Big data isn’t a new introduction. Although, technological handicaps made it challenging to utilize this data to its fullest extent. But with the world advancing in technology by leaps and bounds, we now possess the power of leveraging this data and using it to its fullest potential.
In fact, the big data analytics market is projected to reach a revenue of $103 billion by 2023.
So, what about the chemical industry? Naturally, the chemical industry is not suited for the 21st century, given that it isn’t as agile and flexible as the others.
Although, 2021 saw growth in chemical production worldwide, with a global average of 6.1%. And you guessed it right! Big data does have a significant role to play in this. So how to leverage big data to make the best out of it in 2022? Read on to find out!
The Importance of Big Data
With the chemical industry worth somewhere around $3.94 trillion in 2019, it would suffice to say that it is one of the biggest industries in the world. But, for the longest time, it has been relatively predictable, with innovations and market analysis happening maybe once or twice a year.
This type of framework can adversely affect companies in the 21st century. They might miss out on many valuable opportunities, in turn losing revenue. So what to do?
Well, that is where big data proves vital to the growth of this industry. By harnessing the power of big data, you can increase margins, reduce costs, streamline processes, resource allocation in line with goals, and so on.
Since big data is used for refining and training predictive analysis models, it will help increase the demand plan accuracy of your organization as well. Your company will be able to predict the future behaviors of customers to make better business plans with accurate insights.
In return, stay ahead of customer demands, paired with shorter lead times and quicker response times.
Moreover, you can leverage corresponding technology such as modeling, sophisticated IT systems, etc., to uncover patterns, interpret signals, and redirect your strategy in the right direction.
Big data has a plethora of other benefits and could affect a large number of sectors of the chemical industry.
Also Read: Role of Data Analytics in IoT
The Role of Big Data in the Chemical Industry
The chemical industry is set to grow at 1.8% from 2021 to 2024, and here is how big data is helping.
By leveraging big data, organizations can make superior real-time scheduling and asset usage decisions. That, in turn, results in an increased yield, either due to improved production or reduced waste.
Data is generated by thousands of machine parts equipped with sensors and wireless devices. So in case, the yield goes down, you can leverage this data to pinpoint exactly what is tampering with the yield variation.
As a by-product, you even receive superior quality due to the abundance of data and advanced analytics. Moreover, these sensors also pick up on maintenance issues, warning workers in advance and reducing downtime.
2. Preventative Maintenance and Asset Management
With predictive mainteance systems in place for chemical engineering equipment, big data makes it easier to reduce downtime. Equipment such as turbines, compressors, and so on are fitted with sensors that constantly collect data.
The data from these sensors can be leveraged to spot patterns and prompt intervention prior to breakage. Or, this data is also used to source parts in preparation in advance, so that the equipment experiences considerably lower downtime.
Now that these industries can anticipate machine shutdowns well in advance, productivity and performance experience a massive jump.
3. Supply Chain
Since data flows in from multiple sources, chemical industries now have a better grasp of supply chain operations. A direct result of this is much more streamlined processes paired with better distribution channels.
Big data optimizes a lean supply chain, especially transportation logistics. Organizations can now analyze weather patterns and predict events that might cause a delay in the supply chain. All thanks to advanced analytics.
Companies now formulate contingency plans well in advance, allowing them to continue meeting their operational targets even at a time of crisis.
4. Pricing and Purchasing
Chemical pricing strategy often relies on complex data like raw material & energy pricing, exchange rates, market demand, competitor strategy, weather, etc.
But usually, this data is outdated, affecting the pricing strategy quite a bit. Since it is primarily based on ‘gut feeling’, this method is clearly unreliable and inaccurate.
Big data can step in and change all this since it gives manufacturers the ability to extract and leverage information from multiple sources, make key purchases at the right time, and work on cost-reduction strategies.
Companies can now make lot better decisions pertaining to their products and quality since they are now backed by analyzing profitability, market forecasting, and raw material availability
With a lot more and better data coming in from customers, forecasts, and market trends, companies can now reduce the time-to-market for products considerably.
With real-time intelligence, you can speed up the innovation cycles and reach the market faster. You can definitely capture, store, analyze, and report on all new information with the right and powerful tools.
6. Energy Management
It isn’t easy to set optimum operating conditions for chemical plants since multiple dynamic operations are performed simultaneously. The easy solution is leveraging the big data from the Industry 4.0 smart sensors used on equipment.
These sensors can help in energy management since they can process multiple data points and control nonstandard process variables. That, in turn, increases energy efficiency.
Now that companies in the chemical industry have a better grasp on leveraging big data, they are adopting new technologies and innovations to improve operations on an organizational level.
With big data completely changing the way these companies approach the various facets of an organization, organizational changes are now happening at a much larger level. Big data holds the ability to break down silos and improve operational efficiency by a mile.