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Author's profile photo Mahdi Eydgahi

Industry Cloud for Oil, Gas and Energy

Delivering meaningful innovations and accelerating time-to-value for customers is at the heart of SAP’s Industry Cloud initiative, an effort focused on bringing-to-market industry-specific solutions from SAP and our partners which specifically leverage SAP Business Technology Platform.  I lead the Industry Cloud effort for the Oil, Gas and Energy business unit at SAP and, over the course of this article, I will provide a high-level overview of the program and highlight solutions we have delivered to-date.

The Oil, Gas and Energy sector is not immune to changing market dynamics and a shift in consumer demand.  Industry leaders, today, are forced to navigate, among other challenges, the reality of ever-changing government policies, the risk of continued volatility in the price of crude, and the impact of traditional industry lines being blurred.  While the dynamics of the industry are changing, we at SAP, remain steadfast in providing meaningful innovations along the entire energy value chain and stand ready to support the industry as new revenue streams are considered.  Our role, as a technology company, is not to redefine our customers’ processes, but rather to provide solutions which reduce redundancies and put the focus back on high-value work.  Simply put, we strive to help our customers be more agile and Industry Cloud, as an initiative, is SAP’s commitment to continue delivering on that promise.

As I touched on earlier, for a solution to be designated Industry Cloud, it must either be built upon or leverage SAP Business Technology Platform.  Folded into SAP Business Technology Platform are four key components:

  1. Database & Data Management which incorporates master data governance and data storage, processing, and integration capabilities
  2. Intelligent Technologies which make use of artificial intelligence, machine learning, blockchain, IoT, and robotic process automation
  3. Analytics which deliver business intelligence and key operational insights
  4. Application Development & Integration which allows our partners to readily expand existing SAP solutions or create altogether new solutions

All four components are essential to the success of our Industry Cloud initiative and SAP Business Technology Platform is the foundation which allows SAP and our partners to keep innovating and pushing the boundary of what is possible.  It is important to note that SAP Business Technology Platform does not only underpin our Industry Cloud initiative, but more importantly, it is the technology platform which sits at the heart of SAP’s Intelligent Enterprise strategy.  Leveraging and sitting on top of our technology stack is SAP’s industry-specific Oil, Gas and Energy applications: solutions for upstream, midstream, downstream, and oilfield services.  This structure allows Industry Cloud solutions to be placed side-by-side SAP applications and helps facilitate the process of integrating with, and further extending, SAP’s existing Oil, Gas and Energy portfolio.

To-date, the Oil, Gas and Energy Industry Cloud portfolio comprises of 11 partner-developed solutions and 15 SAP-developed solutions.  Partner solutions include:

  1. Corrosion Under Insulation Manager by DNV GL:  Assess and calculate the risk of corrosion under insulation in process plants based on historical data.  Solution fully integrates with SAP Asset Strategy and Performance Management
  1. Risk-based Inspection by AsInt:  Lower the risk of equipment failure and downtime using a well-known analytical assessment called Risk-based Inspection (RBI).  Solution integrates with and extends SAP Asset Performance Management suite
  1. Inspection Data Management System by AsInt:  Perform asset inspection as an embedded work process within SAP using proven API standards for piping, storage tanks, and pressure vessels.  Solution integrates with and extends SAP Asset Performance Management suite
  1. mInventory by Innovapptive:  Digitize paper-based processes, manage inventory, and streamline warehouse operations – goods receipt, putaway, picking, goods issue, inventory counting – using a mobile application.  Solution integrates with SAP Extended Warehouse Management and ideal for offshore scenarios where warehouse operations are not readily accessible
  1. by BearingPoint:  Manage the end-to-end process of handling tools and equipment – including provisioning, utilization, rental, and life cycle management – during construction and maintenance work.  Solution primarily suited for equipment owners (lessors)
  1. BlueOpex by Intcom:  Assemble teams, plan shifts, manage compliance, and track productivity for complex projects.  Solution integrates with SuccessFactors and ideal for managing workforce logistics on offshore platforms
  1. EC&O Issue Management by LTI:  Report and instantly log field issues during construction directly into SAP using a mobile application
  1. Flexinergy by Evolution Energie:  Manage and optimize energy use across multiple sites/plants.  Solution primarily focused on electricity and gas and allows for the management of contracts and the monitoring of daily production and consumption
  1. Connected Depot by Implico:  Streamline truck product loading and simplify work processes required during the entrance-to-exit operations at oil and gas terminals.  Solution integrates fully with SAP S/4HANA
  1. Self-service Industrial Analytics by TrendMiner:  Analyze, monitor, and predict operational performance by contextualizing time series data with maintenance schedules, weather conditions, supplier data, quality data from SAP Digital Manufacturing Cloud, etc.
  1. Loyalty Experience Platform by Annex Cloud:  Implement and manage a loyalty rewards program with integrated engagement and communication modules to help seamlessly connect, engage, and grow customer relationships at scale.  Solution integrates with full SAP Customer Experience stack and ideal for fuel and service stations

On the part of SAP, a number of existing solutions already meet our Industry Cloud technical requirements including our full Intelligent Asset Management suite of products which allow our Oil, Gas and Energy customers to optimize field maintenance and inspection processes.  In addition to our existing portfolio, SAP continues to invest in and develop new Industry Cloud innovations: SAP E-Mobility is a newly-developed solution which facilitates the business processes along the entire electric vehicle charging value chain – from billing, to maintenance, to energy management.  A full listing of our Oil, Gas and Energy Industry Cloud solutions can be found on SAP Road Map Explorer.  For those with an SAP badge, solution overview decks, videos, one-pagers, and other enablement material can be found on our internal Oil, Gas and Energy landing page for Industry Cloud.

SAP’s Industry Cloud solutions should be greater than the sum of their parts.  To ensure we are providing maximum value to customers, the Oil, Gas and Energy business unit has grouped our Industry Cloud solutions into distinct value streams.  In total, over a dozen value streams have been created to help guide customers in their journey to better manage and optimize specific lines of business.  Our new partner-delivered “Plant Integrity Management” value stream packages several Industry Cloud solutions which fully integrate with, and naturally compliment and extend, SAP’s existing field solutions to ultimately help engineers make more informed decisions related to piping and equipment maintenance.

Our Industry Cloud execution work is guided by the ideation work, review and selection analyses, and our finalized strategy and delivery prioritization defined in 2021.  Several solutions are currently under development and many more are planned for 2022 delivery.  The below honeycomb slide summarizes the Industry Cloud opportunities we feel would have the most value for our Oil, Gas and Energy customers.  Items outlined in yellow are partner solutions which have been delivered to-date while the remaining cells are potential opportunities we are currently pursuing.  SAP is open to engaging with, and co-innovating with, our partners and ecosystem to deliver on these opportunities.  SAP’s Industry Cloud initiative belongs firmly to you, our customers, and our collective focus on this effort remains steadfast: to ensure each solution marked Industry Cloud for Oil, Gas and Energy further extends SAP’s existing end-to-end portfolio and delivers meaningful value by addressing either existing pain points or new business models.

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      Author's profile photo Jarret Reeves
      Jarret Reeves

      Great blog!

      Author's profile photo Raunak Agarwal
      Raunak Agarwal

      Informative and great pipeline of innovations

      Author's profile photo Oxana Oleynik
      Oxana Oleynik

      Thank you Mahdi!

      Author's profile photo Rohit Bhanage
      Rohit Bhanage

      Very nicely documented and informative