Case Study
The better the question The better the answer The better the world works
Case Study

Case study: How an oil and gas major is transforming into a smart enterprise with digital

The organization is undergoing a transformation journey to become digitally empowered for operational excellence and stakeholder value creation.

Digital strategies in oil and gas industry
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The better the question

Should the company optimize for today or build for tomorrow?

Getting ready to manage the growing scale and complexity of the business.

For one of India’s leading 0il and gas players, formulation of a digital strategy was essential to enabling them to transform into a scalable and agile enterprise.  The key drivers of change were:

  • Changing dynamics of the 0il and gas industry from a ’volume-based’ to a ’value-based’ business due to constrained capital and changing demand patterns. Also, key trends such as efficient integration of renewable energy sources, growing peak energy demand, increasing substitution of solid and liquid fuels with gas, and likely domestic gas price decontrol would have a significant impact on the future of the industry.
  • Substantial size of the digital prize - Studies had indicated that companies have been reaping tangible benefits from digital, expected to be worth $1-6- $2.5 trillion for the oil and gas ecosystem over the next decade with ~5% revenue uplift and ~10% saving in OPEX.
  • Top management’s vision to transform into a smart digitally enabled enterprise. As the client had made a significant investment in their business and operational technology capabilities, it was a natural progression for them to renew their digital journey and develop new capabilities required to unlock additional sources of long-term value.

EY helped the company embark upon a transformation journey to leverage recent advances in digital technologies for effective decision-making.

Operational excellence in oil and gas industry
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The better the answer

We built a unified digital vision and strategy across the enterprise

The digital roadmap addresses the organization’s current and future requirements.

EY formulated a comprehensive digital strategy covering all business segments (Natural Gas, Liquefied Hydrocarbon, LPG Transmission, Petrochemicals, City Gas Distribution, Exploration and Production, Telecommunications, and Power Generation) and business functions.

The project team adopted a structured phase-wise approach:

  • Defined a compelling and aspirational digital vision for the company by
    • Understanding short term business objectives and long-term business strategy to gauge the immediate and longer-term needs of the company
    • Identifying challenges faced by business sections and sub-sections across the enterprise
    • Ensuring alignment with the overall corporate vision and the globally changing business dynamics
    • Exploring and analyzing the latest digital and analytics trends relevant to the client’s business
  • Assessed current digital capabilities, process, and operating model by
    • Evaluating digital maturity assessment with respect to industry leading practices
    • Performing detailed assessment of the current technology architecture and assets, organizational capabilities, and business processes capabilities across key business units and functions
    • Assessing data utilization capabilities and highlights any technology gaps in how the data is being processed and leveraged to make business decisions
    • Evaluating security posture and compliance with industry standards
  • Defined the ideal ‘To-Be’ state by
    • Identifying key digital initiatives to address existing and future requirements along with the required technology, infrastructure, and associated organizational changes for successful implementation and adoption of these digital initiatives
    • Defining strategy on Cloud usage relevant to the business processes and goals, while ensuring compliance to government regulations
    • Defining analytics strategy to build capabilities required to leverage descriptive, predictive, and prescriptive analytics keeping in mind business priorities and challenges
  • Defined the roadmap for digital transformation comprising
    • A robust implementation plan to meet current and future requirements
    • Detailed step by step plan for the projects and initiatives identified/recommended as part of overall strategy including business case and feasibility analysis
    • Organizational changes and change management approach required to implement the digital roadmap
    • Recommendation for changes in the existing IT and cybersecurity policies 
Digital roadmap in oil and gas sector
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The better the world works

The transformation unlocked operational efficiency across the enterprise

The company is digitally enabled for better productivity, higher efficiency, and cost optimization.

The five-year digital transformation roadmap focused on:

  • Operational Excellence - Continuous improvement in operational efficiency and asset utilization thereby leading to reduced operating cost and increased throughput
  • Commercial Agility - Revenue uplift by identifying the most promising customers and building long term customer relationships by developing deep customer and market insights and augmenting the operational capabilities to respond effectively to evolving customer needs
  • Process Optimization - Streamline business processes and operations to achieve non-financial business objectives such as improved health and safety, increased collaboration and innovation, improved employee quality of life, and enhanced security.
  • Digital (IT and OT) - Capabilities and requisite infrastructure required to execute the digital initiatives were enabled through enhanced cybersecurity, data management systems and cloud technology.

Transformation Realized

Transforming businesses through the power of people, technology and innovation.