Digital and technology transformation are two of the most popular buzzwords around today. However, beyond the industry jargon, there is a real need for next-gen technology that pushes businesses, industries, and boundaries. Known to be one of the most conservative and slow industries, there is a real need to innovate and produce outcomes faster than ever. In today’s digital world, speed has become a strong competitive differentiator that even chemical companies cannot ignore.
The chemical industry is known for their systematic approach to business and because of this, it faces a unique challenge to use strategically digitize their process and business model.
“Over 50 percent of chemical enterprises lack a digital strategy and transformation roadmap”
As per industry experts, digitization promotes innovation and thus it can transform the chemical industry. Digitization also enables faster innovation and predictive analytics could reduce costs – as enables less waste from trials, and less mistakes Currently, the chemical enterprises are struggling to streamline their processes and M&A activities. When backed with the right strategies and required digital capabilities, digitalization can provide significant value to the entire supply chain process. Here are some potential benefits that digitization can bring to the chemical industry:
Manufacturers can upscale their operations and gain end-to-end financial visibility through digitally enabled chemical plants. Such integration offers further benefits including better waste management, optimization of production network and a better workforce safety. BASF is a great example who used computer modeling to reduce energy and waste. They developed software solutions to handle the complex requirements of batch and semi-batch systems. By building a detailed kinetic model of its batch expanded-polystyrene process and applying dynamic optimization techniques, BASF was able to achieve a 30% reduction in batch time that resulted in significant energy savings.
Managing the supply chain has always been a major problem for the chemical industry. However, with digitization, companies can enjoy unimaginable transparency. They can have an easy access to the sources of chemical supply and other intermediaries. The digital supply chain also benefits the suppliers by allowing them to reach customers in the new market and geographic regions.
Digitization offers great opportunities to increase efficiency and productivity throughout the industry’s value chain. Today, with immense competition and margin pressure, operational excellence has become an important goal for chemical industry companies. To be specific, companies with structural cost disadvantages are bound to achieve operational optimization. Digitization promises to achieve operational excellence!
Digitization enables faster innovation that assists companies boost their R&D productivity and design new offerings and solutions.
Digitization offers a bundle of opportunities for innovation, expansion and growth. The chemical industry is still lagging behind in adopting digital agenda due to its inherent cyclical nature and mostly commoditized existence. Companies are required to adopt operating models that synchronize their business plans and digital solutions. They really need to focus on streamlining processes and position their value chain in this new ecosystem to achieve higher levels of efficiency and transparency.
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