An excellent overview of some of the key topics that are top-of-mind for industry executives in both power utilities and oil and gas. Written by Maciej Kranz, Vice President, Corporate Technology Group, the blog covers many of the ‘essentials’ that are going to make the difference between success or failure for many companies in the future:
- Business Relevance – how important is Line-of-Business (LoB)? What is Cisco doing to address the new buying centers?
- IT/OT Convergence – IT techniques are increasingly used for OT (Operational Technologies). OT has critical needs that IT must take notice of. Is a coming together happening?
- Open Standards – Cisco leads the charge here, but proprietary and legacy protocols still endure. How is the industry adapting?
- Cross-industry Use Cases – All industries are different, or are they? Maciej talks about commonalities and the inefficiencies of learning from different industries.
Maciej talks about the number of connected “things” in the world that has skyrocketed from about a million in the early 1990s to 13 billion today. He adds that…
“As the Internet of Everything (IoE) gains momentum—digitizing business processes in every industry—we expect to see 50 billion connected devices by 2020. The technology connecting all these devices has become affordable and easy to integrate. But that is not the primary reason for this explosion in connected devices. I believe we are entering a “golden age” of digitization because of the confluence of the following factors”.
I know John Chambers and others are talking about there being 500bn devices connected by 2030, so the challenges and opportunities will grow exponentially.
It is those four elements mentioned above, combined with the “network effect,” which multiplies the value of connections as their number grows,which are are driving the rush to connect everything, Maciej concludes. At Cisco, we have thousands of customers who have already adopted IoT solutions—and every day there are more who see the evidence in their own businesses and industries that the time is now for IoT, he adds.
Read his blog hear to find out his views on the four critical elements here: The Internet of Things: Why Now?
…and let me know what you think!
Tags: Energy, IO, LOB, OT, standards, The Internet of Things, use cases, why now
I had a great time recently at the EEI Annual Convention on June 7-10 in New Orleans, LA. EEI is the Edison Electric Institute, the industry association of the Investor Owned Utilities in the U.S. with international utility membership from all over the world. The Annual meeting is a unique event that includes the attendance and presentations by the CEOs of member utilities. The theme of this year’s conference was “Electricity Matters”, exploring the exciting changes happening all across the electric power industry.
The first day was full of excitement, with presentations from Ted Craver and Energy Secretary Ernest Moniz. Moniz shared his thoughts about the dramatically changing U.S. energy landscape, outlining the recommendations defined in the administration’s Quadrennial Energy Review (QER), particularly relating to grid modernization, resiliency, and infrastructure investment.
EEI Chairman Ted Craver led a thought-provoking discussion with Elon Musk, CEO and product architect of Tesla Motors, who was joined by Tesla Motors Chief Technology Officer and Co-Founder JB Straubel. The three leaders discussed electric transportation, energy storage, and the role of technology and innovation for utilities and their customers. Other sessions on the first day included:
- Approaches to Grid Security and Resiliency – panel moderated by PPL Corporation Chairman, President and CEO Bill Spence, discussing specific actions and approaches the electric sector is taking to improve grid security and resiliency.
- The Role of the Utility in the Evolving Distribution Grid – Company leaders, regulators, and consumer advocates highlighted the role of the utility in four areas: planning, design and operation, infrastructure enhancement and customer education and protection.
- Complying With the EPA Clean Power Plan – moderated by Gerry Anderson, Chairman and CEO of DTE Energy, the conversation centered on the EPA’s Clean Power Plan and highlighted how new and innovative technologies can quickly change a state’s strategy for complying with the new rules.
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Tags: Cisco, collaboration, digital, Disruption, Energy, future workforce, Internet of Everything, IoE, IoT, operational technology, OT, transformation, utilities
“Drill, baby, drill” makes for an easy mantra when it comes to energy exploration, but the oil and gas (O&G) industry moved past simply drilling long ago with the introduction of digital information processing. For example, integrated production modeling was introduced in the 1970s. With the recent turmoil in the energy industry, the stakes are even higher for O&G companies to work smarter and more efficiently. Forward-looking businesses are making the transition to true digital transformation, which requires the adoption of the Internet of Everything (IoE)—the networked connection of people, process, data, and things—throughout the entire O&G value chain. According to a recent Cisco study, of these four IoE elements, essential “data” is the component most in demand—and the element that needs the most improvement.
Survey respondents identified “data” as the area of IoE they need to improve most to drive insight and value.
However, in many cases it’s not data that’s lacking; O&G firms are awash in data generated by sensors and machines spread throughout their far-flung operations. The struggle comes in capturing real-time operating data closest to the point it’s created, analyzing it in real-time and applying the results to improve functional and business capabilities. To capitalize on the wide range of data IoE generates, O&G firms must overcome three key challenges:
- Automating the collection of data
- Integrating data from multiple—and often far-flung—sources
- Analyzing data to effectively identify actionable insights
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Tags: analytics, Cisco, collaboration, Data Science, digital, Disruption, IIoT, Internet of Everything, IoE, IoT, oil and gas, oil prices, operational technology, OT, thought leadership, transformation
In case you missed it, here a summary of Karen Walker’s latest blog on the IoE Blog site that reaches out to all those in the Oil and Gas Industry:
“…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.”
Karen Walker, Senior Vice President of Marketing at Cisco and interim CMO, highlights some of the key findings from the report:
“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:
- 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.
- Attract digitally-savvy talent – As up to 50 percent of oil and gas workers prepare for retirement in the next five to 10 years, who will be the next generation of workers that replaces them? An earlier Cisco report showed the next wave of digital transformation will be all about capturing timely, actionable insights from the deluge of data being generated by the Internet of Things (IoT), a key enabler of IoE.
- Bridge the silos – In addition to analytics expertise, O&G companies will need employees who can see and work across the boundaries between IT and operational technology (OT).
- Create a culture of innovation – O&G companies don’t compete just with each other for top talent, they compete with the likes of Google and Facebook. The best and brightest data scientists and software engineers want to be on the leading edge of innovation, not mired in “the way we’ve always done it”.”
Read the full blog to find out further insights here:
…and, as always, let us know what you think!
Tags: analytics, CERAWeek, Cisco, collaboration, Data Science, digital, Disruption, future workforce, IIoT, Internet of Everything, IoE, IoT, Karen Walker, marketing, oil and gas, oil prices, operational technology, OT, 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.
- 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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Tags: analytics, CERAWeek, Cisco, collaboration, Data Science, digital, Disruption, future workforce, IIoT, Internet of Everything, IoE, IoT, IT-OT convergence, marketing, oil and gas, oil prices, operational technology, OT, transformation