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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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Interaction Technology: Neutralizing the Barriers of Time, Location, and Staffing Levels

In my last blog, I continued the discussion about the 24-hour bank and how banks must transition from the physical business model to the digital business model. As part of my series on the 24-hour bank, this post builds on the question of how banks could begin to develop the capabilities, enabled by technology, to address the operational and logistical challenges inherent in operating in a customer-driven 24-hour world.

First are the factors that shape our existing banking distribution model: the traditional route to market and how clients connect and interact with their bank. Starting with branches, the traditional distribution model has evolved with the development of technologies such as the telephone, ATM’s, and the Internet. While these technologies provided increased options for clients to interact and transact, they were still affected by constraints of the existing operating model– the availability of bank staff with the requisite skills.

How so? Contact centers, telephone, and online banking required a shift in staffing models to enable customers to interact and transact outside of the normal work day. ATM’s began to allow customer self-service for certain basic transactions at any time of day. Collectively, these technologies extended operating hours for clients, but services were limited due the fact that the expertise required for more complex services were still unavailable outside the traditional workday. Read More »

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Open 24 Hours: Bringing the Full Capabilities of the Branch to Digital Channels

In my previous blog I introduced the series with the idea that financial services firms are now being expected to operate and be “Open 24 Hours.” Underlying this is the transition from the physical business model to the digital business model. This principle can be built upon by exploring the factors that are driving this change and some of the challenges that need to be addressed.

The explosion of digital devices, mobile apps, Wi-Fi everywhere, cloud computing and broadband internet together, provides consumers with increasing ways to explore and shop online. With increased use, shopping and buying online is quickly becoming the normal approach, especially with younger consumers. In fact, a recent study found that 64 percent of generation Y pays half or more of their bills electronically.

Increasingly, consumers start their purchasing journey in the digital space – primarily on the internet. This initial step is usually preceded by a referral from a friend, colleague or family member based on a superior experience. Regardless, the trend for consumers especially in the retail industry is to shop online and purchase offline.

How is this manifesting for retail banks? Just look at the forecasts of usage patterns and changing transaction mix across banking channels. Recent industry surveys all confirm that the volume and mix of transactions is forecasted to change over the next five years. Specifically, the internet, through mobile channels, is increasing in usage. The branch channel is expected to flatten and in developed markets, expected to decrease. In addition, the nature and type of transactions traditionally conducted in the branch is shifting to digital channels, as more technology-enabled solutions are deployed. Read More »

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Systematic Transformation in Higher Education: The Intersection with Technology in a Journey Toward the Future (Navigating Culture)

AM73036Part 3 of A Six-Part Series: Transforming Higher Education in the US

This six-part series will focus on transformation of the traditional higher education system in the United States. The Need for Change and  Shared Challenges were the focus of the previous chapters in this series.

From Cisco’s experience with higher education institutions in the U.S., those that are implementing change well are laser-focused on three critical areas: the ability to address questions of culture, to modernize teaching and learning, and to scale and propagate change across multiple, often divided, siloes within their institutions.  Also, these institutions are using technology to manage each area more effectively.

Technology plays a critical role within each of these sectors, and if used wisely and artfully, can help to accelerate innovation and change. The rate and speed at which institutions need to change will never happen without technologies such as a solid core infrastructure, wired and wireless networks that enable ubiquitous connectivity, collaboration tools that provide seamless and robust communications, and new social collaboration platforms that support and extend the interaction of multiple communities, and ultimately, create a federated higher education society.

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