(XIII) Sharing of Successful IPD Implementation Cases by Listed Enterprises — DuPont

(3) Organizational Restructuring to Enable Information and Resource Sharing To ensure the efficient operation of the Integrated Product Development (IPD) system, DuPont first undertook organizational restructuring. The company established cross-departmental Integrated Product Development Teams comprising professionals from R&D, manufacturing, sales, marketing, and other functions. This adjustment aimed to break down departmental silos and enable seamless information flow and resource sharing. A process-oriented organizational structure is essential to support a customer-value-driven business model. Starting in 1993, DuPont launched a major reorganization, splitting its five corporate business units and its oil & gas production division into 20 smaller, more focused business units—transforming subsidiaries into departments and departments into teams. Corporate executives now interfaced directly with the heads of these 20 business teams, eliminating intermediate layers and linking all value-creating teams via integrated business processes to achieve flat, systematic management. This transformation marked DuPont’s departure from its traditional divisional matrix structure and the establishment of a process-oriented organizational framework. Consequently, the so-called “Three-Horse Carriage System” dissolved. Within this new framework, DuPont began adjusting its divisions, gradually evolving toward a “Many-Horses-Racing” business layout. In 2007, DuPont reorganized its business units once again, classifying its core businesses—based on market value demand and internal value-creation capability—into seven independent development platforms: DuPont Technology, Applied Life Sciences, Agriculture & Nutrition, Coatings & Pigments Technologies, Electronics & Communications Technologies, High-Performance Materials, and Safety & Protection. Each platform was placed under the direct leadership of a different senior executive at DuPont, forming seven independently operating business processes. Each of these primary processes consisted of secondary processes derived from distinct value-creation activities; collectively, they constituted DuPont’s process-oriented organizational structure. Through these interconnected business processes, DuPont integrated diverse innovation teams—large and small—to jointly create value for customers. To align with strategic shifts, DuPont not only transformed itself from a family-owned enterprise and restructured its organization but also continuously pursued management innovation to enhance operational efficiency and profitability. For instance, the DuPont Analysis method—used to evaluate corporate profitability and return on shareholders’ equity—facilitates in-depth comparative analysis of business performance and improves merger-and-acquisition success rates. Today, the Office of the Chief Executive Officer comprises seven members, including the Chairman and CEO and the Vice Presidents. They bear joint responsibility for formulating the company’s overall business strategy while each overseeing one of the independent business processes. This “unified-yet-independent” decision-making model enables each business segment to operate autonomously while still allowing systematic management of individual business processes. It also tightens alignment between the Board of Directors and business processes, embodying a governance philosophy of “integration within decentralization.” To adapt to changing market demands and industrial restructuring, the initial establishment of a process-oriented organizational structure signaled the maturation of DuPont’s customer-value orientation—and marked DuPont’s entry into a mature phase of corporate development. (4) Market Management Guided by Sustainability All processes are underpinned by best practices and proven methodologies. Market management—the core IPD process addressing “how to do the right things”—employs rigorous, standardized methods to analyze market trends and customer needs and requirements. It establishes rational market segmentation criteria, selects target segments for investment and leadership, prioritizes them, and thereby develops executable business plans.

Doubling Down on Healthcare! Global Chemical Industry Leader DuPont Announces Another Spin-off

Electronics Business: Building a Globally Leading Supplier of Electronic Materials for Semiconductor Solutions and Advanced Electronics The newly formed Electronics Company aims to become the world’s leading supplier of differentiated electronic materials—including critical consumables used in semiconductor chip manufacturing—as well as advanced electronic materials enabling reliable signal integrity, power management, and thermal management. The Electronics business will comprise DuPont’s existing Semiconductor Technologies and Interconnect Solutions business lines, along with electronics-related product lines from its Industrial Solutions segment. These businesses generated approximately $4 billion in net sales in 2023. Water Business: An Integrated Water Solutions Provider with Leading Filtration Technologies The Water Company will continue leveraging its industry-leading technologies in reverse osmosis, ion exchange, and ultrafiltration to deliver a comprehensive portfolio of water filtration and purification solutions. It serves multiple end markets—including industrial and energy water use, life sciences and specialty products, municipal and seawater desalination, and residential and commercial applications—with clean, fit-for-purpose water. The Water Company will consist of DuPont’s current Water Solutions business line, which generated approximately $1.5 billion in net sales in 2023. DuPont expects to complete the spin-offs within 18 to 24 months. The separation transactions do not require shareholder approval but remain subject to customary conditions, including final approval by DuPont’s Board of Directors, receipt of a tax opinion from legal counsel, filing and effectiveness of Form 10 registration statements with the U.S. Securities and Exchange Commission, applicable regulatory approvals, and successful completion of financing arrangements. Edward D. Breen, DuPont’s current Executive Chairman and Chief Executive Officer, stated that these spin-offs will create greater value for shareholders and customers alike—and open up new opportunities for employees. Each standalone company will gain greater flexibility to execute its own focused growth strategies, including strategic acquisitions to strengthen its portfolio. Simultaneously, DuPont announced new executive appointments. Lori D. Koch, DuPont’s current Chief Financial Officer, has been appointed Chief Executive Officer. Edward D. Breen will transition to serve full-time as Executive Chairman of the Board. Antonella B. Franzen, currently CFO of DuPont’s Water & Protection division, has been appointed Chief Financial Officer. Lori D. Koch has served as DuPont’s CFO since February 2020. She has held numerous leadership roles at DuPont over many years, including Vice President of Investor Relations and Corporate Financial Planning & Analysis, Global Finance Director for the Functional Materials business, and Global Finance Manager across various business units. Edward D. Breen has served as DuPont’s Executive Chairman and CEO since 2020. Previously, he served as Chairman and CEO of Tyco International, President of Motorola, and Chairman, President, and CEO of General Instrument Corporation. Prior to the DuPont-Dow merger, he served as DuPont’s Chairman and CEO; following the merger, he became CEO of DowDuPont. Antonella B. Franzen has served as CFO of DuPont’s Water & Protection division since 2022. Prior to joining DuPont, she served as Vice President and Chief Investor Relations & Communications Officer at Johnson Controls International.