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Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers.
January 15, 2020
By: KERRY PIANOFORTE
Editor, Coatings World
In 2018, paint and coating manufacturers were putting digital technology to use in only a limited number of digital domains. Since then, the use of digital technology by these coatings companies has accelerated, and today, all leading formulators now have digital initiatives across multiple domains. A recent analysis by Frost & Sullivan has predicted that new digital business models such as data monetization and coatings-as-a-service will completely transform the way the paints and coatings industry operates in the next 10 years. “In an industry as highly competitive as paints and coatings, product innovation is an important area of differentiation,” said Brian Balmer, Industry Director, Chemicals, Materials and Nutrition at Frost & Sullivan. “Digital transformation will significantly enhance innovation in this sector, enabling manufacturers to deliver much more than just a tin of paint to customers in the near future.” Frost & Sullivan’s latest research, Global Digital Transformation in Paints and Coatings, 2019, tracks the digital transformation of the global paints and coatings industry and seeks to identify future opportunities for further use of this technology. The report also explores the technologies enabling this digital transformation, the current activity among coating formulators and raw material suppliers in the various digital domains, and future scenarios for coatings in an increasingly digital world. The role of digital leadership, especially chief digital officers (CDO), is poised to explode in 2020, addressing the lack of top-level digital strategy management that remains a challenge for the paints and coatings industry to date. The proper adoption of digital concepts will be disruptive for the industry, and it requires a different way of thinking. With a CDO at the helm, companies can realize their digital transformation goals quickly and effectively. “The coatings industry is clearly moving away from a model based solely on producing liters of paint. Successful companies in this sector will sell not just paints and coatings, but also their key attributes, such as protection, color, etc., as a service,” noted Balmer. “In making this transformation, companies will be able to identify new potential customers who could also benefit from the data being generated.” Companies operating in this sector can also foster growth by:
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