To achieve the UN Sustainable Development Goals, the chemical industry requires innovation. For example, efforts could include developing new chemical processes to reduce emissions, discovering novel energy generation and storage solutions, and devising innovative food preservation techniques to combat hunger. There is no lack of innovation opportunities, but there are constraints on funding innovation. So, a significant improvement in innovation effectiveness is essential.
The chemical industry is a crucial enabler for solving these challenges, but doing so will require reinventing its approach to innovation. That means a fundamental change in the processes, organization and capabilities of today’s chemical company.
For example, a shift from:
- lab-based experiments to quantum-powered in silico experiments
- captive (in-house) R&D units to innovation ecosystems
- labs staffed with PhDs and technicians to innovation hubs that bring together chemists, data scientists and customers
Figure 1: Key changes in R&D at chemical companies
The journey toward generative chemistry
We expect the reinvention of innovation to be driven by three distinct levers: automation of lab experiments, in silico chemistry, and intelligent analytics that combine wet lab results, in silico insights and customer needs. This combination defines the journey toward generative chemistry. It replaces traditional trial-and-error approaches with technology-enabled, highly-focused, predictive and prescriptive experimentation.
Figure 2: Chemical R&D evolving along 3 dimensions
Three approaches driving the reinvention of innovation
Let us take a closer look:
Exploring the realm of possibility
So, what does good look like?
Let’s envision the art of the possible by following a chemical R&D manager, Lauren, throughout her day:
Figure 3: A chemical R&D Manager’s day
As you can see from Lauren’s role, R&D’s use of generative chemistry will shift her lab’s experiments from a traditional trial-and-error approach to tech-enabled, highly-focused, predictive and prescriptive experimentation.
Generative chemistry will further reinvent the R&D function of chemical companies with remote monitoring of lab processes, globally connected labs and more (see Figure 4).
Figure 4: Generative chemistry reinvents R&D
What chemical companies need to do
Some companies in the chemical industry have already started their journey to reinvent innovation and have achieved new performance frontiers with higher innovation effectiveness. More innovations, more differentiation from competition, more growth and value are the outcomes.
To turn the vision into reality, the first step is defining a company-specific transformation path.
Such a transformation path typically comprises:
- Digitalizing, consolidating and structuring your R&D data to set the foundation for the creation of valuable insights through machine learning and AI.
- Connecting your R&D labs and harmonizing your technology landscape of systems and instruments.
- Building the capabilities your R&D organization requires to achieve its future ambitions and developing a clear pathway through strategically hiring and upskilling.
- Seeding AI and in silico technologies. Implementing prioritized use cases and testing feasibility and impact.
- Deploying at scale. Rapidly scaling up successful use cases across labs, geographies and business units to maximize value and to hardwire digital R&D within your organization.
- Tailoring your processes and R&D operating model to maximize the full value and potential of digitalization. Integrating in silico experimentation and AI-based search and analysis as fundamental steps in your standard R&D process.
Typically, this transformation requires a reallocation of innovation budgets, which is often hard since it means a break with “more of the same.” A shift from traditional budget uses to building digital and AI capabilities is required.
Innovation always includes taking calculated risks. Although transforming innovation may seem risky, the greater risk lies in ending up with non-competitive innovation and missing growth opportunities. Act now to position your company on the trajectory toward transforming innovation and a new level of performance.
Related insights
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- Growth and innovation in the chemical industry
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