the post-digital era is upon us are you ready for what’s …...oil & gas –upstreamsurvey ......

#TechVision2019

The post-digital era is upon us

ARE YOU READY FOR WHAT’S NEXT?TECHNOLOGY VISION 2019OIL & GAS –UPSTREAMSURVEY RESULTS

#TechVision2019

SURVEY

DEMOGRAPHICS

accenture.com/technologyvision

4

THE SURVEY WAS FIELDED OCTOBER –DECEMBER 2018

Global n = 6672

4

1

14

1

11

6

4

9

36

Argentina

Australia

Canada

Chile

China

Colombia

Saudi Arabia

United Kingdom

United States

137

334

81

306

296

133

411

133

318

329

297

60

116

295

61

30

67

56

109

62

284

264

96

60

133

372

1,832

Argentina

Australia

Austria

Brazil

Canada

Chile

China

Colombia

France

Germany

India

Indonesia

Ireland

Japan

Malaysia

Peru

Poland

Portugal

Saudi Arabia

Singapore

South Africa

Spain

Switzerland

Thailand

United Arab Emirates

United Kingdom

United States

Oil & Gas – Upstream n = 86

113

198

784

132

602

78

143

529

577

130

166

131

82

86

535

655

52

311

565

130

166

507

Aerospace & Defense

Automotive

Banking

Chemicals

Consumer Goods & Services

Healthcare Payor

Healthcare Provider

Industrial Equipment

Insurance

Life Sciences

Media

Metals & Mining

Oil & Gas – Downstream

Oil & Gas – Upstream

Public Service (Not…

Retail

Semiconductors

Software and Platforms…

Telecommunications

Transportation passenger

Travel (including Airlines,…

Utilities

86Oil & Gas – Upstream

Respondent LocationRespondent Location Industry Industry

5

THE SURVEY WAS FIELDED OCTOBER –DECEMBER 2018

Global n = 6672

3

3

13

14

2

3

10

34

Argentina

Australia

Canada

China

Colombia

Saudi Arabia

United Kingdom

United States

137

334

81

306

296

133

411

133

318

329

297

60

116

295

61

30

67

56

109

62

284

264

96

60

133

372

1,832

Argentina

Australia

Austria

Brazil

Canada

Chile

China

Colombia

France

Germany

India

Indonesia

Ireland

Japan

Malaysia

Peru

Poland

Portugal

Saudi Arabia

Singapore

South Africa

Spain

Switzerland

Thailand

United Arab Emirates

United Kingdom

United States

Oil & Gas – Downstream n = 82

113

198

784

132

602

78

143

529

577

130

166

131

82

86

535

655

52

311

565

130

166

507

Aerospace & Defense

Automotive

Banking

Chemicals

Consumer Goods & Services

Healthcare Payor

Healthcare Provider

Industrial Equipment

Insurance

Life Sciences

Media

Metals & Mining

Oil & Gas – Downstream

Oil & Gas – Upstream

Public Service (Not…

Retail

Semiconductors

Software and Platforms…

Telecommunications

Transportation passenger

Travel (including Airlines,…

Utilities

82Oil & Gas – Downstream

Respondent LocationRespondent Location Industry Industry

#TechVision2019

EXECUTIVE SUMMARY


TREND 4

SECURE US TO SECURE MEEnterprises are not victims,they’re vectors

TREND 3

HUMAN+WORKERChange the workplace or hinder the workforce

TREND 5

MYMARKETS

Meet consumers’ needs at the speed of now

TREND 2

GET TO KNOW MEUnlock unique consumers and unique opportunities

#TechVision2019

TREND 1

DARQPOWERUnderstanding the DNA of DARQ

accenture.com/technologyvision 7

85%are already experimenting with one of more DARQ technologies

80%agree digital demographics give their organizations a new way to identify market opportunities for unmet customer needs

70%agree their employees are more digital mature than their organization, resulting in a workforce that is “waiting” for the organization to catch up

32%Only 36% report that they know that their ecosystem partners are working diligently, like they are, to be compliant and resilient with regard to security

82%agree the integration of customization and real-time delivery is the next big wave of competitive advantage

Oil & Gas – Industry Summary

TREND 4


TREND 3


TREND 5

MYMARKETS


TREND 2


#TechVision2019

TREND 1








Oil & Gas – Upstream Summary

TREND 4


TREND 3


TREND 5

MYMARKETS


TREND 2


#TechVision2019

TREND 1








Oil & Gas – Downstream Summary

#TechVision2019

POST-DIGITAL ERA


#TechVision2019

An emergence of a post-digitalworld where technology is the fabric of reality

Companies are using technology to meet people wherever they are, at any moment in time.

The digital saturation of reality has granted companies exceptional capabilities. They can understand their customers with a new depth of granularity. They have more channels than ever to reach those consumers. And with many companies already starting down the digital path, there are more digital ecosystems and more potential partners to help companies create holistic experiences.


46% 33%

79% of Upstream and 75% of Downstream executives agree SMAC has moved beyond adoption silos to become part of the core technology foundation for their organizations

44% 35%

SMAC has moved to the core#TechVision2019

Upstream

Global n = 6672; Upstream n = 86; Downstream n= 82

Global 79%

79%

48% 27%Downstream 75%

Agree

Strongly Agree

6%

49%

45%

SignificantlyacceleratedAccelerated

Stayed the same

Slowed

2%

7%

48%

43%

2%

44%

53%

97% of Upstream & 91% of Downstream executives report that the pace of innovation in their organizations has accelerated over the past three years due to emerging technologies


How have emerging technologies changed the pace of innovation in your organization over the past three years?


UpstreamGlobal Downstream

#TechVision2019

New technologies are catalysts for change, offering extraordinary new business capabilities. Distributed ledger technology, artificial intelligence (AI), extended reality (XR) and quantum computing will be the next set of new technologies to spark a step change, letting businesses reimagine entire industries.

DARQ POWERUnderstanding the DNA of DARQ

TREND 1


#TechVision2019

Collectively, they will open new pathways into the future


Individually, these four technologies represent opportunities for businesses to differentiate their products and services

DISTRIBUTED LEDGERS

Distributed ledgers will expand networks by eliminating the need for trusted third parties

ARTIFICIAL INTELLIGENCE (AI)

AI already plays a role in optimizing processes and influencing strategic decision-making

EXTENDED REALITY (XR)

Extended reality, an immersive technology, creates entirely new ways for people to experience and engage with the world around them

QUANTUM

Quantum technology will usher in novel ways to approach and solve the hardest computational problems

2%

18%

26%

18%

24%

11%

2%

17%

20%

20%

34%

7%

2%

18%

24%

25%

22%

7%

Adopted across multiple business units

Adopted in one business unit

Piloting

Evaluating or planning to pilot

Not planning or evaluating for adoption

Don't know

2%

16%

21%

21%

36%

3%

80% of Upstream & 90% of Downstream executives are currently experimenting with one or more DARQ technologies


Please indicate your organization’s stage of adoption for each of the following emerging technologies today

Artificial Intelligence Distributed Ledgers/Blockchain Extended Reality

3%

15%

23%

27%

23%

9%

3%

13%

22%

27%

24%

11%

3%10%

23%

20%

34%

9%

Upstream Upstream Upstream

Global n = 6672; Oil & Gas – Upstream n = 86

Global Global Global

2%

22%

26%

24%

18%

7%

Downstream Downstream

2%

13%

22%

33%

21%

9%

Downstream

Like SMAC, DARQ technologies will be greater together than they are separately

Some DARQ technologies may seem more impactful today, but exploring all four will becrucial to take advantage of combinatorial effects

How do you anticipate the combination of DARQ technologies will transform your organization over the next three years?

#TechVision2019


28%

41%

23%

5%

1%

1%

31%

45%

16%

2%

1%

3%

37%

43%

12%

6%

1%

1%

1 - Transformational

2 - Extensive

3 - Incremental

4 - No noticeable impact

5 - Negative impact

6 - Don't know

Upstream

Global

Downstream


A slightly higher percentage of Downstream executives (80%) than upstream (76%) anticipate the combination of DARQ technologies having a transformational and extensive impact relative to other Global industries (69%)

18

38%

20% 24%16%

17%

21%

36%

24%

24%

16%

23%

35%

19%

42%

15%23%

DistributedLedgers /

Blockchain

ArtificialIntelligence

ExtendedReality

QuantumComputing

When asked to rank which of the DARQ technologies will have the greatest impact on their organization over the next three years, 42% of upstream and 30% of downstream executives ranked AI number one

Global Upstream


23% 18%29% 27%

33%

21%

20% 24%

24%

28%21%

24%

17%30% 28%

22%


Blockchain


ExtendedReality

QuantumComputing

Downstream

28%15%

29% 25%

26%

17%

28%26%

24%

24%

22%27%

19%

41%

18% 19%


Blockchain


ExtendedReality

QuantumComputing

Greatest impact

Second greatest

impact

Third greatest impact

Fourth greatest

impact


AI IS EXPECTED TO HAVE THE GREATEST IMPACT FOR BOTH UPSTREAM AND DOWNSTREAM

#TechVision2019

Technology-driven interactions are creating an expanding technology identity for every consumer. This living foundation of knowledge will be key to not only understanding the next generation of consumers, but also to delivering rich, individualized, experience-based relationships in the post-digital age.


TREND 2


Companies are building a rich view of their customers’ digital activities and their technology identities

Technology-driven interactions are creating an expanding technology identity for every consumer

This living foundation of knowledge will be key to not only understanding the next generation of consumers, but also to delivering rich, individualized, experience-based relationships in the post-digital age


#TechVision2019

41% 35% 76%

48% 35%

Agree Strongly Agree

45% 38%

83% of Upstream and 76% of Downstream IT and Business executives believe that digital demographics give their organization a new way to identify market opportunities for unmet customer needs


Upstream

Global n = 6672; Upstream n = 86; Downstream n = 82

83%

83%

Global

Downstream

22

EXECUTIVES REPORT THAT CUSTOMER DIGITAL DEMOGRAPHICS IS EXPANDING THE NUMBER OF WAYS THEY DELIVER PRODUCTS AND SERVICES

23%

52%

22%

2%

1%

23%

47%

22%

7%

1%

23%

50%

23%

2%

1%

1 - Extensively

2 - Significantly

3 - Moderately

4 - Somewhat

5 - Not at all

To what extent is customer digital demographic information expanding the number of ways your organization delivers products and services to your customer base? (i.e., number of digital devices and channels, and customers’ attitudes and preferences for interacting with your organization)?


Upstream

Global

Downstream

#TechVision2019

Workforces are becoming human+: each individual worker is empowered by their skillsets and knowledge plus a new, constantly growing set of capabilities made possible through technology. Now, companies must adapt the technology strategies that successfully created this next-generation workforce to support a new way of working in the post-digital age.


TREND 3


Businesses must find new ways to support and benefit from an increasingly human+ workforce

Workforces are becoming human+: each individual worker is empowered by their skillsets and knowledge, plus a new, constantly growing set of capabilities made possible through technology

Now, businesses must adapt the technology strategies that successfully created this next-generation workforce to support a new way of working in the post-digital age

#TechVision2019


76% of Upstream and 63% of Downstream executives agree their employees are more digitally mature than their organization, resulting in a workforce “waiting” for the organization to catch up

43% 33%


41% 30%

#TechVision2019


Upstream

71%

76%

Global


43% 20% 63%Downstream

76% of Upstream and 78% of Downstream executives believe that increased employee velocity – the speed at which members of the workforce move between roles and organizations – has increased the need for reskilling in their organization

#TechVision2019


Upstream

78%

76%

Global


Downstream

46% 32%

48% 28%

50% 28%


78%

#TechVision2019

While ecosystem-driven business depends on interconnectedness, those connections increase companies’ exposure to risks. Leading businesses are recognizing that just as they already collaborate with entire ecosystems to deliver best-in-class products, services, and experiences, it’s time security joins that effort as well.

SECURE US TO SECURE MEEnterprises are not victims, they’re vectors

TREND 4


Security in an ecosystem-driven world is no longer about protecting oneself—it’s about protecting everyone

While ecosystem-driven business depends on interconnectedness, those connections increase companies’ exposure to risks

Leading businesses are recognizing that just as they already collaborate with entire ecosystems to deliver best-in-class products, services, and experiences, it’s time security joins that effort as well.

#TechVision2019


EXECUTIVES EXPRESS CONFIDENCE IN HOW ECOSYSTEM PARTNERS PERCEIVE THEIR ORGANIZATIONS’ SECURITY…

How do you believe prospective ecosystem partners perceive the security of your organization?

32% 52% 15% 1%1%

38% 49% 7% 3% 2%Upstream

Global

accenture.com/technologyvisionGlobal n = 6672; Upstream n = 86; Downstream n= 82

Downstream 27% 52% 17% 2%1%

Excellent Very good Adequate Inadequate N/A

41% 44%


42% 49%

91% Upstream and 85% of Downstream executives agree that to be truly resilient, organizations must rethink their approach to security in a way that defends not just themselves, but their ecosystems


43% 44%

Upstream

87%

91%

Global

85%Downstream


#TechVision2019

Technology is creating a world of intensely customized and on-demand experiences, and companies must reinvent their organizations to find and capture those opportunities as they come. That means viewing each opportunity as if it’s an individual market—a momentary market.

MYMARKETSMeet consumers’ needs at the speed of now

TREND 5


Connected companies, workforces, and consumers give businesses a foothold for their next big opportunity: capturing moments

#TechVision2019


With direct digital access to customers, companies can understand their current and potential markets better than ever before. Coupled with sophisticated backend technology that can reorient the business quickly, they can deliver for those markets faster than ever before. Put those capabilities together, and every moment is a chance to deliver a new product or service designed not just for a specific customer, but for their needs at a specific point in time.

85% of Upstream and 78% of Downstream executives agree that the integration of customization and real-time delivery is the next big wave of competitive advantage

#TechVision2019


46% 39%

Upstream

85%

85%

Global

44% 41%

48% 30%


Downstream 78%


34

WHEN DO YOU THINK 5G WILL HAVE A SIGNIFICANT IMPACT ON YOUR INDUSTRY?

9%

53%

22%

8%

4%

2%

0%

2%

10%

57%

15%

13%

1%

0%

0%

3%

1%

46%

24%

17%

5%

4%

1%

1%

1 - This year

2 - Within 1-3 years

3 - Between 4-5 years



6 - More than 10 years

7 - Never

8 - Don't know


Upstream

Global

Downstream

84% of Upstream and 76% of Downstream executives agree 5G will revolutionize their industry by offering new ways to provide products and services (e.g., drone delivery, driverless vehicles, faster video transmission)

#TechVision2019

.


40% 39%

Upstream

Global

50% 34%

79%

84%

46% 30%


Downstream 76%


ACCENTURE CONTACTS

Copyright © 2018 Accenture. All rights reserved.

Rich HolsmanAccenture - Global Resources Digital Lead

Julie AdamsThought Leadership Research Sr Principal – Global Energy Research Lead

Renee BrynesThought Leadership Research Sr Principal –Global Research Technology Lead

the post-digital era is upon us are you ready for what’s …...oil & gas –upstreamsurvey ......

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