What to expect beyond the digital hype?

Digital transformation refers to the leveraging of all industrial technologies, software, and expertise to enhance processes and workflows through competencies, and improved products with new and better efficiencies. It involves machine learning based on “big data” consisting of measurements and investigation of patterns – both structured and unstructured. This can open pathways for better resource deployment and utilization over the complete lifecycle from raw materials, through manufacturing, supply chain management, and product lifecycle. Industry must come to grips with the buzz and inflated expectations.
Each business must sort through multiple needs and competing demands under a cyclic business environment to focus on the strategic priorities that are best aligned with its vision and objectives. The list summarizes some of the business needs and demands:

• Safety
• Competitiveness – global and regional market conditions and cost structure (variable, fixed costs, capital cost, working capital, etc.)
• Reliability – to predict and meet commitments
• Sustainability – resources utilization to meet societal expectations/commitments and regulatory compliance
• Geopolitics – uncertain supply chains caused by trade/tariffs-related issues, embargoes, conflicts, etc.
• Organization knowledge and intellectual property base – personnel experience, training, retaining and attracting talent, effective integration and utilization of external resources (consultants, service partners, etc.)

Elements of successful transformation include:

1. Focus on priorities - aligned with a clear vision, overall strategy, and key objectives
2. Transformative leadership - transparency
3. Application of organizational expertise, knowledge base, right skill level, and resources– across cultural and geographical boundaries (including domain expertise, software/hardware expertise, analytical tools/expertise, economics, financial expertise, etc.)
4. Innovation – pushing boundaries, optimizing processes and workflow, empowering and training people
5. Benchmarking current performance based on verified and reliable data– to understand, demonstrate benefits, and accurately model current performance

The key benefits of digital transformation will come from predictive analysis about what will happen under different operating, and maintenance approaches to align with business needs with a greater confidence level (lower risk). The key to this transformation is a high degree of visibility of all aspects of business across the board. This will also allow operators and owners to make informed decisions upfront.
At Apex PetroConsultants, we advise owner teams starting from setting strategic direction and through each of the steps along the transformation journey. We can help set current benchmarks that will set the basis for future success.