Digital is not a new concept for the oil & gas industry, however, it is only in the last few years that organisations have begun to understand the full potential of digitalisation. Oil price fluctuations and reducing margins have been a significant driver, with the falling costs of technology and increased focus on digital ‘foundations’ combining to further enhance the business case for investment.
Organisations need to have digitalisation in mind, not digitisation
Organisations have been introducing ‘digitisation’ initiatives for many years technology to enhance existing business processes. However, true ‘digital– using data & isation ’ offers a far more significant opportunity, and represents a fundamental change to how an organisation operates. Offshore teams using tablets to provide quicker access to maintenance schematics represents digitisation of an existing business process, whereas using a digital twin to predict failures of equipment and greatly optimise maintenance schedules across many assets would be an example of digitalisation. Whilst digitisation is a prerequisite of digitalisation, it should not be viewed as an end goal, otherwise many of the benefits will be missed. True digitalisation will require a significant shift in the risk that many organisations are facing “ mindset . Henry Ford’s famous quote highlights If you always do what you’ve always done, you’ll always get what you’ve always got ”.
Digital transformation is in its early stages
For the ~60% of organisations that had a digital transformation programme in place, the overwhelming majority of these programmes are less than three years old, showing that the transformation journey is only recently underway for most.
Although many organisations have many years of experience in deploying digital technology, full digital transformation requires a holistic approach that also encompasses data, innovation, people and culture.
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