In the past decade, different sectors have been disrupted by entry of platform businesses. Consider Google and Facebook entry into advertising, Amazon into retail, Apple and Spotify into music, Uber and Lyft into mobility.

Initially the first sectors targeted for disruption were B2C. However, of late, we’re seeing the emergency of B2B platforms, in traditional sectors such as construction and steel.

Although platforms have re-shaped industry after industry, one industry that seemed to have escaped is the chemical industry. Not for long, though. Early signals of potential disruption along three areas of the chemical value chain are on the horizon:

1. R&D: the rise of open platforms in informatics

The process for discovering and developing chemicals has not changed for centuries. It still requires tedious and costly lab experiments, which is inefficient and slow.

To address this issue, new start-ups at the intersection of material science and computer science (material informatics) are envisioning open platforms. These platforms aim to aggregate huge material knowledge from different sources into a single, consistent, searchable format, and use machine-learning AI algorithms to come up with unexpected innovations quickly and efficiently.

2. Formulation and marketing: the potential of material selection and recommendation engines

The trend of B2B consumerisation is changing the behaviour of buyers. They expect a similar experience to that they have elsewhere in their lives as digital consumers (on Amazon or Netflix). This is characterised by quick search, high quality output (now driven by AI), real time and personalised recommendations to facilitate decision making, preferably a one-stop shop, that’s easy and convenient.

Such platforms such as specialchem and www.pharmacentral.com have appeared in the chemical industry. Imagine a product formulator who has to define the right formula from multiple ingredients (surfactants, polymer, stabiliser, and so on) from several different suppliers. What if they could subscribe to a platform providing advice and recommendations on ingredients, dosages and expected performances and costs?

3. Distribution: the emergence of a Chemazon

Amazon is making forays into the B2B sector. It has already penetrated the industrial equipment supply business. In China, 1688.com, Alibaba’s B2B marketplace, already hosts specialty chemicals-like ingredients for polyurethane foams, coatings and adhesives. Several western chemical companies, including Covestro, BASF, and Evonik have launched flagship stores on 1688.com.

These are early signs of shift in the chemical industry. Apart from digital giants (such as Alibaba and Amazon Business) new vertical platforms specialised in the chemical sector are emerging and other niche platforms.

Platform-based business models will likely reshape business in several segments of the chemical industry. Incumbents who are slow to transition will be caught out and transitioned into history. This means there is a time window of opportunity to anticipate the shift by experimenting with the new platform business models, to learn quickly, develop new skills and mental models, and lead the change.