Digital transformation increases workforce productivity and creates data driven decisions for the company. One of the key challenges is balancing the cost of digital transformation with getting the maximum ROI on your investments.The transition to increased cost saving from digital efficiency isn’t the easiest to do. This is the reason many companies have failed to adopt digital transformation on a large scale. Currently, there are 3 key game changing technologies that can help companies fulfill their goals.
1. AI (artificial intelligence)
According to Mordor Intelligence the market overview, the AI in the Oil and Gas market was valued at $2B in 2019 and is expected to reach $3.81B by 2025. AI/ML (machine learning) is being used to gain better insights into operations data, asset integrity and similar areas. It’s not too late to say that the early embracers of AI will likely gain a competitive edge over other companies.
2. Cloud Computing
According to the Oilman Magazine, a market analysis report on changes to cloud computing in the oil and gas market reported 14.2 % combined annual growth rate is expected throughout the period of 2019 and 2024. For example, when an oil and gas service provider relocated 350 of its employees to the cloud their decision caused them to save 52% on average for the total cost of ownership in the enterprise applications. The report also showed that using cloud computing for enterprise asset management is one of the fastest growing sectors, as shown in the infographic below from BloombergNEF.
Forecast for the O&G industry spent on cloud computing and advanced analytics
3. The Industrial Internet of Thing
According to Oxford Economics, the use of IIoT industry-wide could increase the global GDP by as much as 0.8%, or $816 billion in the next decade. The use of IIoT can also reduce safety risks, enable real-time monitoring of operations, and improve leak emission detection. Here’s an infographic from Biz4Itellia highlighting the growth and scope of IIoT in the oil and gas industry.
How to Get Started?
Right now, is the perfect time to digitize your operations and invest in these game changing technologies. For your company to be successful in our changing world you need to make sure your company is up to date on its technology. To learn how we can enable your success, contact us at firstname.lastname@example.org for an initial discovery call.