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Technology Doesn’t Transform Markets, Business Models Do

Posted on Jun 18, 2018 06:02 PM

This was a subtitle of a captivating article in the Fast Company Magazine that I came across a few weeks ago. These words resonate with me because it is exactly what we at Agilis so passionately believe in. It’s not about technology – anyone can have access to great new gadgets and platforms. It’s about how you leverage the available technology to solve humanity’s (or, in our case, industry’s) most pressing problems. 

In the early 2000s, the chemical industry experienced a hyper cycle of sorts, when eCommerce startups like e-chemicals and Chemconnet dreamed of destabilizing an established business model. In a frenzied rush to push technology adoption, these early startups missed the opportunity to build a lasting solution. In our view, this was due to the fact that they narrowly focused on technology and not so much on business model to create value for all market players. Technology for the sake of technology failed to transform the chemical industry.

The fact that the chemical market players are still largely relying on phones, fax machines and manual processes to place orders and share information is not the real problem here. The bigger issue is that these outdated methods of doing business are hindering our ability to get the most of the available technology to improve efficiency, transparency, and security of business. We are missing the opportunity to create value for all market players by not using the valuable market data that already exists in enterprise systems because is not harnessed or curated in usable form.

At Agilis, we are not looking to disrupt the $4 trillion chemicals and plastics industry. We are aspiring to use technology to address the two key challenges that, we believe, are holding the industry back in this age of rapid innovation. One: the problem of high fragmentation and complex value chains, and the inefficiencies that result from that. And two: manual, labor-intensive processes that limit access to information, resulting in lack of visibility and transparency in conducting deals and making decisions.  

By bringing regional distributors on one platform, Agilis is offering producers a nationwide network to market their products through the distribution channel of their choice. Gain valuable market intelligence that is not easily available in the current distribution model. Distributors get access to new product lines and a digital channel for their brand at a fraction of the cost. And buyers benefit from easy access to a broad portfolio of established distributors and global producers. Our solution creates value for all players.

Visit our updated website, www.agilischemicals.com to learn more.

 

Digital in Chemicals Blog by Jay Bhatia