We show you how the process industry can discover and unleash its greatest digital potential? Become digitally ready now!
Summary: Companies in the chemical industry are increasingly being challenged by digitalization, particularly by external factors such as the coronavirus pandemic and geopolitical situations. To counter declining growth, they are increasingly relying on digital solutions such as software, robots and digital twins. These technologies improve work processes and are optimized by the Industry 4.0 and 5.0 concept. The introduction of such technologies is seen as necessary in order to successfully meet the changing conditions.
Digital transformation is one of the most exciting and challenging topics in corporate development today - including in the chemical industry. The coronavirus pandemic has drastically changed the need for digital options. External influences such as the geopolitical situation or high inflation are making it more difficult for companies to operate as usual.
The result is evident when company growth slows down and results are less profitable. Driven by such triggers, companies in the chemical industry are aware of the importance of digital options and have already responded.
Software, robots and digital twins - chemical industry digital transformation is on the rise. However, these are just a few examples of how it is advancing the chemical industry. The potential is far greater. What digital mechanisms are chemical companies already using and where are further opportunities lying dormant?
Industry 4.0 is not new, but has long been tried and tested and is suitable for everyday use. This refers to the use of automation and technologies that are intended to make everyday work easier for companies. Industry 5.0 goes one step further: the concept complements the technologies of Industry 4.0, as it relies on optimal cooperation between man and machine. Advanced technologies, artificial intelligence and robotics help companies to improve their own efficiency and meet the challenges of the future.
This development can also be applied to the chemical industry: while it was originally automated and digitalized processes, AI technologies and robots are now also supplementing the day-to-day work of numerous companies in the chemical industry - and the trend is rising. So is Chemistry 4.0 increasingly developing in the direction of Chemistry 5.0? There is a clear trend that is increasingly integrating the new mechanisms into working life. From digital twins to AI and predictive maintenance - we explain below which technologies are particularly supporting the chemical industry.
One area that is particularly relevant for chemical companies is research and development. Reason enough to boost the digital transformation here. The following applications can be observed in many companies:
A digital twin is a virtual representation of a process or product. It establishes a connection to the real world and usually consists of models, simulations and algorithms. For the chemical industry, this means that by simulating real-life conditions and their effects, a digital twin helps to identify changes to physical objects. Compared to tests on real objects, the use of a digital twin saves time and budget. It also reduces the financial impact that usually arises when real tests go in the wrong direction. In the R&D sector in particular, it is a helpful mechanism for boosting the profitability of the project.
Companies in the chemical industry are subject to strict regulations in the area of research and development. They are obliged to document a large number of processes and details in detail. As traditional paperwork, this is not only extremely time-consuming, but also prone to errors. It is easy for a value to be written down unclearly and misread by the next employee in charge. Another drawback: paper takes up a lot of space. Files and stacks of paper quickly pile up in the office and warehouse. To make it easier to meet the required documentation obligations, many companies in the chemical industry use digital solutions such as document management systems. They make it possible to digitally manage the large number of documents and information that accumulate during the research stage.
Several departments and contacts are usually required to develop a new product. In larger companies in particular, however, these are often located at different sites. In order to make research work more efficient, the digital transformation is networking access to data and the exchange between colleagues virtually.
Regardless of the area of activity, the amount of data that needs to be processed is constantly increasing. We are talking about big data. Its meaningful analysis is only possible with the help of digital tools, which is why companies in the chemical industry are also turning to digital solutions. The ideal basis for the targeted development of innovative products.
Even before Chat GPT, artificial intelligence was a set option in many areas. Since its mass introduction, Chat GPT is now accessible to everyone. AI offers enormous potential for the research and development departments of chemical companies, as it enables automated analyses and interpretations of test series.
Machine learning applications also fall into the field of AI. These machines are capable of both processing and learning from previous actions. With this basis, they have the potential to support the research and development work of companies, for example by creating suggestions for the composition of new recipes.
The Internet of Things connects the virtual world with the real world. A well-known example is the refrigerator, which uses sensors to detect when the milk is empty and automatically reorders a new carton via the internet. In terms of the chemical industry, the Internet of Things makes it possible to digitally report changes to physical objects in the area of R&D.
Digitalization therefore holds a great deal of potential for research and development. However, the chemical industry is also increasingly relying on digital tools for the next step - production. Automation makes work easier in ways that were previously not possible and increases efficiency.
The (probably) biggest obstacle to production: machine failure. Predictive maintenance tools are available to detect and rectify problems in good time, even before they occur. They detect initial deviations and report them before the machine breaks down. This allows companies to react in good time and production does not have to be interrupted.
Whether a problem is detected in good time or a breakdown occurs, machines in the chemical industry need to run smoothly. Augmented reality can be the location-independent key to uncomplicated maintenance and fast troubleshooting. In many cases, the expert does not need to be on site in person. Conclusion: maintenance and servicing work can be simplified and optimized with augmented reality.
In order to manufacture safe chemical products, it must be ensured that the raw materials are correctly composed. Digitalization has reached into its bag of tricks for this too: Real-time monitoring of the chemical composition of goods, mixtures and end products makes work in production easier. Deviations can be responded to immediately.
Robots have the necessary skills to take on recurring tasks. This has two benefits: on the one hand, employees save time, which they can use for their actual tasks. At the same time, human error is avoided. Automated processes run smoothly and, as a result, the error rate can be reduced.
The supply chain accompanies every company in the manufacturing industry, including in the chemical sector. Digitalization offers enormous opportunities here, which many companies are already exploiting. The following examples are often recognizable:
From warehouse receiving to production to shipping to the customer: The current status of goods or their individual parts should always be visible. This is the only way for companies to be able to provide information in the event of queries and ensure that production and quality run reliably and with maximum results. With the option of digital real-time tracking, the digital transformation provides insights into the current status. With just a few clicks, companies can see where a good is located, which production stage has been reached or how shipping is progressing.
A scenario that needs to be avoided: there is a product recall. If it is necessary, it must be done quickly. Assigning individual elements of a product manually is a time-consuming process. With digital tracking, tracing becomes an effortless undertaking. This is because all relevant information is stored in the system and can be viewed at the click of a mouse.
Digitalization is helping companies in the chemical industry to make their daily work easier. However, there are also some hurdles that need to be overcome. Issues such as data protection and digital security are preoccupying the industry. Concerns about unwanted access to sensitive information are a constant source of lively discussion. The trigger: cloud solutions. But are the concerns justified? No - at least not if a suitable solution is chosen.
Reputable providers put a lot of work and money into data security in the cloud. It is worth scrutinizing this issue in detail when looking for a suitable solution. What measures does the provider take? Does it have sufficient experience? Are there positive references for the use of the system? Such points can make it easier to find a suitable solution whose security standards meet the high demands of the chemical industry.
Equally relevant is the safe handling of chemical materials. Hazardous materials management plays a major role and is indispensable in the course of digitalization. Suitable ERP systems ensure the reliable handling of the substances concerned. However, not every solution has this function. Keep your eyes open when choosing the right system!
The status quo in the chemical industry should have become clear: Digitalization has arrived and is already being used in a variety of ways in many parts of the industry. But what's next? Well, none of us can see into the future. Looking at current developments, there is a 99% probability that the digital path will become more and more prevalent. Even today, companies that do not work digitally are already lagging behind. Those who opt for analog working will be overtaken in the long term.
Software is a good basis for facing all the opportunities and challenges with optimism. In most cases, it is enterprise resource planning solutions that provide companies with the tools they need to work digitally. Why? Quite simply, an ERP system not only covers a wide range of possible applications and functions, but also affects the entire flow of goods and values.
ERP is also the perfect basis for industry-specific upgrades. Targeted functionalities turn a good standard system into an unbeatable special solution. What paths will digitalization take, especially with regard to artificial intelligence? We can only guess. But one thing is certain: there will be suitable opportunities to turn the potential of new developments into tangible benefits.
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