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Examples of these solutions are cybersecurity, digital
simulation and remote control. General Electric has Where digital efforts stumble
become a key player in the software industry, Given the challenging economics of today, oil and gas
ranking #8 globally in terms of revenues (considering companies need to make their investments in digital
GE Digital Division). In Italy GE has made relevant where they can get the most bang for the buck.
investments and partnerships, for instance with However, in our work, we frequently see companies
Roboze, a startup from Puglia, which was selected making three common mistakes that are sure to limit
to supply 3D printers (ONE +400) to produce and their digital potential over the long term.
test components. Leonardo, a major technology • Lack of a multi-year digital strategy. Many
player in the Aerospace & Defense, has developed companies have ventured into digital investments
remote controlled unmanned ground vehicles with a without a clear understanding of where and when
range of robotic arms with diverse applications, the transformation will bring the most benefit.
including Oil & gas. Finally, driven by large OEMs Without a clear strategic, multi-year path, the risk
is very high that companies could invest billions of
dollars, but only capture a fraction of the benefits.
For example: offshore drilling and production can
benefit from advanced analytics based on
reservoir and equipment data. These data can be
analyzed to optimize maintenance of equipment
and minimize disruption to operations. A single
platform can produce terabytes of data per day,
but current satellite network bandwidth is
extremely limited to transfer speeds in the order of
Kbps, making it impossible for subsurface and
operations teams on the mainland to leverage
available information in real time. In cases like this,
the lack of an integrated digital strategy,
encompassing both data transmission and data
analysis leaves advanced analytics capabilities
and Equipment providers, suppliers of components ‘stranded’ on the platform, as data can only be
and services are also developing their own digital analyzed on-site.
solutions. For instance, CREL, a security company • Operating model. Too often, companies fail to
with automation capabilities, has developed a crane connect the information flows in ways that will
robot concept for in-line module installation in actually improve how the organization operates.
photovoltaics; Cozzani, an engineered valves But if information doesn’t follow structure, it
supplier for reciprocating compressors has gets lost. For example, a company might invest
developed a flux control electromechanical system, in visualizing a scheduling system with
remotely monitored and controlled. sophisticated routing capabilities, but then fail
Even so, few oil and gas companies have to connect it to the line management’s
undertaken a structured and holistic approach to scheduling decisions.
identifying which digital technologies can help • People. People are the most important
create long-term sustainable advantage. Most of component of a winning digital strategy, yet failing
today’s digital initiatives don’t seek to disrupt to upgrade their capabilities is the most common
operating or business models. Instead, they are pitfall in unsuccessful transformations. Executives
improvements in technical or operational should assess their current capabilities and
capabilities, things like predictive maintenance, develop a plan to manage change and improve
well-completion analysis and using geological data technical expertise. This will involve a combination
from similar oilfields to build geophysical models of recruiting fresh talent (including data scientists
and choose drilling patterns. and other digitally savvy professionals) and
One reason for this incremental approach is that there teaching new skills to the operational staff. No
is already a large, untapped potential in existing data, one should assume that the front line will
which companies can use to generate new insights automatically embrace new processes and digital
with advanced analysis techniques. Another is that technologies. Change-management programs
most companies aren’t ready for a big transformation, are needed to help them through the dramatic
because they lack the people, processes and capital changes underway – for example, learning how
required to make it happen. and why to use an augmented-reality interface
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