In today’s rapidly evolving world, digital transformation has become a buzzword across industries. The energy sector, which forms the backbone of global development, is no exception. Embracing digital transformation is no longer a choice but a necessity for energy companies to thrive in a highly competitive landscape. Let’s explore the importance of digital transformation for the energy sector and where you can start your digitization journey.
Four Key Benefits of Digital Transformation in the Energy Sector
1. Enhancing Operational Efficiency
Digital transformation holds the key to unlocking operational efficiency. With digital documents that can be accessed from anywhere — enhanced by advanced technologies such as artificial intelligence (AI) and big data analytics — companies can optimize their processes, streamline workflows, and automate routine tasks.
2. Empowering Data-Driven Insights
Data is the new fuel in the digital era, and the energy sector is rich with vast amounts of valuable information. Digital transformation empowers energy companies to harness this data and derive actionable insights.
3. Driving Innovation and New Business Models
Digital transformation opens a world of possibilities for innovation because employees are able to focus on advanced initiatives rather than tracking down and manually processing physical documents. This provides your organization with the resources to invest in technologies such as blockchain, smart contracts, and decentralized energy systems, enabling peer-to-peer energy trading, microgrids, and energy communities.
4. Ensuring Cybersecurity and Resilience
The energy sector is a prime target for cyber threats, and digital transformation allows companies to build a robust cybersecurity framework to ensure sensitive information is protected. Energy companies that invest in security measures to ensure proper chain of custody and access can achieve compliance, safeguard critical infrastructure, protect sensitive data, and build resilience against cyber-attacks.
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Get Started by Knowing the Costs
While each energy organization is unique and at different stages of digitization, there are fundamental steps that can help propel you forward in your journey.
You can begin by gaining an understanding of the costs involved. Whether your organization has already started the digitization process or is in the early stages of considering it, understanding the true cost of your existing system is the first step.
Here are five costs to consider:
Conversion: Assess the costs associated with managing physical files compared to digital files. Physical documents incur expenses such as file folders, labels, and labor for creation and storage.
Storage: Physical file storage costs can be significant, especially if proper management of file disposition is lacking. As storage needs increase, annual storage costs also rise. Additionally, file security considerations must also be factored in.
Accessibility: Consider the everyday costs of accessing physical files. Requesting, retrieving, and returning physical files entail both hard and soft costs. On the other hand, you can store, scan and retrieve only what you need, when you need it with Access Unify™ | Active File Service.
Maintenance: In the heavily regulated energy industry, data integrity is of utmost importance. Physical files present challenges in terms of tracking the original file, managing workflow processes, and circulation.
Disposal: If proper disposition procedures are followed, there are costs associated with physical file destruction. Labor and disposal fees must be considered whether the disposition is handled internally or through a third-party partner.
At Access, we understand the complexities involved in managing information within the energy industry. Regardless of where you currently stand in your digitization journey, we can provide assistance.
Take a look at our comprehensive “Adventures in Digitization Playbook for Energy Companies” for a detailed roadmap outlining each step of the journey. The playbook also includes cost calculators to help you assess the expenses associated with physical file management and the value of going digital.
Stay tuned for our next post in this series where we will discuss how to establish a digitization pilot and present a compelling business case to gain executive management support for moving forward.