Innovation, pricing strategies and customer focus are helping chemical companies find new ways to thrive in challenging prospects. Chemical enterprises are facing problems such as the slowdown of global economic growth, the interruption of trade and the weakening of end market demand in key industries such as automobile and construction. The general downturn in demand, coupled with the continued oversupply of bulk chemical products, has pushed down prices, making it more difficult to achieve organic growth. For most of the past decade, many chemical companies have been investing in cost and efficiency as the growth agenda has faded behind the scenes. After years of integration, product commercialization, the rise of new competitors in growing economies and the increase of cost control plans, achieving organic growth has become more and more challenging. Despite the slow growth, according to the 2019 survey data of Ernst & young capital confidence Barometer (CCB), 64% of respondents in the chemical industry expect their income to increase in the next 12 months. The strategy and operation mode of high growth enterprises provide three core levers that enterprises should use to achieve sustainable growth: innovation, pricing strategy and customer focus. We will explore each lever below and explore it further in the complete Ernst & Young report (PDF). Frank Jenner, head of Ernst & Young's global chemical industry, said: "challenges are opportunities. In the current environment, these two opportunities are very rich for the chemical industry.""Rethinking your approach to numbers, sustainability, talent and culture can provide different advantages in the short and long term, and finally let you enter the next era of growth." In order to focus on key growth levers in a balanced and integrated way, enterprises need to embed these levers into their strategy, culture and mentality. But they also need to realize that it takes time to achieve the highest benefits. One way is to determine what can be changed now, in the next three years or more. Innovation in the chemical industry should not be limited to the development of new products. Chemical enterprises need to use the whole chemical ecosystem to develop new business models and discovery methods, open up new markets and improve innovation efficiency. Companies can innovate in products and new discovery methods, as well as in other areas. Although enterprises are increasingly turning to data-driven innovation, they also need to focus on new applications and processes to maintain a strong innovation pipeline. For example, cross category innovation may include: Application fields: new products with more extensive use cases, such as human tissue repair, energy storage, aerospace, future mobile, etc Business model: close cooperation with customers, cross sales and channel integration; Multiple
players join the platform business Products and discovery methods: recyclability, green and other new chemistry, quantum chemistry, multi-scale nano materials, 4D printing materials, AI / ml material design and discovery Process: process simulation; 3 D printing; Carbon emission reduction process; Converting carbon dioxide, coal and waste into chemicals; And the use of bio based raw materials Companies should also consider their investment allocation. They can't miss the current trend, but at the same time, they need to be prepared for the upcoming general trend to innovate faster than their competitors. Internally, the management should promote an open and innovative culture and environment through a model of rapid testing, rapid failure and rapid reaffirmation. Externally, they need to be flexible to work with various members of the ecosystem, from suppliers and technology partners to customer organizations and consumers. They should also seek new ideas from crowdfunding and cooperate with creative providers from concept to product scale.