For many years now, the oil and gas industry has struggled to adopt digital practices. Riccardo Bertocco, a partner in the Oil and Gas practice, presents a three-pronged approach to becoming a digitally enabled company.
Read the transcript below.
RICCARDO BERTOCCO: For many years now, oil and gas companies have been struggling with how to become more digital. It is important in this market and economic environment that companies really develop an approach that maximizes the impact on the cash flow while actually preserving the balance sheet.
Companies who have done it well really have used a three-pronged approach. Number one, they developed a strategic multi-year roadmap that actually allows them to understand which activities will be impacted by digital tools and technologies within their entire value chain.
Secondly, they actually thought about their operating model and how to modify the operating model in order for the information flow that gets generated out in the field to actually be fed to the people who really need to make the decisions in real time.
The third part of the approach is actually thinking about people capabilities, thinking about both the upgrade of the current capabilities—for example, acquiring data scientists, as well as a longer-term change management plan that actually impacts the entire workforce, moving basically the way of working from a very paper-based, process-based approach to more digitally-enabled, Agile processes going forward.
All these plans should include initiatives that actually provide the short-term benefits while preserving the optionality of longer-term competitive advantage.
Read the Bain Brief: Technology, Strategy and People—Becoming a Digital Oil and Gas Company