Business Agility for Upstream Oil & Gas, Scene Setting
The Upstream Oil & Gas industry has insight into what it takes to succeed, and over time changes and adapts, and is a generalised observation of process-intensive industry models. An approach to Business Agility for Upstream Oil & Gas is required.
The business climate is now even more dynamic, the time taken to respond to opportunities and threats in the market can have a detrimental effect on the businesses ability to unlock potential.
It's easy to say the business needs to be agile, and there are many reasons why this is an aspirational view. For the upstream oil & gas industry, this is more apparent in nationalised companies where organisations and silos tend to be a protected domain rather than a position of growth potential.
Adopting Business Agility
The term we like to use to address these challenges is 'Business agility'. Business Agility is a mindset that cuts across all parts of the business, for example; supplier costs, culture, hierarchy, decisions, standardised and repeatable processes, duplication of effort, lightweight processes, transparency, self-service.
Understanding how the business can respond to specific threats and opportunities with agility, therefore, is a crucial step in defining a strategy for business transformation.
Business agility is often confused with Lean, but there are core differences that make business agility an essential part of the transformational approach to achieve a transformational shift in business performance.
In general, across Upstream Oil & Gas the conventional concepts focus on efficiency improvements delivered by, specific solutions, collaboration under an umbrella digital oilfield programme.
If we take the case for example where a user needs to manage 200 wells, report production by 1000hrs, action and progress interventions, then there is a need to understand how this can be easily achieved to meet the expectations of the business users.
By starting from the point of business agility, we can open conversations about adaptation around this area to reframe ways of working focussed on an agile mindset.
The agile mindset concentrates on how the user can measure and sustain their contribution to overall business performance improvement.
Reframing specific cases is unlocking potential while incentivising users and providing a platform for continuous improvement.
The team at Easymatics are in a unique position to support clients on their Transformation for Upstream Oil & Gas journey. We have developed a proven framework of methods and accelerators based on six pillars culled from multiple global assignments. Business Agility for Upstream Oil & Gas is one of those six pillars.