Powering the future

The essential role of data in the energy sector

In the modern era, data has become as valuable to the energy industry as oil, serving as the cornerstone of organizational success. The volume of data is projected to reach 175 trillion gigabytes globally this year, emphasizing the critical need for effective data utilizationi across industries from sports to healthcare. Since the energy sector is at the forefront of digital transformation, we focus on how advanced digital analytics and visualization can pay dividends when offering customers AI-enabled products and services, streamlining manufacturing, reducing risk during the energy transition, increasing safety, and more.

Central to those objectives is employee upskilling, an imperative particularly critical in an industry facing an aging workforce and the need for sustainability. A recent survey revealed that 40% of energy companies reported difficulty in hiring professionals with the necessary data analysis skills. Therefore, maintaining domain knowledge and accelerating the workforce's digital literacy through upskilling existing employees is essential. This will be a crucial step in an industry where data capabilities are still maturing and the pressure to meet Net Zero targets intensifies.ii

In sum, this article explores the crucial need for digital upskilling of the energy workforce to realize the power of data analytics.

Data-driven decision making: A paradigm shift

The shift toward data-driven decision-making is undeniable in the modern business world. Organizations are increasingly leveraging data analytics across various functions, from marketing to procurement, necessitating substantial workforce upskilling to align with the demands of the data revolution. Leading organizations successfully integrate their employees' experience and institutional knowledge with advanced data analytics skills to achieve superior outcomes.

For years, companies that excelled in data literacy and maintained strong digital infrastructures consistently outperformed their competitors. Data-driven organizations have found significant improvements in decision support, determining operational efficiencies, and improved profitability. With the exponential growth of data availability and groundbreaking developments in GenAI, it is clear that data-driven decision-making will continue to play an essential role in securing a competitive edge through gaining operational and market advantage.

Digital transformation in practice: Three illustrative use cases

The energy sector is grappling with an evolving workforce, necessitating innovative operational tactics and rapid digital transformation. Effective use of data analytics represents a substantial opportunity, enabling organizations to devise creative strategies, enhance performance, and gain a competitive edge.

For example, Ørsted, a Danish energy conglomerate and sustainability leader, is utilizing advanced data analytics to improve efficiency by 15%, reduce energy waste by 10%, cut CO2 emissions by 100,000 metric tons annually, and optimize turbine positioning. Their approach has increased renewable energy output by 1.5 GW, with 90% of the company’s energy production now sourced from sustainable practices.iii

General Electric (GE) is powering its next evolution through data analytics. The company’s software platform, Predix, combines data and analytics to decrease maintenance expenses by 15%, accelerate manufacturing processes by 25%, and reduce equipment downtime by 20%. This tool has fundamentally altered daily operations, fostering a data-informed decision-making culture and boosting employee productivity by 25%.iv

Similarly, Baker Hughes has embraced digital transformation by shifting to enterprise artificial intelligence (AI) solutions on the Microsoft Azure cloud computing platform. Through Microsoft tools like Power BI, PowerApps, and Flow, the company has reduced the time required to capture and analyze data by 60%, freeing up 35% of IT staff time and achieving significant cost savings.v Through a broader partnership with Microsoft and AI leaders, Baker Hughes is bringing an Azure-based AI solution to the entire energy industry, offering companies benefits across the whole value chain, including inventory optimization, energy management, predictive maintenance, and more reliable equipment uptime.vi

Digital upskilling: A cultural transformation

In response to the escalating demand for digital proficiency, many leading energy companies have implemented scalable training programs and specialized learning centers to upskill their employee base. These programs are carefully planned and designed to give the workforce the skills to navigate the digital landscape effectively. Enhancing analytical capabilities within their people can significantly alter operational approaches. Further, through training that focuses on integrating information technology with business acumen, employees are empowered to utilize data while not giving up insights and skills from their experience. However, efforts are only effective if embraced thoroughly, with data analytics and digitalization becoming part of the corporate culture. Below are three case studies that drive home the benefits of these upskilling approaches. Each organization addressed their learning objectives with bespoke programs that meet their employees’ unique needs:

Fostering an analytics-driven culture

A diversified energy manufacturing and logistics company implemented an enterprise-wide initiative to promote an analytics-driven culture. Their initiative was marked by a shift from simply using data as needed to one where data drives analytical insights and using data to tell a compelling story to drive action. Team members were given opportunities to learn through gamified modules using tools like Snowflake for data retrieval, Alteryx for data translation, and Tableau for visualization.

A pivotal program element involved engaging participants in developing pertinent use cases aligned with their professional roles. Learners collaborated side-by-side with data scientists and analytics experts to deepen their understanding, refine their expertise in data-driven approaches, and contribute meaningfully to data-informed strategic planning through real-life training exercises. After completing the training, participants became part of a knowledge community that fosters cross-functional collaboration and mutual support among employees.

This initiative markedly improved the rates of analytics tool utilization in daily operations and cultivated a strong network of organic support across the organization. Further, a bridge was established between the IT department and business stakeholders so that in the business’s efforts to be self-reliant, they could turn to IT as a guide and advisor as needed.

Cultivating a culture of curiosity

A globally integrated energy company began its journey to improve digital literacy. Upskilling was specific to Power BI, introducing employees to visual data representation and analytics through a hands-on approach. This learning method allowed the company to tailor learning modules to employees’ level of technical know-how and provided opportunities to apply learnings immediately. The initiative simulated real-world experiences, culminating in a two-day immersive learning experience.

The program has helped reshape the organizational culture into one of curiosity and collaborative data exploration. This cultural shift extends beyond mere data utilization for decision-making; it promotes a proactive attitude toward change and continuous learning. One of the critical success factors was establishing various levels of expertise within the workforce, accompanied by a reward system to acknowledge achievements, thereby motivating sustained engagement and development.

Meeting employees where they are

A multinational electricity and gas utility company approached its digital transformation by creating a Learning Academy. The Academy uses data to optimize client outcomes and analyze compliance opportunities. The academy program allows employees to bypass courses in which they demonstrate proficiency, enabling them to focus on areas where new learning is needed.

This approach significantly reduces training expenses, allowing participants to focus on building their strengths and developing specialized skills rather than racking up unnecessary course hours. The deployment of a comprehensive and continuous learning plan underpinned by practical, hands-on training ensures that every employee is equipped with the tools to comprehend, analyze, and interpret data effectively.

Preparing for the digital revolution

Organizations that develop and implement digital upskilling strategies will be prepared for a future increasingly shaped by technological innovation. With the rapid adoption of Generative AI (GenAI), organizations can now leverage advanced technologies to drive innovation and efficiency at an unprecedented pace, accelerating the need for strong data analytics skills. Investing in current employees’ digital education can save costs compared to hiring new staff, retaining employees with invaluable institutional knowledge, and operational continuity. Those organizations that apply a forward-thinking approach will be poised to take advantage of the rapid evolution of the digital age and equipped with a workforce that is not only ready to meet the challenges ahead but eager to participate in organizational innovation and growth.

Footnotes

i. World Economic Forum. (2020). A New Circular Vision for Electronics: Time for a Global Reboot.

ii. Energy Systems Catapult. (2023). Data Science Skills in the Energy Sector: Survey Results

iii. Ørsted. (2021). Sustainability Report 2020.

iv. GE. (2021). Predix platform for enhanced industrial performance.

v. Microsoft. (2021). Baker Hughes Drives Significant Productivity Gains and Cost Savings Using Power Platform.

vi. Press release: Baker Hughes, C3.ai, and Microsoft announce alliance to accelerate digital transformation of the energy industry, Microsoft, November 19. 2019.

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