The energy industry can, much like many other sectors, often be resistant to change. Samik Mukherjee acknowledges that there are many factors that contribute to this trend, such as the length and complexities of projects, the amount of investment tied in development, and the multiple pieces that work in tandem for production. Still, Samik recognizes that digitalization has managed to catch on rather quickly, in part because of the many benefits that they can bring to his industry. Here, Samik Mukherjee discusses some of the largest benefits digitalization spurs for downstream companies as well as how these changes can be further embraced for continued developments in the space.
Brings Certainty to Complex Industry Processes
Samik Mukherjee speaks to the inherent complexities of the oil and gas industry including the complicated nature of projects, managing global supply chains, managing global political risks, and challenges delivering on immense projects. These complexities ensure that guesses are not an efficient strategy for facilitating processes within the energy sector- there are simply too many people, processes, and investment hanging in the balance. Without ways to further bring certainty, projects may have more challenges managing costs and schedules as well as exhibit issues meeting the expectations of customers. For this reason, Samik Mukherjee notes that the ability to forecast the cost and schedule for projects is paramount and an immense benefit of digitalization for facility management. Having the data that can help decision makers ascertain the numbers for major projects at the right time can improve project directors’ ability to make correct decisions regarding the work.
Creates Value for Customers
Samik Mukherjee notes that digital delivery for McDermott has improved the company’s ability to execute projects by creating value for customers. For example, Samik speaks to how the certainty that digitization provides lends more certainty for cost and schedule forecasting, builds relationships for long term value, and contributes to transparency within the industry- all of which work in tandem to bring value to clients. Transparency is an important factor in any business, as it allows leaders to share data with each other simultaneously to ensure that projects are heading in the right direction. The speed in which digitization provides transparency for customers and collaborators is key because efficiency, quality improvements and adjustments, as well as reduced need for reworks can increase production margins while simultaneously ensuring that the information can be shared. Now, customers can access visualizations of projects quickly and easily, and this efficiency does wonders for cultivating healthy and collaborative working relationships moving forward.
Looking Forward
Industry leaders acknowledge that digitalization is here to stay for the oil and gas industry in part because of the benefits that it has for processes, but a large part of its growth is about the people. Not only does digitalization empower leaders to remain on the same page and improve processes, but it also plays a crucial role in helping them remain adaptive to further push evolution in the space. The COVID-19 pandemic has shown that there are operational and logistical challenges inherent to almost any industry, however, having the right tools and people to utilize them is vital for making the right improvements.
