Why successful chemical companies are

digitalizing their R&D, sales and marketing

 Agenda

1. Digitalization finally hits the chemical industry

2. Digitalizing your sales and marketing

Where are companies today?
What are the barriers?
What are successful companies doing?

3. Digitalizing your R&D

Where are companies today?
What are the barriers?
What are successful companies doing?

4. Key Takeaways

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 We are pioneers in digital

18 years of digital marketing

70% of top 100 chemical companies

400+ growth programs based on digital

500K+ largest network of chemicals & materials specifiers

Across 5 key industries using chemicals & materials

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 Digitalization finally hits the chemicals industry

Bold moves, investments in digital

New business models, new skills, new solutions and services

Huge benefits are at stake

$200 billion in S&M only across the industry in 2020(1)

Fast movers will capture new market shares

Up to $60 billion market share shift for leaders vs. laggards(1)

Customers are already digital

78% engineers spend +3h per week | 61% engineers visit +6 sites per week(2)

(1) Source: McKinsey 2017 “Demystifying digital marketing and sales in the chemical industry”
(2) Source: GlobalSpec 2017 “Digital Media Use in the Industrial Sector”

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Digitalizing Your Sales & Marketing
 S&M are used to “reaching out”, but …

95% contacts initiated

by suppliers sales forces
TRADITIONAL

Chemical Chemical
Companies Markets

Sales Forces Trade Shows Magazines Website, Blog Social Networks

Industry Platforms
Search Engines E-mailings E-Newsletters Webinars (SpecialChem, UL)

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 …1st contact is now initiated by customers

95% contacts initiated

by suppliers sales forces
TRADITIONAL

Chemical THE TREND Chemical

Companies Markets
+70% contacts initiated
by customers through digital

Sales Forces Trade Shows Magazines Website, Blog Social Networks

Industry Platforms
Search Engines E-mailings E-Newsletters Webinars (SpecialChem…)

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 Being reached-in vs. reaching-out

+ No “activation energy” to deploy

+ Higher prices: solution seeking people

+ Fastest and highest conversion to sales

+ Easier than before to spot prospects

- More competition

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 Key sales & marketing digitalization challenges

Organization Resources Tools & Systems

- Organizations still
focused on reaching out
- Marketing and sales in
silos
- Broken process: Lead
generation,
qualification, nurturing
- Digital / physical gaps
- New types of resources:
digital content creation,
lead scoring, inside
sales…
- Enough of the right skills
- Cultural changes: e.g.
“customer ownership”,
“sharing data = losing
power”
- Global CRM
- CRM plugged to digital
channels
- Website and emailing not
linked
- Funnel management:
where?
- Right dashboards

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 What are successful companies doing?

Digital
Maturity

Master
0% companies

Advanced
10% companies

Starter
60% companies

Traditional
30% companies Time
Source: SpecialChem estimates based on prospects and customers situations

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 What are successful companies doing?

Digital
Maturity

No real funnel management

Lead gen, but no qualification nor nurturing, no perf tracking
Master
Customer info management
CRM introduced to sales, but isolated, not plugged to digital

Basic content creation

Publish few digital contents per year
Advanced
Few digital channels used
Still customer centric website, emails, NLs, webinars

Sales and marketing working in silos

Starter
Digital isolated within organization

Traditional

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 What are successful companies doing?

Digital
Maturity
Funnel management
Organization and processes adapted to digital

Master Inter-connected CRM

Bridging physical (sales) and online data

Real content creation strategy

Publish digital contents regularly, content repurposing

Advanced Many digital channels

Richer website, emails, newsletters, webinars, social, SEO,
industry platforms

Basic marketing automation

Starter Targeted mailshot campaigns, social posts, online analytics

Lead scoring and users profiling

Starting
Traditional

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 What are successful companies doing?

Digital Master funnel management

Maturity
Seamless integration of funnel into all sales & marketing processes

Unified data management platform

Master CRM + Datalake (all interaction data) interconnected, data
aggregated, processed and used in customer interactions + drive
content factory

Internal content factory

Permanent flow of new digital contents
Advanced
All digital promotional channels synchronized
Website, emails, newsletters, webinars, social, SEO, SEM, blog,
industry platforms

Starter Full Marketing Automation

Engagement and nurturing programs, custom offers, A/B Test,
online analytics

Traditional Artificial Intelligence

Machine learning, data mining, automated lead scoring, content
personalization…

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Digitalizing Your R&D
 Where are companies today?

Innovation is long, risky and expensive

Product-line extensions New-product launches

30-40% Success 15-20% Success

New markets
2-7 Years Commercialization 8-19 Years Commercialization

40-50% Success 30-40% Success

Existing markets
2-5 Years Commercialization 6-15 Years Commercialization

Source: McKinsey 2013 “Chemical innovation: An investment for the ages”

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 What are the barriers?

The Linear Stage-Gate

Idea generation
& scoping Business
Case Development,
Testing & Validation
Pre-Launch
Customers

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 What are the barriers?

The Linear Stage-Gate

Idea generation
& scoping Business
Case Development,
Stage-gate is: Testing & Validation
Pre-Launch
▪ Linear Customers

▪ Internal centric
▪ Closed
▪ Rigid
▪ Not agile

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 What are the barriers?

The Linear Stage-Gate

Idea generation
& scoping Business
Case Development,
Stage-gate is: Testing & Validation
As a result, innovation is
Pre-Launch
▪ Linear more “rational” but: Customers

▪ Internal centric
- Long and heavy
▪ Closed
- Still uncertain
▪ Rigid
- Expensive
▪ Not agile

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 Innovation must become Agile

Robert Cooper, the “Father” of Stage Gate now pushes

to integrate Agile methodologies within Stage-Gate

Agile Methodologies: ▪ Involve Clients in design process

Lean Start-Up ▪ Short iterations loops: Design / Proto / Tests
Scrum ▪ No fear to expose prototypes
Design thinking ▪ Client collaboration as the rule

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 What are successful companies doing?

The Agile and Digital Stage-Gate

TECHNOLOGIES
Digital connections to the technology
Idea generation holders to get feasibility, techno, & partners
& scoping Business
Case Development,
Testing & Validation
Pre-Launch
Customers

MARKETS
Digital interactions to the market
to get needs, validation, partners

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 Digitalized innovation brings results

Traditional Stage-Gate
Agile + Digital Stage-Gate

▪ Too long
▪ Too uncertain ▪ 50 - 70% Time Saving
▪ Too expensive ▪ 50 - 200% Increased success rate
▪ 30 - 70% Investment savings

Based on SpecialChem digital programs

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 Key Takeaways

The markets have changed, your customers are digital

Digitalization of sales & marketing is a must to survive

Acquire the right skills: hiring, training, consulting, partnering

Change management: urgency, vision, empowerment, wins, anchor

Agility: think big but test small and frequently

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 Stay tuned for our next webinars

November
Digitalizing R&D case studies
How to find the best applications matching your newly
developed or acquired chemicals with digital

December
Digitalizing Sales & Marketing case studies
How to speed up and increase your sales conversion
with digital

Follow-us to stay informed

SpecialChem

@specialchem

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Thank You
for your participation