Digital technologies can have a disruptive impact on the landscape of how work is done in the oilfield, with the potential to redraw the value chain, deliver a step change in productivity and create new channels to market, but services and machine and equipment manufacturing companies need robust strategies to succeed.
Oilfield and equipment and services (OFES) companies can become enamored with technological advancements, failing to consider how best to apply them toward business goals—at times spending on ventures and business models that do not deliver.
Leaders understand where and how disruptions will impact them—accurately assessing maturity and gaps in the existing digital culture—and determine which solutions are appropriate to further the overall digital vision while delivering the highest return on investment.
Four areas where digital technologies will have the largest impact in helping OFES companies
Area 1: Tracking asset utilization and performance. Most collect significant amounts of data on their assets, but rarely do they harness the power of this data. Digital technologies can connect data with decision makers or enterprise systems in real-time.
Area 2: Optimizing business-to-business (B2B) sales processes. Combining digital channels with process digitization can improve the customer experience while lowering cost-to-serve.
Area 3. Redesigning the supply chain to lower costs for product development and consumables. Integrated digital systems, advanced analytics, “smart” scheduling systems that integrate with invoicing and payment, automation, blockchain, IIoT and virtual/digital workforce technologies can revolutionize the supply chain.
Area 4. Shifting the back-office cost structure and making it more flexible. The core “corporate towers” of HR, finance, IT and procurement have significant opportunities for cost savings and modernization—especially in the OFES sector given the volatility of activity and revenue where large fixed costs can place companies at risk.
Digital technologies have the potential to redraw the oilfield value chain, deliver a step change in productivity and create new channels to market; but OFES companies need robust strategies to succeed.
Leaders should understand where and how disruptions will impact them—accurately assessing maturity and gaps in the existing digital culture—and then determining which solutions are appropriate to further the overall digital vision while delivering the highest return on investment.