Digital transformation technologies in the oil and gas industry have received a lukewarm reception from stakeholders across the sector, which has resulted in approximately 53% of companies postponing their adoption of these powerful tools. The reasons for this very average adoption rate for oil and gas OEMs can be traced to a variety of barriers, including the belief of ‘not changing what currently works’ (or ‘if ain’t broke, don’t fix it’) and the fact that 70% of DIY IoT implementations fail.
The high failure rate may have dampened the enthusiasm for digital transformation but such figures must be seen in context. The DIY approach, which may seem more affordable and secure for business owners, tend to become overblown projects which can’t be handled or implemented as suggested on paper. It’s then left it to the professionals who understand what oil and gas original equipment manufacturers (OEMs) struggle with to fix the damage. To avoid such costly errors, if your oil and gas equipment manufacturing organization is considering implementing a digital transformation initiative, here’s 4 of the areas you’ll want to consider:
The business insights, industrial automation, and optimization benefits the digital transformation offers rely solely on data, and the ability to capture the diverse data sets your industrial operations produce. Once data can be accurately collected or captured, it can then be analyzed in multiple ways to devise optimization strategies.
Two major digital transformation technologies make data capture possible across factory floors with diverse equipment and processes. These tools are IIoT hardware and Edge computing hardware. Deploying these solutions or tools across the factory floor creates an interconnected system where data is captured and transferred to storage centers.
Many oil and gas OEMs that have begun the process of implemented digital transformation strategies can capture data but remain stuck when deciding what to do with captured data. The indecisiveness is generally caused by two factors. The first one due to not having a defined use case or strategy for digital transformation implementations. The second is being overwhelmed by captured data as even the average manufacturing facility produces extremely large data sets.
To ease these challenges, IoT platforms built specifically for the oil and gas industry can help with aggregating captured data and comparing them with benchmark data on throughput and machine utilization. This direct comparison ensures you understand either how efficient or inadequate your manufacturing strategies are in relation to specific throughput targets.
While many in the sector concentrate the application cases and benefits of digital transformation implementations on developing predictive maintenance strategies and optimizing machine utilization, digital transformation initiatives can be developed to provide specific solutions to the unique challenges that oil and gas OEMs struggle with.
One solution is the deployment of IoT solutions for the sake of remotely monitoring tools within either your facilities or your clients. Understanding how equipment is utilized can provide the information needed to produce more efficient and innovative equipment for the end-user, one of the many benefits of IoT for Oil and Gas OEMs.
As with every serious endeavor, if the expected returns on such an investment are to be gained, these digital transformation implementations can only be achieved by working with the most technically experienced personnel. Therefore, choosing an IoT solution and partner that meets your industry-specific needs is one of the more important factors to consider before initiating any digital transformation process.
Get in touch with us to learn more about how MachineMetrics can support your digital transformation initiatives.
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