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Summary: #DigitalTransformation Fueling the Need for Workforce 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.”

kwalkerKaren 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:

#DigitalTransformation Fueling the Need for Workforce Transformation

…and, as always, let us know what you think!

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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.

Read More »

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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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