Annually, CGI leaders around the world meet face-to-face with business and IT executives to gather their perspectives on the trends affecting their enterprises, including business and IT priorities, budgets and investment plans. In 2019, we conducted in-person interviews with 41 client executives in the oil and gas sector who cite digitization, data insight, new business models, revenue pressures, and energy transitions as dominant drivers this year.
Becoming digital for customers is the highest-impact trend
Becoming a digital organization to meet customer expectations becomes the highest impact trend this year, displacing responding to revenue pressures from low oil prices, last year’s top trend, which now measures third in impact.
|Increasing amounts of data insight and analytics to harness business value is now the second most impactful trend, rising from fourth in 2018.|
In 2018, responding to revenue pressures from low oil prices was the top trend, followed by becoming a digital organization to meet customer expectations.
|Changing operational and business models to drive excellence was third, followed by using data insights and analytics and protecting through cybersecurity.|
44% have a defined enterprise digital strategy
Oil and gas executives are embracing digital transformation at a high rate, with 95% reporting they have a digital strategy in place. For 44% of these executives, this strategy extends across the entire enterprise, and for 22%, it also extends to external partners and suppliers.
“Cultural change and change management” cited as top challenge
Oil and gas executives once again cite “cultural change and change management” as their top challenge in implementing their digital transformation strategy. The challenge of technology, legacy and agility constraints rises in frequency from last year, followed by business case development.
94% are using the cloud
This year we asked oil and gas executives to share how they are using cloud computing. Altogether, 94% are using the cloud, the highest percentage among all of the industries CGI covers in these reports, and well above the cross-industry average of 76%. Additionally, they indicated how their organization’s cloud usage is divided between private, public and hybrid clouds (as shown in the above chart). Of those using the cloud, 59% are using it for their own organization and customers, also the highest percentage across industries, and 35% for their own organization, second only to manufacturing. We also asked executives if they have mechanisms in place to locate where key data assets are stored in the cloud, and more than one-fourth do not have clarity on this matter.
Benchmarking clients’ satisfaction with their own IT organization
For the second year, business and IT executives interviewed ranked their satisfaction with their own IT organizations based on the 10 key attributes of a world-class IT organization. Compared to other industries, oil and gas executives have some of the highest satisfaction scores for IT service delivery among executives we interviewed.
CGI can provide clients with a discussion of all available benchmarking, including each client’s positioning, on topics such as digital maturity, IT spending, IT satisfaction, innovation investments and more. Contact us to learn more.