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2016 Upstream
Oil and Gas
Digital Trends
Survey
March 2016
Digital technologies are
recognized as adding
value to upstream oil
and gas companies by
helping reduce costs,
make faster and better
decisions and increase
workforce productivity
1
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 2
28%
45%
27%
91% of all respondents
are already seeing value from
digital today and more than half
of all respondents believe digital
technologies have added high
(36 percent) to significant high
value (17 percent).
72% of the respondents believe
cost reduction is an important
(27%) or the most important (45%)
challenge digital can help address.
91% 72%
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 3
17%
36%
38%
9%
Average or belowSome Low or None
Business benefits:
Top three areas where digital
most benefits companies
Respondents indicated the biggest
benefit from digital is improved decision
making.
Workforce impact:
Top three areas where digital most
impacts the workforce
Respondents said digital’s biggest
impact to date on the oil and gas
workforce has been increased
employee productivity.
56%
46% 40%
45% 25%
59%Faster and better
decisions
Real-time
decision making
Increased
engagement
Better asset
management
Improved job
training
Increased
productivity
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 4
Despite the low oil price environment,
the majority of oil and gas companies
will continue to invest at least the
same amount or more in digital
technologies over the next 3-5 years
80% of respondents
plan to invest the
same amount (30%),
more (36%), or
significantly more
(14%) in digital
technologies over
the next 3-5 years.
80%
2
Less or don’t know
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 5
30%
36%
14%
20%
Digital investment today
is focused on mobility
and the Internet of Things
(IoT) — with analytics
and IoT predicted
to lead the way over
the next 3-5 years
3
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 6
7
The fastest growth areas are predicted to be in artificial intelligence,
robotics/drones, and wearables
Investment in mobile devices looks to be peaking.
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends
Investing Today Investing over the next 3-5 years Top areas of focus over
the next 3-5 years
Fastest areas of growth
over the next 3-5 years
Mobile
devices
Artificial
intelligence
IoT Robotics
& drones
CloudBig Data/
Analytics
36%
38%
44%
36%
57%
31%
38%
30%
13%
28%
16%
23%
Collaboration
& social tools
35%
20%
+10%
Wearable
technology
12%
22%
+15%
+7%
To realize the maximum benefits
of digital, companies will need to
rapidly improve their capabilities,
including maturity in analytics
4
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 8
More than a third (36%) are investing in Big Data and analytics today, but
only 13% feel that their company's analytics capabilities are fully mature
Almost two-thirds (66%) have as an objective, to resolve this within three years.
12%
14%
31%
30%
13%
In what timeframe is your company planning
on implementing new analytics capabilities?
How mature is the use of analytics
within your business?
16%
17%
39%
22%
5%
66%
Other
Longer term priority (beyond 3 years out)
We have no time plan
Medium term priority (2-3 years out)
Short term priority (1-2 years out)
Immediate priority (3-6 months)
Localized We lack both an enterprise wide strategy and process
but there are uncoordinated pockets of analytical activity
Novice As yet we lack most of the prerequisites for a serious
analytics program
Aspirational Basic capabilities are in place but critical elements
are missing to get to an analytical future
Semi-Mature It is not yet embedded in our strategic focus but some
areas like human resources and engineering are analytics focused
Full maturity We have an enterprise approach, sponsored by
leadership and it drives our approach to the market and our competitors
1%
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 9
Oil and gas companies
are increasingly leveraging
cloud technologies to more
rapidly unlock the value of
other digital technologies
- especially analytics, IoT
and mobility
5
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 10
Oil and gas companies expect to use more cloud enabled capabilities
in the next 3-5 years, especially for analytics, IoT and mobility
Which capabilities do you expect your company will be using the cloud to enable
today/over the next 3-5 years?
Today Investing over the next 3-5 years
InfrastructureBig Data/
Analytics
IoTMobility Applications
as a service
Collaboration
52%
45%
56%
45%
49%
41%
46%
27%
37%
32% 31%
Top areas of focus over the next 3-5 years
+11%
+10%
60%
+8%
Fastest areas of growth over the next 3-5 years
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 11
Leading companies are
using digital to drive leaner,
smarter organizations.
Is your company ready to
leverage digital to maximize
business value?
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 12
13
Who do we contact for more information about the survey?
© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends
At Accenture, please contact:
Rich Holsman
Global Energy Technology
Managing Director
richard.h.holsman@accenture.com
For more information visit:
accenture.com/energy
Follow us: @AccentureEnergy. #DigitalEnergy
and #AccentureDigital
At Microsoft, please contact:
Randall Hoppe
Industry Director – Oil and Gas, Energy
and Process Industries
rhoppe@microsoft.com
For more information:
Microsoft Process Manufacturing Solutions
The “2016 Upstream Oil and Gas Digital
Technology Trends Survey,” conducted
on behalf of Accenture and Microsoft
by PennEnergy Research in partnership
with the Oil & Gas Journal, surveyed
upstream professionals worldwide.

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The Accenture and Microsoft 2016 Upstream Oil and Gas Digital Trends Survey

  • 1. 2016 Upstream Oil and Gas Digital Trends Survey March 2016
  • 2. Digital technologies are recognized as adding value to upstream oil and gas companies by helping reduce costs, make faster and better decisions and increase workforce productivity 1 © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 2
  • 3. 28% 45% 27% 91% of all respondents are already seeing value from digital today and more than half of all respondents believe digital technologies have added high (36 percent) to significant high value (17 percent). 72% of the respondents believe cost reduction is an important (27%) or the most important (45%) challenge digital can help address. 91% 72% © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 3 17% 36% 38% 9% Average or belowSome Low or None
  • 4. Business benefits: Top three areas where digital most benefits companies Respondents indicated the biggest benefit from digital is improved decision making. Workforce impact: Top three areas where digital most impacts the workforce Respondents said digital’s biggest impact to date on the oil and gas workforce has been increased employee productivity. 56% 46% 40% 45% 25% 59%Faster and better decisions Real-time decision making Increased engagement Better asset management Improved job training Increased productivity © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 4
  • 5. Despite the low oil price environment, the majority of oil and gas companies will continue to invest at least the same amount or more in digital technologies over the next 3-5 years 80% of respondents plan to invest the same amount (30%), more (36%), or significantly more (14%) in digital technologies over the next 3-5 years. 80% 2 Less or don’t know © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 5 30% 36% 14% 20%
  • 6. Digital investment today is focused on mobility and the Internet of Things (IoT) — with analytics and IoT predicted to lead the way over the next 3-5 years 3 © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 6
  • 7. 7 The fastest growth areas are predicted to be in artificial intelligence, robotics/drones, and wearables Investment in mobile devices looks to be peaking. © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends Investing Today Investing over the next 3-5 years Top areas of focus over the next 3-5 years Fastest areas of growth over the next 3-5 years Mobile devices Artificial intelligence IoT Robotics & drones CloudBig Data/ Analytics 36% 38% 44% 36% 57% 31% 38% 30% 13% 28% 16% 23% Collaboration & social tools 35% 20% +10% Wearable technology 12% 22% +15% +7%
  • 8. To realize the maximum benefits of digital, companies will need to rapidly improve their capabilities, including maturity in analytics 4 © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 8
  • 9. More than a third (36%) are investing in Big Data and analytics today, but only 13% feel that their company's analytics capabilities are fully mature Almost two-thirds (66%) have as an objective, to resolve this within three years. 12% 14% 31% 30% 13% In what timeframe is your company planning on implementing new analytics capabilities? How mature is the use of analytics within your business? 16% 17% 39% 22% 5% 66% Other Longer term priority (beyond 3 years out) We have no time plan Medium term priority (2-3 years out) Short term priority (1-2 years out) Immediate priority (3-6 months) Localized We lack both an enterprise wide strategy and process but there are uncoordinated pockets of analytical activity Novice As yet we lack most of the prerequisites for a serious analytics program Aspirational Basic capabilities are in place but critical elements are missing to get to an analytical future Semi-Mature It is not yet embedded in our strategic focus but some areas like human resources and engineering are analytics focused Full maturity We have an enterprise approach, sponsored by leadership and it drives our approach to the market and our competitors 1% © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 9
  • 10. Oil and gas companies are increasingly leveraging cloud technologies to more rapidly unlock the value of other digital technologies - especially analytics, IoT and mobility 5 © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 10
  • 11. Oil and gas companies expect to use more cloud enabled capabilities in the next 3-5 years, especially for analytics, IoT and mobility Which capabilities do you expect your company will be using the cloud to enable today/over the next 3-5 years? Today Investing over the next 3-5 years InfrastructureBig Data/ Analytics IoTMobility Applications as a service Collaboration 52% 45% 56% 45% 49% 41% 46% 27% 37% 32% 31% Top areas of focus over the next 3-5 years +11% +10% 60% +8% Fastest areas of growth over the next 3-5 years © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 11
  • 12. Leading companies are using digital to drive leaner, smarter organizations. Is your company ready to leverage digital to maximize business value? © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends 12
  • 13. 13 Who do we contact for more information about the survey? © Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends At Accenture, please contact: Rich Holsman Global Energy Technology Managing Director richard.h.holsman@accenture.com For more information visit: accenture.com/energy Follow us: @AccentureEnergy. #DigitalEnergy and #AccentureDigital At Microsoft, please contact: Randall Hoppe Industry Director – Oil and Gas, Energy and Process Industries rhoppe@microsoft.com For more information: Microsoft Process Manufacturing Solutions The “2016 Upstream Oil and Gas Digital Technology Trends Survey,” conducted on behalf of Accenture and Microsoft by PennEnergy Research in partnership with the Oil & Gas Journal, surveyed upstream professionals worldwide.