Why Oil and Gas Companies Should Prioritize ERP and Technology Infrastructure Projects
Oil and gas companies have had to make difficult decisions in order to survive the last few years of low prices and weak demand. Cost cutting measures included spin off’s, layoffs, asset liquidation, consolidation of operations and a hold on most non-essential projects.
As the oil and gas industry begins to recover, companies that made it through those tough years need to start thinking about how they will compete and thrive in the next upcycle in addition to the next 5, 10, 20 years.
Companies who have held off on investing in new ERP systems and new technology infrastructure may actually be handsomely rewarded by waiting, because ‘the perfect storm’ exists right now to seize an advantage.
Why are Oil and Gas ERP systems a smart investment right now?
The Microsoft Cloud has changed the game. Not just Dynamics 365 for Finance and Operations, which is a flexible, cloud-based ERP software solution, but also:
- Productivity apps like Office 365
- Business analytics software like PowerBI and Cortana Analytics
- Microsoft Azure hosting
Disruptive digital innovation is happening 100X faster than physical disruption ever did. Companies are using technology to:
- Lower costs.Cloud computing has made ERP information widely available at substantially lower cost. As a Microsoft Partner who specializes in implementing and supporting Microsoft Dynamics 365 for oil and gas companies, we can tell you endless stories about how much the game has changed. Rather than investing in servers and having to do your own maintenance, ERP systems can be setup quickly with a much lower capital investment. When you run the numbers, you find that the savings continue to add up over time.
- Improve operational efficiency.ERP software was specifically developed to improve operational efficiency. Technology makes it truly possible to do more with less.
- Predictive analytics can reduce downtime by predicting equipment breakdown.
- Inexpensive Internet of Things (IoT) sensors can relay information from remote locations.
- Complex, repetitive tasks like AFE Management, Joint Venture Accounting, and Oilfield Rental Management can be managed and automated.
- Use insight to innovate. How can you make more money? Can you add new products or services? What can you do to get more oil and gas out of the ground and into the marketplace faster so you can become the industry accelerator? Leverage big data, machine learning, and predictive analytics to sharpen your competitive edge. Give employees tools and nearly real-time information so they can better manage their own job functions, and understand their role in meeting enterprise goals.
Contact us today for more information.
Author: David Huether, VP- Engagement & Alliance ManagementOther articles you might be interested in: