When compared to companies in other industry segments Oil and Gas companies are unable to leverage collaboration and partnership within the business value chain. In order to gain strategic flexibility and focus on core capabilities Oil and Gas companies, it’s imperative that they must have comprehensive integration of business and technology to maintain competitiveness and enhance growth.
Oil and Gas companies must enhance existing capabilities and develop new business models and to manage the predictable change and increase shareholder value. They are under pressure to help make the best possible process-related decisions to ensure desirable business outcomes. This calls for continuous improvement for business differentiation and innovation. This is possible if business and IT goals are aligned and compliment the overall company objectives as shown in figure below:
Key aspectys of this continous improvement process model are:
- Identify what’s critical for business – IT applications and infrastructure help real time field operations to absorb data into an enterprise framework and perform analysis resulting in automated process and decisions that reduce the cycle time in the overall hydrocarbon value chain.
- Align application portfolio with business priorities – Strategic objectives associated with Integrated operations help in reduction of oil field operating expenses driven by enhanced asset and equipment performance and conditions based monitoring and optimization.
- Outline priority actions and savings road map – Exploration and production of Oil and Gas products are benefitted by increased agility in IT applications and infrastructure allowing new analysis and insight in the global demand for hydrocarbon products.
- Measure progress to technical and business goals – Resource utilization and optimization is the key to observe and evaluate the IT management mechanisms and the business success metrics to make adjustments that will improve business outcomes.