Controlling Complexity in the Chemical Industry

Complexity management drives strategic goals

The chemical industry is undergoing rapid change. Major players are remaking and updating product portfolios they have pursued for decades. Through recent M&A activity, some companies are increasing their scale and critical mass, while others, such as BASF and Dow, are pursuing new, more customer-focused specialty areas. These changes have prompted many chemical companies to take a fresh look at their organizations—particularly at the growing complexity. Companies that take control of their complexity can release hidden earnings potential, in some cases increasing margins by 2 to 5 percent. Margin improvements like these can mean the difference between success and failure.