Introduction
Our client is Thai Oil, one of Thailand's leading refiner, partnered with our consulting team to enhance innovation maturity, navigate energy transition challenges, and drive strategic transformation, positioning itself as a leader in the diversified chemical sector.
Challenges
Thai Oil faced several critical challenges that hindered its ability to innovate effectively:
Limited Innovation Maturity: Initially scored as a Level 3 Challenger in the Corporate Innovation Maturity Model (CIMM™), indicating strong awareness but gaps in execution and commercialization of new ideas.
Risk-Averse Decision-Making: Traditional corporate processes slowed down disruptive innovation efforts, limiting the company’s ability to take calculated risks and launch bold initiatives.
Siloed Innovation Efforts: Departments operated independently, leading to inefficiencies in knowledge sharing, duplicated efforts, and a lack of cross-functional collaboration.
Limited Startup and External Collaboration: Despite Thai Oil's recognition of the value of external partnerships, the company faced difficulties in integrating startup innovations and emerging technologies into its operations.
Underdeveloped Digital and Data Capabilities: While Thai Oil had started leveraging AI and predictive analytics, its digital transformation was still in the early stages, with gaps in data accessibility and utilization.
Consulting Approach
Our consulting team implemented a structured, multi-phase approach to drive Thai Oil’s innovation and transformation. This approach was designed to enhance innovation capabilities across leadership, culture, technology, and strategic partnerships.
1. Innovation Maturity Assessment (IMA)
We conducted a thorough Innovation Maturity Assessment, evaluating Thai Oil’s strengths and weaknesses across key dimensions:
Leadership: Commitment to fostering innovation, risk appetite, and decision-making agility.
People: Workforce skills, adaptability, and engagement in innovation initiatives.
Technology: Adoption of emerging technologies, digital tools, and R&D investments.
Organization: Internal processes, governance structures, and alignment with business objectives.
Ecosystem: Partnerships with startups, academia, and industry stakeholders.
2. Gap Analysis and Key Recommendations
Through executive interviews, surveys, and benchmarking against global leaders in the energy and chemical sectors, we identified core areas for improvement and proposed tailored solutions:
End-to-End Innovation Processes: Establishing structured innovation programs to support both incremental (process improvements) and disruptive (new business model) innovations. This included an internal innovation incubator and open innovation challenges.
Enhanced Risk-Taking Culture: Encouraging leadership to support bolder innovation initiatives by implementing a fast-track decision-making framework and refining approval processes for experimental projects.
Advanced Innovation Skill Development: Launching comprehensive training programs to equip employees with agile methodologies, data analytics, design thinking, and emerging technologies.
Strategic Startup Engagement: Strengthening Corporate Venture Capital (CVC) initiatives and forming deeper partnerships with deep-tech startups to co-develop solutions in areas such as bio-based chemicals, carbon capture, and AI-driven operations.
Digital Transformation Acceleration: Enhancing data-driven decision-making by investing in cloud-based infrastructure, predictive analytics, and AI-driven automation for operational efficiency.
3. Implementation Roadmap
A phased, five-year transformation roadmap was developed, structured into three key phases:
Phase 1: 2025-2026 (Building the Foundation)
Conduct IMA reassessments and benchmark progress.
Establish both incremental and disruptive innovation programs.
Develop a strong innovation culture through leadership training and incentives.
Strengthen partnerships with academia, startups, and research institutions.
Phase 2: 2027-2030 (Scaling Innovation Outcomes)
Expand Thai Oil’s Corporate Venture Capital investments.
Launch spin-off ventures based on successful internal innovation initiatives.
Integrate AI and data analytics into decision-making across all business units.
Scale open innovation collaborations with external partners.
Phase 3: Beyond 2030 (Industry Leadership & Continuous Innovation)
Position Thai Oil as a leader in the diversified chemical sector.
Develop a full-fledged ecosystem for co-development of future innovations.
Maintain continuous investment in disruptive technologies and sustainability initiatives.
Results and Impact
Through our intervention, Thai Oil achieved significant progress:
Improved IMA Score: Increased from 56/100 in 2022 to 67/100 in 2024, reflecting improvements in innovation execution, cultural transformation, and digital readiness.
Cultural Shift: Adoption of a more agile and risk-tolerant approach to innovation, with leadership actively driving change initiatives.
Structured Innovation Governance: Creation of dedicated teams for incremental and disruptive innovation, enhancing accountability and execution efficiency.
Strategic Partnerships: Increased collaboration with startups, universities, and industry experts for co-development of innovative solutions in sustainability, AI-driven operations, and bio-based chemicals.
Acceleration of Digital Transformation: Expanded use of AI for predictive maintenance, cloud computing for real-time data analytics, and automation tools to optimize supply chain operations.
New Business Opportunities: Several innovation initiatives led to the development of new products and services, such as biofuel innovations and sustainable petrochemical alternatives.
Conclusion
By leveraging a structured approach and best-in-class innovation frameworks, our consulting team enabled Thai Oil to accelerate its transformation journey. With ongoing commitment and execution, Thai Oil is well-positioned to become a global leader in the diversified chemical industry. The strategic roadmap ensures sustained innovation growth, allowing the company to navigate the energy transition while maintaining its market leadership.
Through continued execution of our recommendations, Thai Oil will not only achieve its goal of becoming a diversified chemical powerhouse but also establish itself as a benchmark for innovation excellence in the energy and petrochemical industry.
