Value creation strategies for the chemical industry pdf files

Chemicals driving innovation in other industries pages. Challenging the business cycle via csinvesting one industry cycle, varied value creation among segments. Whenever over the past decade we have examined the chemical industrys capitalmarkets performance, a very similar picture has emerged. Sustainable value creation by chemical companies executive summary 5 executive summary this study reports the findings of a research project that analysed the sustainability performance of nine chemical companies using the sustainable value approach. Chemical industry principles for regulatory cooperation in. Connectivity has shown the potential to empower millions of people, while providing businesses with unparalleled opportunities for value creation and capture. These product form and input raw material for several finished product. Soon, electronic commerce interactions in the chemicals industry will need to be richer, offer broader functionality, and encompass the endtoend process of selling productsand they will need to be more customerfocused. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in. White paper digital transformation initiative oil and gas.

Keywords value chain management sales and supply network planning demand uncertainty commodities chemical industry 1 introduction the chemical industry is one of the key global industries with product sales of e 1,776 billion globally in 2004 cefic 2005. In this book, which contains 33 chapters written by over 50 authors, the three editors have succeeded in putting together a work on this complex subject that is very readable and easy to. As consultancies being familiar with the chemical industry are relatively rare and particularly expensive for small ventures 12, the procedure suggested here might furnish a valid tool to. The chemical company producing the additive based their price on this additional profit the price of a dental product used by. Potential disintegration of the chemical value chain using the. Strategies for the chemical industry, 2nd completely. Basic chemicals production 2030 october 2012 core statements the production of basic chemicals lays the foundation for the chemical industry and subsequent industrial value creation. Foreword digital transformation is emerging as a key driver of sweeping change in the world around us.

Chemical distribution is being transformed globally by the west fertilizer explosion creating responsible distribution programs around the world. White paper technology and innovation for the future of. Accelerating value creation 5 technologies on five levels. Biobased industries can create opportunities for local regeneration in rural and. A polymer additive for drying nets used in paper production doubled the lifetime of the nets. Thus, the nonprofit organization, chemical strategies partnership, published the chemical management services industry report 2000. The business models of enterprises in the global fashion industry produce highly negative outcomes for the environment. Technology trends in chemical industry what matters. For this reason, germany as a location of chemical industry and. The editors have attempted to incorporate the changes into the agenda of this second edition, which falls into three main parts. His focus is on advising european chemical clients on growth. Mckinsey on chemicals improving pricing and sales execution in chemicals 40 kickstarting organic.

A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Drawing on extensive firsthand management experience, several hundred consulting engagements, and indepth research projects, the authors outline the key ingredients for managing. While technologies hold valuable opportunities for efficiency and growth, their current development pace shows they may also exacerbate existing inequalities. We will create new value by integrating our distinctive and leadingedge technologies as well as turning out proprietary technologies to continue providing topquality products and. In 2016, the chemical industry accounted for nearly half of construction spending in u. A quality focus is clearly dominating the operations organization, which needs to handle the internal and external complexity of manufacturing and supply chain processes as well as the diversity of the business portfolio. Trilateral strategy for the chemical industry wirtschaft. Creating value through business chapter 3 business overview 47. A framework for value creation in the product development process is proposed as an aid for visualizing and understanding value in complex processes and thus guiding resource allocation, process measurement, and process improvement. Responsible care and the global product strategy are key drivers of the chemical industrys environmental, health, safety, security, and sustainability practices. It has the potential to significantly improve consumer lives and create broader societal good, while. This presentation draws on ideas from professor porters books and articles, in particular, competitive strategy the free press, 1980.

Indian and global 14 5 chemical industry subsegments 16 6 competitiveness of indian industry 67 7 performance of chemical industry during xith plan 70 8 targets and policy initiatives for xiith plan 72. The tfs global program intends to assess and improve sustainability practices across the. However, fulfilling this role in the long term will require significant efforts. Strategies for the chemical industry wileyvch 20060310 isbn. High water usage, pollution from chemical treatments used in dyeing and preparation and the disposal of large amounts of unsold stock through incineration or landfill deposits combine to make clothing one of the highest impact industries on the planet. Chemical tsrs edged higher compared with other industries. We are committed to continuing to grow and advance these programs. Tfs aims to build an industry wide standard for sustainable supply chains within the chemical industry. Chemical industry supplies materials that enable important and key functions in the products which are necessary for consumers daily life, as well as for economic activity. In this article, we focus on the segment of chemical commodities. There is no one strategy or set of strategies that every chemical. Road map document for a sustainable chemical industry.

Oil and gas industry 3 contents foreword digital transformation is emerging as a driver of sweeping change in the world around us. Request pdf on aug 25, 2006, axel kleemann and others published value creation. Sustainable solutions for the global chemical industry. Abstract specialty chemical market segment constitute high value and relatively low volume value added chemicals. This report, chemical management services industry report 2004 is an update to. The framework is based on information received from a variety of industry site visits and stresses process value. If you sometimes feel your company is missing the boat when it comes to digitalisation and the realisation of industry 4. As one of the largest industries globally, the chemical industry is a key supplier for. Still, the right move isnt to retreatits to rethink strategy. Value creation wiley online books wiley online library. Although mainly directed at managers in the chemical industry, the. Technology and innovation for the future of production.

Indian chemical industry xiith five year plan 2 table of contents sr. Our overarching aim is to help enhance the quality of life of people worldwide. Chemical industry proposes the design and use scenario of. Stefan van thienen is a partner and leader of the chemicals and specialty materials sector at deloitte belgium. The documents goal is important to show the contribution of chemical to the. The hpb scorecard includes chemical company rankings on various financial metrics, covering long term performance, flexibility. A major shift in the competitive landscape of the worldwide chemical industry is under way as new players from oil and gasproducing countries and the highgrowth developing markets of china and india join the industrys top ranks in sales. The report provided an overview of the cms industrys structure, conduct, and performance.

Second edition written by a global team of top managers and senior mckinsey. All chemical regulations should be science and riskbased, taking both hazard and exposure into consideration. On the basis of total returns to shareholders trs, the chemical sector has, over the long term, outperformed not only the overall market but also most of its customer industries and rawmaterial suppliers. This was used by the maker of the nets to increase prices by 30 %. Each year we update our high performance business hpb scorecards for the global chemical industry in order to ensure that we have a sound foundation for understanding where to find best practices, such as in last years research on chemicals in transition.

Strategies for the chemical industry budde, florian, frankemolle, heiner, frankemolle, heiner on. If mb is greater than 1, there is an excess return. Written by a global team of top managers and senior mckinsey experts, this expanded and completely revised second edition provides a wideranging manual on the subject of value creation in the chemical industry. Everyday low prices and free delivery on eligible orders. The chemical industry is highly cyclical, showing huge ups and downs both in operational results and market valuation. For the roughly 100 top publicly listed chemical companies worldwide, total shareholder return tsr, our measure of value creation averaged 4. Using the chemical industry as an example there follows an analysis of how this aboveaverage value creation was possible. Basic and downstream chemicals are inseparably linked with each other in production. The book addresses in detail key issues of strategy and industry structure, describes best practice in the core functions of the chemical business system, looks at the state of the art in organization and postmerger management, and covers a selection of the most important current topics such as industrial biotechnology, the role of private. And another important and key functions is the reduction of ghg especially at the stage of product use. The last few years have been particularly good for shareholders of chinese, japanese, and indian chemical companies. If mb is less than 1, the return is under the benchmark provided by the market. The authors would like to thank negina rood and robert libbey deloitte services lp and subramanian neelakantan and vaibhav khobragade deloitte services india pvt. Many chemical firms are still struggling to understand how the digital economy will create new opportunities and risks.

With 90 % of europes chemical industry feedstocks for nonenergy use coming from fossil resources 3, access to alternatives such as biomass including biowaste or co 2 is an important strategic issue. Starting with an overview of the chemical industry, the book discusses the elements that are. Nafta should leverage existing and ongoing work and decisions to prioritize, evaluate, and manage chemical substances safely. However, early evidence has found that significant value will be created by embracing new digital technologies across the chemical industry, which is why digital transformation in chemical companies is extremely important.