North American Chemical Firms Update IT for Age of Change

Rhea-AI Summary

North American chemical companies are leveraging digital technologies to address IT and business challenges, enhance innovation, and tackle geopolitical and sustainability issues. The adoption of digital tools like AI, automation, blockchain, and cloud computing is helping these firms develop new products, optimize processes, and prepare for regulatory changes. The report highlights the industry's focus on AI, sustainability, supply chain management, and ESG reporting.

Positive

• North American chemical companies are embracing digital technologies to drive innovation and expand their product offerings.

• The adoption of AI, automation, blockchain, and cloud computing is enabling companies to improve operations, optimize processes, and enhance decision-making.

• The focus on sustainability and ESG reporting reflects the industry's commitment to environmental responsibility and regulatory compliance.

Negative

• Talent shortages and the convergence of IT, operational technology, and engineering technology pose challenges for the industry.

• Legacy systems in the chemical industry may hinder the adoption of new technologies required for ESG reporting and decarbonization efforts.

Companies partner with providers on digital technologies to accelerate innovation, take on geopolitical, business and sustainability issues, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- North American chemical companies are increasing their adoption of digital technologies in the face of growing IT and business challenges, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for North America finds that chemical companies in the region, which has become a net exporter of chemicals in recent years, are adopting digital technologies to develop new products for a growing range of industries. They are also using IT innovations to address issues including geopolitical disruptions, price fluctuations, supply chain problems and cybersecurity risks.

“Digitalization is helping the North American chemical industry expand while preparing for stricter regulations and ongoing uncertainty,” said Dale Hearn, ISG partner, Oil, Gas and Chemicals. “Together with service providers, companies are tapping into the power of data to improve operations and decision-making.”

Moving more quickly than many European chemical producers, North American firms are migrating functions to the cloud and investing in AI, automation, augmented reality, blockchain and other new tools to achieve a wide range of objectives, ISG says. They are using digital technologies to develop new, sustainable materials, reshape supply chains, optimize processes and plan product portfolios.

A key focus of modernization is AI, which can help companies accelerate R&D, predict and prevent supply chain disruptions and resolve environmental issues, the report says. Enterprises and service providers are also exploring generative AI (GenAI) to improve customer experience, supply chains, R&D and sustainability, though most GenAI projects are still proofs of concept.

Enterprises also are focusing on supply chain management, powered by big data analytics, to standardize and streamline supply processes to better serve customers, ISG says. Amid ongoing changes and disruptions, they are also looking to diversify supplier networks to become more adaptable and resilient. Chemical companies pursuing these goals are seeking providers with comprehensive business strategies, consulting services and platforms.

Meeting new standards for decarbonization and environmental, social and governance (ESG) reporting are also rising concerns for chemical companies, ISG says. While some European companies are moving more quickly in this area, North American firms are taking steps toward tracking and addressing carbon emissions from their own operations and those of their suppliers.

“Chemical companies’ legacy systems are not built to track the metrics needed for ESG reporting,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can help clients update their capabilities to meet emerging regulations.”

The report also explores other technology-related trends in the North American chemical industry, including growing talent shortages and the ongoing convergence of IT, operational technology (OT) and engineering technology (ET).

For more insights into chemical industry challenges in North America, including the limitations of legacy systems and the increasing complexity of logistics, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for North America evaluates the capabilities of 23 providers across three quadrants: Digital IT/OT Services, Supply Chain and Logistics, and Sustainability and Innovation.

The report names Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, PwC, TCS and Wipro as Leaders in all three quadrants. It names EY as a Leader in one quadrant.

In addition, Genpact, Kyndryl and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Accenture is named the global ISG CX Star Performer for 2024 among chemical industry service and solution providers. Accenture earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Chemical Industry Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501733479/en/

Press:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

How are North American chemical companies addressing business challenges?

North American chemical companies are leveraging digital technologies like AI, automation, blockchain, and cloud computing to enhance innovation, optimize processes, and prepare for regulatory changes.

What technologies are North American chemical firms investing in?

North American chemical companies are investing in AI, automation, blockchain, and cloud computing to achieve various business objectives and drive innovation.

What are the key focus areas for modernization in the chemical industry?

AI is a key focus for modernization in the chemical industry, helping companies accelerate R&D, predict supply chain disruptions, and address environmental issues.

How are chemical companies in North America approaching sustainability?

Chemical companies in North America are focusing on sustainability by developing new, sustainable materials, optimizing supply chains, and tracking carbon emissions for ESG reporting.

What challenges are North American chemical companies facing?

North American chemical companies are facing challenges such as talent shortages, legacy systems hindering technology adoption, and the convergence of IT, operational technology, and engineering technology.