Industry and Disruption
During the resent years energy and natural resources companies have experienced a great deal of disruptions: pandemic, blockage of the Suez Canal, and now the war in Ukraine. Until now there have been two reactions. Some believed that the challenge is temporal. Some hoped they were structurally protected from the disruption. But the reality shows that the current energy crisis is not short-lived and no company is immune. Just the shipping costs have doubled since March 2021. How can companies best protect their margins without upsetting customers? A range of trial-and-error actions during the last year have outlined suggestions to a new pricing approach. Read more at Bain & Company, Online 2022.
Post-Covid economic recovery in chemical sector is now challenged by the war in Ukraine. European chemicals sector suffers most, given its dependence on supply from Russia and Ukraine. This dependency effects inputs, supply chain, operations and end-markets. Long-term implications are harder to predict but could include new manufacturing hubs and acceleration of chemical recycling. Read more at Bain & Company, Online 2022.
The near future comes with 4 mayor transitions: from internal combustion engines to electric vehicles, circling plastic, decarbonizing the fertilizer chain, shifting diet to alternative proteins. These trends have pitfalls, industries have to be prepared for, and new business opportunities. Balancing the needs of the current business while investing in innovation and new product lines to succeed in future is a strategic task for today’s leaders. Read more at Bain & Company, Online 2021.
While most talk of customer experience innovation has focused on consumer-facing businesses, industrial firms are by no means immune to digital disruption. Based on L.E.K. research, customers are far more prepared for digital engagement than industrial leaders may realise. Leaders should be analysing the customer journey and selecting the best suited digital tools for engagement as quickly as possible in order to secure a first-mover advantage. Read more at Harvard Business Review, Online 2020.
