Cisco Blogs


Cisco Blog > Internet of Everything

IoE-Powered Business Transformation Boosts Agility and Efficiency for Oil and Gas Companies

This week I’m attending CERAWeek, the premier international gathering of energy industry leaders, experts, government officials, policymakers, and innovators. While this is the 34th annual CERAWeek conference, the mood is definitely not “business as usual.” The disruption and uncertainty created by plunging oil prices and shifting market dynamics has created the urgency throughout the industry to rethink strategies and adopt connected technologies to spur operational efficiencies.

But disruption can also create opportunity. Forward-thinking oil and gas (O&G) firms see today’s turbulent market as an opportunity to gain competitive advantage by harnessing new technologies. For example, in the Eagle Ford region in North America, improved drilling technologies are now enabling oil rigs to produce 18 times more efficiently than in 2008, and 65 percent more efficiently than in 2013.

A new study by Cisco highlights the opportunity to achieve even greater efficiencies through transformed business models and digital technologies powered by the Internet of Everything (IoE)—the networked connection of people process, data, and things.

With IoE, oil and gas firms have the opportunity to make IT services a commodity in the business, creating the potential for dramatic cost reduction and improved operational efficiency. The illustration below shows several ways O&G operations can benefit from connected technologies. To achieve these benefits, however, they will need to bring together both the IT and the operational technology (OT) sides of the business. Our survey indicates that oil and gas firms have a long way to go in breaking down the barriers between IT and OT. In fact, only 41 percent of respondents “completely” or “somewhat” agreed that their firms’ IT and OT strategies are aligned.

OandG_Digital_Tranform_01

Source: Cisco, 2015

Here are some examples of how IT-OT convergence can impact the areas of data, collaboration, and cybersecurity: Read More »

Tags: , , , , , , , , , , , , , , , ,

A Turning Point for Oil and Gas: Managing Through Turbulence to Digital Transformation

This is a big week for the global energy industry, as thousands of energy leaders, experts, technologists, and policymakers gather in Houston, Texas, for the 34th annual CERAWeek conference, the premier international event for the industry. As a corporate sponsor of the event, it’s also a big week for Cisco.

Just last week, Cisco released a new report focused on the need for digital transformation in the oil and gas industry. Based on a survey of oil and gas executives, analysts, and consultants in 14 countries, the paper validates CERAWeek’s “oil day” theme, “Turning Point for the Oil Industry.” For forward-thinking oil and gas companies, the price volatility and turbulence in the market could represent a turning point toward true digital transformation. Read More »

Tags: , , , , , , , , , , , , , , , ,

New Oil & Gas Study Reveals a Disrupted Industry Primed for Digital Transformation, Fueled by the Internet of Everything

If ever there was an industry and a time that epitomize “disruption,” it is the oil and gas industry today. Price declines of more than 50 percent since June 2014 have upended the sector, and dominate the agendas of industry executives. In fact, a new Cisco study identified “energy price volatility” as the external market force causing greatest concern for the industry today. The study, “A New Reality for Oil & Gas: Complex Market Dynamics Create Urgent Need for Digital Transformation,” shows an industry ripe for transformation by the Internet of Everything (IoE).

In the past, oil and gas (O&G) companies have attempted to address oil-price declines by resorting to short-term cost-cutting measures to see them through the slump. But this time is different. For one thing, it does not appear that prices will recover any time soon—if at all. Demand is down, and new production technologies are driving efficiencies that will increase production and keep prices low for the long term. This time, O&G firms will need to do more than cut costs – they’ll need to change their operating models through digital transformation.

For the study, we interviewed oil and gas executives, consultants, and analysts in 14 countries about the industry’s challenges, opportunities, and priorities. These experts identified intelligence from data as the key area needed to improve operational efficiency, and data analytics as the No. 1 driver of faster, better decision-making.

Additionally, the survey named faster problem resolution, better process control, and improved worker safety as the top three business benefits of IoE-powered technologies. The top three IoE-driven operational benefits were improved production efficiency, reduced downtime, and equipment performance optimization.

As an industry, oil and gas has been “digitized” for some time. True digital transformation, however, now requires adoption of the Internet of Everything — the networked connection of people, process, data, and things — throughout the value chain. Innovative firms are using today’s turbulent market landscape as an opportunity to grab competitive advantage by harnessing new IoE technologies. Read More »

Tags: , , , , , , , , , , ,

How Banks Can Begin the Journey to IoE Readiness

Cisco’s recent survey of 7200 banking customers in 12 countries left me with a crystal-clear takeaway: consumers are ready for the Internet of Everything (IoE) — and they want it now.

But to meet that demand, banks need to assess their own capabilities as they begin to light up their own “dark assets” with network connectivity and embark on the journey to IoE readiness.

In our survey, we tested five key IoE-enabled banking concepts related to advice (virtual financial advice, virtual mortgage advice, and automated financial advice) and mobility (branch recognition and mobile payments). These concepts resonated with customers globally: 75 percent of all respondents would move their money to another provider for one or more of the five concepts. And while the interest is significant everywhere, in emerging markets, respondents are twice as likely to move their money. Read More »

Tags: , , , , , , , , , , , , ,

Embracing Data & Analytics in the IoT with Our Partners

Massive amounts of data are being created in new places. A Boeing 787 creates half a terabyte of data per flight. An offshore oil well can create up to 10 terabytes in just 24 hours. These are examples of the Internet of Things (IoT). Within the IoT, a huge volume of these non-traditional devices (i.e. things) are being connected by the network.

Imagine if these ‘things’ could talk.

What could they tell us about safety, operational efficiency, and interactions with people using this technology? Well….these things can talk. In fact, they are talking all the time through the large volumes of data they produce. In order to utilize this data to empower business decision-making, we need to understand it. That is where analytics come in. Simply put, analytics is using software to look for patterns in large volumes of data. Patterns help you understand some aspect of your business, so you can make better decisions to achieve the desired outcome.

Read More »

Tags: , , , , , ,