Big oil gazing at alternative energy, utilities' IT-driven efficiencies

The oil price decline is prompting a rethink in terms of process efficiencies and adoption of IT services management [or ITSM] across the energy spectrum, including the slower movers at big oil firms.

Envision a centralized single IT platform combining the execution of tasks as diverse as scheduling of rig maintenance, deployment of a rapid response team when required or perhaps issuing ID cards and recording clock-ins of plant staff. In one swoop that would be cutting the need for different IT estates and teams handling different tasks without co-ordination.

The said concept of using a single ITSM platform to carry out a plethora of tasks has been around for years, and available options have only improved over the last decade. ServiceNow NOW -1.03%, a market leader and its bitter rival BMC have been toughing it out in what is already a very competitive market with finance, pharmaceutical and insurance firms leading the way.

Wind turbines ear Truro, UK. Photo by Matt Cardy, Getty Images

However, within the energy landscape, unlike renewable or alternative energy companies, big oil’s response has been lethargic often restricted to outsourcing rudimentary back-office tasks rather than going the whole distance of streamlining IT processes and bringing a specialist platform in to reduce costs.

At ServiceNow’s recent annual shindig in Las Vegas – The Knowledge 15 Convention – several energy executives lurked around mulling over the ‘cost’ savings angle and with good reason. Since there are redundancies across big oil and oilfield services firms and megamergers on the horizon such as Halliburton HAL -0.35%’s with Baker Hughes BHI -0.41% and Shell’s bid for BG Group – savings achieved via ITSM are no longer a subject for another day.

Phil Crozier, partner in IT advisory practice of KPMG, says the situation in the sector is interesting. “Hypothetically speaking, let’s look at Shell’s bid for BG Group. The person who is in-charge of IT operations in that sort of a setting does not get told how to bring two organizations together, merely a percentage of some sorts – say 20% – to take off the cost base.

“Now, the only way you can efficiently achieve those sorts of savings would be via process efficiencies and simplification in the approach taken by the two firms. That’s where digital process optimization comes in.”

http://www.forbes.com/sites/gauravsharma/2015/04/24/big-oil-gazing-at-alternative-energy-utilities-it-driven-efficiencies/3/?ss=energy