Digital transformation of chemical industry: for large chemical companies, the development of intelligent business takes time, and the industry trend adds new elements to their transformation. Let’s look at four emerging business models in the chemical industry, which show the impact of technology on the industry and how to use it to move towards intelligent operations and meet immediate needs.
In the new decade, chemical companies are facing a dilemma: to maintain market position, they must transform themselves into a smart enterprise, and also ensure the performance of core business. In addition, the trend in the chemical sector has put additional pressure on these companies. As a senior marketing officer in the chemical solutions industry, Mr. sumit Agarwal sees increasing challenges related to new competition in the chemical industry. The work to shorten the product life cycle has been greatly simplified. Customers benefit from more suppliers and require more customization. The volatility of commodity and energy prices, as well as the reorientation of production and demand centres in the global market, makes it imperative for managers to understand the market and the ability to make real-time decisions. In addition, chemical manufacturers are facing changing compliance requirements – all of which have flexibility and expertise.
Forward looking companies have met these challenges and overcome them by changing their perspective. Specifically, they don’t think digital transformation is just a check box for current trends – instead, they find it a way to achieve their goals. Companies in the chemical industry can focus on areas where efficiency and modernization are most needed in their business to be able to respond to change as quickly as a smart company.
Technical solutions responding to chemical industry trends
1. provide additional value instead of product
One of the biggest changes in the chemical industry is the new orientation of customer goals. To provide the answers that potential customers want, companies in the chemical industry collect data on their products to quantify the quality and performance of their products. For example, paint manufacturers can use IOT sensors to determine how the product responds during customer site processing and provide data on the best application and conditions of use. Similarly, resin manufacturers can remotely monitor the product’s response under various conditions and provide technical information to dealers, which will help ensure product quality and reduce waste.
2. create error prevention operation with new technology
The chemical industry has also begun to use technology to improve productivity. They found the benefits of automating standard back-end processes using technologies such as machine learning and the Internet of things. These technologies significantly reduce the need for human intervention – and the risk of human error. Blockchain technology also provides the best potential to prevent the use of counterfeit chemicals, which is essential to chemical manufacturers that supply products to the pharmaceutical and agricultural industries. Blockchain can also control processes with less work and loss, while ensuring the company’s reputation.
3. competition in the ecosystem
chemical companies can no longer limit themselves to their own interests. They recognize that they must work with customers, other businesses and organizations to save resources and protect the environment. As part of the recycling economy, chemical companies can get raw materials from recyclers, which requires a proven solution to confirm their quality and availability. The circular economy alliance can ask for the reduction of environmental threats such as marine plastics or hazardous chemicals, thereby creating opportunities for innovation.
Their customers may also be looking for ways to reduce waste and protect ecosystems. For example, solutions that allow farmers to analyze soil quality, weather conditions and crops immediately can benefit farmers; this helps to identify the right products and the right fertilization plans, protect crops, or use new seeds. With this data, they only use what they need, create less waste, and maximize performance.
4. keep agile in a vibrant market
For some companies, it is important to be agile in uncertain M & A environments. chemical companies need to be able to quickly divest their assets, adjust their investment portfolio and adapt to changing market conditions. Technology can provide visibility into production, order logistics, and market conditions that leaders need to make critical decisions and remain agile.
