(2 minute read)
There’s no question that the current pandemic is posing serious challenges across a range of industries, disrupting value chains in unprecedented ways. But within the disruption lies the opportunity to move forward stronger than before.
In the short term, the pandemic presents immediate challenges for supply chains, manufacturing and demand management. Longer term, the accelerating pace of change in business and technology will continue to create even more disruption, faster than ever.
To keep pace, the chemical industry will need to change the way it operates. End-to-end processes and operations will need to be integrated and more transparent, combined with real-world awareness of what customers need and the current environment. The information gleaned from this will enable chemical companies to make decisions and solve problems in novel ways.
Challenges and Opportunities in the ‘New Normal’
Although most businesses had some type of digital transformation initiative in place before the pandemic, many found themselves unprepared to deal with rapid change. This fact became glaringly obvious in the current environment, shining a harsh light on processes and technology that need to be improved.
The future for chemical companies will depend on their ability to create innovative products and services derived from new business models. These new business models will range from simple after-sales offerings to complex outcome-as-a-service models. All of these new ways of doing business will require real-time data sharing and collaboration with customers on new platforms, supported by extended partner ecosystems.
- Deliver outcomes, not just products: To do this, chemical companies will need to connect with customers to understand and become part of their value chains. They will also need to leverage digital technologies to deliver innovative services and business outcomes co-developed with customers.
- Simplify, to shrink cycle times: Siloed information and lack of integration in manufacturing and the supply chain are preventing automation of processes. Going forward, chemical companies must start to leverage technologies to reduce processing time, increase first-pass yields and improve overall equipment effectiveness.
- Compete as an ecosystem: Nowadays, no one really stands alone, and chemical companies will need to expand their network and relationships in order to keep up with market dynamics.
- Adopt strategies to respond quickly to market dynamics: To do this, chemical producers will need to develop a real-time 360-degree reporting capability so they can answer ad hoc questions on the fly, analyze root causes to identify business risks and opportunities, and simulate the impact of potential decisions to financials and operations.
It’s Time to Rethink Digital Transformation
It’s no surprise that organizations that were further along the path toward digital transformation before the pandemic are adapting to the crisis better than their peers. The changes made to their business models and working processes allowed them to pivot more rapidly or accelerate changes already underway.
But taking on large-scale transformation projects no longer makes sense in the current climate of uncertainty, where no one can see far enough ahead to make long-term plans. Chemical companies need a new approach that will make their transformation efforts fast, flexible and forgiving.
This new approach is Digital Transformation as a Service (DTaaS). No matter what your business opportunities may be, itelligence has an approach that allows your business to capitalize on new opportunities without a massive capital investment, and with the ability to pivot and refocus as business conditions evolve.
- A dynamic technology roadmap to plot your course
- A flexible delivery model so you can pivot, as needed
- Subscription pricing – simple, easy, affordable
This new approach can help you break down barriers so your business can continue to grow – even in these uncertain times.
For more information about how the chemical industry can rethink its digital strategies, I encourage you to download our e-book, Rethinking Digital Transformation for the Chemical Industry.