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Transforming Legacy: Bayer's Journey Toward Agile Software Innovation

Oliver Viel
Dec 13, 2024 11:14:30 AM

Bayer, a global leader in life sciences, is navigating a complex digital landscape as it balances maintaining legacy systems with driving innovation in software development. During the Envisioning Tomorrow’s Code executive exchange, Dr. Bernd Lohmann, CTO of Bayer, shared insights into the company’s digital transformation journey.

Dr. Bernd Lohmann Explaining Software Development at Bayer

With a mission of “Health for All, Hunger for None,” Bayer is tackling challenges in pharmaceuticals, crop science, and consumer health through a blend of advanced software development practices, data integration, and cutting-edge technology like generative AI.


Managing Complexity: Legacy Systems and Modern Demands

Bayer operates a vast software landscape with over 6,000 applications, 80% of which are legacy systems. These systems, including SAP ECC and molecular modeling tools, remain critical for operations but present challenges for modernization.

"Legacy is a reality we must face," Dr. Lohmann explained. While modern solutions drive innovation in areas like AI and agile development, much of Bayer’s resources are still tied to maintaining and optimizing older systems.

This dichotomy creates a challenging dynamic: investing in the future while managing the infrastructure of the past.


Software Development for Life Sciences

Bayer’s approach to software development reflects its specialized mission in life sciences. From creating advanced agricultural tools to accelerating pharmaceutical research, Bayer relies on software to solve complex, real-world problems.

Examples of innovation include:

  • Crop Science: Advanced algorithms enable farmers to monitor soil conditions and crop yields in real-time, optimizing the use of pesticides and fertilizers.
  • Pharmaceutical Research: AI-assisted radiology tools help detect diseases more accurately, while genomic analysis supports drug discovery.
  • Consumer Health: Digital tools enhance the delivery and accessibility of over-the-counter medicines.

This approach requires developers with deep domain knowledge, such as bioinformaticians and geneticists, who can integrate scientific understanding with technical expertise.


The Shift to Agility

Over the last decade, Bayer has embarked on a significant transformation, adopting agile principles across the organization. Recent efforts include:

  1. Dynamic Shared Ownership: Inspired by Gary Hamel’s Humanocracy, Bayer has embraced agile methodologies in areas beyond IT, breaking down hierarchies and enabling cross-functional collaboration.
  2. 90-Day Cycles: Teams now work in short sprints, focusing on manageable milestones and quick iterations.
  3. Cloud Transformation: Bayer has invested heavily in cloud infrastructure, balancing public and private cloud deployments to support modern development needs.

This transformation extends to Bayer’s approach to software development, where agile teams focus on areas that provide the greatest competitive advantage, such as AI and biotechnology tools.


Leveraging Generative AI

Generative AI is becoming a core part of Bayer’s innovation strategy. The company uses tools like GitHub Copilot for code development, along with custom-trained AI models to ensure security and effectiveness.

Bayer’s applications of generative AI include:

  • Code Generation: AI accelerates development while enabling teams to focus on higher-value tasks.
  • Research and Development: Advanced AI models support genomic analysis and other research activities.
  • Decision Support: Chatbots and AI tools assist in data interpretation and enhance operational decision-making.

However, as Dr. Lohmann noted, AI adoption requires caution, particularly in ensuring data security and reliability. Sensitive data, such as proprietary research or patient information, must be safeguarded through in-house AI models and rigorous oversight.


Infrastructure Challenges

Scaling generative AI across Bayer’s global operations presents significant infrastructure challenges. Dr. Lohmann highlighted concerns about compute power and network capacity, particularly in regions like Germany.

“These limitations could hinder the scalability of AI-driven processes,” he warned, emphasizing the need for industry-wide collaboration to address these bottlenecks.


Balancing Innovation and Operations

While much attention is given to cutting-edge developments, Dr. Lohmann stressed that Bayer’s digital transformation must also account for the operational realities of maintaining legacy systems.

Approximately 7,000 offshore workers support Bayer’s legacy infrastructure, compared to around 300 developers focused on innovative projects. This balance underscores the importance of optimizing resources while prioritizing areas that drive differentiation and competitive advantage.


A Vision for the Future

Bayer’s transformation journey illustrates the challenges and opportunities of balancing legacy systems with innovation. By embracing agile principles, investing in generative AI, and addressing infrastructure challenges, Bayer is positioning itself to navigate the complexities of the digital age.

Through a focus on differentiated solutions and a commitment to innovation, Bayer is advancing its mission: Health for All, Hunger for None.

Envisioning Tomorrows Code Lohmann

A Note to Our Readers:

This article provides a journalistic summary of the ideas shared by Dr. Bernd Lohmann during his presentation. While we’ve highlighted the key concepts and innovations he discussed, the full depth of his insights and examples can only be appreciated by watching the complete session. If you’re intrigued by these ideas and want to hear them explained directly by the speaker, we encourage you to watch the full video of his presentation. If you have any questions or concerns, please contact us.