Like some other industries, the chemical industry is finally open to digital, which will be a fragile thing. This is simply because low digital maturity is a concern for an industry that employs about 20million employees worldwide, and needs to be reflected in depth.
The gloomy state of the mature number of chemical industry
The bleak state of digitalization in the chemical industry can be explained by the following facts: even today, many chemical enterprises still don’t understand that it department and digital transformation are two different things. It departments can only be the promoters of digital transformation at most, not the promoters. This explains why more than 50 percent of chemical companies do not have any digital transformation strategies.
According to our analysis by Ajay Adhikari, our chief analyst in the field of chemicals and materials, European chemical companies show more digital maturity at a global level than companies in the Americas and Asia Pacific. He also believes that chemical companies engaged in professional businesses have a larger digital footprint than other categories in the chemical industry.
Highly vulnerable areas in the chemical industry
As a highly reactive industry, participants in the chemical market are often faced with crisis of their value chain system. Bottlenecks in production processes, business operations, talent recruitment and management have become daily challenges they strive to overcome.
Poor collaboration between suppliers and customers, lack of cross site resource streamlining, poor portfolio management and compliance with safety regulations require effective handling of the entire chemical value chain process. Using digital enablers wisely will certainly add more power to the industry, bring more transparency, and encourage diligent use of resources.
Are the digitization of the chemical industry ready?
Industry experts believe that digitization is a catalyst that will promote innovation and thus change the function of the chemical industry. At present, the industry is trying to simplify its M & A activities and fasten its safety belt to meet the emerging challenges. Industry leaders have accepted the fact that if they are matched with the right strategy and support the required digital capabilities, digitization will provide more value for the entire supply chain process.
The following is the situation after digital solutions enter the chemical industry:
1) Profitable business
By establishing digital intelligent chemical plant, the manufacturer improves the operation level and obtains the end-to-end financial visibility. The result of this integration is to reduce risk, better waste management, optimize production network, and the most important is better labor security.
2) Better supply chain management
Supply chain management has been a major pain point for almost all chemical giants. The digitalization of inventory and fleet management is the key to construct agile transportation system. An indirect result of the adoption of digital solutions in supply chain management is the optimization of expenditure services and better compliance with the tracking regulations established by the authorities. The digital supply chain also enables suppliers to reach customers in new markets and geographic areas.
3) Improved market and sales performance
Lack of clear understanding of the competition pattern is the main factor behind the failure of marketing and sales strategy. Digital transformation helps to better respond to the latest trends and periodicity of the market. A comprehensive understanding of the market clearly leads to a better customer awareness, which is easy to translate into better marketing and sales results.
4) Digital market sense of existence
As an extension of sales and marketing performance improvement, business digitization will also enhance the sense of market presence. Insights from social listening programs help to better track customer sentiment. Only by knowing what your end-users are looking for more clearly can you be in a better market position and improve the overall brand awareness. The overall result is better identification of new opportunities and risk reduction.
5) Digital work
Finally, digital transformation leads to the evolution of highly digital and complex workplace culture. Digital technology plays a key role in improving the overall efficiency of an organization, which promotes better staff collaboration, provides visibility, and facilitates better financial decision-making. Cloud based talent management solutions are an important part of digitization and help entrepreneurs to manage performance and risk compliance.