As the global chemical industry is ready to meet the digital transformation, many challenges and obstacles may affect executive decision-making. Based on the results of the first global digital Chemistry Survey 2016, this paper aims to demonstrate potential opportunities related to the digital agenda and to recommend specific steps to address its challenges and realize its benefits.

Catalyst for innovation

In recent years, increasingly fierce competition, changing customer demand, evolving regulatory environment and dynamic cost equation have made heavy pressure on chemical enterprises, creating a gradually challenging environment. Therefore, many chemical enterprises focus on the transformation trend generated by other industries and rebuild their own business and operation mode. With many global industries and departments embracing digitization in areas ranging from business processes to customer relationship management, digital transformation is becoming an intelligent business goal, not just improving the business core. The global chemical industry can benefit from this transformation, and it can become a catalyst for opening up business innovation of the whole enterprise.

The real goal of digitization is to help the organization transform by identifying effective, enterprise level and digital business transformation roadmap, including:

a) Assess maturity in terms of business innovation and digital (and exponential Technology) adoption

b) Promote greater collaboration within and outside the functional departments of the organization

c) Understand the value of business transformation

In doing so, chemical companies may realize that digitization can serve as a unique catalyst to condense the entire organization around continuous innovation and value creation. Digitalization is expected to release the innovation potential of chemical enterprises, but also enhance the total spectrum of shareholder value (such as revenue growth, operating profit margin, asset efficiency, sustainability and safety and other company advantages).

Close to digital conversion

In the global chemical industry, many specialized digital and exponential technology methods and experiments are in progress. However, many chemical enterprises are not sure of the advantages that the digital revolution may bring, and take a cautious attitude towards the digital transformation within the enterprise scope.

Challenges facing chemical companies may limit their digital excellence, including:

The current digital responsibility is misplaced

Change management, which simplifies the adoption of digital agendas by employees, seems to be absent

The key roles of network security, talent management and strategic alliances have not been fully understood

In the short term, the most digital opportunities are expected in terms of business operations, sales and marketing

However, in Deloitte 2016 global digital Chemistry Survey, a large number of chemical enterprises do realize that digital initiatives are increasingly important in improving their innovation potential, but most of them focus on data. Senior leadership of chemical enterprises has the opportunity to actively promote digital culture, which may help chemical enterprises innovate and ultimately achieve a comprehensive transformation focusing on business growth and operation.

Five enablers for the digital enhancement initiative have been identified

Based on the results of Deloitte's 2016 global digital Chemistry Survey and industry observation, the following recommendations can help chemical companies expand their digital strategy:

From the clear digital enterprise strategy, we should build a robust transformation process

Achieve enterprise wide scalability through the establishment of sustainable insight driven strategies to build and strengthen internal capabilities

Create a structured approach to identify risks in complex and dynamic ecosystems

Establish agile operation model, plan, execute and manage digital activities with new identified priority resources

Integrate continuous innovation into a culture that supports new ideas and encourages learning