The next stage in the digital revolution is here, and it's not going away. Technology continues to advance in both our personal and professional lives. According to Gartner Inc., "By 2020, 75 percent of businesses will be a digital business or will be preparing to become one." Is your business ready to compete in the digital world?
In industrial companies, where cost is high to maintain equipment and deliver output to consumers, advanced data analytics are helping leadership, operations, maintenance and other critical areas make better decisions. So, just like an email alert on suspicious activity to a consumer's bank account, leveraging the right asset management software and using advanced data analytics, which recognize and alert on anomalies, can help power plants and refineries take corrective action in a timely manner.
Digital transformation is putting all this big data to good use, but your people, process and technology still need to align to ensure success in the digital age.
⢠People. Managing and making sense of data is not a new concept to the operators and engineers who have run plants for years. However, the sheer volume of data and interconnectivity of devices in this Industrial Internet of Things (IIoT) is raising the stakes. In a 2015 report, McKinsey Global Institute found that most IioT data isn't being used, citing an example that less than 1 percent of data generated by 30,000 sensors on an offshore oil rig is actually examined. Businesses are increasing pressure on technology and operations teams to capture additional value from data to support better decision making.
But how are companies preparing their people to succeed in the digital age? Transformation is not just about the technology; it's about ensuring your people have data that matters so they can effectively achieve business objectives using new technology. And that requires dedication and commitment from leadership, management and all employees. Although leadership sets direction, it can't end there. An ongoing commitment to a change management program must be in place to ensure adoption and long-term success. Change doesn't happen automatically; organizations must reexamine their approaches to strategy execution and change management at all functional levels.
⢠Process. Digital transformation is joining multiple divisions within companies and breaking down traditional silos as various stakeholders make collaborative decisions. We see how the convergence of operations technology (OT) and information technology (IT) is creating a need for more interconnected platforms and processes that can support business transformation and new models of operation.
Processes must align effectively to take advantage of the benefits associated with interconnected plant operations. Connecting predictive maintenance, safety and security systems together, for example, affects many areas of a plant. Companies must address how their teams establish appropriate protocols and processes to work together effectively and be able to present key findings to leadership on progress.
⢠Technology. Advances in analytics and diagnostics provide opportunities for companies to capture value by leveraging operational data in real time. For example, what if a power plant could predict an impending turbine failure through vibration data in its infancy stage? Actions taken could help avoid multimillion-dollar equipment repairs and lost revenue due to unplanned outages.
Additionally, advancements in fleet-wide monitoring and diagnostics are helping large energy companies effectively manage their global fleets remotely. Standardization in data analytics is allowing them to communicate effectively regardless of location, time zone or language. However, as more data migrates to the cloud, infrastructure interoperability, security and privacy are top concerns companies face. Technology continues to advance in these areas to protect data vital to the global energy infrastructure.
It's an exciting time as digital transformation expands across energy and other highly technical organizations. Ensuring your people, process and technology are in alignment and effectively leveraging critical data are keys to success.
For more information about digital transformation, call (443) 838-1416 or email Craig Dalziel at cdalziel@ gpstrategies.com.
