By: Silvia Rigato, Strategy Managing Director and Middle East Energy Lead at Accenture
A new state of play has emerged for energy companies. To succeed in this challenging, turbulent environment, companies need to be competitive, resilient, and sustainable. They must make structural changes to their business. And there is no better place to start than an organisation’s enterprise services.
Enterprise services —including finance, human resources, supply chain, procurement, marketing services, sales, IT, and engineering— represent the backbone of the organisation, upholding the enterprise as it flexes and adapts to the cyclical nature of the industry. Assuring these services are hyper-efficient, cost-effective, and flexible is key to staying competitive.
Harnessing the data and insights available from these enabling functions—and acting on them—offers the organisation phenomenal value and decision-making agility. Increasingly, companies are turning to reimagining the enterprise services operating model and harnessing the power of IES.
IES is an integrated, customer-centric set of services that seamlessly deliver outcomes to stakeholders across the back, middle, and front office. Given the value IES offer, many energy companies are doubling down on making the most of these services. They are expanding functional scope significantly, committing to business outcomes beyond cost to serve reductions, and reimagining the services outside of process-centric models to designs focused on stakeholder need to better meet their organisation’s goals.
Maximising these elements—adopting IES—can enable energy companies to be more flexible, agile, and responsive, generate value more quickly and achieve competitive advantage. Companies employing IES are seeing huge benefits, such as hundreds of millions in cost savings, productivity improvements, increased customer engagement, and higher brand value.
Moving to action
IES adopts a human-centered point of view—as opposed to a process-oriented position. Organizations can enhance the value of their business services in the eyes of customers, employees, and business partners, transforming performance from good to great and creating a powerful engine for top-line growth and workforce engagement.
Moving from a mindset of cost efficiency to a culture focused on value, experience, and growth, the modus operandi for the team providing operational support must also change to accommodate agile methodologies, iterative approaches, and new reporting metrics that focus on the quality of experience.
What does IES look like in action?
Intelligent enterprises converge process, technology, data, and analytics to change the way work is done and use freed capacity to generate business insights and outcomes. They integrate diverse data, combine human + machine talent and orchestrate work to build resiliency, competitiveness, and strong outcomes across business functions.
Transitioning to adopting intelligent enterprise services is no easy undertaking. It requires vision, alignment among the C-suite, flexibility, and commitment to doing things differently, adopting new approaches with a new set of assets. The journey to IES comprises four phases, each underpinned by a set of technologies to drive efficiency and insights, advancing at each stage of the journey and accelerating business outcomes.
No time to wait
Amid the industry’s current state of disruption and the critical energy transition looming ahead, oil and gas companies need to redefine resilience, boost competitiveness and prepare for the sustainable energy future. IES is a critical enabler of each of these imperatives—and, by extension, the industry’s reinvention.
How do companies begin the IES journey?
- Develop an innovation engine: Leapfrog the existing captive enterprise center to deliver outcomes. Work with an ecosystem partner to provide process optimization and automation services and data and insights services.
- Co-source and develop a hybrid model: An ecosystem partner can manage a global hub automating transactional work and deploying analytics and AI.
- Adopt a transferred services model: A partner committed to productivity and business goals can own the setup, transition, and run of managed services.
- Divest to a partner: Transfer delivery responsibility to an ecosystem partner, working together to identify and transfer committed new work into a delivery center.
This column first appeared in the October issue of Pipeline Magazine