Digital Technology in the Chemical Industry
5 min read | Apr 16, 2021
Market Value of Chemical Industries:
$178 billion is the value at which the Indian chemical industry stood in the year 2019. It is expected to skyrocket to $304 billion in the year 2025. The CAGR is approximately 9.3% when it hits 2025. The specialty chemicals industry hits 22% of the calculated value. The demand for Specialty chemicals is expected to hit 12% more demand in the year 2022.
How can the chemical industry meet such demands? By which means the chemical industries hit these values in a short span? It is the technology that is boosting the business. Companies hitting a billion dollars differentiate themselves from the rest by the technology they implement to scale business. Let’s dive into the possibilities at which the chemical industries strategize their placement of digital technology.
Chemicals are always in demand, they hit different points in the consumer market, they deliver b2b as well as b2c communities. The business size becomes large here, meaning the maintenance of various business processes becomes a challenge. Here is where digital tech comes into play. ERP systems have evolved almost out of all folds. Around 60-70% of the manufacturing industries use SAP as their ERP and variations of SAP are adopted depending on the needs.
So, the star value here is SAP has made almost all business processes easier and profitable too. But here comes another challenge while adopting SAP, manual tasks taking place in SAP require huge manpower and high infrastructure costs. With the advent of Automation and AI, industries started adopting RPA automation which nevertheless proved to be worthy.
When an Industry adopts ERP automation, it should keep in mind that the automation implemented suits all time frames meaning the automation used must be versatile enough. Outdated technologies have become common nowadays, ultimately leading to the failure of the companies. So What can be done to face such challenges?
“Modernized ERP Automation is the Key”
Versatile ERP Automation:
“Reduce complexity through Standardization”
Most chemical industries fall into the traps of SAP automation which takes place outside SAP, which leads to the increase in infrastructure costs, manpower, increased number of SAP licenses, and much more. In many ways, this type of automation is outdated in all circles.
To escape from this rat trap, chemical industries must adapt to modernized ERP automation where they can save these recurring costs. Selecting ERP Automation services that can help you reduce infrastructure costs, recurring licenses and manpower give a perfect fit for ROI and this can contribute to your company’s CAGR indirectly owing to the effectiveness of the business.
We Beez Innovation Labs have helped industries adopt our modernized ERP automation, by enabling Automation within the Client’s SAP system rather than automating the ERP outside SAP.
For more information book a slot with us @ appointments.beezlabs.com or write to us at : [email protected]