Greener growth for better tomorrow

Global megatrends are affecting chemical companies and providing new opportunities for growth

Industry overview

Resource scarcity, environmental impact, and changing consumer expectations call for innovative business models and platforms in support of a circular economy. Due to its early position in the value chain, sandwiched between energy and feedstock players and consumer industries, chemical companies are predestined to play a pivotal role in the transformation of the entire ecosystem.

In addition, the need for sustainable, reliable, innovative, and trusted products and services requires chemical companies to ensure safety and integrity along the entire value chain and lifecycle of products. Making Industry 4.0 a reality, intelligent technologies will support bridging data across the organization, from operational performance data to experience data, and help companies make sound business decisions to make sustainability profitable and profitability sustainable.

Challenges

01
Navigating Competitive Landscapes

The intensification of competition is leading to the commoditization of products and eroding margins, necessitating a shift towards portfolio optimization, co-innovation, and focusing on delivering business value and outcomes. The aim is to transcend traditional product sales, offering unique customer and consumer experiences.

02
Collaborative Networks

As disruptors challenge the status quo from all directions, chemical companies are expanding beyond traditional value chains. They are now engaging in expansive business networks that facilitate seamless collaboration with partners.

03
Embracing Sustainability

Sustainability has emerged as a critical pivot, akin to digital transformation, affecting every facet of the business and driving companies to integrate eco-friendly practices across operations.

04
Supply Chain Resilience

The likelihood of supply chain disruptions has soared due to geopolitical tensions, health crises, and environmental changes, urging companies to fortify their supply chains against unforeseen shocks.

The Vision

1.
Increase operational efficiency

Automate major components of your back-end systems by using machine learning technology, artificial intelligence, and predictive models. The ability to operate safely and effectively is essential to chemical companies. Modern chemical companies, in their attempt to reduce cycle times, are looking at the fully integrated operations of the company. Realizing that changes in one area can impact further downstream operations in the end to end process, to reduce cycle times.

2.
Collaborate through business networks

In the upcoming years, you will have gone beyond the boundaries of your current product- based value chain. Together with a network of partners (for example, raw materials suppliers, service providers, regulatory bodies, research institutions, toll manu- facturers, and technology providers), you will collaborate to develop sustainable, customer-specific solutions and applications that serve the customers in industry sectors such as automotive, pharmaceuticals, high tech, aerospace and defense, and consumer products. This collaboration will enable you to deliver outcome-oriented applications and services. Networks and relationships will be flexibly redesigned in line with market dynamics and ongoing portfolio optimization.

3.
Improve strategic agility

By 2025, chemical companies’ overall performance, profitability, growth, and competitive position will be based on the speed with which you adjust your strategy and product and service portfolios, grow into new markets or segments, and realize the synergies of mergers, acquisitions, and spin-offs. This goes far beyond the product development and manufacturing expertise you have shown in the past. It requires the flexibility to apply business-to-consumer (B2C) sales and product management capabilities and the ability to manage diversified product and application portfolios.

4.
Sell business outcomes, not products.

By 2025, most chemical companies will move from B2B push models to business-to-business-to-consumer (B2B2C) models. Digital technology and concepts such as Industry 4.0 will be leveraged to deliver sustainable, co- developed applications, services, and business outcomes. Companies that have identified an experience gap will gain competitive advantage by engaging more closely with their customers and ecosystem partners. This engagement will enable you to deliver outcome-driven services and address customer expectations. This experience, along with developing customer relationships based on trust and shared values and risks, will be the new paradigm.

The Journey

Today

Siloed data and processes. Single plant view

Future

Integrated operations management

Increase Operational Efficiency

Initially, companies aim to enhance operational efficiency by leveraging IoT, machine learning, and digital twins to shorten processing times, boost first-pass yields, and increase equipment effectiveness. Subsequently, they plan to foster connections and collaborations across the supply chain, utilizing predictive analytics for improved demand forecasting and supply balancing. This also includes preparing for disruptions with real-time contingency planning. Ultimately, the goal is to achieve a level of autonomy in enterprise operations through the comprehensive automation of routine tasks using machine learning, moving closer to the concept of an autonomous enterprise.

Today

Siloed data and processes. Single plant view

Future

Enablement of a circular economy by a collaborating ecosystem

Collaborate through Business Networks

Initially, chemical firms will work closely with customers to grasp market demands and sustainability needs, fostering joint innovation in product development and sharing crucial data ranging from demand to order fulfillment. Concurrently, they'll form networks within an ecosystem to streamline product development, production, and delivery, encompassing suppliers, manufacturers, and service providers to ensure the swift delivery of sustainable products cost-effectively. Ultimately, these companies aim to create unique, innovative products and business models aligned with broader goals, like contributing to the circular economy.

Today

Spreadsheets and manual work for strategy and portfolio planning

Future

Real-time, data-driven digital boardrooms for strategic decision-making

Sell Business Outcomes, not Products

Chemical companies are moving towards enhancing customer experiences through personalized interactions, leveraging sentiment and behavior analysis. They aim to innovate through intellectual property databases and predictive analysis for faster product development and compliance monitoring. Integrating Industry 4.0 technologies, they'll gain insights for new opportunities like predictive maintenance and improve logistics tracking. By participating in open innovation platforms, transforming data into services, and adopting customer-centric revenue models, they strive to enhance quality while minimizing costs and risks, ultimately driving transformative business outcomes.

Today

Selling products

Future

Selling business outcomes

Improve Strategic Agility

Chemical firms will evaluate their product and service profitability using detailed real-time data covering all costs from development to delivery. Next, they'll integrate external market and internal data into strategic scenario simulations, like mergers or acquisitions (M&A), to gauge impacts on KPIs and performance. They'll also address stakeholder concerns from M&As proactively. Finally, post-M&A, firms will reorganize around updated portfolios, leveraging consolidated financial data for real-time monitoring of restructuring effects.

94%

Of the chemical industry executives surveyed plan to increase their digital spend

45%

Of chemical companies are rethinking how humans and machines work together.

How we can help

Discovery and analysis

Thorough discovery and analysis phase to understand your specific business needs and challenges. Utilize technology as the base for application integration, extension, and access to a robust ecosystem, including AI solutions.

01
Application Integration

Leverage industry-leading business applications across both front-end and back-end systems.

02
Comprehensive Support

Combine all elements to support customer-specific, end-to-end industry processes essential for digital transformation and operating as an intelligent and sustainable enterprise.

03

Our
use-cases

Steel

SAP Digital Transformation in the Steel Industry

Implementing SAP Solutions to optimise operations and sales productivity across global steel production facilities.
Manufacturing

Curated product selection through a subscription model

Extend and enrich our offering by collaborating across company and external partners to deliver services that continuously deliver value over time to our customers.
High-Tech

Digital Asset Delivery encompassing both Saas and Daas

Embrace digital disruption to transform global organizational processes.

Products used

Insights

How to avoid rework and time waste in e-commerce development

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by
Jons Janssens
Blogpost

In the Digital Age, a Digital Executive is needed on the Board

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by
Jons Janssens
Blogpost

Bring hierarchy to your metrics

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by
Jons Janssens
Blogpost

How to avoid rework and time waste in e-commerce development

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by Jons Janssens
Blogpost

How to avoid rework and time waste in e-commerce development

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by Jons Janssens
Blogpost

How to avoid rework and time waste in e-commerce development

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by Jons Janssens
Blogpost

How to avoid rework and time waste in e-commerce development

Let’s take medical literature as an example. PubMed remains the main access point for most researchers, and it functions as an old-style repository. There are no data aggregation functionalities; the search is based on basic criteria that mostly only rely on the article’s title, abstract, and keyword.
Written by Jons Janssens
Blogpost