The best investment lies not in chemical product R&D, but in business model innovation – Spotchemy Blog

The best investment lies not in chemical product R&D, but in business model innovation - Spotchemy Blog

chemical industry Known as a world leader in product research and design. Innovation is a key feature of a science-based industry that has made a fortune from development of cutting-edge materials, Gore-Tex, Nylon and Kevlar are clear examples of what? chemical product innovation Who has changed our world.

in present, chemical industry Invests heavily in researching new products. This year, the US chemical industry Over $70 billion is predicted to be spent on research alone; about 10% of the total value American chemical industry production,

Although some chemical industry Majors are starting to question the value behind such a huge investment.

as chemical industry Advisor Bain & Company Reports, “The nature of innovation has changed, and there are fewer successes chemicals and compounds.” Adding to this, “…the research found that two-thirds of executives say innovation is a top priority, with less than 25% believe their companies are successful innovators.”

In fact, the analysis of Bain chemical industry professionals The thinking was, “…many senior executives see R&D as a black box and don’t understand why the returns from innovation aren’t higher.”

rather than, chemical industry leaders are changing business model innovationFinding a better return for your investment in reorganizing your companies than discovering miracles chemical products.

In early 2008, Boston Consulting Group found that, “business model innovators On average, 6% more profitable than pure Product or process innovators.,

During this, business models are getting old at an ever increasing rate. “Over the past 50 years, the average business model Lifespan has dropped from about 15 years to less than five. ,

This is evident in the number of Chemical Industry M&A observed in the last decade. It is also indicative of the value seen in the major business model overhaul. chemical industryThe $130 billion merger of DowDuPont was soon followed by a restructuring program that split the business into three parts. This, according to Investing Magazine motleyphoolis “… estimated to save $3.3 billion in cost synergies.”

this place a Chemical company business model As a prime place for investment. But is the major company only restructuring for the big chemical corporation,

chemical industry business model innovation

Probably not, as recently reported online Journal of Business Chemistrybelieve there is value in this too small chemical companies their reappraisal business models.

study author, Martin Geisdorfer (doctoral researcher at the University of Cambridge) and ron wirdmeister (a management consultant at PNO), focused on development business model Principles that place flexibility and place at the core of the company. both of which are easily applicable to small chemical companiesFinding value in adaptability and increased productivity through shorter supply chains.

The analysis was based on proposals European Commission Horizon 2020 The project, which outlines the benefits of a “business model for a flexible and non-localized approach to rapid processing”.

As a result, the study developed, “…the four business model archetypes (BMAs) that facilitate this re-localization: decentralization and modularization; mass optimization; servicing and product service systems (PSS); circular business models, re- Under the name Use, Recycle and Sustainability (RR&S).

There was a framework for dynamic evaluation of results business modelsrather than a static approach that is limited business model innovators to set the time limit. This structure is called to inspireand has two main purposes chemical companies and other processing business;

  1. “Paving the way for dynamic monitoring of key supply chain parameters and factors (such as labor cost, cost of production, etc.). raw material availabilitymarket attractiveness, financial stability of suppliers, etc.) and analysis of the long-term impact of the novel business model as proposed;
  2. Considering the possibility of switching from a business model For an option in the medium term. ,

The report also highlights how resilience in rapidly changing and volatile markets is a key factor in strengthening chemical processing business,

adaptability is important

Specifically, they state that, “in order to respond to fluctuations in terms of demand or feedstock/energy prices, companies must be able to optimize production while at the same time being cost efficient (capacity flexibilitySimilarly, companies should be able to switch to another product (Product Flexibility) Innovation flexibility in this context refers to the ability to carry out R&D and pilot settings at production sites. Another aspect relates to location. Either the place of production or the production plant itself should be easily movable (location flexibilityIn addition, companies must be able to handle a variety of feedstock (Feedstock Flexibility,

if one chemical company To remain competitive, it can no longer stick to a single business approach. modern chemical business must be far more agile and adaptable to ever-changing conditions, and therefore their business models Must also be flexible and adaptive.

Innovation will always be central chemical industry growth, yet it is unbelievable that such huge sums of money are being invested Chemical Products R&D while investing business model Development is often overlooked. In fact, when it comes to innovation, chemical industry just doing it wrong?

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