Companies must innovate to stay ahead: SABIC CEO

(MENAFN- Arab News) In the current economic environment success is expected to come to only those companies that generate innovative products services processes and business models to gain competitive advantage said Mohamed Al-Mady SABIC vice chairman and CEO.

He was speaking at the annual forum of the Gulf Petrochemicals and Chemicals Association (GPCA) in Dubai under the theme 'The Strategic Direction of the Chemical Industry What's Next.'

Al-Mady is the chairman of the GPCA.

Addressing global thought leaders and industry stalwarts Al-Mady said that those companies which adopt an innovation strategy will stay ahead of change.

'Abundant feedstock is indeed a source of competitive advantage for us. Yet we cannot rely solely on natural resources for our future growth' he said referring to the significance of innovation to the chemical industry.

Speaking about the concept of strategy he said it is about which assets and capabilities should be leveraged acquired or discarded.

'For our industry the chemical industry transforming natural resources into solutions for our customers has been is and will always be the core capability of course within a framework of sustainable development. When we look at global financial indicators we often see natural resources as a key contributor to the growth of both the GDP as well as the chemical industry. The capability to link natural resources to solutions is innovation. And innovation is indeed linked to growth metrics.'

Referring to the best practices adopted by Saudi Arabia Al-Mady cited examples of the energy efficiency initiatives taken by the Kingdom the investment in supercomputing its strong resolve to boost educational opportunities and its efforts at creating a favorable business climate. Al-Mady made these observations in the context of emerging global trends which he said the industry and its stakeholders need to take note of.

He specifically pointed out two trends:

'Firstly the time to either reap benefits from established competitive advantages or react to unforeseen events has tightened. Whether on the feedstock or value chain front developments are taking place faster. Clear examples are coal to chemicals in China or product cycles in the electronic industry. Secondly there is the ever growing availability of information as well as the growth of a new generation which has adopted novel ways of learning to become successful. Shorter timeframes new capabilities and the coming of a new generation certainly need deeper insights and vision.'

He was of the view that companies which are able to attract and develop talent have been proven to be faster in growth and more resilient in downturns. 'The same can be said for nations. Countries such as China India and South Korea have achieved remarkable growth as a result of their strong educational systems capable of producing an economic advantage to their countries.'

Al-Mady has been the chairman of GPCA since it was founded in 2006 to provide a platform for the region's petrochemical and chemical industry to voice their common interests.