CPM Industry Case Study
The traditional chemical and process manufacturing (CPM) industry is at the cusp of a massive digital transformation. Companies and their industrial processes need to adapt to this rapid change if they are not to be left behind by developments in the industry and by their competitors. The focus during this transformation would be around Customer Engagement, Supplier Relationships and Business networks, Big Data Analytics, Cloud, Mobility, Internet of Things, etc. Customer centricity and engagement would have key emphasis, as companies around the world are capitalizing on the advantages and opportunities provided by the digital economy.
CPM industry overview
The dynamic nature of the industry has shaped the evolution of vibrant business processes …show more content…
Volatile raw material and energy costs
The CPM industry is extremely capital intensive, more than most other industries. Asset utilization and volatility in raw materials and energy costs are crucial to growth of companies. All leading companies in the CPM industry are in the process of optimizing operations to reduce costs.
Increasing commoditization
The CPM industry is very mature with most chemicals being in the market for decades. Compounding this with low barriers to entry, there’s significant competition and low growth potential. This increase in commoditization is giving rise to a global price war, which is pressurizing companies to reduce costs.
Stringent regulations
The CPM sector is facing increasing regulation and compliance measures. Everything from health and safety to waste management is surrounded in red tape. These regulations are framed to protect human health and the environment from the risks associated with the workplace and its aftermath. These also impact the trade operations and organizational capabilities of CPM industry players.
Rapid …show more content…
They are trying to build closer relationships with customers in an otherwise commoditized market. Customer demands are on the rise, driven by the emergence of new technologies. More and more CPM customers expect a B2B Omni-channel sales experience, which is catching the attention of most CPM companies.
Digital transformation advantages
All these trends and challenges in the industry forced the CPM companies to revisit their IT strategies with respect to Digitization and Industry 4.0. Below are few advantages of Digital adoption:
Improving productivity and reliability
Considering the CPM industry is highly asset intensive, asset maintenance and asset availability are key. Using enterprise solutions for performance across functions and workflow systems can help manage outside incidents. Sensors can be used to proactively predict and prevent asset failure. Sensors can also be employed to remotely monitor asset availability across multiple sites. Companies can perform remote diagnostics using sensor data to detect potential problems in equipment. Also, a scalable analytics solution can read near real-time data from the different sensors, remotely access it’s operational and historical data, and provide analytical
CPM industry overview
The dynamic nature of the industry has shaped the evolution of vibrant business processes …show more content…
Volatile raw material and energy costs
The CPM industry is extremely capital intensive, more than most other industries. Asset utilization and volatility in raw materials and energy costs are crucial to growth of companies. All leading companies in the CPM industry are in the process of optimizing operations to reduce costs.
Increasing commoditization
The CPM industry is very mature with most chemicals being in the market for decades. Compounding this with low barriers to entry, there’s significant competition and low growth potential. This increase in commoditization is giving rise to a global price war, which is pressurizing companies to reduce costs.
Stringent regulations
The CPM sector is facing increasing regulation and compliance measures. Everything from health and safety to waste management is surrounded in red tape. These regulations are framed to protect human health and the environment from the risks associated with the workplace and its aftermath. These also impact the trade operations and organizational capabilities of CPM industry players.
Rapid …show more content…
They are trying to build closer relationships with customers in an otherwise commoditized market. Customer demands are on the rise, driven by the emergence of new technologies. More and more CPM customers expect a B2B Omni-channel sales experience, which is catching the attention of most CPM companies.
Digital transformation advantages
All these trends and challenges in the industry forced the CPM companies to revisit their IT strategies with respect to Digitization and Industry 4.0. Below are few advantages of Digital adoption:
Improving productivity and reliability
Considering the CPM industry is highly asset intensive, asset maintenance and asset availability are key. Using enterprise solutions for performance across functions and workflow systems can help manage outside incidents. Sensors can be used to proactively predict and prevent asset failure. Sensors can also be employed to remotely monitor asset availability across multiple sites. Companies can perform remote diagnostics using sensor data to detect potential problems in equipment. Also, a scalable analytics solution can read near real-time data from the different sensors, remotely access it’s operational and historical data, and provide analytical