Extra tags: Digital Transformation
According to Frost & Sullivan's white paper "Tectonic Shifts in the Energy Industry," the energy industry is witnessing the most dramatic development in its 150-year history. By rebranding as energy corporations and going beyond petrochemicals, oil and gas companies hope to power the world regardless of technology. Industry change is fueled by rising cybersecurity concerns, a lack of ability to fully exploit data, the unpredictability of renewable energy, and the effort to optimise operations. Power and oil and gas firms are responding by integrating more data-driven solutions as they grow their alternative energy portfolios, increase process efficiency, and strengthen security.
The great energy transition means blurring the lines that used to separate utilities, oil and gas companies, and energy users. Third-party aggregators, prosumers, and a new generation of asset owners and operators further complicate the picture. Additional challenges include:
-
Growing cybersecurity threats and ransomware attacks.
-
Maintaining aging infrastructure.
-
A retiring workforce.
-
A growing skillset gap.
Through open platforms, secure and intelligent data insights and processes may be shared to improve operations, drive digital transformation, and produce outcomes and organisational visibility that foster a digitally forward culture. Businesses that accept transformations will advance more quickly.
"To remain relevant as the market transitions to new, data-driven business models, energy-related companies need to invest in a flexible, future-proof framework. This will enable an organisation to get ahead of changes, such as evolving markets, socio-economic upheavals, growing cybersecurity threats, and ever-changing global regulatory demands," explained Roberta Gamble, Partner & Vice President at Frost & Sullivan.
Energy companies should look to:
-
Leverage data strategies and generate new insights through grid flexibility, operations information, cloud-centric automation, and renewable energy – wind and solar power – to fuel and power the world.
-
Process growing data volumes quickly and securely through smart equipment and edge capabilities, intelligent operations, an integrated system, and a connected ecosystem.
-
Integrate supplier and customer information and robust analytics to improve operations and planning.
-
Partner with device and equipment OEMs, third-party power aggregators, connected building solution providers, and customers, or undertake mergers and acquisitions to create a connected utility ecosystem to improve organisational coordination and visibility.
-
Embrace new data sources, solutions, and business models to drive modern wind power, increase growth, and boost operations.
E.G. Nadhan, Chief Architect and Strategist at Red Hat North America, said: "Thanks to growing renewable power asset portfolios and the critical nature of data, once independent industries – oil and gas, transmission and distribution, and power generation – now share the same challenges as everything becomes more connected. With growing data generation and utilisation, energy businesses turn to the cloud for better scaling, agility, and computational power."
The benefits of cloud use and addressing challenges hinge on creating smart partnerships that help build and execute risk-mitigating strategies. The right partner can enable an organisation to go well beyond its current capabilities. Benefits of using the cloud for energy companies include:
-
Identifying and migrating to the right infrastructure scenario, ensuring the solution is right-sized, reducing repatriation risk, and mitigating the capital costs associated with on-premises use and expansion.
-
Segmenting, protecting, and automating data appropriately to improve data utilisation and security.
-
Providing an open and secure platform that creates more productive value chain partnerships and efficient internal processes.
-
Creating a flexible, future-proof framework that enables an organisation to get ahead of and remain ahead of evolving markets, socio-economic upheavals, growing cyber security threats, and ever-changing global regulatory demands.