More and more chemical companies are rolling out their digital strategies
A industry analyst told Sinopec update that the market value of chemical companies could increase by $4.4 billion with the right combination of digital technology, but the industry is still lagging behind other industries.
"The lifeblood of any effective digital strategy is data, ironically, that the chemical industry has collected a lot of data over the past few years, but the chemical industry is not as advanced as some other industries," said ojas wadivkar, managing director of Accenture and the US Southwest chemical industry.
Accenture recently conducted a study in multiple industries, proposing a digital performance index (DPI), which ranked the extent to which industries use the latest digital technology in their value chains.
The chemical industry is in the second half of this group. Leading industries include the media and telecommunications industry, retail industry and banking industry. In the resource industry, public utilities are in the leading position, and the construction industry is behind the chemical industry.
Accenture points out that the industry has made significant progress in the past year or so, which is likely to be the result of all capital investments in the industry.
"Over the past 12-18 months, I've been surprised by the active exploration and start of the journey by chemical companies," wadivkar said. "We see more and more companies launch their digital strategies, validate concepts, and apply numbers to their operations, including supply chains."
Industry 4.0 is a name of the World Economic Forum (WEF) for the current trends in automation and data exchange in manufacturing technology.
It indicates the next evolution of industrialization, and will utilize the latest digital technologies, such as information physics systems, Internet of things, cloud computing and cognitive computing.
The petrochemical and oil and gas industries lag behind other industries in these initiatives because they face problems such as oil price volatility, lower productivity and changes in the structure of the workforce.
Industry executives say these industries can now benefit greatly from implementing digital transformation plans.
Accenture has developed an action plan to better adapt to and benefit from the industrial 4.0 digital revolution.
"We call it" industrial x.0 "to realize that '4.0' is just the beginning," wadifkar said. "The chemical industry is also affected by this trend and has the potential to really tap real value by combining all of these technologies."
Accenture defines industry x.0 as the digital re creation of the industry, that is, the enterprise uses advanced digital technology to change its core operations, employee and customer experience and ultimately change its business model.
Research by Accenture shows that chemical enterprises can save an extra $91261 per employee if they use the combined effects of augmented reality / virtual reality (AR/VR), autopilot, big data analysis and digital twin technology.
The best combination of blockchain, ar/vr, autonomous robots, big data and artificial intelligence (AI) technology can help chemical enterprises increase market value by $4.459 billion.
"In addition to the transformation to digital business, companies must thoroughly transform their operating model, production and value chain to create more value using digital," said Pete frandina, head and managing director of Accenture North American industry x.0
The Accenture team believes that successful implementation of these projects depends on leadership and priorities.
"The scale of the improvement will depend on the adoption and development of these technologies," wadivkar added.
Many major chemical companies have begun to realize the potential to use digital technology and have begun their digital journey in some way. However, many of these companies see numbers as "things," such as sensor or predictive analysis, robot or robot process automation (RPA), wadifcal said.
Too many companies are more concerned about "what to do, how to do, where to do it," rather than starting with the "why" question, or "why do I use digital technology in my business, what's the benefit of it?" wadivkar said.
"The leaders who take the right action have developed vision and strategy. They have identified the reason for becoming a digital chemistry company and have made clear what this means to them. " "It allows them to think more attentively and thoughtfully about what they are going to do, how, where and when they do it."
"They have a roadmap that they realize that the combined impact of these technologies on the entire chemical value chain will provide the greatest value over time, as reflected in their roadmap," wadivkar added