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SABIC

Integrated Annual Report 2024

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Home > Reports > Integrated Annual Report 2024 > Value Chain Impact > Digital Transformation

DIGITAL TRANSFORMATION

We aim to leverage the power of digital technologies to unlock new value streams, accelerate growth, and enhance the experience and outcomes for our customers.

The rapid evolution of digital technologies is reshaping the global petrochemicals sector, challenging traditional business models and creating new opportunities and risks. We are seeking to harness the potential of these technologies to improve business processes and value chain efficiencies, drive innovation, and unlock new growth and value creation avenues.

Our digital transformation strategy prioritizes the digitalization of core operations. Our current focus areas include:

  • Identifying and implementing innovative digital solutions to streamline operations and create new revenue streams.
  • Advancing analytics capabilities, increasing computation power, and developing Gen-AI solutions.
  • Equipping our workforce with the necessary digital skills to thrive in the evolving digital age by promoting adoption of the new digital solutions and increasing awareness of data analytics, data literacy, and AI.
  • Fostering synergies with internal and external stakeholders, including Saudi Aramco, academic institutions, and government entities, to drive digital innovation. 
  • Strengthening our data foundations and our data and AI governance and guidelines.

DRIVING ENTERPRISE RESOURCE PLANNING THROUGH DIGITALIZATION

A key element of our digital transformation is the Digital Operations Platform, developed through the SABIC Transformation and Renovation (STAR) program, which serves as the cornerstone of future processes, applications, and systems. STAR is set to replace and modernize the existing enterprise resource planning (ERP) framework, transforming how SABIC operates by connecting people, devices, and business networks globally, delivering value and creating new experiences for customers and stakeholders.
 
STAR is a phased program, beginning with the enhancement of technical capabilities. This will be followed by the deployment of corporate solutions across manufacturing, business units and supply chain, Technology & Innovation, and Corporate Finance. This structured approach ensures a seamless transition and maximizes the impact of this critical transformation. SABIC's digitalization efforts are closely monitored by multiple governing bodies chaired at the highest level by the CEO. The program is measured through multiple metrics, including value generated, adoption and utilization of digital solutions by business units, and digital maturity benchmarks as measured against industry standards.

SELECTED 2024 DEVELOPMENTS

  • Developing and deploying several key digital solutions across different SABIC businesses to address process deviations and reliability issues.
  • Conducting comprehensive assessment to drive organizational digital maturity.
  • Optimizing our digital portfolio through prioritizing value-driven initiatives and aligning them with business objectives.
  • Creating a culture of digital innovation through specialist data science programs and extensive training sessions.

By harnessing the power of AI and new industrial technologies, SABIC's digital transformation is driving improvements in energy efficiency, operational footprint, and GHG emissions reduction. Examples include:

  • Boosting asset reliability with AI-driven asset healthcare solution: An AI-powered monitoring system now operates across SABIC plants globally, predicting potential failures of critical equipment and enabling proactive maintenance. This system is expected to reduce material loss over the critical asset life cycle.
  • Extending asset life and strengthening safety: Through advanced inspection technologies, such as robotics and drones, SABIC identifies persistent issues, including corrosion under insulation, pipe integrity, and performs tank and flare tips inspections, enhancing asset longevity and reducing exposure to critical safety environments.
  • Optimizing overall plant performance: SABIC integrates data on raw material quality, process parameters, and environmental conditions into digital predictive tools to determine optimal production settings, maximizing yield and extending equipment operation life cycle.

Read more about our digital transformation efforts . 

Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2024 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.

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