Digital technology in chemical industry makes data processing (data generation, collection and storage) easier and cheaper. Digital technology can also extract important information by managing a large number of unstructured data. These important information can be used by chemical suppliers to achieve better results in the future.
The influence of digital technology on chemical industry
The potential impact of digital technology on the chemical industry is quite huge, and it has shown the impact on the profits of chemical suppliers. Here are the areas where digitization of the chemical industry will show change:
Digital technology applied in the manufacturing sector of chemical suppliers can increase the potential by showing an increase in sales recovery rate of 3% to 5%.
This kind of profit can be obtained by analyzing the data generated by each company, but most of the data is often discarded. This data analysis can reveal ways to achieve higher production through small decisions such as reducing energy consumption or maintaining machines frequently and effectively.
Advanced analytics can improve the entire company's sales and operational planning process by making data-based forecasting possible and more accurate. This kind of analysis can also make a better batch production plan, shorten the lead time, and have higher inventory flexibility.
Sales and marketing
Digitization can increase return on sales (ROS) by 2% to 4%. This can be achieved through decision-making supported by digital data.
The world's leading nutrition companies analyze internal and external data to create transparency on the ground to read customers - products through an easy-to-use application, and then use the company's market analysis data to grow 8% after years of no growth in the company's market.
Digitalization can create better customer experience, bring higher profit possibility and reduce service cost.
research and development
The R & D department can create more profitable products with excellent speed by introducing digital technology into the Department. The R & D department can also use digital technology to simulate experiments and predict the results based on past failed or successful experiments.
New business model
For a better future, companies that were early in the digital world and wanted to be industry leaders are now taking risks. The impact target of digital technology is the specific field of the industry, which opens up the evolutionary road for the future and brings better economic benefits. Some business models are as follows:
Performance compensation model: using digital technology to monitor the application of chemical industry in the manufacturing industry.
Business model based on intellectual property: provide consultation and guidance for the use of our products, and charge fees.
Data analysis oriented service model: this business model basically depends on the decisions made on the received data. For example, in the case of an agrochemical company, it may determine the price of chemicals (pesticides, pesticides, etc.) based on geological, meteorological, rainfall and geospatial data.
Steps to implement digital technology
Goal setting - a senior management perspective on the future of the company after the introduction of digital business.
Quantifying the impact of numbers - using digital tools in a company is designed to increase production or profits for the company and applying it in the right Department of the company.
Capabilities - the skills required to generate structured data in a useful way and to read data generated by digital technology. This can lead to training the company's existing staff or hiring new talent to improve chemical suppliers.
Team governance and organization -- adapt to the organization or governance, so that new digital methods flourish.
Roadmap and vision - bringing digital technology into the industry is a big step, realizing the company's risks, but minimizing them through appropriate vision, management and governance.
Let digital act - only applying digital to the industry can not help the company grow. Managers must make necessary decisions according to the situation and communicate with employees and external stakeholders, such as customers and suppliers.
Digitalization has created great opportunities in the chemical industry, but it will lead to better results and success under the condition of strategic planning. Strategic planning allows you to make decisions that are difficult to reverse ahead of time, thus making economic profits.