Is Technology Biggest Driver of Oil & Gas Digital Transformation?

Digital transformation is the “next big thing” – we’re all hearing about it constantly. We don’t blame you if you’re starting to wonder if this is simply the latest catch phrase … a passing fad with no relevance to a major global industry that will continue forward regardless.

Whatever you want to call it, digital transformation is the next stage in the evolution of our data-driven world. And many big players in the oil and gas industry are far behind the times.
But is technology alone the solution? Is it simply enough to digitize your assets and say you’ve “done” digital transformation? We asked our director of Cloud and Customer Success Services, Supratim Mukhopadhyay, for his insights on oil and gas digital transformation.

This video was produced after we conducted a survey on digital transformation within the oil and gas industry and spoke to industry expert, Dr. Huck Poh, about the challenges facing the industry.

Handpicked Related Content:

  • Emerging Technologies Research Report – How to Build an Oil & Gas Digital Transformation Ecosystem 
  • View the survey infographic
  • Watch the video with Dr. Huck

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No time to watch the video? Here’s a transcript:

Hexagon PPM: What are the key technologies driving oil & gas digital transformation?

Supratim Mukhopahyay: The key technologies driving oil and gas digital transformation depend on the stage of transformation particular organizations are in. We have companies that are only just starting the journey, and then there are some investigating the possibility of using big data analytics to gain efficiency. And digital transformation is as much about people and processes as it is about technology.

Having said that, some core technologies like cloud, Intelligent and integrated design and information management technologies, and making information available and accessible through mobile technologies, are key to establishing the foundations of digital transformation for the oil and gas industry. More advanced technologies like drones, smart glasses and helmets for gathering data, combined with analytics platforms, will deliver the complete benefits of digital transformation to the oil and gas industry.

Hexagon PPM: We surveyed a group of senior executives – 60 percent said that issues relating to people and processes are the single largest challenge in adopting digital technology. This includes:

  • Company workflows and processes not ready
  • Complex internal decision-making/buying processes
  • Lack of support from senior management

Only 14 percent said that cost/perceived cost was their largest challenge.

Does this reflect your own experiences?

Supratim Mukhopadhyay: Indeed, factors related to people and processes are by far the biggest barrier or challenge that we’ve faced over the years. Hexagon PPM has been driving digital transformation through its technology offerings even before it was popularized as “digital transformation”.

The biggest challenge we faced was the change that our Smart technologies brought to the people and processes. Being a very specialized and extremely profitable industry for a long time, the need for change was not felt as strongly as until recently – “Why change when it’s not broken?”.

Technology has been acquired, but through individual departmental efforts as opposed to a business transformation initiative. Adoption has been low, other than in specific business-as-usual operations.

The Oil & Gas industry hasn’t realised the full potential of digital transformation for this very reason and this can only happen through better adoption of technology (both for already acquired as well as the new ones). Technology suppliers need to become partners in supporting this transformation for the industry, and deliver business outcomes – not just technical capability.

Continue the conversation! Join us on LinkedIn.

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Hexagon PPM will present more information on its relevance in the Oil & Gas industry at HxGN LIVE in Las Vegas Jun 12-15. Register now!

 


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