Advancements in technologies, as with other fields, are transforming the way the energy industry operates. The need to adopt emerging technologies is mainly fueled by evolving customer expectations and the urgent need to address climate change issues. The new regulatory changes are also motivating oil and gas, energy, and utility companies to shift to renewable or clean energy. This, in turn, requires energy companies to re-evaluate their business models and adopt new technologies to ensure more cost-effective and efficient operations. As a result, companies are increasingly leveraging new technologies to innovate and optimize their existing business models. Digital transformation is needed to find new revenue streams, capture new market opportunities, improve existing models, and meet the increasing demand for decarbonization and the shift in customer behavior.
The latest technologies, in the current context, mainly refer to Industry 4.0, a term used to define the digitalization of manufacturing operations. These include artificial intelligence and machine learning technology that have enabled the rise of autonomous operating systems on the back of massive amounts of data. Cloud computing, simulation software, and IoT are other technologies that present opportunities for energy companies to redefine their operations and business models in order to achieve competitive advantage.
A recent report from the International Data Corporation (IDC) testifies to an increase in global investment in new technologies, estimating that global spending will double to $2.8 trillion by 2025. With digital transformation picking up pace, energy companies are increasingly leveraging artificial intelligence (AI), big data, the cloud, and the Internet of Things (IoT) to re-imagine their operating models, meet regulatory requirements and shifts in customer behavior, and capture new revenue streams.
In a hyper-competitive business environment, energy companies need to stay ahead of the race by anticipating and fulfilling market and customer needs. Innovation is the need of the hour to remain competitive. The latest technologies, such as big data and analytics, can support real-time decision-making, while AI can support product development. A recent study by TechClarity found that 31% of the companies surveyed that had leveraged the latest technologies for digital transformation were able to improve their revenue in two years, compared to 15% of companies that did not do so. By leveraging new technologies, energy companies can innovate and create avenues to save on production time and costs while also improving their product or service.
One of the greatest challenges facing the energy sector are the stringent norms, new emission regulations, and sustainability targets that it has to meet, especially in light of the Paris Agreement and the mandate to reduce carbon- footprints. The pressure is on many players in the energy industry to reduce emissions by almost 50% by 2050. The way forward for energy companies is to implement sustainable, energy-efficient, and cost-effective operations leveraging the available technology solutions. Using simulation tools like computational fluid dynamics (CFD), energy companies can design and operate their processes in a way that allows them to work together more cohesively and achieve the highest safety, performance, and environmental performance standards needed to meet the energy demand in line with customer expectations.
With sustainability gaining center-stage, there is great pressure on energy companies to prove that they are not part of the problem but are the solution providers, especially at a time when climate change is becoming a reality. It is little wonder that most global players are now adding renewables to their product portfolio. There is now a noticeable shift to alternative energy sources, such as solar panels, wind turbines, and electric vehicles. By leveraging latest technologies such as IoT, energy companies can connect with their customers and influence their behavior while also adding value as and when needed.
Also Read: The Latest Developments in the Energy Industry in 2023
As energy companies transition to clean fuel, Industry 4.0 technologies are enabling a digital transformation. There are several software and automation solutions that are enabling digitalization of all steps of the value chain while also supporting flexibility, speed, and efficiency in new business models. Leveraging these technologies, energy companies can create virtual models to develop new product, design a new plant, innovate faster and more reliably without having to create multiple prototypes, flexibly increase and decrease production capacities, and respond quickly to changing requirements.
Simulation tools are also playing a critical role in helping companies save costs and efforts in prototyping. In a virtual space, they can make adjustments to the design without having to redesign the prototype later. Besides, they can communicate and exchange data more effectively and efficiently across different disciplines and fields of expertise.
In sum, energy companies need to leverage new technologies to innovate in order to remain competitive and meet the needs of the current environment. GET Global Group remains ahead of the race by constantly implementing new technologies to digitalize and also enable their clients successfully fulfil their digitalization journey.
