Inspire and Shape a Digital Chemical World: Deliver Sustainable

Growth, Performance, and Innovation

The face of the chemicals
industry is changing in a
stream of mergers and
divestitures. New digital
leaders are emerging, using
innovation and technology in
every aspect of their business.
Don Mahoney, Vice President and Global
Head of Chemicals Industry Business
Solutions, SAP

Market dynamics threaten established strategic models

Digital transformation cuts deep

Proven differentiation strategies in the chemicals industry are facing

an acid test: Markets are going east, customer loyalty is eroding, new
low-cost competitors are emerging. Shale gas in the United States and
coal-to-chemicals technology in China are changing the game and
threatening incumbents. In turn, customer and feedstock proximity,
intellectual property, and technology know-how may soon no longer
secure a sustainable competitive advantage.

We will see a new wave of business process reengineering that

slashes cycle time through massive simplification and real-time
sense-and-response capabilities. Production assets will benefit from
maximized uptime through the use of IT/OT integration, predictive
maintenance, and quality management.

Chemicals industry leaders are now searching for answers to critical

questions such as:
How can one quickly integrate acquisitions to release the promised
synergies and to onboard new revenue sources?
How can one reduce complexity, integrate across business silos,
and streamline workflows along the entire global value chain?
How can one fight commoditization by embedding the business
intimately into customers innovation and operations cycles?
How can one rapidly enter, differentiate, and win in new markets?

Active transformation beats passive disruption

Recent advancements in digital technology offer unprecedented levels
of connectivity, granularity, and speed in accessing, processing, and
analyzing huge amounts of data. Early adopters have the unique
opportunity to master market challenges and act as game changers
or digital disrupters.

Digital leaders are emerging as they transform their business models

to compete on outcomes delivering tangible customer results, rather
than selling increasingly commoditized chemical products.
Focusing on differentiating strengths shapes highly competitive
ecosystems that integrate customers and suppliers to unlock new
and superior value.

The workforce will be an integral element of digital transformation,

as leaders reimagine the perfect process that empowers workers
to optimize profitability and create operational excellence at the
transactional level.
Engaged employees will use simulations and performance-based
approaches to create new dimensions of customer value and business
outcomes.

SAP has the platform to drive digital transformation in

chemicals
Only SAP has the end-to-end digital solutions to interconnect all
aspects of your industrys value chain to support engagement and
co-innovation with customers, suppliers, and the extended workforce.
A digital core with SAP HANA software is designed to simplify and
standardize central business processes and reach beyond the
boundaries of the enterprise. With SAP HANA Cloud Platform, you
gain a foundation to connect the business core with production assets
and the Internet of Things.
Digital transformation will make the chemicals industry more reactive
and responsive to market opportunities. Radically simplify your digital
core and unite it with the limitless possibilities of Big Data, the Internet
of Things, and business networks to enable a once-in-a-generation
transformation.

Digital
Transformation

25 billion
Of new value achieved
annually by European
chemical companies
that undergo a digital
transformation
"The Digital Transformation of Industry,
Roland Berger Strategy, March 2015.

Digital
Advantage
58%
Of chemical companies are
embracing digital to gain
competitive advantage
over industry peers
"The Chemicals Industry: Getting ready
for next generation B2B, Accenture,
2015.

We are looking forward to engaging with you to design your digital

journey.

Studio SAP I 44809enUS (16/05) 2016 SAP SE or an SAP affiliate company. All rights reserved.