When people look at the new trends in the chemical industry and how chemical enterprises can make the most of the profits from the digital transformation, five strategic priorities stand out.
In the past, the chemical industry has been slow to invest in technology as a commercial difference. But times are changing. According to experts from PricewaterhouseCoopers, "the chemical industry may finally approach a turning point. Driven by accelerated technological progress, some chemical companies have begun to rethink their growth strategies and finally move away from cost cutting and tightening to a more flexible, coherent and positive business model."
In addition to the advanced technology that can change the status quo, what other factors promote the development of chemical enterprises in a more growth oriented direction? When people look at the new trends in the chemical industry and how chemical enterprises can make the most of the profits from the digital transformation, five strategic priorities stand out.
In recent years, it has been found that chemical enterprises with high pricing and profit margins are always under strict scrutiny. One way to solve this pressure is to improve operational efficiency. Effective operations increase the bottom line of the business through a chemical centric ERP and supported business systems. They will increase asset utilization, increase revenue and efficiency, and increase employee productivity.
As chemical customers or customers' demographics become younger and younger, their purchase expectations depend on their easy access to products and services. The new generation of buyers expect instant communication, timely response, and real-time access to information with individuals. Chemical companies can provide customer information precisely according to customer requirements, and use technology to satisfy customers.
In the chemical industry, it is urgent for enterprises to abide by government regulations. These regulatory requirements are changing. The areas affected include facility process safety, safety, chemical product safety and transportation. Chemical companies must comply with OSHA hazard communication standards, Sara Title III and GHS reports. With digital transformation, chemical companies can be more flexible in responding to compliance issues and regulatory changes, from disseminating needed changes to all forms and channels to helping ensure companies continue to comply with new regulations.
Mergers and acquisitions in the United States are growing rapidly. As companies see a rise in cash levels, spending will increase, and mergers and acquisitions remain the main focus of these funds. Moreover, the situation is expected to continue. Since financial transparency is a key factor in evaluating potential acquisition targets, a sound and updated ERP system can enhance the attractiveness of acquisition candidates.
"Whether it's M & a value and integration, digitalization, or deglobalisation, the best way to address the impact of fundamental disruption is to first identify how they will affect your company, and then develop a strategy to take advantage of these opportunities." These problems are increasingly becoming the forefront and center of the chemical industry, and will determine the growth and momentum of the industry in the next 12 months and beyond. Avoiding them will only exacerbate the slow growth environment that too many chemical companies have turned a blind eye to. "
Business innovation opportunities in the chemical industry are changing the way people live, work and communicate with each other. The chemical industry is helping ideas and innovations turn into complex products, such as touch screens, drones, rechargeable batteries in portable devices, organic light-emitting diodes in flexible electronics, and so on. At the same time, the industry itself is transforming, seeking opportunities to benefit from digital technology, including operational excellence through digitization.
Whether it's profit pressures, customer expectations, regulation, mergers and acquisitions, or business model innovation, the best way to deal with these growing trends and problems is to identify them clearly (rather than hide under the rocks). Then you can fully understand how your company is affected and begin to take advantage of the opportunities offered by digital transformation to address these areas. In the chemical industry, it is clear that these problems are increasingly on the minds of business leaders and will remain so in the future.