Connectivity is a key element of reinvention. It involves employing technologies—operational, digital and informational—to dismantle siloes, provide a unified data foundation and optimize decision-making to collaboratively drive agreed-upon results.
Digital technologies play a particularly critical role in making the necessary connections possible. To build their Connectivity capabilities for reinvention, leaders are turning to mobility and industrial technologies such as augmented reality and Internet of Things (IoT). But it is the leaders’ embrace of cloud computing that is most striking. Significantly more leaders than laggards (54 percent vs. just 15 percent) are using cloud computing to drive transformation.
Leaders in Connectivity focus on digital transformation, not experimentation, and target financial and carbon-related metrics by implementing cloud, IoT and mobility solutions.
Reinvention leaders expect Connectivity to drive significant improvements in financial and non-financial metrics.
Of leaders expect their Connectivity initiatives to boost employee engagement by at least 20% (vs. 11% of laggards).
Of leaders expect their Connectivity initiatives to boost customer satisfaction by at least 20% (vs. 5% of laggards).
Of leaders expect their Connectivity initiatives to boost revenue by at least 10% (vs. 33% of laggards).
Follow the leaders. But not always.
While leaders are doing many things right such as focusing on digital transformation (not experimentation) and targeting financial and carbon-related metrics, our analysis revealed there is plenty of opportunity for all companies to gain significant ground in their pursuit of competitive advantage.
Of particular interest is the lack of data management capabilities among oil and gas players. Effective data management is a prerequisite for reinvention. It’s needed to: power the analytics that help identify new business opportunities and optimize portfolios; collaborate internally and to develop innovations with ecosystem partners; take optimal advantage of the cloud; and manage remote operations.
Another finding from our survey relates to the role of cybersecurity. While respondents generally agreed that cybersecurity will be essential over the next three years, leaders place it last in the list of digital solutions they plan to use for reinvention. The lack of emphasis on cybersecurity suggests a serious blind spot. Our research has found that oil and gas players are nearly four times worse than companies in other industries at stopping targeted cyberattacks.
Think (and act) like a leader
Don’t simply follow the “cloud crowd.” Consider cloud a strategic enabler of reinvention. To that end, don’t just migrate systems; purposefully leverage all that cloud has to offer and build the capabilities needed to drive transformation.
Build data management muscle. Strong data management is at the heart of capturing value from Connectivity. Data governance, quality, accessibility and portability are essential.
Focus on defense. Cybersecurity is a must. With the rise of remote operations and widespread adoption of IoT, oil and gas companies must recognize and address the increased risks they face.
Think enterprise-connectedness first and individual technologies second. Digital technologies can improve efficiencies. But the real value from digital comes at scale by connecting operational and information systems, workers and devices across the organization.
Connect the dots. Coordinate with peers, suppliers and customers to expand the boundaries beyond the organizational walls. Use Connectivity to capture the value of digital at industry scale.