Why-the-Oil-and-Gas-Industry-Needs-Material-MDM-PartII

Why the Oil and Gas Industry Needs Material MDM? – Part II

A week back, in the first part if this series of blog post, we talked about the ills plaguing the global oil and gas industry and what it has meant for the long term as well as the short term strategies of these companies. In this part we’ll have a look at what the industry insiders themselves think are the challenges being faced by companies at the operational and strategic levels. To paraphrase Elizabeth Browning, let us count the ways…
 
The Eventful Group in 2015 conducted a survey to gauge the mood in the oil and gas industry. The participants included oil and gas leaders from across all segments. They were asked to identify the top focuses of the industry for the year. These are the points mentioned by the leaders in order of their perceived importance –

  1. Cost Reduction, Capital Control, Spend Efficiency and Prioritization
  2. Maximizing Productivity with Optimized Business Processes
  3. Maximizing Value Realization and Value Driven Activity
  4. Driving Organizational Alignment and Transparency
  5. Effective Risk Mitigation and Regulatory Compliance
  6. Workforce Optimization and Talent Acquisition, Management and Retention
  7. Data Driven Situational Awareness
  8. Maximizing Asset Utilization and Operational Productivity

The preponderance of words such as ‘cost’, ‘value’, ‘efficiency’, ‘optimization’, and ‘productivity’ is no surprise as cutting costs and controlling expenditure are the de facto modes that companies get into while navigating volatile markets/conditions. What is surprising is that the one term that can help with all these endeavors is mentioned just once – data. I believe that data in general, and material master data management in particular, can prove to be the silver bullet for most of the challenges being faced by the oil and gas industry. In the next (and concluding part) of this series, we will see how material MDM and data governance can help the oil and gas industry out of this well (pun intended).
 
Further Reading –

Blog – Verdantis Delivers MMDM for Leading Oil and Gas Company – Part II: Actions and Results

Case Study – Leading Electric Utility taps Verdantis for help executing Massive MDM and ERP Upgrade Initiative

White Paper – Managing Material Master Data for Enhancing Procurement Efficiency

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Vipul Aroh

Vipul Aroh

Vipul Aroh is a part of the Marketing team at Verdantis. Although relatively new to the field of master data management and data governance, he is fascinated by the topics and is becoming more passionate about them by the day. Vipul holds a Master’s in Business Administration from Sydneham Institute of Management, Mumbai.

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