5 Tips to Make Digital Transformation easier in the Oil and Gas Industry

Undergoing digital transformation presents many challenges along the journey. To succeed in this endeavor, it's critical to understand the issues you may face and how you can overcome them.

Posted: December 2, 2019

Oil and Gas

5 Tips to Make Digital Transformation easier in the Oil and Gas Industry

Having worked for a long time in the automotive, aerospace and process industries, it has been interesting to see how organizations attempt to solve the challenges faced with digital transformation. Undergoing digital transformation presents many challenges along the journey, so it’s essential to understand the issues you may face and how you can overcome them.

1. Setting the right strategy

As we learn in all corporate environments, strategic planning is critical to ensure focus and direction as a collective approach to achieving the desired goal. This article on Medium.com[1] shows how you can break your digital transformation strategy into five simple steps:

  • Create a vision
  • Analyze the market
  • Design the experience
  • Assess a current standing
  • Adjust infrastructure

2. Getting people on board

The oil and gas industry has long been a laggard in adapting to digital change. McKinsey wrote in an article online, “Digital Success requires a digital culture. An old-world organization will doom your reinvention for the new world”[2].  In order not to be doomed, companies should adopt a top-down culture, that allows broad access to information and the collective accountability to support the defined digital strategy.

3. Finding financial justification

The initial costs of implementing digital change can seem expensive. But it’s important to remember that to save money, organizations may need to spend money. Working with AVEVA, Petroleum Development Oman (PDO) realized they could save 10,000 man-days per year just by solving poor information management issues that resulted in data silos. Pinpoint a specific KPI and enjoy early ROIs.

4. Setting the right targets for digitalization

So, what KPIs should be set in place for successful digital transformation? Whenever I discuss this topic, I have three typical things in mind: saving money, improving productivity, and reducing risks. According to Gartner[3] to create a digital KPI, you should begin by asking these key questions:

  • What is being measured? An example might be the percentage of customer interactions that are virtual/digital.
  • Where are we today?
  • What is our target goal?
  • What is our desired business outcome/benefit (for example, 50% better customer outcomes and 20% lower cost)?
  • What is our balance point?

5. Developing your strategy over time

The world of digital transformation is fast-moving, so it's critical strategy is both developed over time and in a process of continuous improvement. Many organizations look internally to layout their digital transformation long term roadmaps, but software partners are key in this process. Looking to external partners is just as important. The right digital partner will help you assess the organization's digital success, but also provide you with a roadmap of where you can go next – choose those that have a good roadmap themselves!

Want to find out more? Get in touch to learn about how the technologies adopted by PDO allowed them to embrace digital transformation with the help of AVEVA.

[1] https://medium.com/@VitaliyZhovtyuk/how-to-develop-a-digital-transformation-strategy-step-by-step-guide-f8e4bd5719b6

[2] https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-strategy-and-corporate-finance-blog/digital-success-requires-a-digital-culture

[3] https://www.gartner.com/smarterwithgartner/how-to-measure-digital-transformation-progress/


 

author
Written By
Simon Loftus

Simon is an energetic and enthusiastic technology advocate having spent his career helping customers find solutions and solve problems and always looking to help people review what they're doing to support a process of constant improvement. Simon works as a product sales manager at AVEVA, focused on Information Management Solutions and digital transformation.

See how APM 4.0 drives measurable and immediate results to your bottom line. Get Connected

Related Blog Posts

Stay in the know: Keep up to date on the latest happenings around the industry.

Oil and Gas
5 Tips to Make Digital Transformation easier in the Oil and Gas Industry

Undergoing digital transformation presents many challenges along the journey. It's essential to understand the issues you may face and how you can overcome ...

Oil and Gas
Maximize Oil and Gas Pipeline Efficiency with Integrated Digital Twins

How pipeline companies lean towards digital transformation to improve operational efficiency with AVEVA while enhancing the safety measures

Oil and Gas
$1 trillion to be unlocked in Digital Transformation?

Data is the foundation of Digital Transformation of Oil and Gas. Data feeds into predictive analytics, optimises process, predicts machine failures.

Chemicals
Are you ready to ride the wave of the petrochemical industry growth?

To overcome business and operational challenges, companies will need to increase their level of digital maturity through value chain optimization.

Oil and Gas
Understanding the Refining and Petrochemical Value Chains to Drive Optimization

Understand the complexity of the refining and petrochemical value chains to create a solid digital transformation strategy that optimizes the entire enterprise.

Oil and Gas
When Digitalization and Transformation are not Enough: Accelerate.

Market-disrupting industrial organizations differentiate themselves by transforming business through innovating and accelerating past the competition.

Oil and Gas
Optimizing my Refinery Blend is Much Harder than Baking Cookies

Refinery products are blended to get final products with desired quantity, quality and schedule specifications. However, rigorous planning, scheduling and ...

Oil and Gas
3 Steps to Maximising Pipeline Integrity

Ageing infrastructure is posing huge challenges for pipeline operators in keeping their pipelines running optimally and profitably in the face of increasing ...

Oil and Gas
How Can Predictive Analytics Reduce Unplanned Downtime in Oil and Gas Production?

Production can increase either by developing new fields or improving asset uptime in existing fields, but asset downtime due to facility maintenance – planned ...

Oil and Gas
My Car Has Predictive Analytics, Why Shouldn’t My Refinery?

Rebroadcast of Air Liquide's experience with predictive analytics and AVEVA

Oil and Gas
How Digital Transformation in Engineering and Design boosts Project Profitability

Low oil prices had sanctioned almost every large Exploration and Production (E&P) projects in the oil and gas industry. Today, with the recent recovery of oil ...

Oil and Gas
The Price of Optimizing Your Process Is Asset Reliability

Predictive maintenance (PdM) strategies enable front-line personnel to act before costly failures occur and maximize value throughout the entire asset ...

Oil and Gas
How Closed-loop Operations Enable Digital Transformation of Oil and Gas Fields

Today, the advancement in technology – cloud platform, analytics and computing power – is revolutionising the way how companies can leverage big data and ...

Oil and Gas
How Pipeline Operators are Working to Improve their Asset Reliability

Asset reliability is a key component of an overall asset performance management strategy. And it plays a big part in helping midstream oil and gas operators ...

Oil and Gas
Maximizing Midstream Profits with OT IT Convergence

Historically midstream oil and gas organizations have kept two critical functions within their businesses almost entirely separate – IT and OT. One of the ...

Chemicals
Operational Excellence: Likely the Most Overused Term in the Process Industries

Operational Excellence isn’t achieved overnight. It is a methodology that takes a commitment to focusing on continually improving the process, and its ...

Oil and Gas
How Virtual Reality Compresses Operators Learning Curve in Oilfields

Unlike a traditional classroom environment, the VR immersive training system facilitates interaction between equipment and environment and scenario simulation ...

Oil and Gas
How Advanced Analytics improve Margins at Natural Gas Processing plants?

mproved fracking technology in oil and gas fields is creating an unprecedented boom in natural gas production, exerting tremendous pressure on natural gas ...

Oil and Gas
Implementing a tiered methodology for pipeline integrity significantly improves business’ chances of preventing leaks

With pipeline operators facing increased scrutiny as of late, the conversation must shift to pipeline integrity. Pipeline integrity encompasses three methods: ...

Oil and Gas
Digitizing the Mobile Workforce

The front-line opportunities to improve plant reliability, safety, and profitability are infinite. Value lies in digitizing the mobile workforce.

Oil and Gas
Why IIoT in Refineries Now?

IIoT in refineries is trending fast and promises great short and long-term results, allowing for smoother refinery optimization.

Oil and Gas
IIoT: Acting on All Big Data

The importance of IIoT, big data and closed-loop operations to bridge the gap between unused data and profitability in refineries.

Oil and Gas
Strategic Implementation of IIoT in Refineries

Delivering Closed Loop Business Operations for the Refinery Enterprise with Schneider Electric Software. Strategic Implementation of IIoT - Refineries.

Oil and Gas
How are you minimizing risk throughout the three phases of pipeline integrity?

Pipeline integrity includes three phases: prevention, detection, and mitigation, which together minimize the chances of a leak and the ensuing repercussions.

Oil and Gas
IIoT: Three Trends Impacting Upstream Producers

Many producers have started looking to IIoT to help them navigate through the digital evolution and create a competitive edge for their operations.

Oil and Gas
How the Internet of Things has Influenced Midstream Pipeline Operations

IoT Internet of Things has provided increased ability to connect, measure and analyze variety of behavioral statistics for midstream pipeline operations.

Oil and Gas
How Big Data and Analytics increase Production Asset Uptime in Oil Fields?

Oil companies must continue to make investments in improving operational efficiencies to sustain and improve their profitability.

Oil and Gas
How Digitalization of Process Design and Operations boosts Profitability in Ethylene production

Learn how to apply impacting digital technologies in ethylene production plant design and operations for higher profitability.

Chemicals
You Must Cross That Bridge Now; Not When You Get to It

A successful Unified Supply Chain and Operations Execution Management solution is a fully functional, bi-directional communicative interface between supply ...

Oil and Gas
Advanced Contractual Risk Management

Reducing cost of capital needed to fund large capex projects

Oil and Gas
China HQCEC uses AVEVA Solutions to Design World’s Largest Coal Liquefaction Construction Plant

Situated in the hi-tech heart of China’s Ningdong Energy Chemical Industry Park, the world’s largest indirect liquefaction processing facility covers 2.8 ...

Oil and Gas
How Digital Operations Management Improves Profitability in this Challenging Oil and Gas Environment

Learn how digital operations management framework enables refineries and petrochemical plants to optimize profitability.

previous next

Sign up for our newsletter and get all the latest information straight from the source.