Innovation Management
Challenges and Commitments
Nowadays, consumer interest has shifted more towards environmental innovations. The rising competition of eco-friendly products in the market presents both challenge and opportunity for GGC in developing and researching eco-friendly and safe innovations. At the same time, GGC has found a means to extend our business to new product markets that answer to the needs of customers and consumers as well as improve our production process to maximize resource efficiency and minimize air pollution.
Key Stakeholders
Employee
Customer
Government
Supplier and Business Partner
Goals
- Revenue from Low Carbon Product from Fatty Alcohols Main-Cut and Fatty Alcohol Pre-cut are accounted for 34% of total revenue
- Revenue from Avoided Emission Products from Bio-Methyl Ester: BME is accounted for 56% of total revenue
Management Approach
Innovation and Product Development Strategy
GGC operates under the innovation and product development strategy with focus on developing research to increase product value through innovation management in three areas, namely open innovation, product innovation and process innovation.
Innovation and Product Development Strategy
GGC foresees that sustainable business operations and innovation development is an important supporting factor for adding value to its products. This includes differentiating from commercial competitors. GGC develops products and creates innovations through cooperation within the GC group and PTT group, as well as creates cooperation with external alliance networks and collaborates with customers to research and develop innovations and products to meet the exact needs of customers.
Open Innovation
GGC has built a network of product research and development to meet customer needs, business needs, societal needs, and the country’s environmental needs, both at the present and in the future, by investing and conducting research in collaboration with external organizations, both public and private, including educational organizations or research institutes, to develop new technologies and products and increase the efficiency of using natural raw materials for maximum benefit. In 2022, examples of GGC’s outstanding open innovation projects are as follows:
Development of Less Flammable Bio-Transformer Oil From Palm Oil and Integrated Pilot Field Test to Promote Its Commercial And Sustainable Use
In order to alleviate the problem of palm oil oversupply in the market, GGC has collaborated with the public and private sectors to develop a pilot project to produce less flammable bio-transformer oil from palm oil using domestically developed technology and conduct field tests in the transformer. This will increase the value of palm oil in Thailand, reduce fire risks in power transformers and generate income for palm oil farmers.
For more more details about the innovation management project, please see the 2022 Integrated Sustainability Report at Integrated Sustainability Report 2022
The Green Health Project: GGC cooperated with Luffala Community Enterprise, Nong Fab Community, to develop liquid hand soap formula for Luffala Enterprise to produce and distribute. Furthermore, GGC operates the SE Project with the Koh Kok community to Develop and produce personal hygiene product formulations using glycerin, which is GGC’s main product, combined with local raw materials from the community, to help drive the creation of business collaboration between GGC and the community, as well as emphasizing hygiene. GGC cares for the community and the environment under the strategy of social responsibility.
Product Innovation
GGC recognizes the opportunity to expand R&D scope to increase the value of our products to meet the needs and changing behaviors of customers and consumers. In 2022, highlight products include:
For more details about the Product Innovation Program 2022, please see the Business Excellence section in the 2022 Integrated Sustainability Report at Integrated Sustainability Report 2022
- (Sodium Lauryl Ether Sulfate) Products Project: developing SLES surfactant, which is a cleaning product, from fatty alcohols to extend the business to the Home & Personal Care (HPC) market.
Process Innovation
GGC focuses on developing innovations in the production process to enhance the efficiency of using resources for maximum benefit, as well as reducing pollution and greenhouse gas emissions to the environment.
For more details about the Process Innovation Programs in 2022, see the Business Excellence section in the 2022 Integrated Sustainability Report at Integrated Sustainability Report 2022
Project to Optimize Steam at the Ejector System
by using the Steam Ejector to create a vacuum in the production process to reduce the amount of steam energy and energy to produce steam, which also helps reduce costs.
Project to reduce production mode change time
by developing a product inspection process within the fatty alcohol production process instead of sending the product to an external laboratory for inspection to help reduce pauses in the production process, resulting in lower production costs.
Recovery Oil Loss from Wastewater Project
by separating the oil mixed in the waste water from the distillation tower for recovery, as well as to be sold as a fuel mixture, which can generate income for GGC.
Project to increase the efficiency of COD treatment in the wastewater treatment system
by reducing COD in the aerated wastewater treatment system through water management planning. The project tests quarantine to maintain the wastewater treatment efficiency in the aerated wastewater treatment system. As a result, it can maintain the efficiency of wastewater treatment at more than 90 percent.
Reduction of ME Residue at Biodiesel Process Project
by optimizing the reaction integrity and improving the vacuum system to reduce Methyl Ester loss in ME Residue, resulting in additional production of mythyl ester.
Innovation Performance
| 2019 | 2020 | 2021 | 2022 | Target 2022 | |
|---|---|---|---|---|---|
| R&D Spending (million THB) | 20.35 | 16.6 | 13.7 | 5.33 | N/A |
| R&D Spending as percentage of sales (percent) | 0.155 | 0.091 | 0.066 | 0.020 | N/A |
| R&D Employees (persons) | 2.03 | 2 | 2 | 2 | N/A |