Digital Transformation Reduces Costs of the Paints and Coatings Development Process

Abstract

An essential characteristic of the new product development process is to develop a new marketable product in the shortest possible time with the lowest reasonable costs. Therefore, the key factor of the process is efficiency. The paints and coatings industry development process contain numerous laboratory tests to determine the appropriateness of new formulation. It is proven that digital transformation can reduce the number of laboratory tests and consequently shorten the throughput time of the development process. This raised the question of whether the faster development process also reduces the process’ cost, or they even increase due to information and communication technology implementation. Therefore, the research’s purpose was to determine whether reducing the number of laboratory tests, based on the implementation of information and communication technology (ICT), affects reducing costs in the paints and coatings development process. The conventional process and the redesigned process of paints and coatings development were used as the basis of the research. The comparative analysis of the costs incurred during the development process was made. The analysis compares the types and amount of incurred costs. The article proves that digital transformation has a significant impact on up to 48% on reducing costs of the paints and coatings development process.

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