More about New business and operational models

More about New business and operational models

Organizational and technological preconditions for the realization of the digitalization and Industry 4.0 potential

Three major trends are driving the digital transformations in the petroleum industry. The first is the development and implementation of new technologies throughout the O&G value chain, such as automation, remote operations, and use of artificial intelligence. The second trend concerns how the organizations operate, not only internally, but also how they relate to and cooperate with customers and suppliers. The third trend is pointing towards new products and busi-ness models.

Challenges and opportunities

New E&P-technologies are forces that affect organizational structures, work processes and culture, but may also repre-sent new kinds of safety challenges. An example is remote operations of offshore installations, which require new communication and cooperation patterns, and that may also influence safety and security procedures.

Novel digital tools for cooperation, communication and coordination are opening new possibilities for improved collaboration throughout the value chains and for over-coming internal barriers and silos between departments and professions. Efficient ways of sharing information and experience and the organization’s ability to exploit diverse competencies stand out as preconditions for innovation. Innovative development of new products and processes are often also dependent on coordinated efforts, involving partners, suppliers and customers.

Successful digital transformations, increased operational safety, and development of new business models are dependent on the alignment of technology, organization and people. (In the safety domain this corresponds to the well-known MTO approach – “mennesker, teknologi og organisasjon.) This is illustrated in the figure below. The figure also indicates variables that describe central organizational characteristics and how people relate to technology.

Research strategy

One of the basic questions addressed in this program area is then: What are the organizational and technological preconditions for succeeding with digital transformation and the application of new business and operational models, and how can such change processes be managed?

The terms cooperation and collaboration are often used interchangeably, but it is probably more accurate to say that collaboration is a specific form of cooperation, where the participants also have a shared or common goal. To work towards a common goal therefore presupposes alignment of interests. Such collaboration is a key, and in many cases a necessity, for improved performance. A relevant example is new forms of collaboration across different fields of expertise, business units and companies through digital tools, e.g. digital software platforms for field development. Another possibility is new ways of enhancing team performance through monitoring and suggestions for optimization through digital tools that can give inputs for improved decision processes.

Well-functioning organizations sometimes succeed in devel-oping collaborative communities, which are formed when people work together to create shared value. Collaborative communities rest on a common cultural foundation, sharing “a distinctive set of values, which we call an ethic of contribution”. Developing these kinds of organizational qualities is especially important in knowledge-intensive industries that are dependent on continually mobilizing talents and expertise in flexible group-work efforts. Digital technologies can be important tools in the build-up and maintenance of collaborative communities.

The main challenge for organizations which strive to overcome siloization and obtain collaboration is not to develop new digital tools, but find efficient ways of utilizing tools that are already available on the market. In other words: this is a question of enabling technologies and organizational development. We can also say that this is a necessary step towards “Industry 4.0” – realizing the long-term effects of digital technologies – transformation, not only substitution. Relevant research questions following from this are, among others:

• Distributed organizations and remote operations – cooperation, coordination and safety

• Safe and secure digital work processes

• Organizational development for digital transformations

Illustration