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Fig. 2

Among the many potential benefi ts are: helpful, and hiring more analytics talent runs into
• improved margins through real-time budget constraints—particularly since it’s often
optimization systems that seamlessly integrate unclear which of several digital initiatives is more
process control and production planning; important than the others. Should they invest in
• more effi cient processes from adding AI on warehouse robotics, better e-commerce systems
top of traditional control systems; or drones to supervise hazardous conditions?
• more reliable plants with lower levels of
downtime, thanks to predictive maintenance Digital technology could help
solutions that rely on AI and machine learning;
• better transparency and streamlined refi ners make their work
transactions in the supply chain through the “environments more effi cient,
use of blockchain, which could also eliminate
several types of middlemen; and reliable and safe. But only a small
• zero-based redesign of support functions percentage of executives say
simplifi ed by AI, automation and blockchain. they are pleased with the results

But taming digital technologies isn’t easy. Bain’s of their digital initiatives today,
research on digital transformations fi nds that only suggesting there’s much more
5% of companies say they achieved or exceeded work to be done
expectations, and 75% say they have settled for
diluted value and mediocre performance. Our One large refi ner faced several implementation
2018 report with the World Economic Forum, The diffi culties with its digitalization efforts. First, in
Digital Enterprise: Moving from Experimentation terms of data, it found that its critical assets were
to Transformation, noted that executives are not suffi ciently monitored, reports generated by
particularly frustrated by a lack of focus in digital service providers didn’t provide the raw data re-
initiatives: too much going on, too little coordination. quired for processing, some data had no digital
This has left doubts about the value of these coding process, and there were several internal
programs and uncertainty about the appropriate inconsistencies between the enterprise resource
levels of funding. Our study also found that, even planning system and manual reports. Second,
with well-focused initiatives, most companies were teams resisted sharing data with other areas in
unprepared to scale up from their pilot programs. the organization and were reluctant to embrace
Companies frequently charge in, intrigued by the a new operating model required by the digital
possibilities of digital and encouraged by vendors, solution. The refi ner also lacked a standardized
adding sensors to critical equipment, purchasing IT architecture across the business and an enter-
systems and staffi ng up an advanced analytics prise-wide view on service and solution delivery.
team. Many fi nd that they still cannot access Contractors were locked in for long periods and
the right data to glean meaningful insights, and not set up to deliver in an agile, iterative model. To
the frontline operators don’t trust the outcomes. rescue its digital transformation, the refi ner deve-
Learnings are not as transferable as hoped, given loped a more structured implementation plan that
many different types of equipment, data and included a new operating model more friendly
connectivity across facilities. Executives don’t to digital solutions and new methods of working
know which external partners could be most across silos.

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