August 17, 2016
The oil and gas industry is one of massive proportions – from the equipment to the decade-long projects to the billions in revenue. No one knows mega projects better than this industry.
So, how are they effectively managing billions of dollars, high-risk projects, remote field workers and thousands of rigs on the ground? Simply put, they are not.
“Taking big risks is in the DNA of our industry, but the projects are consistently over budget, unprofitable, and never one time,” explains Shiva Rajagopalan, founder and CEO of Seven Lakes Technologies.
The analytics and workflow software enables oil and gas companies. And their employees to create efficiencies critical to an industry that is struggling to modernize its operations.
I spoke with Rajagopalan. About how technology is transforming the oil and gas industry by integrating Silicon Valley-esque practices into its operations. Here’s what he had to say:
Turn Insight Into Immediate Action
Personnel at every level of the organization will identify problems or friction points. They need a method for documenting or fixing those issues immediately. If everyone is empowered to document problems and share. That information in a centralized way, everyone in the company can immediately see the health of the company from anywhere at any time.
“When an entire organization has access to production data and invoicing details. Their collaboration leads to data-driven business decisions, setting the company up for success,” explains Rajagopalan.
Create Data Standards
Rajagopalan suggests meeting with all divisions in your organization to gain an understanding of what they need to overcome business challenges.
“Gaining trust among IT and production, accounting, drilling and completions. Helps everyone recognize what insights will allow them to make better professional decisions. Instill in them the trust that you will provide a data-driven solution.”
Disparate source systems, ungoverned information, and unreliable data block the operational view to excellence. But, by viewing strong and trustworthy data, all processes are transformed. Effective conversations referencing the high-quality data can then lead to smarter business decisions.
Simple Software with High User Adoption
The recent boom in business workflow platforms such as Slack, Trello, and Asana have taken flight. Due to one overwhelming commonality: they require minimal training and boast a high user adoption rate. The same goes for the oil and gas industry.
“Give your organization applications that require minimal training and adapt well to their mobile work environment. Operational excellence begins with your lease operator out in the field, not behind a desk,” says Rajagopalan. “Give them the ability to instantly log findings into a reliable tool such as an iPad or Windows tablet.”
Software Must Work with All Systems
Companies have invested millions of dollars implementing enterprise systems designed to capture, organize and store data securely. These systems were never truly required to speak with each other to get the complete value from those systems. Every new technology investment you make must persistently bridge that gap between siloed systems.
“Invest in software that delivers consistent, trustworthy data without changing the way personnel work. This means new software must integrate with source systems, which makes existing infrastructure and data more useful and meaningful,” explains Rajagopalan.
Don’t Stop at Data, Invest in Action
A company that excels in this market is a problem-solving company. Which means when an individual in the company identifies a problem, it is in their nature to tackle it right away. A subpar business intelligence system would delay that action as data is disentangled from systems that do not work together.
Rajagopalan discusses the importance of how new solutions should display exactly how your business already operates out-of-the-box, changing and shifting along with your industry needs. Deploy technology that will answer your business questions, “How much did we really spend? Will we make money if we keep that well running? Should we continue production on this particular project?” Focus on key performance indicators meaningful to your personnel and long lasting value in their action.
IT has the data, now is the time to visualize it in a meaningful way that equips everyone to make smarter business decisions. Take operations to a new level with solutions that provide increased transparency and insights. With the ability to freely see, act and share a common, collaborative goal – operators become difference-makers and bring sustainable value to the bottom line.
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