Digital technology is changing the pace of research and development at chemical suppliers
According to a new Deloitte study, "chemical innovation - choose to create long-term value", digital technology is rapidly changing the basis of competition and the speed and manner of chemical supplier research and development. The report explores how new materials informatics startups - combining material science with computer science - explore open digital platforms and advanced digital technologies, such as artificial intelligence and machine learning, to accelerate and expand new products and processes that are being marketed. Deloitte said that the ability of digital technology to redesign products quickly to reduce costs has become increasingly important given the changing supply chain affected by the covid-19.
Deloitte said that in order to create long-term value, chemical suppliers need to readjust their innovation strategies and efforts to embrace advanced digital technology. The report emphasizes:
Artificial intelligence can improve the productivity and cost-effectiveness of the existing knowledge in chemical enterprises.
In recent years, the application of machine learning (ML) has increased continuously, reaching 8000 by 2019, and 35% in a short 10 years.
ML algorithm is used to find new formula, shorten the time of product listing and improve catalyst design.
Digital technology is changing the basis of competition by releasing potential value and making markets easier to enter.
Advances in digital technology are creating new opportunities and pushing material companies to launch innovative products.
Advanced data analysis and biochemical analysis pave the way for many small enterprises to enter the chemical industry.
Deloitte said collaboration and partnership are key to innovation:
Companies that are relatively successful in innovation effectively use strategic alliances to ensure stable supply of raw materials or joint development of new chemicals and materials.
Strategic partnership with pharmaceutical / Biotechnology and consumer goods / retail companies to bring chemical companies to high growth, consumer oriented end markets and develop new products with research institutions.
Many chemical suppliers are also using venture capital (VC) to foster and introduce new ideas into the market. In fact, in recent years, venture capital for chemical and material start-ups has increased, with more than 200 transactions in 2018 worth $3.68 billion.
Many independent venture capital funds, as well as CVC funds, invest in start-ups focused on solving issues related to sustainable development
CVC funds have been very active and invest in futuristic products and technologies related to strategic areas, which are not usually developed internally.