New Business Models

Moving into new countries and regions, however, is not the only strategy promising attractive returns. Industrial gases companies ready to explore new business models in existing as well as in new businesses will find ample opportunities for additional growth. 

On-site production is one such opportunity. It has been a strong driver of growth for several years and will continue to be so in the near future. On-site production is a clear departure from the classic business model of a gases player. Instead of merely supplying gas, the gases company supplies a solution it not only develops an optimum supply concept for an industrial customer, but also builds, installs, operates, and maintains the on-site gas supply systems. 

Benson, A., Blair, P., Bums, I., Heslop, M. and Jacobs, A., Schroder Salomon SmithBarney, Report 25 January 2002 

Focusing on the complex area of the market where chemicals are required at short notice and in fairly small quantities, chemical distributors have developed over time into important players in the value chain from producers to consumers in a broad role, serving as supply chain managers offering a wide range of logistics and value-added services. 

This mid-sized industry, currently addressing a total world market of roughly EUR 70 billion, is estimated to show a healthy two to four percent growth on an annual average for the foreseeable future. 

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Redesign the business system. Create a new business model in which product, production system, delivery system, supply chain and customer care may all be changed. 

As a consequence, potentials for solving this conflict of interest between chemicals industry and environment policy are mainly seen in promoting new business models in which profits do not result from the quantity of chemicals sold, but rather from the services rendered by means of the chemicals. The term "Chemical Leasing" stands for such a service-oriented business model in... 

The Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Management (BMLFUW) commissioned various studies, showing that almost 4000 Austrian companies would basically qualify for the application of Chemical Leasing models, cutting today s annual use of 150,000 tons of chemicals by one third. On average, the user of such new business models can expect cost savings of approximately 15%. 

In their presentations the experts confirmed the prospect of success of such new business models among which the Chemical Leasing concept seems to be the most advanced and comprehensive one showing the highest potentials both in terms of resource efficiency as well as environmental compatibility. 

One of the most important results of the November 2003 Austrian conference was that the legal framework, within which the partners of such new business models act, is of high interest. Especially the legal nature of the chemical within the cycle of the leasing model is decisive. This should become a clear and intelligible factor. 

This book also covers the connection between the new EU Chemicals Policy (REACH) and Chemical Leasing. Within REACH, cooperation, networking and communication based on documentation, evaluation and minimisation of hazards is indispensable. The new business model can serve as a basis for this intensified dialogue and cooperation. 

Only in the last step feasibility will be checked, with a clear solution in mind. General conditions will be determined and evaluated whether they are available or need to be created. This partial step will be called "Finding possible solutions", the result of which is a list of tasks needed for determing the feasibility of a new business model for Chemical Leasing. 

For each solution, the question will be asked "What is needed for realisation ". By this means, the necessary "hard" and "soft" pre-conditions will be determined (e.g. new partners, specialists, choice of business management, different company culture,. ..) In a further step, these pre-conditions defined are further described by a timeframe "When will it be possible " During discussion, tasks necessary to clarify pre-conditions will be continually noted. Wherever there are potential improvements described, which cannot be optimised in-house, links to new business models like Chemical Leasing are established. 

The company Automobiltechnik Blau, a branch of MAGNA STEYR Fuel Systems Ces.m.b.H. in 8160 Weiz/Preding, Austria (www.blau.co.at www. magnasteyr.com) was identified as first client for the new business model. 

How many customers have accepted the new business model till now 1 ... 

Motives for the introduction of the new business model Influence on the application of the procedural plant which increases live expectancy pressure on the market. The user does not need expert knowledge anymore and can concentrate on its core competence. ... 

Would you implement the new business model once again YES X NO ... 

At the beginning of the implementation of the new business model the service recipient operated the de-lacquering baths which were planned by the service provider. 

Motives for the introduction of the new business model Advantages in business competition. ... 

Does the new business model provide cost reductions < ... 

How many customers have accepted the new business model till now There is a possibility to involve another six automotive companies in the new model (Chemical Leasing company). Additionally, we have two clients in the electroplating sector and aluminium sector who are ready to cooperate in ChL projects. ... 

Are you successful with the new business model The ChL contract is just in place and there is a very high potential for success. < ... 

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