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#DigitalTransformation Fueling the Need for Workforce Transformation

Digital disruption is transforming virtually every role in every industry. Every day I see how the proliferation of online, mobile, and social interactions has created the need for completely new marketing strategies—and completely new skillsets for marketing professionals. We can see this same disruption across industries, as the Internet of Everything (IoE) creates fundamental transformation through the networked connection of people, process, data, and things.

For example, we recently published a new report that shows a global oil and gas (O&G) industry awash with disruption, and primed for digital transformation. Low oil prices have upended the sector, spurring an urgent rethinking of strategy by oil and gas executives—and accelerating the adoption of IoE.

This disruption is one of many factors impacting the oil and gas workforce today—from field workers all the way to the executive suite. Not only will new skills be required in an industry transformed by IoE, but new digital processes will also be needed to transfer knowledge, collaborate to solve problems in real time, and capture insights from a torrent of digital data.

To become agile enough to compete in the IoE Era, the oil and gas workforce must possess a mix of technical skills, industry knowledge, and business acumen. With talent shortages due to massive numbers of professionals retiring over the next few years—and a lack of necessary digital skills among those who remain— O&G firms need to make bold moves to transform their workforce strategy.

  1. Extend the reach of existing expertise –Video-based collaboration can help bridge the expected talent gap by making the most of professional expertise that is spread too thin, as well as providing ongoing training throughout the organization. Video and web collaboration can effectively bring remote experts to any location, without the need for travel. For example, Saipem, an Italian oilfield services company, has employed high-definition video conferencing to cut travel costs, boost productivity, and provide subject-matter expertise throughout the company and with partners.

Real-time collaboration tools are increasingly important for far-flung oil and gas organizations.

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Oil and the Smart Pipe – Article on The Network, Cisco, by Scott Gurvey

Scott Gurvey (the famous New York bureau chief and senior correspondent of the PBS broadcast Nightly Business Report for more than 20 years) has written a thought-provoking piece on “The Network” (Cisco’s Technology News Site).

Safety is the key in the Oil and Gas industry. Whether it’s people, infrastructure, or the environment, the industry is grappling with sometimes controversial issues.

Scott talks about the Keystone XL Oil Pipeline, new technology and the relative safety of different oil transport methods. He quotes James Stafford, the editor of Oilprice.com, as saying that even though moving oil through pipelines is generally considered safer than the alternatives of rail or truck transport, the number of pipeline accidents reported each year remains “unacceptable”

That’s where the new technologies of the Internet of Things comes in. The Operational Technologies (OT) requirements have been different to the IT needs in the past. In my view that’s because of several reasons. The different technologies used for each area gave rise to concern that folks have had about security between networks is one.

Read the latest Thought Leadership for Oil and Gas

Read the latest Thought Leadership for Oil and Gas

Another is that there was also a lack of visibility, and it was difficult for parts of an organization to collaborate with another to sense problems in real time and deliver the right resources to solve them. That’s changing as IT and OT converge. Probably not fast enough for most people’s liking, but that’s owing to the cultural changes needed.

Back to Scott’s article. I’m not going to steal his thunder on ‘Pigs’ (well, Smart Pigs, but still not the kind in your hot dog!), drones (the peaceful kind), or the Analytics challenge the industry faces today. You’ll have to read his article for that.

But I do want to give a plug for the recent thought leadership in the oil industry that Cisco recently conducted (A New Reality for Oil & Gas: Complex Market Dynamics Create Urgent Need for Digital Transformation), which I was proud to contribute to. In it the analytics issue comes to the forefront and IT/OT convergence and Collaboration are seen as essential catalysts for change, with an overarching emphasis on ensuring end-to-end cybersecurity. Read it to see the details. Some might surprise you.

As always, you can learn more about Cisco in Oil and gas here: www.cisco.com/go/oilandgas, and read the latest Secure Industrial Networks with Cisco White Paper (don’t worry, it’s only 3 pages!), by clicking on this link: Secure Industrial Networks with Cisco.

And I almost forgot – if you’re interested in Cisco’s relevance to oil pipelines and that part of the industry, here’s something to whet your appetite: Cisco Connected Pipelines At-a-Glance.

Happy reading! And remember, stay safe out there!

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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 »

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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 »

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Starts tomorrow: DistribuTECH Exhibition Floor Opens – come see Cisco!

The preparations are almost complete. The Demonstrations are ready. The Experts are waiting for you. Come visit us at the Show!

Cisco under the Spotlight

                                                     Cisco under the Spotlight

There are some cool goings-on at the Cisco Booth at DistribuTECH this year.

Our previous posts (DistribuTECH, Cisco, Business and Technical (IT and OT) Solutions. See them all in San Diego February 3rd-4th my me, Peter Granger, and Cisco Demonstrating Solutions for a variety of utilities needs at DistribuTECH, by my colleague Clara Alvarado), told you what to expect. So this is just a little reminder.

Everyone knows that Cisco is big in the IT and carpeted areas of Enterprise customers, but did you know (I feel a car insurance commercial coming on!) just how relevant we are now in the operational side. Just take a look at the specialized technology we have that is ruggedized for harsh environments and outdoor use.

Did you know - not just carpeted areas any more!

Did you know – not just carpeted areas any more!

 

At the booth we even have out own outdoor neighborhood utility pole on display with some of that equipment mounted on it!

Field Area Networks, Substation Automation – even Smart Metering are all available today, in many cases working with our partners to deliver a complete technology and service solution.

Since security and safety are top-of-mind we’ll devote some of the booth to the Secure Ops Solution for Industrial Control Networks, under the “Strengthen Security and Compliance” banner, along with showing Cisco Security for Utilities with FirePOWER under the “Protect SCADA Systems banner”. Lots more to see – look  out for our show updates during the week, and some live video we’ll be capturing to summarize the demos and recognize the real business value of the solutions.

Looking forward to seeing you tomorrow when the show opens.

Remember that you can still book meetings as I reported in my last blog:

Contact Sandra Bullock to schedule a meeting.

            Contact Sandra Bullock to schedule a meeting.

…”I’m happy to tell you that there will be opportunities to meet up with industry experts and technology specialists at our booth to discuss your most pressing concerns and how Cisco and and our partners can help. Here’s how: to schedule a booth tour or customer/partner meeting, contact Samantha Bullock. Sandra will help make it happen.”

And I want to say a special ‘Thank you’ to all the folks who (quite literally as it happens!) weathered the storms to get here!

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