Digital Transformation and AI in the Chemical Industry: Insights from Westlake’s CDO

In our most recent episode of DigiChem Dialogues, our CEO Jay Bhatia sat down with Constantyn Chalistios, Chief Digital Officer at Westlake Corporation, to discuss digital transformation and AI in the chemical industry. With over 30 years of experience, Constantyn shared valuable insights on how companies can effectively navigate their digital journeys.
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The Evolution of Digital Transformation

Constantyn's career spans decades, with significant experience leveraging digital platforms to reshape technology infrastructure and organizational models. He highlighted two key projects that exemplify early digital transformation efforts:
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1. Developing instrumentation for oil and gas reserve detection:
   "I was working on instrumentation to really determine where oil and gas reserves are located and how to extract those optimally."
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2. Optimizing specialty chemicals logistics:
   "We used algorithms to understand how to improve logistics of moving specialty chemicals to the locations where you have to deploy those."

These projects showcased the power of combining various engineering principles with data analytics to solve complex industry challenges.
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The Role of Innovation in Digital Transformation

Throughout his career, Constantyn has been drawn to roles that foster innovation. As Chief Digital Officer at Westlake, he sees himself as a "chief evangelist," promoting innovation across the enterprise's entire value chain.
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Westlake's Digital Roadmap

Constantyn outlined Westlake's digital transformation journey, which revolves around three main pillars:
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1. Enhancing customer experience
2. Improving operational excellence
3. Increasing corporate productivity with digital tools

"These three main pillars define our roadmap for the next five to ten years within our organization," he explained.
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Key Performance Indicators (KPIs)

Constantyn emphasized the importance of having two sets of KPIs for each digital project:

1. KPIs related to the application or product being built
2. KPIs that measure the financial improvement resulting from the application

"This is critical because if you don't have these two sets of KPIs, then you really don't know if you have been successful with your digital application," he noted.
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Lessons Learned from Digital Transformation

Throughout his experience, Constantyn has learned several important lessons:

1. Stakeholder Alignment: "Having executive sponsorship and clear communication about our digital roadmap is essential."
2. Start Small, Scale Up: "We don't try to boil the ocean. Instead, we focus on specific challenges and build solutions around them."
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Actionable Strategy for Your Digital Transformation Journey

For companies looking to start their digital transformation journey, Constantyn offers practical advice:
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1. Start with Existing Initiatives:
   "Many companies have already begun exploring digital options, often led by their IT departments," Constantyn notes. This means leveraging what you already have in place rather than starting from scratch.
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2. Focus on Specific Challenges:
   Instead of tackling everything at once, Constantyn advises, "Identify specific problems within areas like procurement or logistics." This targeted approach helps ensure that efforts are effective and manageable.
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3. Develop Targeted AI Tools:
   "Consider creating AI tools tailored to address specific operational issues," he suggests. By focusing on particular needs, companies can develop solutions that directly impact their efficiency and productivity.
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4. Address Operational Issues Directly:
   Constantyn emphasizes the importance of looking at specific equipment or processes that need improvement. "Focus on solutions that enhance performance," he says, highlighting that direct improvements can lead to significant benefits across the organization.
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Digital transformation and AI present both challenges and opportunities for chemical companies. By embracing new technologies and fostering a culture of innovation, organizations can unlock new sources of value and drive sustainable growth in an increasingly digital world.
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Ready to streamline your digital transformation?

Agilis offers tools like product information management, product catalogs, AI assistants, and customer portals explicitly built for the chemical industry. Contact us to discover how Agilis can help you achieve digital excellence and drive sustainable growth in today's competitive landscape.