Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers, finds Frost & Sulliva
Until 2018, the manufacturers of paint and painting used digital technology only in a limited number of digital territories. Since then, the use of digital technology by these coating firms has expanded., and today, all major formulators now have software programs spanning multiple domains.
Frost & Sullivan’s latest report forecasts that new digital business models, such as data monetization and coating-as-a-service, would totally transform the way the paint and coating 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, monitors the digital revolution of the global paint and coating industry and aims to recognize future opportunities for further use of this technology.
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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:
- Focusing on the digital transformation of one particular domain instead of transforming multiple domains at once.
- Adopting data monetization and coating-as-a-service business models to drive future growth.
- Leveraging one specific digital technology across multiple domains.
- Exploring the application of big data, AI and augmented reality in business operations to identify new business opportunities.
- Global Digital Transformation in Paints and Coatings, 2019, is a part of Frost & Sullivan’s Chemicals, Materials & Food Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.