Innovative Digital Business Models are Facilitating an Enhanced Customer Experience, thereby Creating New Growth Opportunities for Industry Participants
This study tracks digital developments in the global plastics industry and seeks to identify future opportunities for further use of digital technology.
Findings are presented as domains of digitalisation (the domains of digitalisation indicated in this study are slightly different from those in other digital transformation studies due to complexities in representing the digital plant domain).
These domains are summarised as follows:
- Digital Innovation investigates the use of digital technology in research and development and new product innovation.
- Digital Supply Chain tracks the use of digital technology in supply chain integration to provide clarity and visibility across functions through the seamless transition of data.
- Digital Business Model covers the strategies designed to make a company’s overall business process more digitalised.
- Digital Plant looks at how plastic manufacturing plants can benefit from digital technology.
- Digital Product investigates the potential for adhesives and sealants (as a product) to be complemented by digital offerings.
This study explores technologies that enable the digital transformation; current activity among plastics processors, compounders, and raw material suppliers in the digital domains; and future scenarios in an increasingly digitalised world. It combines insights from published sources and conversations that were primarily conducted with leading plastics companies, distributors, and service providers. Research indicates that digitalisation provides several growth opportunities for companies in this industry. The use of innovative digital technologies in business models will enable easier management of key operations that involve deep and wide databases, customer interactivity, and diverse applications and verticals. The author expects such innovative business models to take centre stage over the next 5-7 years.
Polymer manufacturers are pushing for digital innovation in the industry with a focus on the development of a digital ecosystem to boost overall efficiency and reduce CAPEX and OPEX and envision new revenue streams through digital tech. Packaging, automotive, and construction represent the top 3 end-use sectors for plastic products, and they represent more than 65% of the global plastic demand. The digitalisation of these sectors will create new opportunities for polymer manufacturers.
