What it is, when it makes sense
The main business model of today’s chemical industry is to convert crude oil into other chemicals that have mainly three outlets after use: landfill, thermal recovery or environmental pollution.
In the long run it is obvious that both input and output side of the business model need to change: crude oil is limited and the civilization will not continue to accept pollution.
In the 2000’s we have seen a first ‘hype’ of bio-based chemicals. At this time it was mainly driven by the exploding oil prices. The hype stopped after the oil price drop during the financial crisis.
Today, oil prices have significantly increased and first major oil corporations like Statoil changed their name since the oil era has exceeded the top. Oil is not ‘sexy’ any more for many investors… On the other hand the importance of sustainability increases – slowly, but constantly.
In this context chemical companies should be aware of their situation and have at least analyzed alternative scenarios.
What you get
We differentiate between two strategic objectives in the context of bio-based and bio-degradable chemicals:
- Growth focus: New business opportunities with new bio-based and/or bio-degradable chemicals
- Defensive focus: Risks and opportunities from bio-based and/or bio-degradable chemicals based on the existing product portfolio
Our typical “bio-based & bio-degradable chemicals” engagement delivers a map with relevant bio-based chemicals incl. high level profile with status quo, players, challenges,…
For the defensive case we deliver a measurement plan to reduce the risk of business disruption.
For the growth case all bio-based chemicals are analyzed that benefit from the core competencies of the client organization. The map can be the starting point to develop a new business model (see out service ‘Business Model Innovation’)
How we work
In our ‘bio-based’ projects we deliver both detailed content and project management. Our experts have deep knowledge and e.g. work closely together with political entities, like the European Commission.
We typically staff one senior project manager with a broad overview on chemical business models and bio-based chemicals together with one to two experts. The duration of the projects are typically between 2-6 month.