To stay profitable and reputable, businesses in these and related sectors now have to view every aspect of their operations through the lens of the energy transition. Reliability, safety, transparency and integrity, always enablers of business value, are becoming key drivers. Margins remain exceptionally tight.
In the face of these increasingly complex and interlinked challenges, questions are raised about how to achieve business distinction. As analysts at McKinsey suggested when discussing oil and gas, this could either be a day of reckoning or a new age of opportunity.
Businesses cannot afford to operate in the dark. Responses should be based on insight. And by uncovering actionable intelligence to illuminate and eradicate costly blind spots.
From visibility to value
In simple terms: business performance starts with asset performance. Just one unexpected event or oversight can immediately derail planned business outcomes. Full visibility of all assets, risks, resources and projects, therefore, is a clear route to value.
However, siloed and difficult-to-use business systems obscure that route. Complicating processes, hampering operations and obscuring what’s happening on the ground when operational agility is now the norm.
As a minimum, that lack of visibility can lead to 20 – 30% of lost or unrealised revenue.* However, acting on ‘unknowns’ or ‘assumptions’ has also led to some of the most tragic industrial disasters of our time, causing untold environmental and social impacts.
With the right technology, businesses need never face these types of tragedies or business risks again. There are many examples of how digital technologies can break the status quo by gathering data and turning it into real-world intelligence. By shedding light on the ‘unknown’, businesses can not only maintain a social license to operate but gain distinct business advantage, protected from the threat of nasty surprises.
Consider Tesla. One of the reasons it has created a distinctive presence in its sector is that each one of its electric vehicles is built with a digital twin – a data-led replica that provides insight into every aspect of the cars’ performance, and where necessary, lack of performance. Coupled with very advanced predictive analytics, it allows the business to optimise manufacturing with exceptional precision and bring sustainability, efficiency and profitability.
In Arizona, Freeport-McMoRan’s business leaders chose to complement the institutional knowledge of its engineers and metallurgists with real-time data and AI. The goals were to lower operating costs, enhance resilience and make faster decisions. So, when the global price of copper fell, Freeport-McMoRan was able to enhance productivity at one of their most efficient sites in Arizona – to the initial surprise of its industry veterans – rather than directing unaffordable capital to increase production capacity.
Insight through illumination
That kind of illumination builds evidence-led predictability into operations, and by providing answers to critical questions, you minimise any chance of unwanted disruptions.
• Does the overall business strategy get the right balance prevention with progress?
• Are assets achieving their full potential?
• Are proposed projects really prioritising what matters to the business?
• How can we best enable agile working and new workflows?
• How do we ensure the link between energy savings and performance benefits?
• Are our digital strategies really cutting costs?
Most importantly: can we be sure that the energy industry avoids a 30% revenue drop from a preventable event?
Businesses that have to ask any of these questions know how hard they are to answer. They also know that access to data-powered collective intelligence makes those answers much easier to find – fast.
Because today businesses need to be able to operate at the speed of insight, they need a trusted partner that knows how to solve operational problems with ease.
Explore our interactive tool to help you see if business value is lurking just out of sight and how you can achieve operational enlightenment.
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