NPC Advisor: Clear Public-Private Divide Key to Industrial Digital Transformation

NPC Advisor: Clear Public-Private Divide Key to Industrial Digital Transformation
(Tuesday, October 21, 2025) 16:24

Tehran, Oct 19 (NIPNA) – Iran’s petrochemical industry must move beyond hardware expansion and raw material sales if it is to remain competitive, a senior National Petrochemical Company (NPC) advisor said, stressing that digital transformation has become a “strategic necessity” for resilience and value creation.


“Digital transformation is no longer a choice—it’s a strategic imperative for survival,” said Shahram Rezaei, advisor to the NPC managing director, during a panel discussion on digital maturity in Iran’s petrochemical sector. “The era of relying solely on hardware development and raw material exports is over. The future belongs to smart systems, data architecture, and the empowerment of small and medium-sized enterprises.”

Rezaei said rapid global shifts—ranging from climate change and resource constraints to international pressures—are reshaping the energy sector’s business model. “We can no longer create value by merely expanding pipelines or increasing output,” he said. “We must turn underground resources into high-value products that drive domestic production chains and generate sustainable employment.”

He added that global experience shows lasting transformation only occurs when digital technology, data-driven management, and process redesign are combined. “What creates value today is not more hardware, but smarter processes, data analytics, and data-based services.”

Public-private transparency crucial

Rezaei warned that the lack of transparency and trust between the public and private sectors remains a major barrier. “Private investors need stability, predictability, and access to real data, but they often face opaque markets,” he said. “If the private sector is to drive innovation, we must build a transparent, trust-based framework that enables confident investment and risk management.”

Digitalization for resilience and crisis prediction

Digital transformation, he added, is not just about efficiency but also about resilience. “Feedstock or power disruptions can cripple production and reduce overall productivity. Digital tools enable prediction, network coordination, and production stability in critical conditions,” Rezaei said.

He cited technologies such as the Internet of Things (IoT), real-time data monitoring, and artificial intelligence as essential for predictive maintenance, transparency, and supply-chain risk management—aligned with Iran’s Seventh Development Plan.

Rezaei urged industry leaders to view technology as a service rather than a product: “Instead of buying expensive equipment, we should develop shared, data-driven services. This approach allows smaller companies to benefit from digitalization while spreading innovation across the sector.”

Cultural and educational shift needed

He emphasized that digital transformation also depends on changing corporate culture. “Many managers and staff still cling to traditional methods. Without training in data literacy, smart decision-making, and new technologies, no digital tool will succeed,” he said.

Next phase: second-generation digitalization

Iran’s petrochemical industry, Rezaei said, is moving toward “second-generation digitalization”—beyond installing devices to focus on data architecture, cross-sector synergy, and data-based services. Pilot projects are already underway, and operational results will be announced soon.

Rezaei added that digitalization can increase resilience, lower costs, and expand export markets, but only if Iran strengthens its capacity for data-based coordination amid feedstock and energy fluctuations.

He pointed to Saudi Arabia’s use of predictive feedstock management systems as a model and warned that “every delay in adopting such solutions carries national economic costs.”

To withstand future sanctions, Rezaei said Iran must develop self-sufficient, data-based systems for production and equipment supply. “We may face sanctions not on exports but on technology itself. We must be ready to sustain production under such constraints,” he said.

Citing Japan and South Korea as examples, he said both countries achieved resilience through strong data infrastructure and reduced reliance on external sources. “Iran must follow a similar path to ensure stability amid sanctions, energy crises, and environmental limits.”

“The future of our industry is not about producing more—it’s about controlling energy, materials, and data intelligently,” Rezaei concluded. “Digitalization is not just a tool, it’s a mindset that teaches us to predict crises rather than merely react to them.”

 


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