In today’s fast-paced modern tech world, businesses have begun to rethink their business strategies as a result of the energy shift. All enterprises require a platform that provides integrated, connected and intelligent solutions to address today’s challenges while also laying the groundwork for future innovation and growth. But have you ever wondered how these needs can be accomplished? If you’re curious to know about the answer, keep reading the blog until the end.
Oil, Gas & Energy Industry
As one of the world’s largest revenue suppliers, the Oil, Gas & Energy companies are constantly looking for ways to prosper in the changing market conditions by simplifying the processes and by gaining a deeper understanding of their business, starting from drilling operations to end destinations at the fuel pump. For the Oil, Gas & Energy companies, the energy transition has risen to the top of their priority list. They want to use more renewable energy, diversify their revenue and asset portfolio, and collaborate with other industries like chemicals and utilities.
To begin the transformation, leading Oil, Gas & Energy companies should prioritise examining their entire business model and be prepared for it. 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
Oil, Gas & Energy companies are aiming to achieve vision 2025, with the goal of providing safe, dependable and sustainable energy products and services that are customer-centric and enabled by innovation. They are also aiming for zero emissions by concentrating on core profitable and long-term value pools and reducing their exposure to market volatility. And by leveraging intelligent technology, SAP S/4HANA aims to meet all of the above requirements seamlessly.
Let’s begin with the challenges faced by the Oil, Gas & Energy companies before undergoing digital transformation!
Challenges faced Before Transformation?
Oil, Gas & Energy companies face numerous challenges that limit their ability to fully realise the value of the Intelligent Enterprise. A few of the challenges faced by them are:
- Inadequate Documentation of Complex Business Processes - Most of the Oil, Gas & Energy companies still rely on outdated methods to manage complex business processes, such as SAP plant maintenance.
- Lack of business predictability – Obtaining real-time business forecasting is critical for business efficiency in order to plan and recommend new strategies that will have an impact on results.
- Lack of Transparency – Instant access to extensive, reliable, comprehensible, timely, and multinational data comparison are a few aspects of transparency. The material must be disseminated widely to many parties, simulating interaction. In the Oil, Gas & Energy business, this becomes a problem.
- Increased Risk – Market volatility can result in severe off grades as well as large quality swings. Managing it is critical for the Oil, Gas & Energy company’s supply chain.
- Managing old Plants and Equipment – If you’re manually maintaining old plants and equipment, asset management will be at the top of your to-do list. To create the most durable solutions, you’ll require disruptive technologies.
- Slow to respond to customer needs – In the face of increased competition, every industry must focus on providing efficient solutions in order to avoid customer backlash.
Is your Oil, Gas & Energy Industry ready to deploy the right technologies to enable a smart and intelligent enterprise? If you answered “NO,” then “Digital Transformation” is the way to get there.
Now let’s look at how SAP S/4HANA, an intelligent ERP system, can be used to address the aforementioned challenges.
RISE with SAP for Oil, Gas & Energy Industry?
Every enterprise must create new business models to avoid disruption, gain efficiencies to fund innovation, and transform mission-critical systems without putting the company at risk. Generally, organizations start digital transformations for three main reasons: Changing End-Customer Behaviour, Automated Intelligent Supply Chain and Digitalization of Construction.
Thus, RISE with SAP supports your business and digital transformation ambitions to unlock two sources of value:
- Enable value creation with differentiating business capabilities — Industry best and next practises for improving employee engagement, generating new revenue streams and maximising existing ones, increasing asset efficiency, increasing productivity and ensuring long-term viability.
- Mitigate risk, reduce cost and accelerate time to value with cloud delivery capabilities — Capabilities that improve transformation readiness, simplified consumption, increase operational resilience and lower overall TCO helps business to move to next step.
You might be wondering how RISE with SAP will help you in your transformation journey? So, let’s have a look at the advantages gained as a result of after the digital transformation.
Benefits gained After Transformation
S/4HANA assists the Oil, Gas & Energy Industries in achieving a smooth transition with numerous benefits such as:
- Subscription flexibility and faster implementation
- The rate of efficiency is increasing.
- Maintenance and support are simplified.
- Revenue is increased by introducing new products and services.
- Greater operational and financial transparency is attained.
- Increases compliance while reducing environmental impact.
- Improves decision-making and customer satisfaction.
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 & Energy companies, do get in touch with us!