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According to the latest research report of Manufacturing Insights, an internationally renowned market consulting firm, IDC, the global chemical company’s spending on information technology (IT) this year is expected to increase by approximately 5.1% to US$7.5 billion. The trend of economic globalization and the need to continuously increase production efficiency will continue to be the two major drivers of global industrial IT investment this year.
The chemical industry is one of the most widely used industrial areas for information technology and is also the focus of information construction. In recent years, the global chemical companies have invested more in information technology (IT). Nick, the project manager of manufacturing analysis company, said that current IT investments in the chemical industry are mainly concentrated in managing increasingly complex supply chains, maintaining profitability in the face of raw material price fluctuations, increasing competitive pressures, and meeting the strict challenges of environmental protection laws and regulations.
The complexity of the supply chain triggered by the globalization trend has continuously increased the demand for third-party logistics. This undoubtedly adds many tedious tasks to the management of the supply chain. Establishing an information platform for supply chain management is becoming a good way for chemical companies to increase their efficiency, and it has also become a tool for multinational companies to participate in international competition. Since the beginning of this year, oil prices have continued to break through historical records. Major chemical giants have complained about rising raw materials to squeeze profits. The implementation of informatization will help improve the management level of manufacturers, reduce the company's inventory, and save funds and production materials. Cost of production. Comprehensive application of high-tech such as automatic control technology, information technology, and network technology can improve the level of production, management, and technology development, ensure safety, promote the implementation of environmental protection laws, and effectively improve the ability of companies to resist risks.
According to IDC, about 48% of the chemical company's IT budget for 2008 will be used for support, financial outsourcing, and other applications in the implementation or upgrade of software or hardware. New software spending will account for about 34% of total IT spending, while hardware investment will account for about 18% of total IT spending.
The fastest-growing IT spending is the software investment budget, which represents an increase of 8.6% over 2007. The investment will be mainly focused on supply chain management (SCM), enterprise asset and business performance management, and procurement and sales automation software. Expenditure for hardware will be slightly reduced. This investment will be concentrated in storage facilities and customer terminal facilities, while investment in network facilities such as servers and routers will be reduced. Expenditures for telecommunications are expected to increase, especially in the area of ​​wireless data. In addition, investments in new application areas, including service-oriented architecture, software services, and open source software, will be minimal in 2008.
However, according to Bill Polk, research manager for chemicals, metals, and minerals at AMR Research, a Boston-based company, the global chemical company's IT budget this year will only account for about 2.5% of total revenue. According to their research, about 40% of the chemical company's IT budget in 2008 will be used to run the business, including investments in network infrastructure, hardware, telecommunications, and core accounting and financial functions. The other 60% of the budget will be used to generate new growth investment, including product life cycle management, business intelligence and consumer relationship management software.
Chemical Industry Becomes Important Site for Information Construction
Global Chemical Company spends $7.5 billion on IT this year