The Industrial Internet of Things (IIoT) is dramatically shifting how businesses operate. IoT often capitalizes on using software, sensors and devices to predict equipment failures along the supply chain, track performance in real time, and help refine designs and processes to prevent those failures in the future. But IoT’s true promise lies beyond just helping oil and gas (O&G) companies directly manage their existing assets, supply chains, or customer relationships. In fact, IoT technology creates an entirely new asset: information about these crucial elements of
As O&G organizations continue to feel pressure on commodity prices, CIOs are turning to digital innovation strategies and IoT as a means to reduce costs and increase productivity. More importantly, they are embracing a bottom-up approach by investing in smaller projects that deliver significant value to a focused area of the business with a faster return on investment. For large-scale extraction industries like petroleum and gas operations, IoT has been proven to provide tangible financial benefits including greater uptime while delivering superior products to their customers at the same time.
With IoT and the digitalization of oil and gas operations, it is now possible to substantially improve production efficiency while reducing operating costs. The approach outlined above can be applied to all types of business-critical heavy equipment throughout O&G organizations. Ultimately, though, implementing IoT is a collaborative effort across many groups within the organization and best accomplished as a set of steps rather than an “all or nothing” approach. It is important to look at IoT not just as a journey but a maturity progression as your organization’s needs and adoption of IoT change. Whether your organization needs to complete all five stages depends on the desired business outcomes. Having a clear strategy, plan for execution, and an understanding of what constitutes success will help determine where your company needs to begin implementing IoT and how far it needs to go.