The Energy sector is facing one of the biggest market transformations – a pivot toward sustainable energy sources and changing sentiment in how energy is consumed.
Regulation, decarbonization objectives, changes in commodity prices, and shifting public sentiment have the energy sector’s traditional business model at risk despite growing demand around the world. Consumers and businesses are increasingly focused on sustainability, and energy companies are challenged with evolving their traditional business model to align with this new energy-conscious world. With that, comes increased exploration costs.
Since the beginning of the pandemic, energy companies have also had to manage major uncertainty due to significant fluctuations in demand.
To facilitate the pivot to the next era of energy, and to offset the financial impact of all these headwinds, operational efficiency is paramount. Unfortunately, for many businesses in the energy sector, siloed legacy systems are standing in the way of progress.
With these headwinds, energy companies have to find a way to continue to produce and distribute energy at scale while, at the same time, lowering their carbon footprint. Doing so entails three fundamental objectives that will help them transition into the new market landscape:
Objectives #2 and #3 can be largely achieved through a successful digital transformation initiatives. Objective #1, while primarily driven by management strategy, can be optimally executed by using the right enterprise technology platform for product lifecycle and customer service operations.
The right enterprise technology platform will obviously serve as the foundation for digital transformation and increase or accelerate its rate of success. While the energy and utilities sector needs the benefits of digital transformation to happen fast, this is actually a sector that is said to lag in workflow automation.
Energy companies are said to be among the least digitally mature sectors with correspondingly low digital transformation success rates. This could be because the typical energy company tends to place more emphasis on engineering technologies over internal (info and communications) technology.
Additionally, the technology spend of companies in the energy sector is on the very low side in comparison to other sectors (avg. technology budget as a % of revenue is just 1.8%), despite case study after case study showing that investment in the right digital technologies can pay back in multiples, in a relatively quick timeframe.
Digital transformation is helping to automate and streamline large-scale business functions as well as provide new visibility (data) that helps to further optimize operations. Energy companies can drive and accelerate the shift to a new market landscape by optimizing how they work internally to preserve operational costs and establish better business agility.
While they’re not yet among the digital transformation front-runners, the good news is that there’s a lot of opportunity for improvement.
ServiceNow is an enterprise workflow platform that can help harmonize business (internal, field and customer-facing) operations to achieve significant cost savings and operational efficiencies within an organization. A few specific examples of:
In short, energy and utility companies must maximize operational efficiencies to reduce operating costs. The ServiceNow platform can help energy and utility companies meet today’s challenges head-on, enabling them to:
Essentially, using the Now platform to increase operational efficiency, energy and utility companies can harness the power of connected operations to unlock benefits throughout the value chain and transform service delivery (for both customers and employees)
We are an elite ServiceNow partner who major global brands choose to realize the full potential and maximize value from their ServiceNow platform investments. Being a pure-play partner and a smaller boutique firm, we’re known for our specialized knowledge of the Platform and a true-partner approach, where we work closely with our customer to understand and define objectives, and quickly produce results to validate the approach before scaling up.
We have a wide range of experience in helping energy companies maximize value from the ServiceNow platform and have gained a wealth of knowledge in the unique needs of energy company operations. With a vast library of reusable assets, integrations and methodologies, we’re able to complete projects in a relatively short timeframe.
Check out a case study where we helped SASOL, an integrated chemicals and energy company, expedite and automate their Change Management process to deploy new technologies faster to both their employees and customers.
The value we can achieve for energy companies using the ServiceNow platform can range from a small, single-process project within one department to a large-scale transformation of business processes that span several functions. While out-of-the-box projects keep the platform future proof, we also specialize in custom applications that serve a unique business need where out-of-the-box doesn’t.