Peter Guarraia: Accelerating Digitalization in Chemicals



As new digital technologies make it possible for newcomers and first movers to become leaders, the rules of who makes money in chemicals are being rewritten. Peter Guarraia, a partner with Bain's Chemicals practice, outlines three things chemical company executives need to consider when rethinking their business models to take advantage of digital innovations.

Read the Bain Brief: Accelerating Digitalization in Chemicals—Five Questions for CEOs

Read the transcript below.

PETER GUARRAIA: Digital innovation is rewriting the rules that govern who makes money in chemicals and how. We expect profit pools to shift as new digital technology enables newcomers—and, frankly, first movers—to capture meaningful advantages in the marketplace.

Chemical company executives need to rethink their business models to take advantage of these new digital technologies. And there are really three elements of that. One is they need to think about how they're going to realign their business model to actually take advantage of digital technology. Two, they need to think about the definition of the roadmap and exactly how they're going to deploy these new digital technologies in the business. And three, how to best accelerate the deployment of those digital technologies across each aspect of the business.

A year ago, many chemical company executives were thinking through how to take action. Today, the key is to move quickly to take advantage of the new technologies.

Read the Bain Brief: Accelerating Digitalization in Chemicals—Five Questions for CEOs