These players have prompted incumbents to differentiate themselves by producing smaller batches for individual customer needs and selling services, experiences, and outcomes, while being early adopters of digital technology at the business core. Manufacturing operations present one of the biggest and mo… Furthermore, incorporating batch lot tracking and other operational tools that tie into a product database, enable rapid decision support in the event of emergencies or recalls. Instead of micro-level optimization, which only allows for cost-savings within your own supply chain, the doors are open to macro- level optimization—finding those optimization opportunities that lie between several systems. With more accurate and efficient automated data collection, IIoT dramatically expands the number and variety of parameters that can be monitored cost effectively with engineered algorithms or machine learning to identify problems well before they become failures. More and more, smart sensors and equipment that contain smart diagnostic features are being used in industry to generate large volumes of data. The systematic improvement of efficiency must extend to all areas and all phases of a plant’s lifecycle. So changes in production, oil prices and investment are the perfect time to dive in, anaylsts explained. The industry has also seen an increase in merger and acquisition activity in recent years, and this trend is likely to continue. Digital Transformation Creates Efficiencies in the Chemical Industry February 8, 2020 David Cahn, SCB Contributor Analyst Insight: Every change-management consultant knows that effective transformation within a business requires a combination of people, processes, and technology. … There is also the threat of the innovative companies that have reimagined their markets, products, services, and technology. In addition to enhancing external collaboration, PLM for process manufacturing closes the design-to-production loop and enables users to fine tune product formulation based on yield measurements and fluctuating cost elements. Since these are not simple to weave into user experience and work process, Infor has created a dedicated data science lab for machine learning and advanced analytics on the campus of the Massachusetts Institute of Technology (MIT). It’s in the creation of an ecosystem focused on improving the customer experience. Advanced computing technologies are allowing these devices to be connected to each other, and to use the data in a variety of ways. As ARC Advisory Group learned in a recent briefing with company executives, Infor’s $675 million acquisition of GT Nexus, a leading cloud-based global commerce platform, represents one sign of the company’s commitment to helping chemical manufacturers transform their supply chains. Industrial Supply: Grainger sources tools (DeWalt drills, Milwaukee, etc.) , Digital Industry
Modern technology, e.g. We’re seeing significant investments in state-of-the-art, world-scale chemical production facilities in all these countries. chemicals industry. These include improved on-time shipments, revenue, customer satisfaction, quality/yield, and safety. If you disable this cookie, we will not be able to save your preferences. When supported by a common SCM platform, this approach can drive a powerful network effect with the benefits of universal connectivity among participants. That’s because GT Nexus provides global order management and coordinates commerce across partners, enabling manufacturing companies to collaborate with suppliers to manage and optimize shipments to customers, and distribution centers to meet demand. AspenTech, a software company born out of MIT, is now playing an important role in helping chemical and petrochemical companies in their digitalization efforts – … In general, there’s been a trend for global bulk and specialty chemicals manufacturers to shift production from well-established production centers in Europe, Japan, and (to a somewhat lesser degree) North America; to cost-advantaged China and India and feedstock-advantaged Saudi Arabia, which has been making a major push to increase the value of its exports and diversify its economy. Industry chokepoints The chemicals value chain is full of chokepoints that can be eliminated with intelligent use of digital enablers. Turn thinking into doing at Mobile World Congress 2018 in Barcelona February 26 – March 1, 2018. In the past, large producers dominated the market. As Marcelo Carugo, senior director Chemical and Refining Solutions, Emerson Automation Solutions (St… Hexagon’s Smart Manufacturing Solutions Portfolio Enhanced by Acquisition of D.P. Naturwissenschaftlich orientierte Manager der Chemieindustrie entdecken, dass die Digitalisierung ihnen ein Werkzeug in die Hand gibt, um ihr Geschäftssystem weniger vom Zufall abhängig und berechenbarer zu machen. It requires a mindset that is driven by a customer-first, design thinking … and packages them in useful bundles for factories 2. Companies are using an integrated digital supply chain along with consumer data to create a direct-to-consumer model. As we learned, Infor is moving all of its products and solutions to the cloud and combining these with GT Nexus to provide a powerful network to move chemicals, track goods and provide inventory visibility. Digital transformation at its core allows organizations to tackle disruptive changes such as marketplace fluctuation by designing new products, services, and business models leveraging digitalization. Base chemicals, paints, beauty products, fragrances, and food flavorings all have one thing in common. Auto Manufacturing Suppliers: Magna International produces and sells car bodies/chassis and seats to automakers 4. Digital transformation in the industrial enterprise is happening at breakneck speed. 1. The expanding markets in emerging economies, combined with nearly continuous regulatory changes in established markets, make it imperative for chemical companies to be able to quickly and confidently document formula and label compliance with industry, national, and regional regulations. The resulting digital enterprises can design, manufacture, deliver, and support products faster, more efficiently, and at lower cost. In general, the entire chemical industry is seeing a move toward increased automation to reduce costs and compensate for the growing skills shortage. The global chemical industry can benefit from such transformation, which can act as a catalyst to unlock enterprise-wide business innovation. During the process, they are gaining valuable customer data and insights. Globalization has also altered the chemicals industry. Firms are focusing on mergers and acquisitions to remain competitive and drive growth. Despite this complexity, the document management capabilities of chemicals-specific PLM solutions can help ensure that products meet regulations from concept to retirement, even as regulations change. This means that every time you visit this website you will need to enable or disable cookies again. These technologies can all play a role in driving business value. Digital transformation is emerging as a driver of sweeping change around the world. Technology Corp. Yokogawa Releases Field Assistant R2.05 that Enables Hands-Free Field Inspections. It is a group of industries that produce a wide range of products across many unique segments. For many companies, this need is reinforced as competitors, partners, suppliers, and customers begin employing digitized business processes of their own. Digital Transformation of the Chemical Industry, Digital Transformation Council (End Users Only), Digital Transformation Council for Smart Cities, ABB Provides Electrification and Automation to Sustainable Underground Mining Project, Itus Digital Announces Acquisition of nextAPM, UK-based Maximo Solutions Provider SRO Solutions Being Acquired by The Cohesive Companies. New competitors, markets, and regulatory issues have changed industry dynamics. Functional excellence has generated significant productivity improvements over the past two decades. The impact of these industry changes is easy to see, as are the challenges they create: Chemical companies must identify new revenue streams, including innovative services and outcome-based models. The industrial enterprise has one of the most compelling stories for digital transformation (DX). Users have reported that moving from preventive maintenance to predictive or prescriptive approaches provides 50 percent savings in maintenance labor and MRO materials. Recent economic and technology trends have had major impacts on the global chemical industry. ARC agrees with Infor’s CEO, Charles Phillips, that, “the future of manufacturing belongs to networked companies.” For the chemical industry this is a network of buyers, raw material suppliers, logistics providers and service partners. Increased digitization across the value chain is another clear trend. Rapid commoditization of the industry has accelerated as oil prices have remained low. This talent will be key to leveraging technology to offer core business value. Digital transformation in the chemical industry (in German) Digital transformation in the chemical industry KPMG in Germany recently launched a ground-breaking study on digital transformation within the chemical industry, together with the market research institute, TNS Emnid where they interviewed 75 senior chemical industry executives. For an even more in-depth look into the future of the digital transformation that will continue to be integral in the chemicals industry, download our special white paper “Digital Transformation in Chemicals.” Learn more about the role SAP will play in implementing and driving the digital transformation in the chemicals industry. Digital transformation is an inevitable part of any industry at present. Connecting the physical and financial aspects of the chemicals business will fundamentally change behavior and work process. Most companies have one or more digitalization initiatives underway as demonstrated in this survey conducted at the 2019 Emerson Exchange during the Chemical Industry Forum session. By … Chemical players are at varying maturity stages of their digital transformation journey according to quantitative analysis Voice of the Industry • Almost 40% of executives want their company to be digital trailblazers (or disrupters) over the next 3 years • The adoption of open and semi-open platforms are Overcoming these challenges is the only way to address the single largest challenge the industry faces today. In 2019, digital transformation is no longer a future state, or something to reconsider for the next fiscal year, it’s an initiative that needs to be woven into the very fabric of an organization. With the right technology and partners, enterprises are leveraging a breadth of technologies to better prepare their products, processes, and people for the future. Digital transformation prepares for the interaction of all engineering and operational tools and components, such as plant management, the process control system, device design, and configuration. Infor’s strategy is to create industry-specific solutions with mechanisms for user customization via Amazon Web Services (public) cloud deployments. Now, digital transformation in chemicals is presenting immense, largely unexplored new potential to not only increase efficiencies but to help companies design novel products and processes. Learn more! Anyone wishing to stay competitive in the chemical industry must continuously optimize the efficiency of their plant. It is a group of industries that produce a wide range of products across many unique segments. At a recent Inforum customer event, Mr. Phillips and Kurt Cavano, General Manager of GT Nexus Commerce Cloud, discussed how the combination of Infor cloud-based ERP solutions with GT Nexus Commerce Cloud has created a powerful global business network and supply chain application platform for chemical manufacturers, their suppliers, and customers. Keywords: Chemicals, Digital Transformation, Regulations, PLM, SCM, EAM, ERP, SaaS, Infor, ARC Advisory Group. For many companies, this need is reinforced as competitors, partners, suppliers, and customers begin employing digitized business processes of their own. To do this, they must address an aging and non-digital workforce and find a way to attract new talent that embraces the digital workplace. Digital provides the means to unlock a new level of productivity enhancement. , Business Model Innovation
IN COLLABORATION WITH SAP. Digital technology, along with data analytics, is tremendously promising for the chemicals industry. for quality management and regulatory affairs, safely connects formerly fragmented and isolated content, processes and data beyond departments and company borders. Although product lifecycle management (PLM) approaches originated in the discrete industries, chemical companies are increasingly taking advantage of the benefits that effective PLM offers for product development, manufacturing, sales and support. More information about our Privacy Statement, The Internet of Things (IoT), leveraging sensors to capture data from manufacturing, storage, and distribution, The cloud, a platform to support a common system of record for both suppliers and customers, Analytics, to correlate supply data to product quality and customer satisfaction, Machine learning, to assist in predictive maintenance of operational equipment, Blockchain, to better track transactions for assets, materials, and products. The future of the chemicals industry is no longer the one-shot, blockbuster product model. The persistently low oil and gas prices, particularly in North America, have had a major impact on the industry, since both are key feedstocks for both specialty and bulk chemical production and provide much of the energy (either directly or indirectly) for these energy-intensive sectors. Companies that effectively employ PLM to collaborate and manage data, will develop new products faster, introduce them at lower cost, and bring them to market in less time. As chemical companies look for new opportunities in 2018, some of the greatest potential will come from digital technology. Thus, only 18 percent of assets benefit from preventive maintenance based on calendar time or usage. As a result, many firms have moved towards mergers and acquisitions to remain competitive and drive growth. , Digital Strategy
Angela Morris, MES Global Improvement Leader at Dow Chemical, used a symphony orchestra analogy to describe Dow’s history and progress in manufacturing execution systems (MES). … Digital technology, and the data it brings, holds tremendous promise for the chemicals industry. But technology alone isn’t the answer. Reliability studies show that 82 percent of all assets have a random failure pattern. Companies are selling customer experiences instead of products: It’s not about the color of the paint, but how the paint looks on the wall and fits into the larger home experience. These segments are under pressure due to rapid changes in digital technology, consumer demand, and global competition. All rights reserved worldwide. Infor also recognizes the significance of Big Data and data science to transform PLM, APM and SCM processes. Dow began its digital transformation in 2008 addressing the need for vertical integration between the enterprise and the shop floor. By exploiting the convergence between operational and information technologies, these companies are connecting their enterprises internally, and externally throughout their supply chain. Intelligent connected products and assets, along with network communications, software, and advanced analytics allow companies to redefine their approach to business processes, including enterprise asset management (EAM), product lifecycle management (PLM), and supply chain management (SCM). , #MWC18, Innovation: It's More Than Just A Nice-To-Have, Three Supply Chain Trends Accelerate In Response To Current Crisis. Moreover, with predictive and prescriptive maintenance, near-zero unplanned downtime for critical equipment can be achieved. Die Transformation wird unumgänglich sein. With the traditional chemical supply chain logistics model in which only one component at a time can be optimized, companies are forced to view their respective supply chains as a cost center instead of a strategic, competitive work process. While the scale and complexity of bulk chemical manufacturing appears to be increasing; specialty chemical manufacturers, particularly in Europe, are exploring increased modularization of production assets. It became evident that the chemical industry … Innovation
Increased global competition drives the need for greater efficiencies and cost reductions across the industry. Many processes in highly regulated industries like the chemical industry are an ideal fit for digital transformation. With its “five-pillar” strategy for digital transformation encompassing industry-specific solutions, design, science, internet, and the network, it appears that Infor is well positioned to help global chemical industry participants in their journey to digital transformation and the associate competitive advantages. Continuing success in the chemical industry will depend on the ability to quickly create and produce new products to meet consumer trends and changing customer requirements, and to ensure existing products continue to meet changing regulations. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. This requires a focus on implementing a true digital core that enables a common system of record through the business. An example of this is the paint and coatings market. ACCELERAT T TST T S STY 2 CT 2017 T S TABLE OF CONTENTS 3 7 12 14 17 The Innovation Challenge Enabling Digital Innovation The Value of Innovation The Winning Edge Taking the Next Step. But this requires those systems to be connected via a common platform. Chemical companies’ business processes, including manufacturing, marketing and sales, and R&D, present opportunities for performance improvement based on data capture and interpretation. Jenner: I think we need to discuss the term ‘digital transformation’ first. Chemical industry being asset-intensive is now facing game-changing challenges derived from the disruptive potential of digitalization. , #Industries
The chemicals industry is more than a single industry. As many global industries and sectors embrace digitization in areas ranging from business processes to customer relationship management, digital transformation is becoming a smart business objective beyond just improving the core of the business. , Digital Transformation
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