Heeding the digital call to action in oil and gas
A new digital strategy transforms a national oil company’s operations—and its bottom line.
The Oil and Gas industry has traditionally lagged others when it comes to using digital technologies for competitive advantage. One national oil company (NOC) didn’t accept this reality. It saw an opportunity to stand out as a digital leader. But it knew that distinguishing itself in this way wouldn’t be easy.
Many of the NOC's multiple operating companies had formulated plans for incorporating digital and AI solutions into their operations, and more than 250 distinct initiatives were underway.
The NOC believed that a group-wide digital vision, supported by a single strategy and operating model across companies, would enable the enterprise to optimize operations and pursue new innovations and growth opportunities at speed and scale.
In close collaboration with Accenture Strategy, the client defined an ambitious yet realistic digital vision. Six design thinking workshops produced nearly 100 digital and AI use cases. Five were called out and prioritized for development.
To support its unified digital vision, the client asked Accenture Strategy to help design a new operating model and organization dedicated to building skills in AI, data science, robotics, 3D printing and mobility. The goal was to create an ecosystem of internal and external talent that could provide advisory services and quickly design and prototype solutions. A five-year roadmap and interactive playbook were created to industrialize and socialize the new strategy.
The NOC’s new digital operating model is underpinned by four foundational Industry X.0 capabilities:
A new reference architecture and capability model support the design of digital solutions across business units.
Big data apps enable access to (and processing and analysis of) vast amounts of data to improve safety, asset uptime and operational efficiencies.
Teams can now create a virtual model of an asset to optimize designs, accelerate changeover times and streamline operations.
A new wireless network uses smart sensors to generate a unified view for operations across multiple enterprise entities.
The new digital strategy, operating model and roadmap—developed in just 12 weeks—have enabled the NOC to pursue digital initiatives that are poised to generate millions in savings. Those savings can be re-invested in growth and digital innovation.
As the company continues on its digital transformation journey, it is gaining recognition among the media, industry analysts and other stakeholders for its forward-looking work. At the same time, it is positioning itself as a digital leader, and company not afraid to embody the change necessary for meeting the challenges of tomorrow.
Machine learning and advanced analytics solutions are expected to boost operational reliability by up to two percent and yield by 15 percent.
Process digitalization, supply chain automation and analytics are on course to reduce operating costs, material costs and maintenance costs by at least 10 percent.
Predictive analytics are on track to reduce the number of health, safety and environmental incidents by 15 percent.