Oil, Gas Companies Laying Groundwork for the Internet of Things
At this stage, companies are building programs internally to address how they will adopt Internet of Things technologies and how to get the most benefits in terms of managing risks, reducing costs and bringing in new revenues, said Serhii Konovalov, who leads Cisco’s O&G Global Industry Solutions Practice and O&G Innovations, in an interview with Rigzone.
Officials with Software AG are also seeing oil and gas companies starting to lay the framework and mapping their business processes to prepare their organizations for Internet of Things monitoring solutions. Software AG, which focuses on helping companies, including oil and gas companies, become digital enterprises, is seeing oil and gas companies pursue Internet of Things solutions to enhance their cash flow, while others are focused on ways to use sensor technology to achieve greater safety records.
To prepare for the Internet of Things, companies are first seeking to map their business processes to understand how work is done as a way to foster change in their corporate culture. Many firms believe that if they first focus on change management, the tools they use to facilitate operations, including technology, will fall into place.
This strategy of change includes using technology to enable processes as simple as attaching a document that outlines the methodology for a specific process. For example, a document that specifies the requirements for the type of conduit or drilling pipe a company needs can greatly enhance a buyer’s ability to procure the right supply.
“This is a long way from the Internet of Things, but is the top layer of the process automation piece that allows for sensor data to be fed into processes that will give a company enhanced visibility over its operations,” said Donald Fisher, senior director of Software AG Energy Solutions, in an interview with Rigzone.
“Rising CAPEX [capital expenditures] are increasing dramatically in the industry, so firms are very interested in controlling capital costs and being able to prioritize how they spend money,” said Fisher.
Another driver that Software AG officials are seeing in the move towards Internet of Things technology includes operational efficiency, such as being able to secure operational permits for exploration.
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