As a long-time partner of SAP, we believe it is important to keep up with the trends in our customer industries, such as oil and gas, petrochemicals, utilities, power generation, and more. Recently, we attended the Americas’ SAP Users’ Group (ASUG) on August 4th, for an update on the industry trends. We loved hearing about what our customers had to say on their concerns with technology and data.
This event featured speakers Carolyn Szczurek, ASUG Research Manager, and Monika Mangla, Global Finance Digital Strategy and Transformation at Chevron. So, after tuning in to ASUG’s webcast, “The State of the Oil, Gas, and Energy Industry in 2021: A Research Recap,” here’s our recap of this informative event.
Data Management is Critical
As SAP partners, we recognize that a lot of customers in these industries are making the transition to S4Hana. This transition is taking industries by storm as digital transitions incorporate the Internet of Things (IIOT), artificial Intelligence (AI), and automation, but this comes with challenges as well.
ASUG research showed that more than 40% of survey respondents know data analytics, data management, and master data management play crucial roles in their day-to-day work efforts. In particular, the data management contributes to cost effectiveness and general change management practices.
Industries will only continue to face challenges of switching to more environmentally friendly alternatives, reducing their costs to stay competitive, and keeping up with regulations. These trends are across the board and have enhanced the need for accurate, complete and up-to-the-minute data.
Cloud Challenges and the Mobile Landscape
One of the concerns for those in oil, gas, and energy is that of security of information when transitioning to cloud or mobile formats. And it isn’t just these industries. The cloud/mobile transition is a challenge all industries are facing in the era of digital transformation.
Many participants indicated that the complex environments of digital solutions make this problem more prevalent in the workspace. That is why it has become so important to companies to find a solution that simplifies the digital ERP, EAM, and CMMS landscapes.
But what makes digital transformation so competitive and necessary? ASUG found that more than 80% of their respondents are using mobile technology in some capacity. They also found that customers were able to successfully transition more easily when they had cleaned out their master data.
We love hearing the clean master data helps with any process, but this one took the cake! Speaker Monika Mangla from Chevron expanded on the need for clean master data, and clarified that master data cleansing should provide value to the company. Master data cleansing also requires a plan to be properly executed but is worth it to aid with the integration of current technologies.
The greatest tip here from the ASUG webcast was to strategize your transition to cloud computing and mobile. Finding the best solution for each companies needs can take time, but in order to stay competitive, it is a necessary time commitment.
Oil, Gas, and Energy Trend Pressures and Solutions
As we alluded to earlier, one of the trending pressures in oil, gas, and energy industries is the challenge of finding and implementing the right tools efficiently. Technology is only continuing to improve as time goes on, meaning that new technological solutions are being presented to customers at a fast pace.
However, companies that do select a solution run into another pain point: the technology learning curve. This will likely occur no matter what solution a company selects because of the shift in routine, interface, and practice or culture.
This makes the best option challenging in that there are a lot of options, and companies need to be prepared to make a decision and stay with it long enough to see the improvements.
ASUG 2021 Overview
The Americas’ SAP User Group (ASUG) conducts several research projects each year. This year, some of their focuses were based on industry, EAM functions, and solution strategy. Utopia is a proud member of the ASUG community and we thoroughly enjoyed hearing the findings of this signature research effort, “The State of Oil, Gas, and Energy Industry in 2021: A Research Recap.”