In a previous MCA Connect blog, we reviewed 4 best practices for oil and gas companies. One of the best practices recommended for the oil & gas industry was to develop a digital transformation road map, because there’s no question – the future is digital and now is the time to evaluate technology to better manage your business.
While revenue is growing, activity is increasing, and companies are hiring and acquiring again. But, margins have not increased incrementally with the activity increase. Utilizing the right technology can help you find the pockets of your business where you can increase margins and further control costs to scale the business intelligently.
However, because your business model is complex, and you have many resources spread throughout the company, it can be challenging to determine which technology to invest in to build your transformative road map. Current technology trends other oil & gas companies are finding valuable can help make that decision easier.
Here are 4 tech trends that are boosting oil & gas companies:
1. Blockchain Technology
Many industry executives have not heard of this newer technology or are skeptical about the value it can provide their business. But blockchain has one specific element that will diminish doubts about the technology.
Blockchain allows oil & gas companies to securely complete transactions throughout the supply chain, without the involvement of banks, brokers or third parties. Because oil and gas is typically sold in high volume and at a high frequency, blockchain could save oil and gas companies a significant amount of time and money, while lowering the exchange rate fluctuation risk of international transactions.
2. Artificial Intelligence (AI) / Internet of Things (IoT)
Oil and gas companies are beginning to leverage digital technologies to enhance field expansion & services and to make better, more precise decisions. But what kind of technology can provide you the accurate information you need to make those timely and critical decisions? Lots of energy companies are finding success with Internet of Things (IoT) and AI technology. With IoT and/or AI incorporated into your business streamline, the systems will begin to ‘talk’ through a network of learning algorithms. The data in your system will then be processed and if a system or production error is about to occur, the IoT or AI technology will alert your staff and the situation can be addressed before it costs you valuable time and money. Learn more about our Voice of the Operator technology.
3. Business Analytics Technology
Business analytics and IoT/AI technology have a few things in common, but business analytics has a few different tricks. Every business analytics project begins by establishing what metrics to analyze, how to measure them, and what will be done with the information.
Because oil and gas companies have a high data volume, it could potentially be tricky to analyze the metrics. But business analytics technology encapsulates your data sources into “one version of the truth” across the enterprise, so it becomes clear and easily understood. You can then create predictive analytics, perform operations planning & forecasting, and see nearly real-time, actionable information.
4. Business Transformation Assessments
Now, let’s take a step back and absorb all the information that was just read above. There are a lot of great technologies out there, some better than others that will help you deliver transformative results. But before you dive into which technology sounds the best, you need to align your business strategy with your planned projects, so the technology can help you achieve a strategic advantage.
The hard truth is that you’re not going to achieve differentiation just by replacing your business management systems. No matter how good your software is, technology is only one part of the solution. With business transformation assessments, you can discuss and evaluate your vision and align that with the technology process. Then the technology implementation project will have a high success rate because you and your team know the ‘why’ behind the transformation, thus saving you time and dollars
Author: David Huether, VP Engagement & Alliance Management
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