In the age of disruption, companies like Airbnb and Netflix are able to grab the share of big players in their respective market. Digitization is happening in every industry and it is just a matter of time a company with innovations will disrupt the market.
A wizard is never late, nor is he early, he arrives precisely when he means to. Many of previous market leaders lost the share in their market due to reluctance to innovate and find new models. Some others just lost their momentum to capture opportunities in the age of disruption.
Just like other industries, the disruption is also happening in the lubricant industry.
The digitization has changed the way players reach and communicate with their customers, interact with their channel partners, and operate internally. A Solidiance report explores the key driver behind changes in the lubricant industry.
From the inevitable automation of processes to integrating mobility platforms to the changes in the entire business models, digitization is creating new opportunities at every corner.
“Digitisation in the Lubricant Industry” white paper explores how digitization can help lubricant companies keep their heads above water and sustain their growth. The disruptive challenges will require a brand new set of thinking and adopting a new approach of doing business.
Implementing a digital strategy allows lubricant companies to be more flexible in responding to market fluctuations by providing a better overall management in real-time. This includes the supply chain, customer access and the subsequent relationships, as well as being smarter by understanding the overwhelming amounts of available data at each step of the way.
The way players in the lubricant industry today reach and communicate with their customers, interact with their channel partners, and operate internally - are all currently undergoing a disruptive shift.
The advancements in technology allows lubricant industry players to alter the entire landscape and transform the very essence of how business is done. For some, it’s a process already well underway.
The lubricant industry in Asia is rapidly changing with the rising number of electric vehicles, robots in manufacturing and co-sharing mobility platforms. It is true that emerging markets are still depending on the lubricant industry for their transportation, but could it last for long?
China is aggressively pushing up the electric vehicles with a number of benefits prepared by the government for manufacturers and users. The Chinese authorities even target to achieve 5 million electric vehicles by 2020.
According to the white paper, the strategy is not merely aiming to put lubricant companies one step ahead of the current trends, but bigger than that, grow efficiencies across the value chain. A few examples show how big names like Chevron, ExxonMobil, and others are turning to digital solutions for online procurement and supply chain, introducing systems that help with sales, invoicing, tracking, and more.
Instead of making the value-chain more complex and less efficient, digitisation brings all interactions and campaigns along the value chain to a single platform, where they can be further prioritised, organised, and monitored in real time. The result is an improved stakeholder management across the value chain, as well as improved interdepartmental communication and reduced IT costs in the long-run.
The same principle allows for a more agile reaction to a rapidly changing global business environment. Businesses will want to deepen the engagement with end-users through increased marketing channels in both B2B and B2C sense.
Apart from adding inventory and invoice management software to their roster, lubricant companies can also benefit from BI (business intelligence) software that collects data through their online properties (websites, apps) and offers extensive analytical support. That way, businesses can enjoy a more accurate targeting of customers and potential business partners, as well as better forecasting and more efficient and effective management of resources. Indeed, better distributor handling, revising marketing and product strategies based on tactical insights, basing pricing on real-time market information, are repeat issues in the lubricant industry in emerging and emerged markets.
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