Digital Transformation, Artificial Intelligence and the Chemical Industry

In the previous articles in this series, we discussed the importance of the Chemical Industry to the global economy and how that industry is poised to benefit tremendously from digitization. Digitization is a vast concept, it encompasses everything from advanced analytics and process controls through to Artificial Intelligence and full automation. Although many experts agree that digitization is critical for the future of the industry, what exactly that means in a business application remains to be seen.

STEPS TO BRING 
DIGITAL TRANSFORMATION 
IN THE CHEMICAL INDUSTRY 
ORGANIZATION 
AND TECHNOLOGY 
DIGITALIZE 
THE ENTERPRISE 
REGULATION 
ECOSYSTEM 
COLLABORATION 
CYBER SECURITY 
WORKFORCE 
AUTOMATION 
AND ROBOTICS 
INDUSTRIAL 10T 
CULTURAL 
CHANGE 
NEW BUSINESS 
MODEL 
BRING THE WORKFROCE 
INTO THE DIGITAL AGE 
RIGHT DIGITAL 
STRATEGY 
CHEMICAL 
SALES IN 2016 
€3.5 trillion 
NIO million 
PEOPLE EMPLOYED 
IN THE INDUSTRY 
USING ADVANCED 
TECHNOLOGY 
CONTRIBUTION OF 
THE INDUSTRY TO 
GLOBAL GDP 
€6.9 
trillion 
RECAST CHEMICALS 
SALES IN 2030 
THE IMPORTANCE 
INDUSTRY 
-100.000 
CHEMICALS ON THE 
ENSURE 
CYBERSECURITY 
ENSURE REGOLATORY & 
HARMONIZE POLICIES 
CHANGING 
THE MINDSET 
STRENGTHENING 
KEY AREAS 
ARTIFICIAL 
INTELLIGENCE 
CLOUD 
MOBILITY 
CONVERGENCE AND DEVICES 
PLATFORMS AND 
APPLICATIONS 
BIG DATA 
ANALYTICS 
90% 
EVERYDAY PRODCUTS 
CONTAINING CHEMICALS 
O PINPOOLS 
Wm.".pinpools.com 
MARKET TODAY 
CONTINU S 
DEVELOPMENT 
MANAGEMENT 
o 
PROFITABLE 
OPERATIONS 
INNOVATION 
PROCESS 
OPTIMIZATION 
BETTER SUPPLY CHAIN 
MANAGEMENT 
INCREASE 
PRODUCTIVITY 
SOURCE: WOLRo Econowc FORUM • 01GlT,u TRANSFORMATION 'NIATr.'E
Source: Pinpools

Industrial digital transformation represents a host of possibilities, whether it’s a reference to digital technologies applied in various levels of the process, to the entire process or even to the entire estate. For the purpose of this article, at a process level, Chemical Manufacturing and Artificial Intelligence will be the main focus of digitization in chemicals. Transformational benefits such as increased margins, reduced downtime, sustainable business practices, and more are all achievable in chemical manufacturing through the application of Maestro Artificial Intelligence.

For many corporations it may be tempting to apply digital technologies such as Artificial Intelligence, at a plant level or in an ad hoc basis and while benefits can certainly be achieved this way, in order to be truly transformative, from our years of experience, estate wide application is a necessity. Estate wide application allows for a full picture of the process rather than a point in time, isolated view of the equipment. The estate wide view gives way to a true understanding of how upstream and downstream processes impact the entirety of production.

The adoption of Artificial Intelligence across the entire estate is pivotal to the growth strategy of industrial chemical manufacturing and to their ability to combat digital-led disruption in end markets.


Long term consequences from the adoption of digital in other industries is being predicted to cause a large ripple effect in chemicals. The ripple effects can be positive or negative, take the following example: Digital technologies applied to the automotive value chain will have tremendous impact on the demand for production of chemical coatings as the dawn of driverless cars is set to increase safety on the roads and decrease the needs for chemical coatings. While a world filled with driverless cars may seem like a distant future, Chemical Manufacturers that produce these coatings need to begin planning for this disruption by applying digital now in order to survive in the future.

We have all learned many lessons about the uncertainty of the future, especially due to the impacts of the global COVID-19 pandemic, which manufacturers have suffered extensively from. Where have manufacturers turned in order to correct the course? Digitization. An internal research study revealed that the largest drivers for digitization in the chemicals industry are workforce, changes in utilities/ energy costs, COVID-19 related changes, growth strategy and global industry pressures.

Source: Internal Research

Financial incentive alone, derived from increased production, decreased downtime etc., is a significant reason to go digital. Additional benefits relating to sustainability such as reduced energy consumption and hazardous waste are also key drivers. Reduced research and development cycles are another fantastic benefit that comes from digitization.

The above drivers are the “why” that is causing Chemical Manufacturers to adopt digital technologies at increased rates. But how can they drive benefit, adopt solutions quickly and do it all at scale? 

The most important decision in adopting Artificial Intelligence and digitizing is choosing the partner that will transform business operations.


A true partner, like Elutions, will work with the business to establish clear targets, quantify the benefit, develop a governance plan, create a bespoke solution for targeted needs, prioritize speed to benefit and above all remain committed to future growth and surpassing designated targets and goals. Digitization in chemical manufacturing is not a “one size fits all.” Businesses deserve a partner that understands that and is experienced in working together to create the perfect fit.

To learn more about specific case studies of Maestro Artificial Intelligence applied, please contact us.


Processing…
Success! You're on the list.

AI & COVID-19: Optimize

To maintain operations at the onset of COVID-19, corporations took swift, unprecedented action to counteract the pandemic’s sweeping impacts on market demand, workforce, supply chain, short-term costs and liquidity. For many corporations, this involved redirecting investment from long-term initiatives to short-term remedies. For others, expediting the execution of long-term strategies was critical to survival.

Corporations that chose to accelerate, rather than delay, their digital transformation initiatives are now leveraging Artificial Intelligence to enhance employee safety and security, reduce short-term costs and improve liquidity. In the mid-term, that same investment will allow them to stabilize revenue, further reduce OPEX, prioritize CAPEX, and lay the groundwork for competitive advantage.

How will Artificial Intelligence empower corporations to build resilience and optimize performance amidst supply chain disruption?

Elutions’ highly-automated and autonomous Artificial Intelligence solution, Maestro, integrates value chain systems and infrastructure to dynamically coordinate activity and optimize net performance, improving OPEX, CAPEX, yield and revenue.

The following Artificial Intelligence use cases are paramount to building resilience and optimizing performance in industry:

  • End-to-End Operational Alignment & Planning: By overlaying and interconnecting enterprise systems, assets and processes with AI and automation, corporations gain granular visibility and foresight into enterprise-level performance and risks, and unparalleled agility in aligning operational parameters, activities and decision-making across processes, enabling otherwise unachievable improvements in operating costs, yield and revenue.

  • Dynamic Process, UCP & Yield Optimization: By enabling dynamic, system-driven performance prediction and operating parameter adjustment at each stage of production, automated Predictive Preventative Maintenance work-order creation at the asset-component level, and automated alternate control sequencing in the event of a sensor, asset or process failure, corporations autonomously optimize process efficiency and product quality while avoiding unplanned downtime, minimizing the Unit Cost of Production, maximizing effective capacity, throughput and yield, and stabilizing revenue in line with design capacity.

  • Predictive CAPEX Planning & Budgetary Prioritization: By autonomously modeling asset health, availability and use-life, business-casing the margin impact of replacement vs continued O&M, and prioritizing CAPEX projects in line with their projected impacts on safety & security, uptime and margin, corporations plan and allocate CAPEX with unparalleled precision, efficiency and flexibility, optimizing IRR.

  • Value Chain Visibility, Scenario Modeling & Strategy Execution: By overlaying and interconnecting value chain systems and processes with AI, corporations gain unprecedented visibility and foresight into value chain performance and risks, certainty in strategic planning via scenario modeling, and oversight in execution, altogether allowing corporations to proactively manage rather than reactively respond to value chain opportunities and disruption.

Beyond mid-term resilience and performance optimization, corporations have placed their bets on Artificial Intelligence to thrive in the long-term. Stay tuned for more market intelligence on how AI is helping corporations gain competitive advantage.


Up Next for NCW: Digitization and Chemical Manufacturing


Processing…
Success! You're on the list.