Target in 2021 and Long-Term Target
- The profit from innovated products will increase, while EBITDA uplift from petrochemical products would account for 5% of EBITDA in 2025
- Extend the investment in innovation products by no less than 1%, comparing to petrochemical products in 2025
- Maintain the score level in Dow Jones Sustainability Indices (DJSI), especially in Innovation Management)
Challenges and Opportunities
Companies in Chemical Industry has constantly faced many emerging challenges from the acceleration of technology development to a challenge from COVID19 pandemic this year. The challenges have completely changed the customers' lifestyle and way of life. It is inevitable that the innovation and technology would be a major factors to drive and improve the company's competitiveness and resiliency.
GC has recognized the fact and has responded by creating customer centric innovation development and collaboration, which can develop better solutions and services to the market, expand the market to Advanced Materials solutions and attract new opportunities. Ultimately, innovation development can strengthen the products capabilities and increase the efficiency of business processes.
Innovation Visions and Strategy
By serving consumer's needs and securing customer base in Thailand and South East Asia, GC implements the key strategy, which focuses on enhancing competitiveness and reliability of its business and creating High Value Product. GC also appointed Boston Consulting Group (BCG) to define scope and designate target for expanding into High Value Business (HVB) in respond to end-use market. "Business-to-Business Touch Consumer" (B-to-B Touch C). Additionally, roadmap has been established and launched under the collaboration with customer groups, namely plastic converter, bran owner and plastic designer (business partners along the value chain), to generate benefits for consumer (C: Consumer). The B-to-B Touch C plan emphasizes on 3 aspects by extending Downstream Petrochemical products to the application platform that can increase business value for consumers, including performance material and chemical, product differentiation and stakeholder networking .
Toward Performance Material & Chemical, which focuses on the implementation through Product Application. This includes considering use of the high performance plastic resin that are compatible in terms of its application and capital cost with the manufacturing compounds, such as bumper for automotive industry.
Product Differentiation, which focuses on understanding customer insight and caring Voice of customer (VoC) and developing differentiated products that can truly act as solution in respond to the customers' needs, namely Shelf-Life Extending Packaging that allows to keep vegetable longer. GC also has a marketing plan to communicate with consumers regarding GC labelling in products.
Stakeholder Networking, which focuses on establishing networking mechanism between key account management and Customer Solution Center (CSC) to together develop product and innovation, and create high-level customer experience beyond the competitors' products in the industry.
Priorities for the implementation to drive business transformation into HVB according to B-to-B Touch C plan are as follows;
Sandbox Project: Cross-functional collaboration to effectively deliver end-to-end execution model of product development and application in the future.
Platform Management: GC targets to apply execution model retrieved from Sandbox project under the recommendation of experts, in order to develop and improve product in the application platform, and launch the product in commercial phase. The measurements of the Platform Management rely on product revenue and benefit from shared value under the collaboration with customers.