Empowering Tomorrow’s Workforce


Around one-quarter of energy enterprises are investing in digital transformation while using analytics to guide their strategy and approach. The energy industry could benefit immensely from digitalization, but the reality is that it is failing to adopt a digital approach when transforming business operations.

This is confirmed by our data that demonstrates real vulnerabilities for energy companies that sit outside the vision-driven quadrant. To become more vision-driven, energy companies and their industry partners should seek to digitalize their operations by using an analytics and data-driven approach.

A comprehensive end-to-end transformation of energy company operations through digitalization will reinvent the value chain. This will bring energy producers, infrastructure operators, energy brokers, and energy customers together in a single centralized platform, streamlining all aspects of energy delivery and sales.

>Digital Transformation in a Highly Competitive Market

Top Concerns for CEOs in the Energy Industry


CEOs in the energy industry must keep pace with changing industry norms to remain competitive and deliver greater value through digital technologies. Here are the top seven concerns energy CEOs will need to address in the digital era:

Changing Consumer Demands

Changing Consumer Demands

Digital disruption is introducing new complexities to energy delivery and sales. Consumers are monitoring their energy usage more closely, and they have come to expect digital service provision to manage their energy supply. Asset development lifecycles will need to be shorter in order to sustain agility as more innovation occurs across the energy industry.

Grid Disruptions

Grid Disruptions

Partnerships between government, energy producers or suppliers, and end users are increasingly commonplace as deregulation and microgeneration becomes commercially viable. Similarly, energy providers and generators will need to interconnect their systems to enable the smart grid , mitigating outages or loss of service through proactive, data-driven energy load balancing.

Regulatory Changes

Regulatory Changes

Sweeping regulatory changes are ushering in a new era of solar, wind, and geothermal renewable energy sources, supplanting the status quo of coal, oil, and gas. Energy companies must meet regulatory obligations or local laws to support the goals of these initiatives.

Renewable Energy Demands

Renewable Energy Demands

The value chain is no longer based on getting energy from A to B. Consumers are highly aware of the ecological impact of fossil energy sources and expect the option for 100% renewable energy plans. New paradigms like energy supplier reward schemes or carbon offsetting, in addition to smart metering to monitor energy usage, are growing in popularity and mandating more effort from energy companies to appease consumers.

Geopolitical Turmoil

Geopolitical Turmoil

The present geopolitical environment introduces uncertainty, such as with the Middle East and gas or oil supplies from those areas. Fluctuations in supply and demand through geopolitical influences are set to increase, requiring proactive equalization of the supply chain by CEOs, to avoid disruption.

Training and Development

Training and Development

Skill requirements are changing with the shift to solar, wind, geothermal, and hydroelectric sources. The present workforce lacks the skills to meet current and future demand, requiring upskilling or re-education to support this new industry dynamic.

Cybersecurity Threats

Cybersecurity Threats

As the energy industry digitalizes, critical infrastructures will be exposed to cybersecurity threats. This is driven by widespread adoption of cloud computing, digital communication tools, and greater employee mobility with remote endpoint assets. Protecting access to energy infrastructure control systems is vital, as widespread energy outages could occur if attackers gain access and act maliciously. Consumer data protection will also become a concern, with greater data generation and utilization occurring across the energy industry to support smart or digital services.

Health Regulations

Health Regulations

Safety, health, and the environment are all threatened by the energy industry. Intense pressure from governments and consumers alike will mandate the implementation of stringent health and safety protocols, along with the decommissioning of unsafe energy production facilities and the discontinuation of fossil fuel reliance. Energy-related disasters will face intense scrutiny, and regulatory clampdowns on unsafe practices will threaten the bottom line via fines for energy companies who fail to maintain sufficient safeguards.

The Most Successful Digital Transformations Are Powered by Analytics Capabilities


Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers


Data analyzed in this report comes from 4,000+ responses. For the energy industry, data from 344 companies have been used.


Our energy industry experts can offer insights into the following sectors: 

  • Oil and Gas Upstream/Midstream/Downstream

  • Petrochemicals

  • Energy Production

  • Energy Transmission

  • Energy Distribution

  • Coal

  • Nuclear Energy

  • Renewables

  • Equipment and Support Services

  • And More

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Our Technology Transformation Practices:


We help bring our clients’ digital visions to life by providing end-to-end tech capabilities through our technology transformation practices.

Cloud
Cloud

Migrations & Operations

Design, build, migrate and support clients cloud initiatives across data, applications, and infrastructure

Analytics
Analytics

Analytics & AI

Acquire, integrate, store, and process data in the eco-system. Deliver easy to understand predictive and prescriptive insights

Digital
Digital

Experience & Modernization

Conceptualize, design, and deliver full stack, cloud-native applications; and modernize legacy applications

Security
Security

Securing the Enterprise

Ensure a safe and secure digital enterprise using an AI and automation-based security infrastructure

Digitalizing Energy


More energy companies than ever are beginning to execute their digital transformation roadmap. These transformations must be enterprise-wide, transforming existing assets and products to drive innovation and remain competitive. New digital-first energy companies have a distinct advantage, shedding the weight of legacy systems and workflows in favor of agile, data-driven energy service provision. Legacy energy companies must transform quickly to maintain pace, or else risk being overshadowed by new and innovative digital-first competitors.

The high tech and telecom industries are poised to cut across the energy industry, providing products and services that augment the energy value chain. The electrification of industry, commerce, and transport operations is increasing electricity consumption, shifting the balance of energy supply demand. The energy industry must be aware of trends and regulatory changes, taking a proactive approach by adopting technology-driven processes to adapt and overcome the competition.


Only 7% of Companies Are Delivering on Their Transformational Initiatives


Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

An image showing the stages of analytics capability evolution.

Copyright © 2022 Trianz

DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.


Reimagining the Asset Value Chain


The energy industry must reimagine the asset value chain, including supply chain and distribution, the customer value proposition, and expectations for digital tools and services to manage consumer energy supplies.

Companies across the energy industry are recognizing the value of digitalization, both in terms of operational efficiency and insight, as well as delivering better customer experiences (CX). A new Energy-as-a-Service paradigm is emerging, with multiple providers in the same value chain providing greater stability and adaptability. Likewise, direct-to-consumer energy provision is gaining traction thanks to digital disruptors, threatening traditional energy delivery approaches with greater savings and energy ownership for consumers.

Around half of all energy enterprises are seeking to undergo a total digital transformation for these reasons. The goal is to reinvent the (CX) so as to remain competitive in an increasingly hostile digital energy services environment.


Energy Companies Outside the Vision-Driven Quadrant are at Risk


Energy companies have little room for error in terms of how they develop and implement new strategies. For companies who sit outside the vision-driven quadrant, they risk falling behind the pack. There is urgency to digitally transform in the energy industry, but a lack of excellence in execution may undermine the efforts of energy companies seeking to exploit the full value of digitalization.

As emerging players solidify their presence, established energy companies plan to optimize and transform their existing asset operations. The majority of this investment will be in analytics and process digitalization, enabling insight generation and robotic process automation (RPA), which can both improve operational efficiency. Technologies like digital management tools and the Internet of Things (IoT) will usher in a new era of smart, integrated oilfields and energy grids; an essential change that will unveil new opportunities for profit and company positioning in the market.


Energy Leadership in Supply Chain Practices


The energy industry sets the bar for efficient and effective supply chain practices. It has the highest planned digitalization investment in terms of processes, with research and development around applied analytics catalyzing this movement further.

Future energy technologies will include advanced analytics and AI-based automation, with present research and development in these areas outpacing all other functions in the energy industry. This accentuates the need for a vision-driven approach to digitalization among energy companies. Similarly, it highlights growing vulnerabilities among energy companies who sit outside the vision-driven quadrant.

Experience the Trianz Difference

Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.

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