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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.

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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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Building Professional Skills for the Internet of Things

In my conversations with our customers and partners, one of most frequent topics is the need of aligning the skills of the Operational Technology (OT) and Information Technology (IT) professionals to the new capabilities offered by Internet of Things (IoT) related technologies and solutions, and the changing conditions and demands of the business.

There is plenty of training in the market about configuring and maintaining all the new smart objects that are coming to the market. But the specific nature of these devices radically changes the way the essential infrastructure that is needed to interconnect them should be planned, designed, deployed and maintained. These are not traditional networks.

The IoT network infrastructure for all these new “things” has to deal with several new challenges. For one, IoT devices are not traditional computing devices. There are literally hundreds of different protocols used by these devices.  They may have very specific needs in terms of speed and frequency of connectivity.  Many of them are super susceptible to changes in delay and latency, some of them connect intermittently, while some others just come in range from time to time.  Many operate 24×7 under the harshest conditions, and a lot of them where designed to operate in hierarchical and closed loop networks.

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