The Resources sector comprises of agriculture, metals and mining, chemicals, and pulp and paper products. Today, this sector is facing new challenges and business opportunities owing to product innovation, ongoing mergers and acquisitions (M&A), portfolio adjustments, and volatile pricing for raw material and energy.
As the global economic slow-down increases pressure to reduce margins and improve profitability, this industry is preparing for significant business and IT transformation. Winners in this space will be those that meet these challenges by adapting their business models, streamlining their operations and continuing to innovate.
New technologies such as the Industrial Internet of Things (IIoT), advanced manufacturing technology and sensor-embedded analytics are set to revolutionize the landscape by enabling data-driven capabilities such as active monitoring of assets and optimization of the supply chain network.
Further, the digitization of business models is driving the 4th Industrial Revolution and is helping companies apply innovation, transformational strategies and digital enablement for growth, differentiation and superior operations.
The resources sector is being shaped by four key forces that are creating new opportunities as well as challenges for leading players. To ensure profitable growth, companies should look at implementing real-time insights, operational excellence and sustainable product and process innovation.
However, such companies will first need to simplify existing processes to infuse flexibility, speed and innovation in an environment driven by rapid globalization and explosive growth.