Académique Documents
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A practical approach
D E L O I T T E C O N S U LT I N G L L P
Extraordinary
times of change…
SENSOR STATS
2030
BY
Late 1990s
1T
SENSORS3 10T Today
SENSORS3 3
4
BOV CONTROL ASSESSMENT
Plan for pregnancies, Track product origins, Know where the filet
know when to best sell ensure ethical and mignon came from and
based on weight, etc. environmental practices, how it was raised
and choose the rancher
brf
5
ORBITAL INSIGHT
6
No “fuel” aside from electricity 350 Km per charge
No fuel additives USD 35.000
No oil changes, no lubricants Waiting List: 500.000
7
Cost of Solar Power
USD / kWh
77.67
0.12
1977 2017 8
SO WHAT? THE INNOVATION IMPERATIVE
in less than 1
40
RICHARD FOSTER
Yale University
30
20
projected
10
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
9
Source: “Creative Disruption Whips Through Corporate America”, Innosight / Richard N. Foster / Standard & Poor’s, Winter 2012
Trends in your
industry…
TRENDS IN YOUR INDUSTRY
120
R&M Index
110
Midstream
Index
100
Equipment & Services
Index
90 E&P Index
80
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17
Sources: Oil & Gas Journal; CNBC; IOGP Safety Performance Indicators 2015
13
Digital disruption in
Oil & Gas
Alert: Blowout Preventer
IR
16
Job Instructions Worker Monitoring Ticket Monitoring
- Maintenance Manager 1 - WorkID: 0001
- Hours worked: 5 - Job forecast: 2 hrs
- Shift length: 12 - Ticket RFID check-in: Yes
- Expertise: - Ticket RFID check-out: No
- Sensors - Ticket approver: Site Manager
- High-pressure valves - Date of approval: 01/01/2016
- Approver: - Ticket Attachments:
- Rig Supervisor
- Vitals
98.6°F
3D Microgeneration Mobile
Virtual Pricing Connected
Smart Spare parts 3D Printing Workforce
Reality analytics homes
Glasses Commodity Printing Big Debt
Wearables
& virtual data analytics data analytics
Reality Smart grids
Safety
Intelligent Asset Nano- Analytics Smart Single view of stock Responsive
Development technology Transportation web
Crowd
sourcing Machine to
machine
communication Smart Smart energy
Cities management
Asset Smart Predictive
Smart performance Exoskeletons Internet
of Things metering asset Digital
Real time project Safety Demand management maintenance customer
management Real-time analytics engagement
digital gas field
management RFID for
logistics and Predictive
transportation Wireless Field force
risk
Crowdfunding power Robotics optimization Social
analytics
charging Media
Collaboration
Ambient tools
computing Outsourcing
Demand and Capex
pricing Supply chain Next gen fault Smart
Intelligent Planning and
optimization and vendor reporting and network scheduling
risk and Material Delivery Home energy iBeacons
optimization management
compliance technology management
20
DIGITAL DISRUPTION
Improvement in % of, O&G supply chain By 2019, 25% of By 2020, 80% of large oil
No. 1 business Result of effective use By 2020, 50% of
Bottom-Line for a jobs to be eliminated companies will and gas companies use
benefit of IoE in of digital technologies companies will
USD50 billion O&G through automation, leverage modelling, Cognitive/AI Agent capable
Oil & Gas in the oil and gas monitor and inspect
company, resulting robotics and new simulation and 3D of problem solving
sector assets
from IoE technologies Virtual reality
These Digital drivers could unlock $1.6 trillion for the Oil & Gas industry, its customers,
and wider society
230
$580-$600 billion $260-$275 billion $430 billion
Kbbl of oil
22
DIGITAL DISRUPTION: WHERE TO START
DATA INSIGHTS
Using advanced analytics, artificial Typical approach
intelligence and machine learning,
what insights can we gather to Not recommended
create new sources of value?
X
DIGITAL TECHNOLOGY MARKET IMPACT
What technologies exist in the How did our use of technology and
market today, and how can we analytics impact our markets and
employ them? value chain and what was the
result?
23
DIGITAL DISRUPTION: WHERE TO START
DATA INSIGHTS
How can we use data and advanced A superior approach
analytics to constantly monitor
behavioral outcomes and course- Recommended
correct as necessary?
Start here
24
Innovation is almost
painfully hot…
INNOVATION MYTHS
26
BUZZWORD BINGO
Innovation
Innovation is a is (almost painfully) hot right now
Top 5 out of 20
challenges CEOs are focusing
only 5%
on in 20161
of their innovation
$680Bn projects actually
R&D spend by top
1000 firms in 20162 succeeded2
but... 27
1: The Conference Board Review 2016 CEO Survey 2: Strategy&, 2015 Global Innovation 1000 report , Doblin analysis
TEN TYPES OF INNOVATION
S&P 500
50
0
2007 2008 2009 2010 2011
29
FORD MODEL T INNOVATION ASSESSMENT
8 TYPES:
30
TESLA MODEL S INNOVATION ASSESSMENT
8 TYPES:
31
UBER INNOVATION ASSESSMENT
6 TYPES:
32
UBER INNOVATION ASSESSMENT
+ +
33
TEN TYPES OF INNOVATION
Premium Merger/Acquisition Organizational Process Superior Product Complements Try Before You Buy Diversification Co-Branding Process Automation
Cost Leadership Consolidation Design Standardization Ease of Use Extensions/Plug-ins Guarantee Flagship Store Brand Leverage Experience
Scaled Transactions Open Innovation Incentive Systems Localization Engaging Product Bundling Loyalty Programs Go Direct Private Label Simplification
Microtransactions
Secondary Markets IT Integration Process Efficiency Functionality Modular Systems Added Value Non-Traditional Brand Extension Curation
Forced Scarcity
Supply Chain Competency Center Flexible Safety Product/Service Concierge Channels Component Experience Enabling
Subscription
Integration Outsourcing Manufacturing Feature Aggregation Platforms Total Experience Pop-up Presence Branding Mastery
Membership
Complementary Corporate Process Automation Added Functionality Integrated Offering Management Indirect Distribution Transparency Autonomy and
Installed Base
Switchboard Partnering University Crowdsourcing Performance Supplementary Multi-Level Values Alignment Authority
Auction Alliances Decentralized On-Demand Simplification Service Marketing Certification Community and
User-Defined Franchising Management Production Environmental Superior Service Cross-selling Belonging
Freemium Coopetition Knowledge Lean Production Sensitivity Personalized Service On-Demand Personalization
Flexible Pricing Collaboration Management Logistics Systems Conservation User Context Specific Whimsy and
Float Asset Strategic Design Customization Communities/Supp Experience Center Personality
Financing
Standardization Intellectual Property Focus ort Systems Status and
Ad-Supported
User Generated Styling Lease or Loan
Licensing Recognition
Predictive Analytics Self-Service
Metered Use
Bundled Pricing
Disaggregate Pricing
Risk Sharing 34
Analysis of the
innovation activity in
Oil and Gas
INNOVATION ASSESSMENT: O&G INDUSTRY
Extended Lean Six Sigma Using 3D printing for rapid Launched a digital Moves product Using its computer game,
program to suppliers to prototyping of engineering platform to predict through pipeline to Quest for Oil, to build brand
enhance collaboration designs to test oilfield equipment ship, rather than presence with stakeholders and
with business partners components on small-scale breakdown pipeline to refinery recruit potential employees
Shifting the Globally pooled its Skystrat technology Osprey Reach allows for Has launched a new
“procurement-driven” support services to enables access to remote, visual validation range of co-branded
business model to an sustainably improve remote exploratory of alarms and checks for lubricants with Tata
“integrated services efficiency across all drilling locations leaks and spills Motors
management” model businesses
37
DEVON INNOVATION ASSESSMENT
4 TYPES:
38
SAUDI ARAMCO INNOVATION ASSESSMENT
4 TYPES:
39
CENOVUS INNOVATION ASSESSMENT
40
OSPREY INNOVATION ASSESSMENT
5 TYPES:
41
PETRONAS INNOVATION ASSESSMENT
“ Ittransform
is a move that will
the global
energy market…
…PFLNG SATU will help
reach natural gas
reserves in locations
where conventional rigs
1.5 million tons of natural gas per year
Max operating depth of 1.5km and pipelines don't
make economic – or
environmental – sense. ”
4 TYPES: – BBC
42
FIELD UPGRADING ASSESSMENT
4 TYPES:
43
TOTAL INNOVATION ASSESSMENT
4 TYPES:
44
SPOT THE INNOVATION
…I focus on getting
on my way as fast
as possible…
8 TYPES:
45
CLIENT A
46
VOLKSWAGEN – SHELL – SAP INNOVATION ASSESSMENT
5 TYPES:
47
PURPLE – INNOVATION ASSESSMENT
48
Managing an
innovation system
INNOVATION AMBITION
by Doblin
ADJACENT (3-4 Types)
Expanding from existing
business into “new to the
company” business
EXISTING
50
INNOVATION AMBITION
CORE
A multi device, Smartglass solution could provide field service
EXISTING
51
INNOVATION AMBITION
10%
The right balance is going to vary by firm
ADJACENT
70% and situation, based on 6 contextual factors:
CORE
11% 24% Less integrated companies may have
difficulty spreading their risks and are less
likely to adopt Adjacent & Transformational
innovations in-house… but may be more
86% 64% successful through an external ecosystem.
TRANSFORMATIONAL It’s all about fewer, Needs to be separate and Needs separate Measure with non-
bolder initiatives protected from existing protected funds economic metrics (time
structures to first prototype; # of
3rd parties engaged)
54
INNOVATION MANAGEMENT SYSTEMS
55
O&G INNOVATION MATURITY ASSESSMENT
2.4 4.1
2.9
Low Average High
Communitech
Alberta Innovates
Sustainable Development
Technology Canada
57
Parting thoughts
PARTING THOUGHTS
59
PARTING THOUGHTS
60
Thank you!
Francesco Fazio
INNOVATION PARTNER
Deloitte Consulting
+1 (312) 203-9306 mobile
ffazio@deloitte.com
61