The oil and gas industry is changing quickly, and it can be hard to keep up and stay in front of the changes. The Internet of Things is creating a digital transformation in our world. In this transformation, companies who adopt these changes early on are seeing remarkable gains. Companies who are being more conservative are being left behind.
By its nature, the oil and gas industry is more technological than a lot of other industries and it has been digital for decades. But we need to adapt even more to take full advantage of the digital environment. Your company must adopt a seamless environment to create its digital core and avoid being left in the dust. Your digital core also needs to encompass the five key areas of the digital economy to keep your business competitive. Here’s why it’s vital to your success.
Why your oil and gas company needs a digital core
We hear stories every day of market disruptions in a wide range of industries. Some new companies are quickly gaining ground. Others that have been in business for decades are being left behind. The oil and gas industry is ripe for market disruption. How do you keep your company ahead of these changes? How do you keep your business functioning and adapting through the process? What adaptation do you need to embrace to stay ahead of the game, you wonder?
You may just need a small amount of work to adapt and integrate your systems. On the other hand, you may need to make extensive changes. You may need to adapt everything from your business’ work management solutions and processes to your existing business model. Part of the answer involves what you’ve already done and what still needs to happen. This answer can be different for every company in the industry.
An effective digital core needs to cover your entire oil and gas business from one end to the other. It helps your company operate effectively by using real-time information to provide better performance. Do you need a view from your plant-level performance all the way to enterprise-level performance in real-time with in-depth analysis? That’s the level of detail you should be able to instantly analyze with a solid digital core for your business. Running your business based on siloed information is yesterday’s approach and can’t compete in today’s market. Instead, today you can run business in real-time to ensure you’re making smart decisions based on the current conditions of your business, productivity, and the market.
Having this depth of detail available makes it easier to project expected outcomes from your existing information. These projections make your business decisions easier and faster to implement. Having your entire enterprise on a digital energy network helps make this happen. A digital core also makes it easier for you to adapt your business model or enter and exit markets quickly, in as little as a tenth of the time most current systems require.
Other areas where a digital core can provide strong benefits for your business is in daily and task-related decision making. Asset maintenance, production performance, employee well-being and safety, risk management, optimizing logistics, and process optimization can all be handled through a digital core. By creating a dedicated core, you can optimize and automate many tasks that would otherwise need many hours and asset allocation to complete, raising your overhead.
Cloud computing allows you to quickly deploy because you don’t have to maintain expensive systems and software onsite. Instead of buying a piece of software with a particular number of licenses, you can now give your employees cloud access to services through their mobile devices. As the line between product and service continues to blur, the digital core becomes more important than ever. Inexpensive technology provides access to otherwise complex software. This lowers your opportunity and investment costs. At the same time, it allows you to use the excess funds you would have spent on software to explore new finds or invest in your infrastructure.
By combining your systems into a digital core, you can change how your company functions on a daily basis. You can quickly integrate Big Data into your projections and simulations to ensure a good outcome. You can gain detailed insights into what is making money and what is losing money for your company. You can change business models to adapt to changing market conditions. When your enterprise is invested in a digital core, it’s much easier to compete in the digital economy.
Having a solid digital core for your business platform is a great way to remain agile and flexible to future changes and current challenges. But to take advantages of the changes brought about by the digital economy, you need to transform your enterprise to digital quickly or risk being left behind.
If you’re ready to invest in creating a strong digital core for your company, check here and find out how 48% of oil and gas industry companies keep their company flexible for future changes.