CISCO STUDY

Adoption of Internet of Everything by Oil and Gas Industry Could Fuel GDP Increase of Up to 0.8 Percent, or $816 Billion, Over 10 Years - Seite 3

• Survey respondents ranked "faster problem resolution" as the No. 1 business benefit of connected technologies (IoE), while "improved production efficiency" was the top operational benefit.
• Respondents believe IoE will boost operational efficiencies primarily in the upstream segment of the value chain, naming "production" as the No. 1 beneficiary.

Automation and Business Process: Analytics-driven insights will drive the opportunity for process change and optimization.

• More than half of respondents believe IoE has the potential to automate anywhere from 25 percent to nearly 50 percent of manual processes. .
• "Production optimization" was identified by 56% of respondents as the process with most IoE-driven automation benefits, ahead of "Maintenance" and "Business Operations."

Security:  Protection of company information (including customer, transactional, and geological data) was identified as the chief security concern. The Department of Homeland Security stated that 53% of all cybersecurity incidents in the six months ending in May 2013 occurred in the energy sector, and the number of attacks is increasing.

• "Process control systems" was the second-biggest security concern, followed by "IT systems."

IT and OT Convergence: Effective IT-OT convergence can optimize business processes, enhance information for better decisions, reduce costs, lower risks, and shorten project timelines.

• O&G companies need to make improvements in this regard: 59% of survey respondents do not believe that their firms' IT and OT strategies are aligned.

¹ "Internet of Things Technologies Could Transform Oil, Gas Industry," Karen Boman, Rigzone, September 1, 2014.

QUOTES:

"Cisco Consulting Services estimated that the adoption cost of the Internet of Everything would be about $180 billion for the industry. Over a 10-year period, the multiplier impact would be about three to four times when it's translated to the global economy. That's quite a positive multiplier impact."
-- Kathy Bostjancic, Director, U.S. Macro Investor Services, Oxford Economics

"For the first time, pressure is being brought to bear on organizations across the globe to re-engineer the way they do things, and that requires a lot of thought. It requires the bringing together of technology and people... If the going gets tough in the industry and you are looking to make cost savings, you will want remote monitoring and remote operation, which is going to require an awful lot of information traffic -- intelligent, real-time diagnostics, and then intervention."
-- Graham Hill, EVP, Global Business Development & Strategy, KBR, Inc.

Additional Study Resources 

• Read the full report: A New Reality For Oil&Gas
• Video Playlist: Thought Leader Interview Series
• Infographic: How Digital Transformation in Oil&Gas Can Fuel Global GDP
• Image: View of Digital Transformation in Oil&Gas

Cisco Oil&Gas and Internet of Everything

• Learn more about Cisco Oil&Gas
• Connect with Cisco at CeraWeek 2015
• Follow Cisco's IoE Story with Joseph Bradley
• Explore the Internet of Everything
• Join the Conversation #InternetOfEverything

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