How ERP Enables Digital Transformation of the Oil and Gas Industry?
The Oil and Gas industry is relatively new to the world of digital transformation. Whether the upstream, or the downstream sector, the industry has been under constant pressure to board the digital revolution bandwagon and it’s only recently that they are opening up to emergent technologies in the form of Artificial Intelligence (AI), use of drones, Robotic Process Automation (RPA), Machine, Learning (ML) or Internet of Things (IoT). With the assistance of cutting edge technology, both segments of the industry will be able to benefit.
With regards to upstream operations for example, Oil and Gas organizations can locate reserves in the remotest of places and open up ways to reduce operational costs, while downstream operations can gain real-time visibility into the transportation and distribution channels. These measures are no doubt crucial for any organization especially now when the industry is reeling under the pandemic cloud. COVID-19 has wreaked havoc in the Oil and Gas industry which was already reeling under the pressures of maintaining efficiency, sustainability and profitability.
In the wake of the pandemic and oil prices dropping to an all-time low, organizations have had to turn to their digital assets to stay afloat. There is a growing drive to increase sustainability within the Oil and Gas industry. Combine this with the drive to increase profitability, improve decision-making capabilities and maximize workforce productivity — a robust digital framework embedded with RPA, IoT and ML along with the use of drones becomes an inevitability.
The digital framework is the crucial link between global operations and supply chain, beginning at the oil well right up to the gas station. There is therefore, an immense potential to achieve efficiency and cut costs through various digital initiatives. However, isolated digital initiatives will not result in large benefits. Oil and Gas companies must have a robust core ERP solution.
In an industry such as this, digital technologies, especially ERP systems help gain visibility to crucial processes and gain access to remote areas in the supply chain, providing a bird’s eye view of all processes, operations and recording the availability of resources in real-time.
