Jobs to be Done (JTBD)
for Manufacture of basic chemicals (ISIC 2011)
JTBD is highly applicable to the basic chemicals industry, despite its often-perceived commodity nature. Basic chemicals are almost always intermediate goods, meaning their value is intrinsically linked to the 'job' they help end-users accomplish in a downstream product. Understanding this deepens...
What this industry needs to get done
When I am manufacturing my products, I want to procure basic chemicals that consistently meet specified purity and performance parameters, so I can ensure the quality and reliability of my own end-products.
Variability in chemical inputs can lead to costly production delays, rejections, and reputation damage for downstream manufacturers, making consistent quality a non-negotiable but often challenging standard to maintain (PM03: 4/5).
- Incoming material rejection rate
- Finished product quality defect rate
- Production line stoppage frequency due to raw material issues
When I am planning my production schedule, I want to have confidence that my chemical suppliers will deliver the correct materials precisely when and where they are needed, so I can avoid costly downtime and maintain my own production continuity.
The complexity of trade networks (MD02: 4/5) and capital-intensive distribution channels (MD06) means that logistical failures can have cascading negative impacts throughout the value chain, making supply reliability critical.
- On-time in-full (OTIF) delivery percentage
- Supply chain lead time variance
- Emergency order frequency
When I am operating my chemical manufacturing facility, I want to proactively identify and comply with all current and impending environmental, health, and safety regulations, so I can avoid fines, operational shutdowns, and reputational damage.
The inherent toxicity and precautionary fragility of basic chemicals (CS06: 3/5) coupled with a complex global regulatory environment makes staying ahead of compliance requirements a constant, resource-intensive challenge.
- Regulatory non-compliance incidents
- Environmental permit violation fines
- Audit failure rate
When I am seeking to innovate my product portfolio, I want to procure and integrate basic chemicals that align with evolving sustainability mandates and consumer preferences, so I can reduce my environmental footprint and gain a competitive advantage.
Customers increasingly need to 'get the job done' sustainably, but market saturation (MD08: 3/5) and the need to maintain competitiveness against sustainable alternatives (MD01: 2/5) means that integrating truly sustainable solutions is complex and often cost-prohibitive.
- Percentage of portfolio from renewable feedstocks
- Product lifecycle assessment (LCA) scores
- Customer adoption rate of sustainable chemical offerings
When I am making long-term strategic decisions, I want to feel confident that my access to essential chemical inputs is secure and that my products will remain viable in the face of market shifts and regulatory changes, so I can invest and plan for sustained growth without undue risk.
The long value chains (MD05: 4/5) and the potential for market obsolescence or substitution (MD01: 2/5) create anxiety about securing reliable, future-proof inputs and partners, impacting strategic confidence.
- Long-term supply contract renewal rates
- Executive confidence index regarding input security
- R&D investment in new material partnerships
When I am engaging with stakeholders and the public, I want my company to be recognized as a responsible and ethical operator in its chemical sourcing, production, and community engagement, so I can maintain my social license to operate and attract investment and talent.
High risks associated with labor integrity (CS05: 4/5), social displacement (CS07: 4/5), and inherent toxicity (CS06: 3/5) create significant reputational vulnerabilities that require proactive and transparent management.
- ESG rating improvements
- Community grievance resolution rate
- Employee retention rates in key regions
When I am purchasing basic chemicals, I want to acquire them at the most competitive price possible while ensuring quality and supply, so I can maintain healthy profit margins amidst persistent market pressures.
Persistent margin pressure (MD07) and complex price formation (MD03: 4/5) mean that optimizing input costs is a continuous and high-stakes endeavor for businesses in a saturated market (MD08: 3/5).
- Raw material cost per unit of output
- Supplier price variance
- Procurement efficiency savings
When I am interacting with my key chemical suppliers, I want them to understand my specific process and end-product challenges, so we can co-create tailored solutions that enhance performance and efficiency for both parties.
While basic transactions are common, forming genuinely collaborative partnerships that extend beyond molecule delivery requires significant investment and trust, often overlooked in a commodity-driven market (MD07: 3/5, MD05: 4/5).
- Customer satisfaction scores on technical support
- Joint R&D project initiation rate
- Share of customer wallet for specific applications
When I am designing or operating my chemical processes, I want to understand and effectively manage my environmental footprint, so I can proactively mitigate risks and demonstrate responsible stewardship.
The inherent toxicity (CS06: 3/5) and the social pressure related to community friction (CS07: 4/5) can create a feeling of vulnerability, making a clear, actionable path to environmental control highly desired but often complex to achieve.
- Waste generation per ton of product
- Greenhouse gas emissions reduction %
- Water consumption per unit of output
When I am analyzing my chemical production and supply chain data, I want to identify patterns and anomalies quickly, so I can optimize processes, predict failures, and make data-driven decisions.
While data is abundant, turning complex process data from highly synchronized and capital-intensive operations (MD04: 4/5, MD06) into actionable insights often requires advanced analytical capabilities that are not universally adopted or effectively implemented.
- Process uptime improvement %
- Predictive maintenance accuracy
- Energy consumption reduction per unit
When I am seeking to recruit new employees, I want my company to be seen as an attractive and forward-thinking employer with a strong commitment to safety and innovation, so I can secure the specialized workforce needed for future growth.
Despite the foundational nature of the industry, perceived risks (CS06: 3/5) and the need for specialized skills in a dynamic environment can make attracting and retaining talent challenging, especially in areas like R&D for sustainable alternatives.
- Employee turnover rate for critical roles
- Time to fill open positions
- Applicant quality scores
When I am managing transactions and interactions with suppliers, I want the process to be straightforward and automated, so I can minimize administrative overhead and free up resources for more strategic tasks.
The deep value chains (MD05: 4/5) and complex trade networks (MD02: 4/5) often result in cumbersome administrative processes, hindering efficiency and causing frustration for internal teams.
- Purchase order processing time
- Invoice discrepancy rate
- Administrative FTEs per million revenue
Strategic Overview
The Jobs to be Done (JTBD) framework offers a potent strategic tool for the 'Manufacture of basic chemicals' industry, enabling firms to transcend the transactional sale of bulk chemicals and instead focus on the core 'job' customers are trying to accomplish. In an industry grappling with 'Structural Market Saturation' (MD08), 'Maintaining Competitiveness Against Sustainable Alternatives' (MD01), and 'Persistent Margin Pressure' (MD07), a JTBD approach shifts focus from product features to customer outcomes, fostering innovation (IN03) that truly solves customer problems.
By deeply understanding the functional, emotional, and social 'jobs' of their direct customers (e.g., plastics manufacturers, coating formulators) and even their customers' customers, basic chemical producers can identify unmet needs that go beyond simple chemical specifications. This can lead to the development of integrated solutions, value-added services, or novel chemical formulations that justify premium pricing and create differentiation, addressing challenges like 'Limited Organic Growth Potential' (MD08) and enhancing 'Innovation Option Value' (IN03). JTBD is especially powerful in navigating the complex 'Structural Intermediation & Value-Chain Depth' (MD05) characteristic of this industry.
4 strategic insights for this industry
Beyond Molecules: Customers 'Hire' Chemicals for Performance Outcomes
Basic chemical customers are not just buying a volume of a substance; they are 'hiring' it to achieve specific functional outcomes in their own products or processes (e.g., enhanced durability, better processing efficiency, reduced weight, specific aesthetic properties). Understanding these performance 'jobs' helps overcome 'MD08: Structural Market Saturation' and 'PM03: Tangibility & Archetype Driver' by enabling solution-oriented product development (IN03) and tailored offerings, moving beyond a purely price-driven interaction (MD03).
Sustainability as a Primary 'Job to be Done'
Increasingly, customers need to 'get the job done' in an environmentally responsible way, driving demand for bio-based, recycled, or low-carbon footprint chemicals. This 'sustainability job' directly addresses 'MD01: Maintaining Competitiveness Against Sustainable Alternatives' and 'Navigating Evolving Regulatory Landscapes' (MD01). Companies that identify and fulfill this job can differentiate themselves, even in commodity-like segments, despite 'High R&D Burden for Alternatives' (CS06) and 'High Capital Expenditure & Long ROI Cycles' (IN05).
Addressing Supply Chain and Operational 'Jobs'
Customers also 'hire' chemical suppliers to ensure continuity of supply, regulatory compliance, and ease of use. This involves 'jobs' like 'minimizing production downtime' (FR04), 'reducing logistical complexity' (MD05, PM02), and 'ensuring product safety and compliance' (CS06). By understanding these operational jobs, suppliers can offer value-added services (e.g., advanced inventory management, regulatory support, specialized delivery systems) that reduce 'Increased Transportation Costs and Lead Times' (MD02) and 'Working Capital Strain' (FR03).
The 'Job' of De-risking Future Business
For many chemical customers, a key 'job' is to de-risk their future business by securing reliable, high-quality, and compliant inputs that meet evolving market and regulatory demands. This makes their basic chemical supplier an integral partner in their long-term strategy, especially in light of 'MD01: Navigating Evolving Regulatory Landscapes' and 'CS06: Product Delisting & Market Exit'. This opens opportunities for co-development and long-term contracts that strengthen the 'Structural Intermediation & Value-Chain Depth' (MD05).
Prioritized actions for this industry
Establish dedicated 'Job Mapping' teams to uncover the functional, emotional, and social 'jobs' of key customer segments and their end-users.
Deeply understanding customer 'jobs' is foundational for differentiating in a saturated market (MD08) and moving beyond price competition (MD03). This allows for targeted innovation (IN03) and the development of solutions that address 'Maintaining Competitiveness Against Sustainable Alternatives' (MD01).
Reorient R&D and product development processes to be 'job-centric', focusing on solving specific customer problems rather than just improving chemical properties.
By tying innovation efforts to specific customer 'jobs', companies can ensure R&D investments (IN05) yield commercially viable solutions that address 'MD01: Long-Term Demand Erosion' and provide genuine value, rather than developing products without clear market pull. This is critical for navigating 'CS06: High R&D Burden for Alternatives'.
Develop integrated solutions that combine chemical products with value-added services (e.g., technical support, recycling programs, logistical optimization).
Customers' 'jobs' often extend beyond the chemical itself to include aspects like ease of use, waste management, and supply chain reliability (MD05, PM02). Offering integrated solutions can capture more value, build stronger customer loyalty, and differentiate from competitors in a 'Specialized & Capital-Intensive' distribution environment (MD06).
Engage in strategic partnerships with downstream customers and end-users to co-create solutions addressing future 'jobs' related to sustainability and performance.
This collaborative approach helps mitigate 'MD01: Market Obsolescence & Substitution Risk' and ensures that chemical innovations (IN03) are directly aligned with evolving market needs and regulatory pressures (IN04). It also builds deeper relationships, reducing 'Counterparty Default Risk' (FR03) and providing stability in volatile markets.
From quick wins to long-term transformation
- Conduct in-depth interviews with top 10% customers to identify their most critical 'jobs' and pain points.
- Analyze customer complaints and technical support requests for recurring 'undone jobs'.
- Train sales and marketing teams on JTBD principles to reframe conversations from product features to customer outcomes.
- Pilot 'solution bundles' combining existing chemicals with new or enhanced services for specific customer segments.
- Integrate JTBD insights into early-stage R&D project selection and prioritization.
- Map complete customer value chains to identify hidden 'jobs' further downstream that can influence basic chemical demand.
- Restructure R&D and business units around customer 'jobs' or solution areas rather than pure chemical classes.
- Develop entirely new business models (e.g., 'chemicals-as-a-service', closed-loop recycling partnerships) based on fulfilling specific 'jobs'.
- Invest in digital platforms that help customers 'get jobs done' more efficiently (e.g., order management, technical data, sustainability reporting).
- Confusing 'jobs' with product features or customer desires ('what' they want, not 'why').
- Failing to look beyond direct customers to understand the 'jobs' of end-users, especially in a 'Structural Intermediation & Value-Chain Depth' (MD05) industry.
- Underestimating the organizational change required to shift from a product-centric to a job-centric mindset.
- Lack of sustained commitment to customer research, leading to superficial insights or incomplete 'job' understanding.
Measuring strategic progress
| Metric | Description | Target Benchmark |
|---|---|---|
| Revenue from New Solutions/Services | Revenue generated from products or service bundles developed directly from JTBD insights. | 10-20% of total revenue within 3-5 years |
| Customer Satisfaction Score (NPS for solutions) | Net Promoter Score specifically for new solutions or integrated offerings, measuring customer loyalty and advocacy. | Score of 50+ for new offerings |
| Time-to-Market for Job-Centric Innovations | Efficiency of the R&D and commercialization process for products/services addressing identified 'jobs'. | 20% reduction in lead time compared to previous product-centric innovation |
| Customer Retention Rate (for solution buyers) | Percentage of customers who continue to purchase specific solutions or bundled offerings year-over-year. | 95%+ for key solution customers |
| Cross-Sell/Up-Sell Ratio | Number of additional products/services purchased by customers who initially engaged with a JTBD-driven solution. | Increase by 15-20% in relevant customer segments |
Other strategy analyses for Manufacture of basic chemicals
Also see: Jobs to be Done (JTBD) Framework