Marketing & Business Development ManagerMore
Every industry faces pressure to transform and we all know that transformation begins by aligning an organisation for greater effectiveness. We also know that this can largely be achieved by placing discipline and focus on productivity, squeezing the supply-chain to achieve better margins and streamlining business operations.
“Technology is helping to integrate vital business components so that the right answers are delivered to the right people, at the right time and in the right way” says Peter Davis, Business Unit Head, TouchstoneEnergy.
It’s our opinion the Oil & Gas industry is truly leading by example. O&G companies are using technologies such as Business Process Management systems; or moving their IT infrastructure out to the Cloud. This can result in a leaner, more agile organisational model whilst delivering significant cost savings.
Two organisations who have taken advantage of such technologies are Seven Energy International Limited and SOCO International Plc. Both are now delivering more to stakeholders with a smaller head count and maintaining lower operating costs. Both are experiencing an enhanced competitive position with happier investors.
Although not ideal for producers who would prefer a rise in the price per barrel; improved operational procedures have delivered significantly better financial results. Many E&P companies have moved away from chasing barrels and onto chasing efficiencies – and the results are already evident.
Investment in Business Process Management (BPM) technology, like those offered by TouchstoneEnergy, can yield tremendous rewards. It is essential to understand why you might adopt business process improvements or move your existing infrastructure out to the Cloud.
When embarking on a Cloud based strategy, it is vital to fully evaluate the pros and cons. One significant advantage could be the ability to licence software on a subscription basis. A ‘Pay per Use’ model avoids the high upfront capital cost associated with a more traditional licence purchase. Another benefit of a Cloud hosted system is rapid deployment with minimal risk and cost to your business.
In short, improved business processes and Cloud computing offer a robust way to deliver IT across your business enterprise.
Another benefit of a Cloud based system is the ability to consolidate data silos for enhanced management reporting. A typical O&G company can generate as much as 2TB of data per day. Using applications such as SunSystems, BI and ETL Agile, data can be more easily sourced, consolidated and consumed by users – giving them access to the right information at the right time.
Sadly, many O&G companies don’t use the data they collect – this is a big mistake. A report authored by analysts McKinsey & Co cited that less than 5% of data gathered is actually used, and often this is because data is housed using different databases (silos); what are often referred to as “data graveyards”. ETL Agile makes finding the data you require easy to retrieve and easy to deliver in a format that makes sense.
Software as a Service (SaaS) allows organisations to pay for software as you use it rather than making the traditional upfront investment. If the product you choose turns out to be unsuitable for your business or fails to adapt to your needs, you have the flexibility to terminate early and move onto another system. You can also easily predict and manage the monthly costs of Cloud SaaS. Switching from a large upfront investment and unpredictable maintenance costs to a manageable monthly payment can free up cash for other areas of your business, allowing you to focus on growing or enhancing your enterprise.
Business is always unpredictable in a tough economic climate. Being able to respond to changing regulations, business needs and global trends quickly is crucial. Cloud services offer businesses the agility needed to respond quickly. It becomes easier to achieve growth and increased efficiency through connected data, people and processes.
Because your systems are no longer location dependent (Cloud based solutions can be located anywhere) connection is possible from even the most remote operations where communications are at their worst. For an industry like Oil & Gas which has disparate locations, often in different parts of the world, Cloud computing offers tremendous benefit. Offshore and onshore facilities can be easily connected. This means every transaction or process is captured and connected, resulting in real time decision making from the petroleum engineer all the way to the CEO. By connecting operational technologies to the company’s business applications, Senior Management can finally gain full enterprise integration and visibility.
Cloud transformation promotes digital transformation for companies in all industries. When supported by a robust and scalable platform, it links operational technologies with IT. The result is a more agile business – one that is always ahead of the competition in both good and challenging times.