The energy transition has risen to the top of the priority list for Oil, Gas & Energy companies. They wish to increase their use of renewable energy, diversify their revenue and asset portfolio as well as collaborate with other industries such as chemicals and utilities. Thus, Digital Transformation is the only way and they have established a set of strategic priorities to help them achieve their objectives. This article discusses the industry-specific features provided by RISE with SAP’s Business Transformation Service.
Let us begin by defining strategic priorities and the benefits they provide to the Oil, Gas & Energy Industries.
Strategic Priorities for Oil, Gas & Energy Companies
The importance and values of Digital Transformation have been recognised by leading Oil, Gas & Energy companies. Thus, they are concentrating on four strategic priorities outlined below in order to transform their organization into an intelligent enterprise.
- Extend beyond the barrel
- Digitalize production and delivery
- Compete as an ecosystem
- Unlock value with technology
In order to achieve this, Intelligent technologies embedded in RISE with SAP framework acts as a key-value contributor in enabling Oil, Gas & Energy companies to become intelligent enterprises. Adapting to this enables your organization to redesign entire business models, processes, and products by driving enterprise digitalization through product development.
Unlocking Value with Technology
The energy network infrastructure is being expanded as a result of continued investment and ingenuity. By leveraging the power of supercomputing for more accurate exploration and effective asset design and construction, digital leaders are delivering operationally ready assets, often on performance or revenue-share basis. Automation can be used to improve efficiency and accuracy by utilising artificial intelligence and robotic process automation. Others are orchestrating, designing, building, and maintaining assets across multiple partners using a networked platform for collaborative project management. Using AI, ML, and RPA combined with SAP Predictive Asset Insights, provides real-time asset health information based on critical values and trends, enabling collaborative asset maintenance strategies for better managing cost, risk, and performance.
Let’s consider an example to gain a better understanding of this. Two people (A and B) have been assigned specific work in their company. Let’s see how their work strategies are perceived to be beneficial from the standpoint of the company.
Person A was tasked with creating stock-projection worksheets for various job sites and materials. He then had to go over each location’s inventory alerts and inventory information details, opening the worklist each time. Following that, the stock projection sheet had to be refreshed in order to check the results and adjust the time of arrival schedule for the nomination. Finally, he had to manually finalise the schedule and update all works.
Person B, on the other hand, went in a completely different direction. He used intelligent software that allowed him to access inventory and nomination data in real-time. In a single transaction, he was able to view, simulate and adjust inventory projections and related nominations. Also, everything that person B changed in the final schedule wasn’t just for his system. It could be accessed from any device.
To summarise, Person A encountered condition and time-based limitations with real-time errors during the inspection, requiring the use of a manual process. Whereas Person B, on the other hand, was able to completely integrate his work with real-time trading, scheduling, and updating all pricing data from any location because of the intelligent ERP software.
Now you may be asking, “How can RISE with SAP helps us?”. Here are the primary business capabilities they offer to assist you in reaching your objectives:
- Mobile applications enable a faster and more efficient order-to-cash cycle.
- Make informational data as a strategic asset to accelerate innovation.
- The Internet of Things (IoT) technology is used to collect real-time data from the field.
- System-generated decision support based on AI/ML and real-time analytics.
- Improved project and operations effectiveness as well as profitability by gaining real-time operational insights and data transparency.
Top Value Drivers
The major value drivers in the Oil, Gas & Energy industry post successful deployment of SAP S/4HANA are:
- IT spending is reduced by 5% to 10%.
- HR cost savings ranging from 2% to 10%
- Finance cost savings ranging from 5% to 30%
- Unplanned downtime is reduced by 15%.
- Maintenance costs are reduced by 10%.
(Note: Data was taken from SAP’s statistics)
To conclude, with hundreds of new features and seamless functionality, SAP S/4HANA can enhance your business values. Many upstream operators have benefited from flexible, agile, and scalable ERP capabilities on the cloud as a result of SAP S/4HANA adoption.
Own your tomorrow with a guided journey and outcome-driven practices of RISE with SAP. To know more about how SAP S/4HANA or about other solutions that can help enterprises in oil, gas and energy companies, do get in touch with us!