use of historical buildings, Frankfurt/M, April 15. At this joint AmCham ing of international companies in light of recent while Dr. Werner H. Born, lawyer and partner at ­Germany-PricewaterhouseCoopers (PwC) Ex- developments regarding the OECD directive on Rittershaus Rechtsanwälte, informed participants pert Briefing, guests listened to Christof K. Base Erosion and Profit Shifting (BEPS). They also about different modes of transferring ownership to Letzgus, International Tax Services Partner at presented some case examples from their expe- the next generation. A Q&A session was moder- PwC Frankfurt/M, and Marco Bach, Director Cor- rience. Pictured here are Letzgus (standing) and ated by Jens Magers of Rittershaus Rechtsanwälte. porate Tax at PwC Frankfurt/M, talk about audit- Bach (sitting). Pictured here are (from left): Born; Prinzessin zu Oettingen-Wallerstein;­ and Magers.

THE DOLLAR – US CURRENCY, EUROPEAN PROBLEM?

Erfurt, Feb. 25. Bernd Weidensteiner, Senior Economist Research at Commerzbank, shared his perspective on the US dollar as the world’s lead- ing currency and its implications for the European currency at this Business After Hours event. Pic- tured here is Weidensteiner (standing).

MEDIA AND DIGITAL TRANSFORMATION GLOBAL PARTNERS IN THE 21ST CENTURY Munich, April 7. At this AmCham Germany Forum, participants listened to an interview with Stefan Düsseldorf, March 23. The speech of US Ambassa- Winners, Member of the Board at Hubert Burda­ dor John B. Emerson at this Business Luncheon Media Holding, by Lutz Knappmann, Head first touched on the terrorist attacks in Brussels of ­Editorial Innovation at Süddeutsche Zeitung before turning to the actual topic of the event. ­Digitale Medien GmbH. The main topic of the dis- His presentation then focused on the transatlan- cussion was how Burda is mastering digital trans- tic partnership and its importance in the light of formation. Pictured here are (from left): Christian global political developments. He also underlined von Sydow, Bavaria Regional Committee Co-Chair; the necessity of bringing TTIP to a close. Pictured Winners; Knappmann; Andreas ­Würtenberger, Ba- here are (from left): Dr. Norbert ­Vogelpoth, Chair- varia Regional Committee Co-Chair. man of the Supervisory Board of Pricewaterhouse- Coopers (PwC); Prof. Theo Siegert,­ Vice Chairman of the Industrie-Club­ e.V. Düsseldorf; Emerson; INTRALOGISTICS 4.0 and Claus Gielisch, Member of the Board of the Industrie-Club e.V. Düsseldorf. Frankfurt/M, April 13. The topic of Intralogistics 4.0 was at the center of this Business Luncheon with Gordon Riske, CEO of KION GROUP AG. KION GROUP is one of the organizations that have coined this term describing the link of in- tralogistics with Industry 4.0. Guests at the lunch event learned how intralogistics – the logistics within a facility – aim to manage, monitor and op- timize their internal logistic flows by means of dig- ital systems and services. Pictured here are Riske (left) and Rhine-Main Regional Committee Chair Mark C. Hilgard. Düsseldorf © Industrie-Club e.V.

10 commerce germany June 2016 special report: us-german internship program © Frank Pichler © Frank

PARTICIPATING COMPANIES This year's group of students at the Welcoming Ceremony for the US-German Internship Program in Frankfurt/M. • ARAG SE • DEKRA SE • Ernst & Young GmbH Wirtschafts- prüfungsgesellschaft US Students Welcomed • Fresenius SE & Co. KGaA • ITMS Marketing GmbH • Kentucky Fried Chicken (Great Britain) Limited, German Branch • Lilly Deutschland GmbH to Internship Program • McDonald's Deutschland Inc. • One Square Advisors GmbH or the seventh year in a row, AmCham The Opening Ceremony was held to welcome the • Software AG ­Germany welcomed another eager group of students and give them the opportunity to meet • State of Indiana, Berlin Office • Steigenberger Hotels AG US college students at the Opening Ceremo- their host companies, whom they are working • Teleperformance Germany Sàrl & Co. KG ny of the US-German Internship Program, with during the three-month program. Following • TNG Technology Consulting GmbH Fheld at the headquarters of FrankfurtRheinMain a welcoming address from the host – Eric Menges, • TRUMPF GmbH & Co. KG GmbH in Frankfurt/M on May 12. Roughly 25 stu- ­President and CEO of FrankfurtRheinMain ­GmbH • United Parcel Service Deutschland dents, who come from various universities in the – the interns heard speeches from ­AmCham Inc. & Co. OHG southeastern US, flew over to gain work and life ­Germany General Manager Andreas Povel; SPONSORS AND SUPPORTERS experience through their summer internships at Dr. Christoph Rückel, Of Counsel to BridgehouseLaw­ the 16 participating German member companies. LLP and Senior Partner at Rückel & Collegen; and • BridgehouseLaw LLP Stacie Z. Bishop, Political/Economic Section Chief of • FrankfurtRheinMain GmbH International Marketing of the Region the US Consulate General in Frankfurt/M. • Fresenius SE & Co. KgaA Many companies have been accepting interns • United Parcel Service Deutschland from the US-German Internship Program for sev- Inc. & Co. OHG eral years. Bondina Schulze of UPS Deutschland expressed her company’s expectations that “there will be a two-way learning street between the stu- of Hannelore Kraft, Minister President of North dent and the company, and we hope to be able to Rhine-Westphalia, and John B. Emerson, US Am- learn from the different perspective that the stu- bassador to Germany. dent has.” Franziska Baist of Fresenius said that AmCham Germany, in collaboration with Students got to know one another before starting her company “participates in the US-German In- Rückel, is in charge of selecting host companies their internships at companies across Germany. ternship Program in order to gain contact to in- and participants as well as arranging travel prep- ternational students. We are interested in giving arations to Germany – from finding accommoda- young people a chance to get to know Fresenius tions, acquiring work permits and organizing an and also Germany.” interim meeting in Berlin.  The US-German Internship Program aims to cultivate a positive view of Germany among fu- ▸ For more information about how you ture US leaders and prepares program partici- and your company can get involved, pants to serve as ambassadors of the German- please contact Katrin Utzinger American friendship. Established in 2009 with T +49 69 929104-50 BridgehouseLaw LLP, the highly successful pro- E [email protected] At the Opening Ceremony, the students took the gram has had more than 150 participants and W www.amchaminternship.org opportunity to ask questions about their host country. continues to grow steadily under the patronage W www.amcham.de

June 2016 commerce germany 11 special report: 113th annual membership meeting

Brigitte Zypries, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Energy People First: Driving Digitization with Employees and Customers

The 113th AmCham Germany Annual Membership Meeting held in Leipzig on April 29 continued where the Hannover Messe with partner country USA had ended the day before: Top leaders and guests from both sides of the Atlantic gathered to discuss how digitization will transform the workplace of tomorrow.

he digital opportunities we would like to Google Germany, emphasized to the audience in make integrated use of are interfering his opening address on driving digital innovation. with an established notion of ‘work’ and “Every business has to go digital and speed up its ‘production’, presenting companies with pace,” he added, underlining the importance of Tfundamental changes.” In his welcome speech, instilling a digital culture in companies “to stay AmCham Germany President Bernhard Mattes in- innovated and keep our people in front of that troduced this year’s theme of how digitization and process.” increasing connectedness are changing the way In a context-shaping panel discussion with of working and learning. five executives from five distinct industries, -at tendees heard a lively exchange on how digitiza- “Digital culture eats strategy for tion transforms the workplace. The discussion was breakfast” moderated by AmCham Germany Executive Vice President Frank Riemensperger. The process of digital transformation is on- Panel participant Prof. Rodney Brooks, Chair- ly at the beginning of an exponential curve. By man, Founder and Chief Technology Officer of 2020, around 50 billion devices and machines Rethink Robotics, asserted that “tools need to will be connected to the Internet. “Digital is front become easier to use for employees so they can Philipp Justus, Managing Director of Google Germany and center,” Philipp Justus, Managing Director of reap the benefits,” while Eric Weber, Managing

12 commerce germany June 2016 WE SINCERELY THANK OUR EVENT PARTNERS FOR MAKING THE 113TH ANNUAL MEMBERSHIP MEETING POSSIBLE.

PLATINUM

Kate Johnson, Vice President and Chief Commercial Dr. Johannes Voigtsberger, Head of Production Officer of GE Digital Electrical Vehicles at BMW Group in Leipzig

GOLD

Panel participants were (from left): Prof. Rodney Brooks, Rethink Robotics; Catharina van Delden, innosabi; Dr. Christian P. Illek, Deutsche Telekom AG; Kate Johnson, GE Digital; Eric Weber, Spin Lab; and moderator Frank Riemensperger, AmCham Germany Executive Vice President.

Director and Co-Founder of the start-up accelera- tures to engage all employees on the journey to tor SpinLab, added that promoting collaboration digital, thereby transforming out of the core. and co-creation­ between entrepreneurs and in- Kate Johnson, Vice President and Chief Com- dustry and technology experts is key to speeding mercial Officer of GE Digital, argued that an op- SILVER up new digital business models. Catharina van portunity for industrial companies is to offer more Delden, Co-Founder and Chief Executive Officer than a traditional product and service portfolio, of innosabi, stressed the need for agile processes but also to assemble people, processes and tech- and open innovation. nologies to deliver the digital capabilities “that help customers master their challenges.” Transforming out of the core and engag- ing all employees Disruptive thinking

Dr. Christian P. Illek, Board Member for Human The afternoon was filled with more top Resources at Deutsche Telekom AG, argued that speakers and compelling issues. Dr. Johannes traditional companies need ambidextrous lead- ­Voigtsberger, Head of Production Electrical ers who are equally adept in the digital and the ­Vehicles at BMW Group in Leipzig, and ­Kathleen B. analog world. The seasoned executive provided Fish, Chief Technology Officer of Procter &­Gamble, inspiring insight into the challenges of steering presented their individual perspectives on how to a company in a world of digital products while successfully implement disruptive thinking in their changing the analog culture of its legacy struc- companies. Though from two different ­industries, TOTAL RÉFÉRENCES COULEUR TOTAL_brand_block_CMYK 30/01/2014 24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87 M100% Y80% Web : www.carrenoir.com M48% Y100% M100% Y80% C100% M80% K70% C70% M30% June 2016 commerce germany 13 special report: 113th annual membership meeting

AmCham Germany President Bernhard Mattes (left) greets US Ambassador John B. Emerson.

Next generation of AmCham Germany: Young Professionals together with former AmCham Germany Vice Prof. Rodney Brooks, Chairman of Rethink Robotics President Otmar Debald and AmCham Germany Vice President Isabel Hochgesand.

both shared the view that disruption is not only MEMBERSHIP CERTIFICATES AWARDED for startups, but “it’s in the DNA” of these two established automotive and consumer goods gi- ants, who have been reinventing their products 60 YEARS Matthias Maaz 20 YEARS Ulrich Andree from scratch for more than a century. Read more Honeywell Deutschland Holding Johnson Controls GmbH in the interview with Kathleen B. Fish on page 15. GmbH Automotive Experience Brigitte Zypries, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and 50 YEARS Sandra Horst Mario Walke Energy, added a political perspective to the meet- PwC Strategy& (Germany) GmbH Guardian Flachglas GmbH ing. She directed the attention to the companies of the German Mittelstand, which are in danger Dr. Wolfram Tietscher 10 YEARS Richard Clabaugh of falling behind in terms of digitization. The Ger- Texas Instruments Deutschland Accuracy LLC Legal Translations man Federal Government supports these compa- GmbH nies through various measures to share know- Carl Graf von Hohenthal how and technology and connect to jointly tap Marion Weigand Brunswick Group GmbH the enormous potential of digitization. Referring DuPont de Nemours to the AmCham Germany Business Barometer, (Deutschland) GmbH Malleswara Kalary she agreed that digital education was a key el- Cognizant Technology Solutions ement in mastering the challenges on the Digi- 40 YEARS Michael Meißner GmbH tal Agenda. Amway GmbH Rounding off the Annual Membership Meeting, Ivan Radosevic Prof. Markus Gross, Director of Disney ­Research Rudolf Martin Siegers (Individual Member) Zurich and Director of the Computer Graphics Siemens AG Deutschland ­Laboratory at ETH Zurich, took the audience on Hannah Rückel an imaginary tour – through snowy landscapes, 25 YEARS Paul A. Arend Brunswick Group GmbH exploding light effects and encounters with char- Paul André Arend Language acters from Disney classics such as Frozen. He ex- Consultant plained the magic that animation technology can create by analyzing data gained from real life, in- Sabine Reuss cluding light effects, facial animation and render- Capgemini Deutschland Holding ing. Digitization not only transforms our work and GmbH lives, but builds entire new worlds, thereby forming a symbiosis of technology and art. 

14 commerce germany June 2016 Digital Saxony

Dr. Fritz Jaeckel, State Minister and Chief of the State Chancel- lery of the Free State of Saxony, welcomed guests to the evening reception at the 113th AmCham Germany Annual Membership Meeting. The reception preceding the traditional Gala Dinner was hosted by the Free State of Saxony. In his address, Jaeckel shared his thoughts on how Saxony is dealing with digital transformation as a business location. He encouraged US companies to expand their businesses in Saxony, as the Free State is home to a strong Mittelstand and several important industries. The digital heart of the microelectronics/ICT industry beats in Dresden (“Silicon­ ­Saxony”), while Leipzig – the city of trade and commerce – is a vibrant media venue. The engineering and automobile indus- try is traditionally strong around Chemnitz and Zwickau. He also pointed to the state’s long history of diplomatic ties to the US. US businesses have played a key role in the development of the industrial and commercial landscape of Saxony in recent years. Jaeckel appealed to small and medium-sized enterprises to tackle the challenges of digitization in order to not fall behind on the Dr. Fritz Jaeckel, State Minister and Chief of the State Chancellery of the Free State of Saxony journey to Industry 4.0.

“We need to innovate how we innovate”

▾▾Digital transformation – the use of technology to improve performance, ▵▵A key factor is culture. To create the future, capture the opportunities products and services – is a hot topic for companies across the globe. from a changing world and prevent ourselves from being disrupted, we need How can organizations make their digital journey successful? a culture that thrives on learning and recognizes that failure is an expected part of the process. ▵▵We at Procter & Gamble embrace digital technology in all parts of our structure and innovation process, and we also leverage it to fuel our culture: ▾▾A current topic in the transatlantic business community is TTIP – the First, we leverage new digital tools to ‘innovate how we innovate’ with a proposed free-trade agreement between the EU and the US. How will particular emphasis on modeling and simulation. Second, we are finding ­Procter & Gamble benefit specifically from this agreement? new ways to delight consumers using possibilities created in the digital world. Third, we use insights and algorithms from big data to match the ▵▵We believe that open markets and trade agreements are good – for the right product with the right consumer. economy, for consumers, for retailers, for governments and for producers and traders. A comprehensive TTIP can create a multiplier effect of job stimulus ▾▾In addition to the automatization of production processes, how has digi- and economic growth, and can help accelerate economic recovery on both tization changed the way Procter & Gamble does business? sides of the Atlantic. For Procter & Gamble, TTIP would improve speed to mar- ket of innovative products. As we operate on both sides of the Atlantic, we ▵▵Innovation has been P&G’s lifeblood for over 175 years. As a company, comply with both regulatory systems. Eliminating, where possible, duplica- our aspiration is to serve the world’s consumers better than our best com- tion of compliance would allow us to operate faster and more efficient.  petitor in every category and every country. Our challenge today is to con- tinue to reinvent our approach to innovation, so we can continue to drive our success model of creating enduring brands. To do this, we cannot get distracted by the noise of potential disruption in the digital world. Instead we must capture and utilize the opportunities created by the digital world to better understand and meet the needs of our ever-changing consumers. Kathleen B. Fish Chief Technology ▾▾How can companies best prepare their workforce for the changes Officer brought about by the digital era? Procter & Gamble

June 2016 commerce germany 15 special report: 113th annual membership meeting

Certificates of Merit and Service Excellence Award

Guests joined Chamber officials to present Certifi- Another highlight was the presentation of the cates of Merit to members who have strengthened Service Excellence Award to the retiring AmCham transatlantic ties through years of engagement. Germany Senior Adviser in Washington, DC, This year, AmCham Germany­ Representatives Dr. Wolf Brueckmann. For many years, he has Klaus M. Tornow (Baden-Württemberg) and greatly helped to expand the network of ­Burkhard Linke (Bavaria) received certificates from ­AmCham Germany among US companies look- ­David Knower, AmCham Germany Vice President, ing to expand to Germany and also supported and Andreas Povel, AmCham ­Germany ­General German companies in the US. In his warmly word- ­Manager. During the Recognition Dinner on the ed laudation, Povel expressed great regret to see eve of the Annual Meeting, Stefan Hertwig, Thur- Brueckmann leave. His successor is the retired Am- ingia Regional­ Committee Chair, also received bassador Edward O’Donnell. He has been closely a Certificate of Merit from President Bernhard connected to AmCham Germany for many years Mattes and Hertwig Mattes for his activities in Central Germany. due to his time in office in Germany.

Knower, Tornow and Povel Knower, Linke and Povel Knower, Brueckmann and Mattes

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16 commerce germany June 2016 access your global network Thinkstock © Simone- Thinkstock Italy: More than Food and Fashion

▾▾Why is Italy an interesting investment location and growth. Furthermore, the full implementation sectors, such as fashion, furniture, machinery, as for American investors? of the Public Administration Reform should con- well as from highly innovative and technological- tribute to the much-needed efficiency increase ly driven sectors such as biotech/medical devices ▵▵According to a survey conducted by in public administration, which is pivotal to rais- and advanced manufacturing. ­AmCham Italy, the chamber’s members point to ing productivity by removing obstacles to firms’ In 2015, Milan hosted the World Exhibition, the availability of highly qualified and skilled work- growth and entrepreneurship. Expo Milano 2015. The global event welcomed force and to innovative capabilities and techno- more than 21 million visitors and thousands of logical skills as key strengths which make Italy a ▾▾What are some key aspects of the US-Italy companies from all over the world. The event was location with a lot of interesting investment op- economic partnership? a great opportunity to present to the international portunities. business community the improvements and the After a long recession, the Italian economy has ▵▵The US is the largest foreign investor in Italy, changed approach Italy is currently experiencing. embarked on a gradual recovery. According to the with 1,850 US companies accounting for about OECD’s June forecasts, GDP is projected to grow 300,000 jobs and investments of almost $27 bil- ▾▾How does AmCham Italy support its members? by 0.6% in 2015 and by 1.5% in 2016. Exports, lion (end of 2014). AmCham Italy, with more than boosted by a weaker Euro and lower oil prices, 500 members, is the hub for the most important ▵▵AmCham Italy offers its members a broad and rising public infrastructure spending are the US multinationals, giving them the opportunity to range of services, ranging from advocacy services main growth drivers. Overall exports increased by better approach the Italian institutional and eco- to business support and networking opportunities. 2% year-on-year in 2014 while exports to the US nomic system. Advocacy Services: Specialized committees even grew by 8.9%. and working groups work with institutions and Thanks to efforts by the Italian government, ▾▾In what state is the Italian economy in regards decision-makers on issues of interests to our the country is improving its competitiveness and to the global economic crisis? members. creating conditions for a longer-term economic Business Services: ­AmCham Italy provides sup- growth path. Italy has the second largest indus- ▵▵Despite the crisis, US companies continued to port to both American companies interested in trial base in Europe and is particularly strong in invest in Italy, as demonstrated by our Transatlan- exploring business opportunities in Italy and to food, furniture, fashion and machinery industries, tic Awards, which identify the most important US Italian companies willing to expand the business which are located in several regional clusters. investments in Italy every year. The transatlantic into US market. The team also provides consult- On the employment front, the labor law re- axis is still active, maintaining a positive outlook. ing services to facilitate investments and trade. form “Jobs Act” is taking effect; the reduction of Positive signals come from traditionally strong Networking: ­AmCham Italy organizes more labor taxes on new hires with long-term contracts than 60 events per year to support networking and the simplification of contracts have resulted ▸ ABOUT AMCHAM ITALY and relationship building among the members.  in an increasing number of long-term contracts. Since its inception in 1915, AmCham Italy has Efforts to reduce the large debt-to-GDP ra- been a driving force in transatlantic economic tio, together with the announced plan for elim- and cultural relations between the US and inating the tax on households, should reassure ­Italy. It aims to support and protect its mem- Simone Crolla international partners and investors that Italy is bers’ interests as part of an ongoing dis- Managing Director course between the two countries. It has AmCham Italy committed to push the much-needed structural Via Cesare Cantù, 1 more than 500 members of all sizes, from reforms while also supporting domestic demand. 20123 Milan large companies, to entrepreneurs, non-profit T +39 02 8690-661 If implemented as announced by the government, organizations and individual members. E [email protected] these measures are expected to boost confidence W www.amcham.it

June 2016 commerce germany 17 key studies: business barometer

How would you rate Germany as an investment location? Excellent or good

79%

Pictured here are AmCham Germany President Bernhard Mattes (left) and 14% Average Prof. Burkhard Schwenker, Chairman of the Advisory Council at Roland Berger 7% Not so good Strategy Consultants GmbH, presenting the © AmCham Germany Business Barometer 2016 brand new issue of the Business Barometer during the Parliamentary Break- Will Germany master the challenges fast at the Hotel Adlon Kempinski in Berlin. surrounding the digitization of the workplace? XIII. AmCham Germany Yes Business Barometer: 100% US Companies in Germany Set Again For Growth

While investment sentiment was subdued in 2014, figures from 2015 and © AmCham Germany Business Barometer 2016 the prospects for 2016 are promising. Eight out of ten US companies in Do German federal politics address Germany anticipate increased revenues in 2016, and almost four out of the challenges related to the digiti- zation of the workplace? ten intend to boost investments and create jobs. Still, energy and labor 2% Yes costs as well as business taxation continue to cause concerns among US The investors. Here as well as in the digitization of the workplace, an active challenges have been approach by companies and the German Federal Government is required. recognized, but policy 73% should S investors have a positive outlook for important to become a real digital economy. We be more 2016,” AmCham Germany President need to create ‘digital DNA’ for our businesses pro-active Bernhard Mattes said at a press confer- and for Germany now.” ence and Parliamentary Breakfast held This year’s edition of the AmCham Germany Uon April 13–14, 2016 in Berlin. “However, Germa- Business Barometer, conducted in cooperation ny’s positive image among US companies should with Roland Berger Strategy Consultants, surveyed No not distract us from those areas where action is 48 US companies in Germany with roughly €90 25% required. Policymakers need to act now to estab- billion in collective annual revenues and 230,000 lish the necessary framework. This is especially employees altogether. © AmCham Germany Business Barometer 2016

18 commerce germany June 2016 Positive investment outlook for 2016 Will you scale up or scale down your Will digitization change job profiles activities in Germany in the next but tend to create more jobs in Among the results substantiating the optimis- three to four years? Germany, or will more jobs be lost as tic outlook is the attractive rating of Germany as a result of increasing automation? an investment location. Nearly four out of five US businesses (79%) believe that Germany is a More jobs will be good or very good investment location. Specific 22% created than lost factors that account for Germany’s attractiveness 46% Scale up include the excellent quality of employees as a key strength (100%), followed by a strong sup- plier network (93%) and infrastructure (86%). On the other hand, many US companies see room for 54% About as many improvement regarding Germany’s economic and jobs will be industrial policy and cite energy costs as a risk to created as lost Keep constant their businesses. 47%

Digitization of the workplace: no drastic 24% Less new jobs reduction in permanent employment will be created 7% Scale down than lost The second part of the survey takes a look at how Germany is dealing with the impact of © AmCham Germany Business Barometer 2016 © AmCham Germany Business Barometer 2016 digitization in the world of work. Most of the re- spondents said that employees need to acquire How will Germany’s business conditions develop over the next three to four years? new skills (90%) and that digital transformation changes the demands placed on the organiza- tion of work (83%). The good news is that cer- 16% 58% 26% tain jobs will be lost, but just as many new jobs will be created. The majority of US investors also Conditions Conditions will Conditions see employment remaining within the companies will improve stay the same will worsen themselves. © AmCham Germany Business Barometer Survey participants are convinced that Germa- ny will master the challenges posed by the digiti- What are Germany’s strengths and weaknesses as an investment location? 1) zation of the workplace while stating that federal policy should be more proactive in shaping the framework for the digital future. In order to make Quality of employees 100% Germany’s workforce fit for the future, initiatives such as increased support for start-ups and entre- Supplier networks 93% 7% preneurship as well as simplification of working permits for skilled foreign laborers is at the top of Infrastructure 86% 12% 2% the US companies’ wish list. Research and 86% 7% 7% “Germany is starting from a good position development and has shaped the pioneering spirit,” as Mattes Potential as sales 78% 20% 2% summed up the survey results. “We should capi- market talize on this and perceive the digital economy as Investment and  35% 58% 7% an opportunity for everyone.” financing conditions Economic and 30% 44% 26% You can find and order the complete industrial policy AmCham Germany Business Barometer on our website at www.amcham.de/ Business taxation 12% 53% 35% publications Labor costs 12% 51% 37%

Energy costs 5% 46% 49% Watch our podcast with English Excellent/good Neutral Not good/bad subtitles on our YouTube channel 1) Multiple responses possible © AmCham Germany Business Barometer 2016

June 2016 commerce germany 19 investment region © paulrommer/iStock/Thinkstock

Musterländle Baden-Württemberg Hard to pronounce for non-Germans, but important to know – the “model state” Baden-Württemberg is one of the leading German locations for industrial and high-tech sectors. Jürgen Oswald, CEO of Baden-Württemberg International (bw-i), and Dr. Gerhard Wegen, AmCham Germany Baden-Württemberg Regional Committee Chair, share their views on traditional and emerging business opportunities for investors.

▾▾What sectors in industries are particularly in- der to link all the relevant stakeholders and assist ▵▵Oswald: In addition to these factors, the re- teresting for international companies planning to companies in their digital transformation process. gion offers outstanding research infrastructure invest in Baden-Württemberg? Participating companies from the mechanical and and an excellent university landscape. There is a electrical engineering as well as the IT industry broad alliance between science and business. This ▵▵Wegen: Baden-Württemberg has traditionally are jointly developing the basis for smart, net- is why the German Southwest is the leading re- been a center of manufacturing and technology- worked production methods in the factories of gion for innovation in the European Union. based inventions. While famous for its automotive the future. industry and mechanical engineering, the region ▾▾Who can companies interested in the region also has an active base of experts in IT, aerospace, ▵▵Wegen: Besides well-known industry leaders, turn to for information and support? and construction as well as a cluster of innovative Baden-Württemberg has lot of ‘hidden champi- corporations around e-mobility and Industry 4.0. ons’ in niche industries such as special machinery, ▵▵Oswald: Baden-Württemberg International, e-mobility, digital imaging and specialty construc- bw-i, the state agency for international economic ▵▵Oswald: I would like to put the strength of tion. An important cluster in the region is digital and scientific cooperation, serves as the first point our engineering sector into perspective: Every animation for international film projects. Further- of contact for potential investors. bw-i provides third machine made in Germany originates from more, Baden-Württemberg is home to a multitude them with information on market entry issues and Baden-Württemberg. Additionally, the region is of research institutions. supports them in their specific projects or in their quite strong in information and communications search for cooperation partners. technology, and a number of global healthcare ▾▾What are the key locational advantages of players have their headquarters here. Baden-Württemberg as a business location? ▵▵Wegen: Governments also provide assistance for investments on a local level. Also, the cham- ▾▾Are there any special business clusters, emerg- ▵▵Wegen: The region boasts good logistics and bers of commerce and industry are generally very ing or niche industries? infrastructure as well as easy access to interna- proactive and responsive, as are the trade associa- tional markets. Baden-Württemberg also has a tions. Not to forget AmCham Germany! Of course, ▵▵Oswald: Baden-Württemberg is striving to highly skilled labor force, engineers and special- we also offer support for US companies wishing become a leading location for Industry 4.0. To ists in various disciplines, et cetera. This is partly to invest in Baden-Württemberg. We have inten- this end, in 2015, the state initiated the network due to vocational training and the German dual sified our cooperation with bw-i recently to help ‘Allianz Industrie 4.0 Baden-Württemberg’ in or- education system. deepen transatlantic ties even further. 

20 commerce germany June 2016 member know-how

Aligning Business and IT to Drive Innovation

n a recent survey by EMC Corp. among the time, the tools and the capacity. The Nevertheless, external support can business leaders and IT managers in operational requirements to keep the complement internal teams in driving the Europe, Middle East and Africa business running in an increasingly com- digital innovation. Managing enterprise (EMEA) region, around half of the plex environment are too high. collaboration in a change environment ICIOs said that they fear losing their jobs Here is an approach that does not requires tools and human processes that because of a lack of “business align- work: Outsourcing. Why? Because the are flexible, adaptable to dynamic team ment”, i.e., the alignment agility needed to adopt collaboration and accessible from eve- of IT with the rest of busi- Internal collaboration new technologies in or- rywhere at any time. Damovo has the ness operations. teams join forces on der to create new digital expertise to advise, implement and op- Digitization will drive business processes and erate them. Carl Muehlner enterprises to complete- digital business needs the commercial interest The company’s experts also know Managing Director Central Region and technological (Germany, Switzerland & Poland) ly rethink their business of the outsourcee hardly how to free up time in the IT organiza- Damovo Deutschland GmbH & Co. KG models in order to re- feasibility ever match. tion in order to engage with the busi- Heerdter Lohweg 35 Here is an approach ness, and they understand effective in- 40549 Düsseldorf main competitive relative T +49 211 8755-4111 to emerging competitors that do not that can work: Forming internal collab- ternal communication processes helping E [email protected] have a legacy culture resisting change. oration teams to join forces on digital to drive organizational agility. W www.damovo.com So why don’t CIOs and business business needs and their technological Damovo offers services for all stages leaders come together and work this feasibility, plus freeing up time to do of the technology life cycle, helping their out? Simply because they do not have this effectively. clients to achieve their business goals. 

Pharma Dialogue for the Future of Healthcare

he pharmaceutical industry is a April. The dialogue process was marked committed itself to Germany as a busi- growth sector with a future. It is by mutual respect and a reasoned de- ness location. a stabilizing force, especially in bate reflecting the stakes involved: not The industry will contribute to the times of crisis, and it is an im- just industrial policy decisions but also future of healthcare and the solidarity Tportant industry for Germany as a busi- the provision of healthcare to the coun- system. Examples for such contributions ness and innovation location. With the try's population. include research into medicines and treatments it produces, The next step is A reliable framework new treatments for pharmaceutical companies significantly the political process, needs to be established to widespread diseas- contribute to health, quality of life and which will translate es such as Alzhei- meet the challenge of a the rising life expectancy of the popu- the outcomes of the mer's disease, dia- Christoph Habereder lation. debate into worka- competitive marketplace betes and cancer as Director Health Policy & Communications MSD SHARP & DOHME GMBH To ensure a continued supply of in- ble laws. Chances are well as the industry's Lindenplatz 1 novative medicines and to strengthen good that it will be a forward-looking committment to developing new antibi- 85540 Haar otics and to improving access to medi- T +49 89 4561-1130 Germany's pharmaceutical research and solution. However, many points remain E [email protected] production base, the federal government to be addressed in more detail, and a cines for children. W www.msd.de launched a globally unique program of reliable framework needs to be estab- Pharmaceutical manufacturers will communication and cooperation be- lished in order to meet the challenges continue the dialogue, because the tween politicians, the science community of a competitive international market- pharmaceutical industry will remain a and industry in 2014 called Pharma Dia- place. key factor for medical progress and for logue. After almost two years of work, During the dialogue, the research- Germany as an industry location in the the first outcomes were presented in based pharmaceutical industry clearly years to come. 

June 2016 commerce germany 21 policy highlights

Visiting members of parlia- ment together with industry leaders discussed eBay’s multichannel and seamless approach to commerce at the company’s headquarters in San José.

Let’s Talk Digital Transformation: Visiting High-Tech Companies

Seattle, San Francisco, Silicon Valley, Los Angeles, March 20–25. Ten Members of the German Bundestag, the Hessian State Parliament and the European Parliament joined Telecommunications, Internet, and Media (TIM) Committee members on a visit to US high-tech companies. Focusing on digital transfor- mation, the trip offered participants the opportunity to gain first-hand insight into the development of technologies and business models undergoing digiti- zation and to discuss economic, societal and legal implications. Aspects of data privacy were discussed at Microsoft’s Cybercrime Center located in In Seattle, Washington, the tour took the group to Amazon's headquarters Redmond near Seattle. and to the Microsoft Cybercrime Center, where they discussed the issues of cloud computing, data privacy and internet security. Visiting Roku in the San Francisco-Silicon Valley area, California, the group had the chance to discuss the future of TV in light of new digital production methods and increasing connectivity with representatives of Sky and other media companies. More- over, Bill Ruh, Chief Executive Officer for GE Digital, shared his insights on how GE is managing the digital transformation and gave a tour of the com- pany's Connected Experience lab. Further US high-tech companies visited in the area include Dell, eBay, Yelp, Liberty Global/Unitymedia, Facebook and Oracle. At HP Inc. the delegates learned about the 3D printing business. The day was rounded off by a SAP Innovation Dinner at the HanaHaus in Palo Alto, where the visiting members of parliament spoke with representatives of SAP and Stanford University about innovation, research and development in the US and Germany. The visit in Los Angeles was entirely dedicated to the film business. German Consul General Hans Jörg Neumann welcomed the delegation at a reception together with Thilo Kuther, CEO of Pixomondo Global – the visual effects company originally founded in Germany. The final Parliamentary State Secretary Zypries at the HP Customer Welcome Center testing a day was spent with a tour of Warner Bros. Studios and a visit to NBCUniversal 3D Demo. together with representatives from The Walt Disney Company. The German political leaders left the US with fresh insights on the pro- found effects and consequences digital transformation has across industries and with a glimpse into future products and services. 

▸ Participating parliamentary delegates: CDU/CSU: Michael Hennrich, MdB; Dr. Andreas Lenz, MdB; Stephan Mayer, MdB; Dr. Joachim Pfeiffer, MdB; Elisabeth Winkelmeier-Becker, MdB SPD: Dr. Johannes Fechner, MdB; Johann Saathoff, MdB; Martina Werner, MdEP; Brigitte Zypries, MdB, Parliamentary State Secretary FDP: Florian Rentsch, MdL, former State Minister © AmCham Germany The delegation enjoyed a tour of Warner Bros. Studios.

22 commerce germany June 2016 CSR Reporting Directive

Berlin, April 14. Members of the Corporate Responsibility (CR) Committee held a meeting with Dr. Hans-Joachim Schabedoth, MdB (SPD), to hear his view on transposing the EU CSR Reporting Directive into national law. Schabedoth, who is the responsible rapporteur in the Committee on Economic Affairs and Energy, discussed the draft bill by the Federal Ministry of Justice and Consumer Protection with representatives of ­AmCham ­Germany’s member companies. The CR Committee developed a position paper on the implementation of the CSR Reporting Directive in German law, which was sent to the ministry and distributed among political stakeholders. 

View on Employment Policy

Berlin, April 13. Kerstin Griese, MdB (SPD) and Chair of the Committee on Employment and Social Affairs, met with members of the Social and Labor Af- fairs Committee to discuss employment policy issues. Topics touched upon were the current developments concerning temporary employment (Zeitarbeit) and work contracts (Werkverträge), equal pay and the future of work with regard to the chances and challenges of digitization. For the second half of 2016, the Committee, chaired by Caroline Bitsch of JUSTEM Rechtsanwälte, will focus on the future of work and is planning to hold a meeting with respective mem- bers of parliament as well as other expert stakeholders. 

2016 Washington Executive Update on International Taxation Dialogue

Washington, DC, April 17–19. A delegation of AmCham Germany Patron Members led by President Bernhard Mattes visited Washington, DC, for the annual Washington Executive Dialogue. The eleven participants met with US lawmakers, government officials, business and civil society representatives to discuss current transatlantic issues. The group touched on topics as diverse as the 2016 presidential elections, the European refugee situation and the politi- cal climate beyond the Washington beltway. On TTIP, senior US political and industry leaders emphasized their commitment to an ambitious agreement. Berlin, March 17. Ingrid Arndt-Brauer, MdB (SPD) and Chair of the Finance Highlights of this year’s visit included meetings with Secretary of Commerce Committee, and Martin Kreienbaum, Director General for International Penny Pritzker, US Trade Representative Ambassador Michael Froman, Taxation, Federal Ministry of Finance, updated the Tax Committee on current senior leaders of the Democratic and Republican Parties and the German issues such as the EU Anti-Tax Avoidance Directive, country-by-country report- Ambassador to the United States Dr. Peter Wittig.  ing (CbCR), the modernization of the tax system and the implementation of Base Erosion and Profit Shifting (BEPS) in Germany and the EU. Especially with regard to the Commission’s proposal for public CbCR, the Tax Commit- tee calls for the adherance of internationally-agreed standards set out by the OECD and the G20 and to carefully assess the potential negative impacts on EU competitiveness and attractiveness for investment when proceeding with the proposal. The critical focus should be on confidential reporting to and between tax authorities. 

AmCham Germany’s specialized ▸ For more information policy committees are the main about our policy committees instruments used to develop and and their activities, please deliver members’ opinions to the visit our website: German and US governments. www.amcham.de/public-affairs

June 2016 commerce germany 23 chamber news

Atlanta Business Day

Atlanta, March 10. Business leaders from both sides of the Atlantic came together for the ­Seventh ­Annual AmCham Germany Business Day, jointly organized with law firms ­BridgehouseLaw LLP and Rückel & Collegen, to deepen the al- ready strong German-American ties and convey the great potential of transatlantic trade. The day-long event at the Goizueta Business School of Emory University in Atlanta, Georgia, focused on family-run businesses in the US and Germany and their recipe for success. Many of ANNUAL AMCHAM GERMANY BUSINESS DAY SPEAKERS them are “hidden champions” and global tech- nology leaders in their fields of business.The Bill Moeller, Office of the US Trade Representative Stefan Euchner, Euchner GmbH & Co. KG meeting included a panel discussion with rep- at the White House Michaela Schobert, German American Chamber of resentatives from AGCO and Trumpf Inc. as well Prof. Dr. Hermut Kormann, Zeppelin University Commerce of the Southern US as other companies who shared their views on Friedrichshafen the impact of TTIP on the trade and business of Dr. John D. Gatto, NRW.INVEST North America Martin Richenhagen, AGCO family-run companies. Lee C. Weingart, LNE Group Following the day conference was the offi- Prof. Torsten M. Pieper, Kennesaw State University cial kickoff of the annual US-German Internship Linhard Stept, FrankfurtRheinMain Corp. Ulrich Zeltwanger, Zeltwanger Holding GmbH Program (see also report on page 11). Monika Dr. Christoph Rückel, Rückel & Collegen and Schulte, Advisory Council Chair of the AmCham Peter Hoecklin, Trumpf Inc. BridgehouseLaw LLP Germany Internship Program and Professor of Arndt Siepmann, Stuttgart Regional Thomas Wülfing, German Deputy Consul General German at Piedmont College, gave students the Economic Development Corporation opportunity to share the experiences they had Andreas Povel, AmCham Germany while interning in Germany the previous summer.

Werner Sülzer Honored We mourn the loss of with Federal Cross of Merit Dr. Walther Leisler Kiep

Werner Sülzer, former Vice President of NCR Corp. who passed away in May at the age of 90. and Member of the Board at BITKOM, was honored He was an honorary member of AmCham Germany who received with the German Federal Cross of Merit for his ex- the AmCham Germany Dr. Leo M. Goodman Award in 1990. ceptional engagement for Germany as a business location and particularly for his contributions to the He will be missed. development of the IT and telecommunications in- American Chamber of Commerce in Germany dustries. Sülzer­ is dedicated to the transatlantic part- nership and member of AmCham Germany.

AMCHAM GERMANY DELEGATON TOUR 2016 New Senior Adviser in

▸ To gain impressions from the TIM Committee’s trip to Seattle, Washington, DC San Francisco/Silicon Valley and Los Angeles, please scan the QR Former Ambassador and US Consul General in Frankfurt/M Edward code or visit our YouTube chan- O’Donnell took over as the new AmCham Germany Senior Adviser in Wash- nel. Read a full report on the trip ington, DC. He succeeds the retiring Dr. Wolf Brueckmann. O’Donnell has been on page 22. closely connected to AmCham Germany for many years and has actively par- ticipated and supported the Chamber’s activities and programs during his time in consular office in Germany and as a representative of member companies.

24 commerce germany June 2016 new members

From February to May 2016

PATRON MEMBERS Bavarian International School e.V. Hotel Atlantic Kempinski Hamburg RSM Deutschland GmbH Marco Dahl; Cheryl Krug; Monika Bloemberg Wirtschaftsprüfungsgesellschaft Christopher Knipp; Nina Schütte Adecco Germany Holding SA & Co. KG Janina Peters; Erika Swedberg HP Deutschland GmbH Franz-Josef Schuermann, CEO DACH Peter Kleiner; Jan Riecher Schuler AG Düsseldorf BILSTEIN GROUP Bilstein Service GmbH Dr. Bernhard Gräwe; Michael Ullrich; Simon Scherrenbacher CORPORATE MEMBERS Dimitar Yotsov Infosys Ltd. Dr. Michael Pesch; Michael Redford SKUBCH&COMPANY Management Consultants GmbH Breuninger Unternehmensberater Bird & Bird LLP Interxion Deutschland GmbH Daniel Pehle; Hartmut Skubch Hans Alfred Breuninger, Owner Prof. Dr. Heiko Höfler Mareike Jacobshagen Squire Patton Boggs (US) LLP Frieder Gamm Group GmbH BNP Paribas S.A. Niederlassung Johnson & Johnson Medical GmbH Nicole Boehler Frieder Gamm, Managing Director Deutschland Corporate & Institutional Banking Dr. Chima Abuba; Lukas Urech Taylor Wessing Global Switch FM GmbH Sebastian Schmahl KFC Deutschland YUM! Restaurants Partnerschaftsgesellschaft mbB Aman Khan, Managing Director Germany BridgehouseLaw LLP International Ltd. & Co. KG Dr. Christian Maron Katja Sankowski; Marco Schepers; Goetzfried AG Ralph Burgwald; Felix Faerber Martin Sommerkamp; Dr. Thorsk Westphal Texas Instruments Deutschland GmbH Thomas Götzfried, Chairman of the Lynn Clark; Dr. Klaus Weisel Supervisory Board Brose Fahrzeugteile GmbH & Co. Kommanditgesellschaft, Coburg KPMG AG Wirtschaftsprüfungsgesellschaft The Bank of New York Mellon Hermes Transport Logistics GmbH Jutta Menninger; Henning Siebert; Alexander Hutzler; Sarah Reppchen; Thilo Wolf Frank Schmidt, Head of Sales Thomas Spangler Dr. Stefan Schneider; Antje Strom Thümmel Schütze & Partner Innolytics GmbH Brunswick Group GmbH Latham & Watkins LLP Partnerschaftsgesellschaft mbB Dr. Jens-Uwe Meyer Ulrich Deupmann; Fiona Claire Littig Dr. Natalie K Daghles; Christine Gärtner Matthias Thume Niepelt Patentanwaltskanzlei mbH Burson-Marsteller GmbH Linde AG Head Office TRUMPF Laser und Systemtechnik Carsten Niepelt, CEO Martin Becker Dr. Harry Roegner GmbH + Co.KG Dr. Cornelius Schinzel North Atlantic Partners Celanese GmbH Linklaters LLP Sebastian Löhr, CEO Thomas Liebig; Dr. Arno Rockmann; Michael Willms Dr. Florian Harder U.I. Lapp GmbH Dr. Matthias Kirchherr Olswang Germany LLP MAHLE GmbH Robert Alan Heym, Partner Coca-Cola GmbH Damien Ryan Dr. Ilke Heymann-Vassholz Value Retail Management Germany GmbH Paladin Associates GmbH ManpowerGroup Germany Gabriele Strassburger Daniel Saftig, Director Derag Livinghotels Frankfurt Dorothée Wendorff Stephan Rathgeber Volkswagen AG RSM Deutschland GmbH McKinsey & Company, Inc. Jens Hanefeld Wirtschaftsprüfungsgesellschaft Deutsche Lufthansa AG Dr. Holger Klärner Gregor Schmidt, COO Martina Grönegres Warth & Klein Grant Thornton AG Novartis Pharma GmbH Wirtschaftsprüfungsgesellschaft Sofitel Frankfurt Opera Deutsche Post DHL Helen Hager Frank Christian Schmid Denis de Schrevel, General Manager Julia Binder Oracle Deutschland B.V. & Co. KG White & Case LLP State of North Carolina European DIS AG Werner Höllrigl; Jürgen Kunz Dr. Axel Pajunk Office Peter Blersch M. Todd Brennan, European Director dorma+kaba Holding GmbH & Co. PepsiCo Deutschland GmbH INDIVIDUAL MEMBERS Andre Grube twb management und consulting KGaA Ambassador James Bindenagel Dr. Thomas W. Büttner, Owner Joerg Lichtenberg PricewaterhouseCoopers AG David Copland Wirtschaftsprüfungsgesellschaft Becky Ann Gilbert Vontobel Swiss Wealth Advisors AG Ernst & Young GmbH German Götz Astrid Gottwald Pascal Küenzi, Director, Wirtschaftsprüfungsgesellschaft Ralf Hässig Wealth Management Advisor Thomas Ralph Probat-Werke von Gimborn GmbH Lenka Heimöller DELEGATE MEMBERS Fragomen Global LLP Global Ingo Binzen; Dirk Brinker; Dr. Hermann H.Hollmann Immigration Services Thomas Koziorowski; Martin Starke Susanne Kilian Heinz T. Kisgen 3M Company Kari Foss; Mostafa Massoud; Radisson Blu Hotel Frankfurt Dr. Gerald Kromer Günter Gressler Benjamin Winkelhausen Florian Winkler Kerstin Kubanek Ralf Mock Adecco Germany Holding SA & Co. KG Herbert Smith Freehills Germany LLP Reverse Logistics GmbH Frank Notz Nikolaus Richter; Thomas Rinne; Dr. Ralf Tietz; Dr. Michael Dietrich Jean Cox-Kearns Agne Odenram Henrik Straatmann HERMA GmbH Petra Peffermann Rödl & Partner GmbH Alexander Spielberg BASF SE Peter Goff; Matthias Holder Klaus-Martin Haussmann Dr. Frederik Kuhn Hewlett-Packard Enterprise Christine Wenzel

June 2016 commerce germany 25 special report imprint commerce germany Board of Directors Meeting  ACC Verlag & Services GmbH Dipl.-Kfm. Andreas L. J. Povel, General Manager Leipzig, April 28. The AmCham Germany Board Börsenplatz 7-11, 60313 Frankfurt/M

of Directors held its first meeting of the year in  Editorial and business offices conjunction with the 113th Annual Membership Anna Katharina Schneider, Ines Ceylan Meeting in Leipzig. Aside from the annual reports T +49 69 929104-41, +49 69 929104-43 F +49 69 929104-11 of the President, Treasurer and General Manager, E [email protected], [email protected] several new directors were elected into the Board W www.amcham.de

of Directors.  Editorial team The Consul General of Leipzig, Scott R. Karen Herzog, Christina Dier (verantwortlich) ­Riedmann (pictured left), touched in his speech Representing FRANKFURT BUSINESS MEDIA GmbH – Der F.A.Z.-Fachverlag, Frankfurt/M on the 185-year history of the US Consulate in Leipzig and its role as one of the oldest consu-  Graphic designer lates in Germany. Riedmann also emphasized Katharina Doering Representing FRANKFURT BUSINESS MEDIA GmbH – the importance of US investments in Saxony and Der F.A.Z.-Fachverlag, Frankfurt/M ­Thuringia over the past 26 years.  Advertising administration Lorrie Foster, Facilitator of the Research Sabine Karbowy Working Group and Director of the Global Cor- Wilrijkplatz 3, 65527 Niedernhausen

porate Volunteer Council, addressed the topic of  Communications Committee corporate volunteering and the response to the Carl Graf von Hohenthal, Co-Chair refugee challenge in a speech to the group.  Brunswick Group GmbH William Hood, Co-Chair Commpanions Werbeagentur GmbH

 Photo credits Cover + p. 12–16: Christian Kruppa p. 27: http://www.big-gotha.de; Bojan Kontrec/iStock; luchezar/iStock; MilaSemenova/iStock; SilverV/iStock; DragonImages/iStock; webphotographeer/iStock; flyfloor/ iStock; Mapics/iStock; Sean Pavone/iStock; © José Luis Gutiérrez/iStock

commerce germany is the official periodical of the American Chamber of Commerce in Germany e.V. It is published for the Chamber by ACC Verlag & Services GmbH. Opinions expressed in articles are not necessarily those of the Chamber or of ACC Verlag & Services GmbH or of FRANKFURT BUSINESS MEDIA GmbH – Der F.A.Z.-Fachverlag. Contributor opinions are not necessarily shared by the ­editor. All members of the American Chamber of Commerce in Germany e.V. receive one free copy of the publication. Copyright by American Chamber of ­Commerce in ­Germany e.V. All rights reserved. The ­contents of this ­publication may not be reproduced in whole or in part Pictured here are (from left): Vice President Lutz Raettig; Foster; and Treasurer Armin Slotta. without the ­consent of the copyright owner.

Alle Rechte vorbehalten. Nachdruck, auch auszugs- weise, nur mit ausdrücklicher Genehmigung des ­Verlags. NEXT ISSUE OF COMMERCE GERMANY: September 15, 2016  Printing Boschen Offsetdruck GmbH, ADVERTISING CLOSING DATE: August 18, 2016 Frankfurt/M ISSN 0010-2857 Our topics will include:  Index of companies Working World – The Future of Work Damovo Deutschland GmbH & Co. KG 21 Evonik Industries AG 7 Special Report: Top 50 US Companies in Germany Klöckner & Co SE 8 MSD SHARP & DOHME GmbH 21 AmCham Germany Summer Festivals PricewaterhouseCoopers AG 6 Procter & Gamble 15

Contact:  Index of advertisers Sabine Karbowy Contact: Accenture GmbH 2 T +49 6127 9993150 Barbara Böhnke Kroll Ontrack GmbH 28 PCS Schlessing GmbH 3 M +49 171 7579768 M +49 178 7988882 PRO Finance GmbH 16 F +49 6127 9993151 F +49 33398 679724 E [email protected] E [email protected]

26 commerce germany June 2016 chamber calendar

AmCham Germany June 22 June 23 June 30 2016 Event Highlights Business After Hours Jazz Barbecue Business Luncheon Please see www.amcham.de Chris Ensminger Bernhard Mattes for the latest updates Head Coach Chairman of the Oettinger Rockets Gotha Management Board Ford-Werke GmbH Topic: Motivation in Light blue = Wirtschaft, Sport, Kultur events wholly or partially in English Gotha Munich Cologne

July 1 July 1 July 4

AmCham Germany 4th of July Celebration Independence Day Summer Barbecue Federal holiday in the US

Meerbusch Frankfurt/M

July 18 August 25 September 1

© BMJ/Chaperon AmCham Germany Forum International Summer Business Luncheon Business Barbecue Sabine Leutheusser- Dr. Ludger Dohm Schnarrenberger Geschäftsführer Bundesjustizministerin a.D. Flughafen Düsseldorf Vorstandsmitglied der GmbH Friedrich-Naumann- Stiftung

Munich Dresden Düsseldorf

September 13 October 4 October 12 November 8

Business Luncheon Expert Briefing PwC 2016 Growth Company Business After Hours Forum Dr. Jörg Krämer Topic: International Tax Tour of Chief Economist Highlights Walter Knoll Commerzbank AG AG & Co. KG

Frankfurt/M Frankfurt/M Berlin Stuttgart

November 9–10 November 16 November 22

Tenth Annual Transatlantic Business Conference Business Luncheon Business After Hours

The Transatlantic Marketplace – Challenges and James W. Herman Joachim Dorfs Opportunities Beyond 2016 US Consul General in Chefredakteur Frankfurt/M Stuttgarter Zeitung Frankfurt/M TRANSATLANTIC Business Conference

Stuttgart Stuttgart

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