BP's Noorddin Taj, who works on IT strategy, architecture and digital innovation for the company, believes there is a specific checklist of deliverables an organization needs in order to be ready for digital transformation.
Noordin Taj, IT strategy, architecture and digital innovation for BP.
The pervasive emergence of digitalization, Taj said, has resulted in a rapidly evolving environment "that's exponentially changing every minute. New technologies are coming out, and requirements are changing."
The first mandatory deliverable that must be in place for organizations to adapt, Taj explained, is a clear vision of the task at hand.
"Without a vision, nobody's going to go anywhere," he said. "We have to have a vision, or a 'North Star,' but we also have to be able to revamp or revise that vision continuously."
Speaking in an Operational Excellence in Oil and Gas webinar titled "Driving Successful Digital Transformation at BP," Taj stressed that digitalization strategies "cannot be stale or dormant for five years."
"There has to be continuous improvement and continuous modification," he said. Therefore, agility within a company is essential.
"If you're not agile, you're not going to be able to make the rapid changes that are required," Taj said. "If you have too many layers in your organization, it creates a bottleneck for decision making. It delays and creates large issues."
Leaders must also dedicate adequate time and money to the process of digitalization, he continued.
"We need to make sure that we allocate the money for innovation and digital transformation so we don't get left behind," he said. "Make sure you invest time and money in the right places so you can continue to grow and digitally transform your organization."
Perhaps the most important piece of the puzzle, Taj said, is to build teams of talented and creative people.
"People are the biggest asset of an organization. Invest in talent so your organization is able to survive and thrive in these rapidly changing environments," he said.
Taj also encouraged leaders to empower their teams while maintaining control. "You have to have a boundary condition, but you also have to empower your team to make the right decisions so things can move faster and faster," he said.
Staying competitive
Taj observed that adapting to digital transformation is just one of many challenges facing the oil and gas industry as the world demands more affordable, clean and reliable energy.
"We have pressures coming from government. New regulations are coming in, and customers want more and more from our organizations because there are a lot of choices -- you're not the only company providing products," Taj said. "Customers have higher demands, and suppliers want more from you, so there are a lot of external pressures pushing organizations."
If organizations do not innovate and cater to these new, rapidly expanding requirements, they are not going to survive. "Your culture in the organization has to change," Taj said. "If your organization is set with data, technology, the right people and the right culture, you will be able to innovate and satisfy your customers and improve their experience.
"Technology and globalization have created a lot of opportunities for the customer to go and get the product from anywhere they want, so you have to be really competitive to be able to satisfy your customers and improve their experience. Once that happens, the profitability will follow."
