Driving Change in the Oil and Gas Industry: A Digital Transformation Framework

Abstract

Abstract The swift advancement of technology has forced key industrial sectors to expedite their digital transformation processes. Despite the escalating organizational interest in investing in technological advancements, the Oil and Gas (O&G) industry lags in the digitalization race. This research aims to introduce a conceptual framework for businesses to succeed in digital transformation and maintain competitive operations through digitalization. The Digital Transformation Framework was applied in an O&G company based in Brazil, focused on the Subsea segment, and is built upon three key pillars. First, defining the digital's identity for the company, the materialization in a long-term strategy, and leadership sponsorship. Second, establishing partnerships with IT and Finance departments, and suppliers, the project management and execution engine layer is a channel to collect ideas, workflow for implementation, and follow-up meetings. The third pillar is related to people, which embraces a strong communication plan, the volunteer work of digital agents, the empowerment of employees as developers, and an upskilling program to increase competencies. The implementation of the framework has successfully increased the digital maturity of the organization and facilitated a sustainable cultural transformation. The framework enabled the generation of improvement ideas, led the automation of critical processes, and enhanced data management. Also, empowered employees to deliver developments independently, and these individuals have been designated as citizen developers. Moreover, the Digital Agents' role promoted a vital contribution to cultural formation. Their influence and support in major areas have elevated the digital culture, promoting the team's involvement and delivering projects autonomously. Likewise, a training program based on digital awareness following an upskilling plan and linked to business strategy allowed the implementation of new technologies in daily operations. Also, incentive mechanisms were established based on financial recognition, increasing employee visibility to those aligned with the corporate strategy and promoting cultural development. Finally, the partnership with technical developers and suppliers was strengthened, including academia for specialized and high-technological projects. The Digital Transformation Framework fosters innovation and provides a practical digitalization approach that tailors its applicability to an O&G industry, defining processes, responsibilities, and stakeholders’ collaboration. This case study presents valuable insights regarding feasible implications for companies that embarked on their digital transformation journey and those seeking to navigate the digital landscape.