The digital journey began in the process industry decades ago, when enterprises began upgrading from analog and paper systems to digital instruments. Early solutions for chemical suppliers include replacing manual adjustments to production units with distributed control systems (DCS), and the use of computer models to predict reactor behavior.

Starting with different solutions to single and local challenges, it has been expanded to include solutions that can improve productivity and cost savings across the business. Digital technology now guides improvements at all stages of the asset lifecycle - from unit design, operational optimization (including production and supply chain) to maintenance planning. Many tools have been further improved to meet the special needs of chemical producers, including a wide range of raw materials, technologies, production processes and markets.

As many companies realize the power of digital tools and see competitors eager to adopt and benefit from new solutions, interest in digital tools is indeed accelerating. In this competitive industry, companies cannot fall behind.

Because of the complexity of operation and the increasing number of products required by downstream customers, special chemical manufacturers are facing a particularly severe challenge. Compared with ordinary chemicals, special chemicals need higher efficiency in innovation and new product introduction.

Enabling technology to unlock hidden value

In recent years, the global chemical industry has been in a sustainable upgrading cycle. Innovation, sustainable development and supply chain remain key strategic areas of priority for the industry. In many industries including chemical industry, the application of digital technology has become an imperative strategy. "Digitization has brought us a huge opportunity," BASF's website said. By using digital technology and data, we are creating additional value for our customers and improving the efficiency and effectiveness of our processes. "

Chemical industry reaction lag

Although many chemical suppliers are actively trying to use digital technology in their business, in most cases, the industry is still lagging behind. In 2017, Deloitte's report digital transformation: are chemical companies ready? "He said," most chemical companies lack digital roadmap or strategy. ". The authors list several possible reasons for slow progress - from the challenges of large capital projects to lack of confidence and knowledge about digital technology.

In the 2018 update, Deloitte reported some progress, but still rated the chemical industry as level 5 (from 1 to 10), although 85 per cent of executives believe that the chemical industry is in a medium to high maturity in terms of numbers. Meanwhile, Deloitte reported that chemical industry executives acknowledged the value of deploying digital technology to achieve operational efficiency and productivity, while also addressing key challenges in R & D and complex manufacturing environments. These challenges are often the most concerned issues for specialty chemicals companies. Chemical suppliers are similar to oil and gas enterprises in terms of operational efficiency and productivity, but they need innovation and advanced manufacturing.

The challenge for many companies is to get enough understanding of the potential advantages of digital technology. Organizations work hard to learn these terms, relate to current and future assets, use data to ensure safe operation, and develop stronger business expertise using advanced models.

Leaders are preparing for change

Leading companies are introducing new digital organization methods because they see the value of their portfolio and adjust their organizations to best capture the advantages. Evonik established a digital subsidiary in 2017 and appointed chief digital officer and invested EUR 100million in the development and testing of new digital technologies.

Wacker Chemie has launched a new plan to push forward the digital transformation of the entire supply chain. At its annual meeting in 2018, Rudolf Staudigl, President and CEO, acknowledged its value, saying: "digitization will help us better meet our customer needs. This is a theme that covers the entire supply chain, from product development, manufacturing to customer service. " In 2018, Dow added a chief digital officer to its CIO title to strengthen the company's emphasis on digital tools. As CFO and CIO, Melanie Kalmar leads a team of executives, business line presidents and functional vice presidents to develop Dow's digital strategy.