{"id":72760,"date":"2017-11-17T00:00:00","date_gmt":"2017-11-17T00:00:00","guid":{"rendered":"https:\/\/mybusinessfuture.com\/how-to-digitize-the-chemical-industry-5-strategic-questions-for-ceos\/"},"modified":"2026-04-01T18:05:19","modified_gmt":"2026-04-01T18:05:19","slug":"how-to-digitize-in-the-chemical-industry-5-strategic-questions-for-ceos","status":"publish","type":"post","link":"https:\/\/mybusinessfuture.com\/en\/how-to-digitize-in-the-chemical-industry-5-strategic-questions-for-ceos\/","title":{"rendered":"How to digitize the chemical industry – 5 strategic questions for CEOs"},"content":{"rendered":"

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none”][vc_column css=”.vc_custom_1458119880711{padding-right: 30px !important;}”][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]Technology can make a huge difference in the chemical industry. The challenge for CEOs is to find out which of the thousand options to follow. Thus, we introduce five questions that help CEOs to find the optimal digital initiative for their company.<\/strong>[\/vc_column_text][vc_empty_space height=”30″][vc_column_text]An optimal digital initiative should include two things: A long-term vision of where the company wants to go and immediately visible results. The Bain Radar 360 SM<\/a> helps to keep the balance between vision and pragmatism\u00a0and is based on three main principles: \u201czeroing in on the most bene\ufb01cial set of initiatives, making progress through a series of smaller initiatives, and channeling the initiatives along several pathways – such as customer experience, products and services, and operations.\u201d<\/a><\/p>\n

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However, the prerequisite for finding the right digital strategy is that executives are aware of their current position in the industry and their competitive advantages. Thus, to find the right digital strategy, CEOs should ask themselves these five questions:[\/vc_column_text][vc_empty_space height=”25″][vc_column_text]<\/p>\n

1. How will digitalization change the profit pools of my industry?<\/h3>\n

[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]Digitalization can revolutionize the way money is made in your industry. New revenue streams can emerge, for example due to the evolution of intermediaries that offer platform solutions. This can be seen in sector of precision agriculture. Such changes constitute a threat for all incumbent market players to that they should react. However, digitalization does not necessarily disrupt profit pools in your industry. So to find your optimal digital journey, you should be aware of how you currently make money, how you manage to be profitable and how this might change due to digitalization.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” padding_bottom=”30″ css_animation=””][vc_column_inner][vc_empty_space height=”25″][vc_column_text]<\/p>\n

2. What is our true competitive advantage we should strengthen?<\/h3>\n

[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]Your competitive advantage is the reason why you are able to make money. Thus, you should identify and strengthen it within your digitalization strategy. If your strategic goal is for example to sell at lowest costs, you could invest in data science to reduce supply chain costs. Therefore, this question is especially critical for CEOs in the chemical industry, as their companies often arose out of multiple rounds of M&A. Consequently, a consistent strategic goal might not be present from the beginning. However, it is crucial to be aware of your USP before choosing your digital strategy. Just like this you will be able to strengthen it and to achieve further differentiation that is in line with your strategic goal.[\/vc_column_text][vc_empty_space height=”10″][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” padding_bottom=”30″ css_animation=””][vc_column_inner][vc_empty_space height=”15″][vc_column_text]<\/p>\n

3. Do we want to be a digital leader or rather a fast follower?<\/h3>\n

[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]Being a digital leader involves higher costs, longer time to (possible) rewards and higher risk. However, if your investment flourishes, you get high rewards and are ahead of competition. If you decide to behave as a fast follower you can benefit from the experience made by leaders – which means less risk and quicker results. However, you will just stay a follower. Moreover, in the chemical industry the lead times of investments often take several years. So being a fast follower might still be risky and costly. No matter what: Either option is better than not reacting to the digital change at all.[\/vc_column_text][vc_empty_space height=”10″][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” padding_bottom=”30″ css_animation=””][vc_column_inner][vc_empty_space height=”15″][vc_column_text]<\/p>\n

4. What is our digital starting point?<\/h3>\n

[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]To develop an appropriate digital strategy, CEOs have to be familiar with the status quo.<\/p>\n

 <\/p>\n

The degree of digitalization might differ across sites and functions. Knowing the current status helps to set up a realistic digital strategy and to find out where effort has to be increased in first place.[\/vc_column_text][vc_empty_space height=”15″][\/vc_column_inner][\/vc_row_inner][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” css_animation=””][vc_column_inner][vc_empty_space height=”10″][vc_column_text]<\/p>\n

5. How can we connect vision and pragmatism into one compelling case?<\/span><\/h3>\n

[\/vc_column_text][vc_empty_space height=”20″][vc_column_text]As said before, a successful digital strategy has to balance near-term measures that gain immediate results and a long-term innovative vision. In line with this you might also find two groups of people in your leadership team: The practitioners value short-term measures and the dreamers value an innovative vision. For your digital initiation to thrive, you have to convince both groups by setting up a compelling case that pays attention to both sides.[\/vc_column_text][vc_empty_space height=”15″][vc_column_text]By answering these five questions, CEOs can build up a better decision basis for investments in digital initiatives and the development of a comprehensive digital strategy.[\/vc_column_text][vc_empty_space height=”40″][vc_column_text]<\/p>\n

This article is partially based on a publication of Bain & Company.<\/a><\/em><\/p>\n

[\/vc_column_text][vc_empty_space height=”40″][vc_column_text]<\/p>\n

Image Source: iStock \/\u00a0starfotograf<\/em><\/p>\n

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[plista]<\/p>\n

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