Operations Management Future Trends

8/13/2019 Operations Management Future Trends

1/4

FUTURE TRENDSMOMENTIVE

"I never think of the future. It comes soon enough."

A. Einstein

Momentive states that it is a really sustainable company and that it is always trying to do the

best for the moment and for the future.

The operational excellence, the corporate responsibility and the product sustainability make us

believe that the company will continue its development in the same way that it developed until now.

The Momentive company has reached its maturity point and it will try to remain in that

particular spot for as long as possible and not get into the recession section of the curve. 1

Fig. 1: The business cycle of the Momentive company2

1www.momentive.com/

2http://www.retailinvestor.org/risk.html
http://www.momentive.com/http://www.momentive.com/http://www.momentive.com/http://www.retailinvestor.org/risk.htmlhttp://www.retailinvestor.org/risk.htmlhttp://www.retailinvestor.org/risk.htmlhttp://www.retailinvestor.org/risk.htmlhttp://www.momentive.com/


2/4

In order to make predictions about the future of the company, we will have to analyze the

evolution of the industry as a whole.

It is predicted that the world will go through another period of unprecedented development in

the next 40 years. New industries will appear and some of the current ones will lose relevance; there are

going to be new economic leaders in the world and many of the things we know will change over thetime.

The chemical industry is going to have a really important role in all the new developments (as it

already had in the previous revolutions). It is predicted that this particular industry will quadruple its

potential until 2050. The enormous challenges that the climate and the vast economic and

demographical development are going to bring, will not only affect the chemical industry as an industry

itself, but it will also force the industry to excel in what it does best: technology and innovation.

Fig.2: The energy demand by area

The chemical industry will have a great role also in the production of energy. As the graph above

shows, the energy demand will grow really much until 2030 which means that the chemical industry has

a really bright future and that there will still be a need of this particular industry. There will be a huge

need of change in most of the companies that activate in the chemical industry because there are going

to be many challenges in the requirements from their clients; everything will evolve in the future and

the chemical industry, in general, and Momentive, in particular, will also have to adapt and make the

needed changes in order to provide excellent goods and services and to maintain and develop their

relationships with the customers and suppliers.


3/4

There are some predictions that say that in the future, due to the challenges that the

environment, the clients, the political/economical etc. environments will bring, the chemical industry

will be able to show its full potential and to get more concentrated on creating value and not only high

profits. The chemical industry might get through its second revolution through the following decades; it

is supposed that there will be a transition from the manufacturing model to innovation and growth.

Demographically speaking, there will still be a huge growth in the next decades and it states

once more the importance of the chemical industry (we will all need its products in order to have a

better life).

Fig 3. UN world population scenarios; blue line: base scenario, yellow: low scenario, green: high

scenario3

I think that in the future development of Momentive there are two main things that can happen:

The company adapts itself to the changing environment and innovates in order to meintaing itscompetitiveness

The company wont be able to adapt to the changes and will be overcome by its competitors,but it will still be on the market

In the first case scenario, the company will invest money in innovations and will be able to adapt itself

and keep up with the changes that will appear.

Momentive is one of the first 50 companies in the chemical industry in the world. If it manages to keepup with the changes, it will maintain its position.

3http://esa.un.org/unpd/ppp/index.htm,Population Division of the Department of Economic and Social Affairs of

the United Nations Secretariat. World Population Prospects. The 2007 Revision
http://esa.un.org/unpd/ppp/index.htmhttp://esa.un.org/unpd/ppp/index.htmhttp://esa.un.org/unpd/ppp/index.htmhttp://esa.un.org/unpd/ppp/index.htm


4/4

As we discussed earlier, the operations are really strict and everything is really well planned (only

knowing the fact that the company is one of the first 50 companies in its domain in the world, we can

conclude that the processes, the management and so on are really efficient).

The company spends a great amount of resources on R&D: in 2011 the company spent 147.384 millions

$ and in 2012 it has spent 138 millions $ in the same department. It shows a great care for innovationsand new technologies, a will of maintain the current position and permanently adapt to the changes

that occur in the environment.

In 2012, the amount that was spent on R&D is smaller than the one from 2011, but we have to admit

that 2012 was a hard year, with a really accentuated financial crisis.

Documents

Operations Management Future Trends