But nearly three in 10 oil, gas and utility companies say an inability to define and measure ROI remains a barrier to adoption
LONDON, September 8, 2022 /PRNewswire/ — More than three in ten (31%) oil, gas and utilities companies worldwide cite tighter integration and cross-functional collaboration as the top two reasons for adopting enterprise software systems, while 30% cite better project management, March 29 % improved asset lifecycle management and 29% improved operational efficiencies.
These were among the highlights of new research commissioned by IFSwhich surveyed over 600 senior decision makers from major energy companies France, Australia, Japanthe nordic, United States of AmericaBritain and the middle East. The study also found that 44% of organizations with sustainability goals want to invest in more energy-efficient facilities and infrastructure to help them achieve those goals.
obstacles to change
Despite these important factors, significant barriers to technology adoption remain, particularly related to the inability to define and measure the ROI of enterprise software systems such as EAM and ERP. Nearly three in ten (29%) say the top barrier to adoption is the inability to accurately measure the value of investment during digital transformation. A fifth (20%) also say it is the top barrier to digital transformation overall.
Businesses need and want more clarity and certainty about what these solutions will do. 79% say it’s important for enterprise software to have the embedded ability to set and measure critical KPIs. The companies surveyed would like KPIs to improve resource utilization (34%), extend asset life (30%) and increase asset reliability (28%).
The survey also highlighted several other key barriers to enterprise software systems adoption across the energy sector. 26% highlighted a lack of clarity about the resources and skills needed and
19% say a poor business case makes adoption seem costly. Other reasons include a lack of consensus on priorities across the leadership team — cited by nearly a quarter (24%).
Where companies are now on the digital transformation journey
Only 17% of the companies surveyed report that they have completed their digital transformation. Organizations have different approaches: 65% tackle one function at a time, 18% in overall starting with an asset management solution.
Introducing advanced asset management solutions
More than a third of organizations (37%) rank asset management strategies among the outcomes of digital transformation that will have the greatest impact on their business – and 74% say it’s important to have an advanced asset management strategy Solution enables them to perform improved maintenance, going from scheduled to predictive asset maintenance, for example. With the current pressures on the energy sector, tools that help maximize uptime and increase efficiency through improved asset management are critical.
When respondents were asked to consider what they wanted from an asset management solution, in order of importance, improved maintenance was followed by planning and dispatching (71%), improving supply chain management and reducing inventory costs (70%), mobility ( 69%). and support for compatible units (69%).
From a digital transformation perspective, 38% see sustainable energy as the biggest impact on their business, followed by new business models and asset management strategies (both 37%).
New technologies in the foreground
There is also a strong demand for new, innovative technologies across the energy sector. 72% highlight data analysis as important; 70% relate to virtual assistants and 69% to the Internet of Things (IoT). Currently, respondents (predominantly utilities) are most likely to say that their biggest focus for new technologies is improving the customer experience (20%). Almost three in ten (29%) of utilities are in the design phase of automating the customer experience, followed by more than a quarter (26%) who have already automated and see the value.
Carol JohnstonVP Energy, Utilities and Resources, IFS said: “The study revealed how energy and utility companies are being held back from driving digital transformation because they are unable to define and measure how they are using enterprise software to deliver a achieve return on investment. Companies in the energy sector are often very risk averse and frequently deal with regulators and other stakeholders who require proof of ROI. Therefore, the inability to provide a quantifiable figure for what they are getting for their spend and when is preventing them from making progress.”
“These are barriers that more advanced software vendors are overcoming, particularly through composable platforms that help them incrementally address their biggest pain points and steadily build a measurable ROI over time. Due to the economic and social pressures the industry is under, doing nothing about it is simply not an option. The good news is that more and more organizations are now understanding this.”
The study reveals that 57% of oil, gas and utilities companies with digital transformation projects are looking for a composable platform to support the entire journey, while only 38% are taking the niche solutions journey.
IFS develops and delivers cloud business software for companies around the world that manufacture and distribute goods, build and maintain facilities, and manage service-oriented operations. Within our single platform, our industry-specific products are inherently connected to a single data model and leverage embedded digital innovations to enable our clients to perform at their best, when it really matters to their customers – at the Moment of Service™. The industry expertise of our people and our growing ecosystem, along with a commitment to delivering value every step of the way, has made IFS a recognized leader and the most recommended supplier in our industry. Our team of 5,000 employees lives our values of agility, trust and collaboration every day in supporting our 10,000+ customers. Visit ifs.com to learn more about how our business software solutions can help your business today.
EUROPE /MEA/APJ: Adam Gilbe
IFS, Director of Corporate and Executive Communications
Email: [email protected]
Telephone: +44 7775 114 856
NORTH AMERICA / LATAM: Mairi Morgan
Email: [email protected]
Telephone: +1 520 396 2155
This information was provided to you by Cision http://news.cision.com
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