Hyper-connectivity, supercomputing, cloud computing, cybersecurity, and smart products have created a world where traditional boundaries of products versus service offerings no longer exist. Individuals, businesses, and societies are connecting in real-time, creating a world that is more collaborative, intelligent, and responsive. Fortunately, the oil and gas industry has been highly automated and digitized for decades.
Yet, the technology powering the digital economy is taking connectivity to a new level, transforming nearly every aspect of operations and customer engagement. Early adopters are growing shareholder and stakeholder value faster than their peers; while those failing to adapt are falling behind. Staying ahead of the curve means taking a hard look at existing practices and reimagining everything from business models and processes to work management solutions.
Over the past decade there have been significant changes in how people and businesses connect. Building on the popularity of social networks, enterprises have established their own business networks to connect suppliers, customers, and internal systems. The result is a growing global trade that SAP Business Trends estimates will reach $65 trillion by 2020. Add to this, the rise of the Internet of Things with an estimated 45 billion connections between devices by 2020, and you have a business environment of endless possibilities. To successfully adapt, one must first understand the five main attributes of the digital economy:
The digital economy is transforming people’s lives, giving them greater convenience choices and value than ever before. It’s transforming society with increased efficiency, economic development, and improved problem solving. And, it is transforming businesses by giving decision makers new insights to help optimize processes and make smarter decisions. The resulting value-added benefits can positively impact a company’s bottom line.
For example, oil and gas companies can strengthen customer loyalty by developing hyper-personalized products and services and a more unified end-user experience. They can also drive new innovation through technology platforms such as SAP HANA that enable the sharing of ideas from anywhere and anyone. Data-driven, actionable insights also help companies get more out of constrained resources with improved processes such as real-time resource allocations, more agile infrastructures, and sophisticated applications that can create greater abundance of scarce resources. Finally, the digital economy can drive efficiencies by preventing disruptions and automating processes such as maintenance and workload schedules.
Oil and gas companies have a unique opportunity to leverage the efficiencies and growth promised by the digital economy. It begins by looking for ways to digitize content and then capturing, analyzing, and delivering the resulting data in easy-to-consume formats so that real action can be taken. Now is the time to activate, optimize, and transform to secure new competitive advantages and establish sustainable leadership in this new world. Learn more about digitization opportunities for Oil and Gas in our latest whitepaper: The Digital Oil and Gas Company: Inspire and Shape the digital energy revolution.