Digital Transformation in Oil and Gas Industry

Abstract

Digital transformation is the large-scale business transformation, which affects the entire set of enterprise functions from the automation of processes to execution and control. It directly affects both the change in the operating model and the infrastructure of the enterprise. This paper explores the industry trends in digital transformation as well as SOCAR AQS initiatives in this field. Digital transformation in the oil and gas industry has gained momentum in the last few years. The use of digital advances and innovation is not new to the oil and gas industry, as early as the 1980s, leading companies began to adopt digital technologies. The study explores different approaches to the conceptualization of digital transformation. The result of a successful digital transformation is not the creation of a new organization, but its restructuring of the existing valuable assets in a new way. In other words, digital transformation is not only technological change but also the change in the tasks that management is facing. Practical examples and insights on digital transformation journey are provided. The research analyses multiple case studies to understand how the world's leading companies are embracing digital transformation to reshape their operating landscape and achieve greater productivity, higher efficiency, and cost optimization. With digital transformation, businesses in the oil and gas industry no longer only save money, but also make money. How does this work? It's the vernal part of the topic. There's no precise model or approach that has been widely accepted in the industry, contrary to the consumer market, which has successful and mind-blowing cases like Uber and AirBnB where businesses do not own assets and create an ecosystem for customers to find the products and services they need. In the industrial sector, specifically oil and gas, this topic is sensitive to the competitiveness between businesses and others. However, it's clear that whichever industrial companies manage to have a breakthrough in the synthesis of AI, big data and cloud computing for the benefit of comparative advantage will lead and dominate the industry reshaping it for the next generation. Alice: Would you tell me, please, which way I ought to go from here? The Cheshire Cat: That depends a good deal on where you want to get to. Lewis Carroll, Alice in Wonderland