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The Digital Development Of China's Chemical Industry Is Still Promising

- Sep 27, 2018 -


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Xie Xudong, general manager of Sinochem International Information Technology Department


    Xie Xudong, general manager of the Information Technology Department of Sinochem International (Holdings) Co., Ltd. (hereinafter referred to as “Sinochem International”) believes that the “digital” development of the chemical industry can not only improve the quality, efficiency and safety of the industry. Get the real output return, from the perspective of the industry ecology perspective, or subvert the industry business model, from the enterprise mass production-distribution model to the direct interaction between producers and consumers, so that product value is no longer defined by the enterprise , but defined by the user's customization needs.

    Xie Xudong admits that various industries have made great progress in digital and intelligent manufacturing. At the same time, the fine chemical industry still has a lot of room for improvement.


Policy support third-party guidance

    "The traditional industry's related concepts in the digital, energy and chemical Internet also need to be improved." Xie Xudong said that in the process of implementing digital transformation, the main problem faced by enterprises is that the return from the input cost cannot be clearly defined, and they are worried that “the bamboo basket will be flooded”, especially for cost-sensitive specialty chemical companies. More attention is paid to the simple transformation and construction process in the process of “digitalization”, which brings only one-sided and partial effects.

    The consulting firm Deloitte and the China Petroleum and Chemical Industry Federation jointly released the "Digital Transformation: Are Chemical Enterprises Ready" report released in 2017, indicating that 52% of the chemical companies surveyed did not develop a digital strategy and a roadmap for transformation. Xie Xudong also said in an exclusive interview with Xinhua. At present, the digital transformation of China's fine chemical industry is still at a very early stage, especially for small and medium-sized manufacturing enterprises of special fine chemicals, injecting digital infrastructure, core information platform and data. Asset management, production equipment and on-site management need to further increase investment and construction.

    It is understood that at present, Sinochem International has carried out practical explorations on the core ideas of informationization of “horizontal business collaborative interconnection and vertical production operation insight”. Xie Xudong introduced that Sinochem International's information system framework built on the “base platform for agile sharing”, “intelligent and efficient production and operation platform” and “cooperative and interconnected management platform” not only became support for Sinochem International to build smart chemicals. The effective weapon has also created considerable economic benefits for Sinochem International. He mentioned that thanks to the improvement of procurement strategy and synergy efficiency after the establishment of SRM (Supplier Management System), one of its subsidiaries has saved more than 90 million yuan in three years; and a factory effectively reduced through MES (Production Process Execution System) The energy consumption of materials and the improvement of work efficiency generate an annual economic benefit of 5 million yuan. At present, Sinochem International is already leading the industry in the digitization process of the chemical industry.

    For how to promote the digitalization process in the chemical industry and transform the digital development concept of chemical companies, Xie Xudong put forward two ideas.

In terms of enterprise digital transformation, policy and financial support are the main help to solve business pressure and innovation investment. He believes that the government can provide support in the taxation policy and fund support of digital construction, which will greatly facilitate the acceleration of the digital transformation of innovation in the chemical industry.

    On the other hand, when enterprises choose digital and intelligent Internet technologies, they also face the embarrassing situation of “outside the door” and difficult judgment. Actively embracing the Internet is also an important trend and path for future development. He laughed and said: "They (large Internet companies) are building roads, we are building cars, and their roads are waiting for us to run." Xie Xudong proposes to introduce third-party professionals. Consultation institutions, organizations, etc., demonstrate, discuss and guide the technical choices and step planning of chemical companies, and establish relatively neutral and credible sources of information.


Introduction of international standards

    With the advancement of intelligence and big data, information security issues have become more prominent in front of enterprises.

    "If the data is not safe, the future internal and external synergy, the digital industry ecology that responds to customer needs will not be realized." Xie Xudong said.

    At present, ISO 27000 information security management system certification is widely used internationally to ensure information security. Xie Xudong believes that China has a low degree of emphasis on the construction and adoption of relevant information security system certifications in terms of relative quality certification and environmental certification. "(ISO 27000) has a lot of internal logic to respect", he said, Sinochem International is now fully aware of the importance of information security, has been the first in the encryption certification, ISO 27000 system certification. He suggested that enterprises should establish information security measures in line with their own conditions on the basis of their own guidance and guidance from external consulting agencies.

    At the same time, Xie Xudong pointed out that China needs the core role of the “national team” in the field of fine chemicals to lead the industry to make great progress. He suggested that in terms of technical standards and norms: with the power of the government, organize leading chemical companies, technology manufacturers, institutions and research institutes to conduct technical demonstration and evaluation, form technical standards and norms with chemical enterprises, and guide small and medium-sized enterprises. The digital construction accelerates the blind process of individual enterprises exploring and building.

    Xie Xudong was interviewed by Xinhuanet at the 2018 China International Chemical Exhibition held from 19th to 21st. On the 20th, he envisioned the digital development trend at the "3rd Smart Chemical Conference and Fine Chemicals Digitalization and Intelligent Manufacturing Industry Development Forum" held in the same period: "In the future, we can use the technologies of cloud computing and Internet of Things to dig deeper. 'Data' value, supporting business innovation and change in precision marketing, R&D simulation, supply chain optimization and intelligent production; on the other hand, using dual-mode IT with integrated linear and agile models to achieve information support and management transformation ."

    It is understood that Sinochem International encourages the development of innovative information business. By 2021, Sinochem International's innovative project investment will account for more than 50% of the total investment in information technology.




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