Digital Transformation for the Oil and Gas Industry with SAP

We are at the dawn of the next monumental technology change, where everything is connected and software is embedded in our lives. This technology change is bringing new opportunities and new threats. Cycle time for innovation is 5 to 10 times faster, and oil and gas companies can compete only if they reduce complexity, reinvent business, and use data as the fuel for value creation for customers and shareholders. The Intelligent Enterprise builds upon the promise of digital transformation by applying data-driven intelligence to power automated actions and decisions based on superior insights. With SAP S/4HANA, your oil and gas company can now enable your digital enterprise and drive this value creation.

The digital economy is disruptive. Oil and gas companies need strategic priorities that drive transformation. SAP powered by Approyo supports a reimagined set of E2E business scenarios to support the strategic priorities of working in a digital environment.

Beyond the barrel - Energy outcome providers
Consumers are more empowered than ever and are demanding simplicity and service quality. Energy providers are extending “beyond the barrel” to master consumer energy usage analytics to offer services that optimize delivery of transportation, heating and cooling, and power. Examples include delivering the outcomes of transportation, climate control, or a powered device –not just the traditional fuel inputs

Products and service digitization
Logistics providers are disrupting the entire value chain by managing physical deliveries across the network, often without owning or operating any of the necessary inventory or assets or hiring the necessary employees.

Competing as an ecosystem
In an increasingly volatile energy market with a broadening range of asset types and energy sources, the success of energy operators is largely determined by three variables: safety, cost, and agility. Operators are pushing the boundaries of augmented reality and use of robotics in operations activities to improve safety and productivity, and they are seamlessly sharing data and calling on ecosystem partners to work together to ensure production, profitability, and safety targets are met.

Digital platform
Continued investment and ingenuity are expanding the energy network infrastructure. Digital leaders are delivering operationally ready assets, often on a performance or revenue-share basis, by using the power of supercomputing for more accurate exploration and effective asset design and constructability. Others are using a networked platform for collaborative project management that will orchestrate work and logistics across multiple trades and disciplines.


The Need for an Intelligent ERP System

Agility to respond to market conditions
A digital core is an IT architecture that offers stability and long-term reliability for core enterprise processes, yet also provides the flexibility to adapt quickly to new opportunities, challenges, and regulations. This solid foundation gives you a single source of truth, which in turn enables flexibility for innovation to accommodate things like new business models, new regulations, and business events, such as mergers or acquisitions.

Predictive analytics and services
The ability to respond quickly is an essential part of managing an oil and gas company. To do this, simulation, prediction, and analytical capabilities are important components. Data is critical for gaining the insight to make decisions. This insight must be at a granular level, so that decision-makers have the detail they need to understand trends, opportunities, and risks and quickly carry out what-if analysis using predictive algorithms.

Real-time access to information
Every oil and gas company needs the computing capability to carry out complex algorithms with large data sets to support timely, real-time analysis. Everyone in the company must have access to data they need, whenever and wherever they need it. This is also true for the rest of the ecosystem so that suppliers can stay up to date with a company’s orders, traders can see inventory history information, and accurate delivery schedules can be provided.

Ability to innovate
Customers in every industry are demanding innovation. Companies are responding with new products and services that better meet individual needs. These new offerings impact every facet of business, not just the front office. Companies must address end-to-end (E2E) processes across departments and lines of business to deliver on new customer experiences, products, and services.

The intelligent ERP
Bringing SAP S/4HANA and SAP Leonardo technologies together as a digital core will result in a more flexible and intelligent enterprise. To achieve next-generation business processes, companies need an intelligent ERP solution that can be continuously enhanced and extended with innovative business services and applications built on emerging technologies, including machine learning, blockchain, and the Internet of Things (IoT). Oil and gas companies that have big innovation appetites or prefer to be early adopters have already begun this journey.