Major oil & gas companies realize that launching isolated digital projects and adding digitalization technologies to existing operating models is not sufficient to become a digital company. They attempt to redesign their entire organizational structure to realize the full potential of a digital transformation.
Establishing a Digital Centre of Excellence (DCoE) is one of such initiatives, adopted by an increasing number of oil & gas companies. DCoE bundles together digital capabilities developed within individual functions of the company and serves as an innovation hub driving the digital agenda of the company and supporting different business functions.
At Equinor, Digital CoE is responsible for managing digitalization efforts across the company through six digital programs and three key enablers: developing digital capabilities and leadership, utilizing the external ecosystem of partners, and developing unified data platform (Capgemini). The idea of centralizing digitalization efforts, according to Equinor, suits exploration of emerging technologies: advanced analytics, robotics, augmented reality and virtual reality. In Equinor’s case, launching digitalization projects from the centre enables exploration of the technologies applications without competition for funding with ongoing business (World Economic Forum).
Digital CoE at Shell is tasked with similar challenges – to facilitate the company’s digital strategy and realizing value through the deployment of cutting edge digital technologies. Shell separates the tasks of innovation and operational execution of completed digitalization applications, with later tasks performed by Shell’s Business Service Center. The key point in such separation is that innovation is often disruptive and brings value in the long run, whereas ongoing operations naturally seek out continuity and proven best practices (Constellation Research).
Digital Innovation Organization (DIO) at BP works with different functional teams, academic institutions and start-up companies, to identify new digital innovations, run proof-of-concept and pilot projects at the company, and help to scale up those initiative (Battery Ventures). To navigate new technologies and connect them to business challenges, DIO uses Horizons Chart to map the most disruptive and promising technologies on a time horizon.
Total, in turn, partnered with Tata Consultancy Services to open up the Digital Innovation Center in Pune, the State of Maharashtra, to explore disruptive digitalization technologies and solutions for refining. As Marie-Noëlle Semeria, Senior Vice President and Group Chief Technology Officer at Total put it, “After having integrated digital solutions within the Group, we now want to invent those of tomorrow by combining Total’s know-how with the agility of TCS” (Total).
April 24, 2019