Digital Transformation & The Agile Enterprise in Oil and Gas

By Flux7 Labs
June 7, 2019

Digital Transformation Agile Enterprise Oil Gas

According to the World Economic Forum, digital transformation could unlock approximately $1.6 trillion of value for the Oil and Gas industry, its customers and society. This value is derived from greater productivity, better system efficiency, savings from reduced resource usage, and fewer spills and emissions. Yet, the journey to these digital transformation benefits begins with a proverbial first step which can be elusive for large oil and gas enterprises who have vast legacy technologies and complicated organizational structures to navigate.

At Flux7, we are proponents of the Agile Enterprise. While much work has been put into defining what makes an enterprise agile, we are fans of the research by McKinsey, who found a common set of five disciplines that agile enterprises share in common. Defined by their practices more than anything else, these agile organizations deploy an agile culture and agile technology to effectively support their digital transformation initiatives.

Becoming an Agile Enterprise is critically important within the oil and gas industries where unparalleled transformation is happening in rapid fashion. From new extraction methods to IoT and changing customer expectations, the industry is evolving quickly. For long-term, scalable success, digital efforts must be a cornerstone as organizations transition to becoming an Agile Enterprise.

DevOps for Oil and Gas

Equal parts people, process and technology, DevOps is a key component of marrying digital and agile. With a solid cloud-based DevOps platform, automation to streamline processes and ensure they are followed, and a Center of Excellence in place to help train teams, oil and gas enterprises have a roadmap to digital transformation success with DevOps.

For a more detailed road map to DevOps success across the enterprise, please download our white paper:

5 Steps to Enterprise DevOps at Scale

Let’s explore a few examples of organizations in the energy industry that have applied DevOps best practices to facilitate digital transformation and reach greater enterprise agility:

TechnipFMC, a world leader in project management, engineering, and construction for the energy industry, was looking to ensure compliance and security for cloud computing for its global sites and the perimeter networks that support its client-facing applications. To help accomplish this goal, TechnipFMC wanted to create a consistent, self-service solution to enable its global IT employees to easily provision cloud infrastructure and migrate externally facing Microsoft SharePoint sites to the cloud. With templates and automation, TechnipFMC can now enforce security and compliance standards in every deployment, which enhances overall perimeter network security. In addition, TechnipFMC is expecting to reduce operational costs while growing operational effectiveness. Listen as TechnipFMC’s John Hutchinson shares the experience at re:Invent or read the full Technip story.

A renewable energy leader had two parallel goals: It wanted to use an AWS cloud migration strategy as an opportunity to overhaul its business systems and in the process, the company wanted to build standardization. Moreover, it aimed to increase developer agility, grow global access for its workers and decrease capital expenses. Based on its application portfolio TCO analysis, a lift and shift migration approach was pursued. With 80% of its applications now defined by a small number of templates, the company has standardized its software builds, ensuring security best practices are followed by default. The enterprise has increased its time to innovation, speed to market and operational efficiencies. Preview their story here.

Fugro, which collects and provides highly specialized interpretation of oceanic geological data, is able to keep skilled staff onshore using an Internet of Things (IoT) platform model. Called OARS, its cloud-based project provides faster interpretation of data and decisions. With continuous delivery of code, its vessels are sure to always have the newest software features at their fingertips. And, new environments which previously took weeks to build, now launch in a matter of hours, providing better access to information across global regions. Read the full Fugro case study here.

A global oil field services company was looking to embrace digitalization with a SaaS model solution that sought to integrate data and business process management and in the process address operational workflows that would lead to greater scalability and more efficient delivery. The firm implemented a pipeline for delivering AMIs that are provisioned using Ansible and Docker containers, thereby streamlining complex workflows, allowing the firm to reap efficiencies of scale from automation, meet tight deadlines and ensure SOC2 compliance. Now the firm has pipelines for delivering resources and processes to build and deploy current and future solutions -- ensuring digital transformation in the short- and long- term.

We are living in an uncertain, complex and constantly changing world. To stay competitive, oil and gas enterprises are expected to react to changes at unprecedented speed, which has ushered in a strong focus on becoming an agile enterprise. Effectively balance stability with ever-evolving customer needs, technologies, and overall market conditions with DevOps best practices as your foundation to scalable digital transformation.

For five tips on how to apply DevOps in your Oil, Gas or Energy enterprise, check out this article our CEO, Dr. Suleman, recently wrote for Oilman magazine. (Note that a free subscription is required.)  Or, you can find additional resources on our Energy resource page.

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