From Vision to Business Innovation in the Energy Sector
From the vision to become a digital leader in the industry to the transformation into a future proof business model. This keynote focusses on how to drive business innovations by adopting the SAP S/4 HANA digital core and creating real-time processes that reach out to customers, suppliers, and the workforce – connected to production assets and the myriads of sensor enabled “things”.
However, our customers are facing challenges in the adoption of the new digital reality. New priorities are addressing and understanding concepts like Blockchain or Machine Learning that for example could potentially change the status quo in the Utilities business, supporting the Digitalization of the Oil Fields and making the interaction of the equipment and assets possible with the users and customers, enabling new concepts for the Internet of Things, supporting the continuous rollout of the Smart Meters and Smart Grids and making sure that we continue supporting our customers in their required adaptation to the existing and new regulatory environment.
Companies need individual digital journeys that are tailored to their specific needs and priorities.
To help solve complexity and transition of our customers into the digital economy, SAP has built a structured framework to think through how to develop and execute on your digital business strategy: The Digital Business Framework. With this framework, the entire value chain will be digitized including the core which serves as the platform for innovation and business process optimization. Every company can develop a digital strategy across these five pillars:
- Outcome based customer experience
- Re-platform core business processes and bring together business process and analytics in real time to be smarter, faster, and simpler.
- Smarter and engaged workforce across all employees and contractors.
- Supplier collaboration to accelerate growth innovation.
- Harness the Internet of Things and Big Data to drive real-time insights and new business models.
SAP S/4HANA is the digital core that can deliver on this digital framework allowing customers to scale their digital transformations across the entire enterprise.
Digital Industry Roadmap
The rise of digitization in the Energy and Natural Resources industries is changing business innovation using cutting edge technology to drive the value. The Digital Industry Roadmap (DIR) is the method to drive the business aligned IT roadmap flushing out the need of digitization in the company and how IT can become value driver. It consists of four steps with clearly defined approach and output. viz.
- Analysis of the Drivers: Analysis of the influencing factors considering the challenges, strategic goal of the individual company as well as the trends in the industry
- Business Model and Maturity: Analysis of business model using Business Model Canvas and evaluation of Digital/Process maturity
- Digital Initiative Portfolio: Derive digital initiatives based upon business priorities and prioritize the portfolio based upon the needs, value and feasibility
- Transformation Plan: Craft a transformation plan (short, mid and long term) tailored specifically to your company including the initiatives, suggested architecture and governance model for realization
The Digital Industry Roadmap uses state of the art Design Thinking approach and helps business and IT to jointly identity, plan and realize their priorities contributing to the vision of their company.
SAP has invested into Model companies and dedicated Value Assurance Service Packages for industries, i.e. Oil & Gas and Utilities, to help customers to adopt S/4HANA successfully and to free up digital innovation budget to master Digital transformation by reducing TCI and TCO.
Value Assurance Service Packs
The SAP S/4HANA Value Assurance service portfolio enables fast, efficient and risk-free transitions to SAP S/4HANA. In addition, it provides the foundation for adopting future innovations. Value Assurance Services help our customers to speed-up planning for the transformation, reducing efforts for technical implementation, mitigating risks and safeguard your implementation, in order to guarantee a quick-start your digital transformation with SAP S/4HANA.
SAP Model Company is a pre-packaged, ready to use, end-to-end solution, that delivers relevant, predictable outcomes. It combines best practices to integrated end-to-end processes (LoB or industry), leveraging customer implementation experiences. It focuses on accelerating implementation time, reducing risks and helping you to get ready for the digitalization journey.
The solution is based on building blocks, a ready to use solution landscape, predefined E2E business processes based on SAP Best Practices, E2E process descriptions and test cases, configuration guidelines and project accelerators.
If you want to learn more about what SAP Digital Business Services can do for you on your road to the Digital Enterprise, attend my keynote “From Vision to Business Innovation in the Energy Sector” at the International SAP Conference for Oil and Gas and Utilities in Lisbon, taking place on March 30th at 15:45.
The International SAP Conference for Utilities is co-located with the International SAP Conference for Oil and Gas, in Lisbon, on the 28th, 29th and 30th of March, 2017.
I think you didn’t address a much more important point: If your customers' business is “Oil and Gas”, they have a dying business model, as these resources are ending now.
The future of energy is renewable!
Gas might still play a small role in “Power-to-Gas” storage, where temporary surplus energy from Wind farms is converted into gas that can be feed and therefore stored in the conventional gas networks.
Oil is over.
It would be interesting to learn if these aspects are seen and disused at the conference (I think they have to, as shareholders do see the situation as well, don’t they?). Maybe you can share your impressions with us afterwards?!