Operational Excellence, ROI and pace of adoption - 2017 Petrotechnics survey
Aberdeen, UK – New survey findings from Petrotechnics, the developer of the hazardous industries’ first operational excellence software platform, reveals that OE remains central to firms’ enterprise-wide strategies and is now delivering tangible results. Petrotechnics’ Operational Excellence Index (OEI) has revealed companies in hazardous industries are embracing digital transformation as a means of achieving Operational Excellence (OE), but the rapid pace of innovation and fear of change could pose barriers to widespread adoption.
This is the second year Petrotechnics has surveyed oil, gas and petrochemical industry professionals to gauge attitudes around OE and measure progress towards its adoption. Nearly all (95%) respondents agree that Operational Excellence requires everyone “from the boardroom to the front line, to consistently make the most effective operational decisions.” Some 60% of respondents said OE has become more important in the last 12 months compared to 80% in the previous year – meaning OE has become the new normal.
Firms leading the way are beginning to see tangible results. For 16%, OE initiatives are delivering a return on investment, and for 10%, it is embedded in the way they work. A commitment to enterprise-wide implementation can achieve valuable rewards, including improved maintenance optimization (36%) and reduced operational and major accident hazard risk exposure (33%). While industry leaders are delivering ROI, there remains a huge opportunity for many more firms to follow suit. Nearly half of respondents (44%) say OE is a priority and should be the way they run their business - while 20% state “much more needs to be done.”
When implementing OE initiatives, work place culture is the single biggest challenge according to 60% of respondents, followed by leadership and management (40%). Mr. Lehmann added: “OE initiatives require major change across the entire enterprise, affecting numerous roles and the way many individuals work. Inevitably, there will be resistance to change. Management holds a vital role in leading teams through the transition.” Encouragingly, nearly half of respondents say senior leadership is the most engaged with OE initiatives in their organizations. (survey coverage continues below the infographics. Click either one to get the high-resolution infographic)
Over 73 per cent of companies surveyed noted that digitalization - the advancement of Industry 4.0 technologies like the Industrial Internet of Things (IIoT) smart sensors, digital twins and threads, machine learning, artificial intelligence and cloud solutions - is accelerating the ability to deliver sustainable OE.
Respondents praised the benefits that digitalization is bringing to operations, with early adopters ramping up their use of cutting-edge technologies. Enhanced KPIs and metrics (51%) and improved prioritization and planning (49%) are the two areas where digital transformation is currently creating the biggest impact. Deriving insight from data is also a key focus, with 65 per cent of respondents either currently deploying or planning to deploy predictive analytics.
However, the rate of digitalization has some respondents worried about whether the industry can keep pace. Fifty-one per cent recognize real challenges to embracing digitalization including, steep learning curves (19%), too much data (18%), and disengaged workforces (14%). Over 83 per cent of organizations agree that digitalization enables a single, shared view of operational reality – leading to greater levels of transparency, efficiency, and performance. Eighty-one per cent highlight real-time visibility of asset risk as a significant benefit.
Petrotechnics published their full report in two parts. Here are the links: Part 1 and Part 2. (The report is free, requires registration)
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