What a year it has been for the Oil, Gas, and Energy industry! As we near the end of 2023, let’s look back at the innovations, milestones, and achievements of the past twelve months. Starting off, we had an end-of-year catch-up with the head of Oil, Gas, and Energy, Stephane Lauzon:
Interview with Stephane Lauzon
Q1: Which three words do you associate with the year 2023?
Change ... Change ... Fartlek! (Runners will get this!)
Q2: Can you share the key lessons the industry took away from this year, and how have they shaped SAP's current strategies?
Industry continues to respond to market needs/demand as well as changing governmental policy and regulations. In the end, it all boils down to "AND". "AND" implies that all forms of energy are needed with us for a good while - traditional hydrocarbons (in particular, non-combustion uses) and new energy forms (renewable power, renewable fuels, hydrogen, etc.) along with carbon capture and storage. Technology innovation in energy continues at pace, though in most cases, while promising, they're not yet at scale for global availability and affordability. Yet recent legislation in the USA and EU will only encourage new investment in technology to ultimately address availability and scale over time.
Q3: Can you elaborate on a groundbreaking innovation or concept from 2023 that dramatically shifted perspectives within the industry?
We have seen the emergence of many things across business and technology. Whether they are called innovations or improvements often is in the eye of the beholder. Nonetheless, change marches onwards with many initial starts that have a potential to scale: direct air capture in live production, conversion of CO2 into raw materials, emerging partnership combinations with new industries for biofuels, redirected energy supply chains and energy forms, further digitalization with “clean cores”, etc. And of course, a fascination with AI based on large language models (Hello, Joule!).
Q4: Looking forward to 2024, which areas will the industry and SAP (Super Awesome Processes) focus on? Are there any emerging trends or advancements that you foresee will heavily influence the industry's strategies for the coming year?
Supply chain disruptions (COVID, war, civil unrest, etc.) have reinforced the importance of commodity supply chains that “fuel” all value chains from energy through agriculture and consumer products. Further emphasis on integrated commodity supply chains becomes imperative from deal capture to, physical movements and inventories, risk management, and financial settlement. We will continue to see an “AND” to meet the world’s energy needs with traditional fuels and new fuels and energy in both molecule and electron form. Similarly, technology will continue at pace with an emphasis on “practical” AI, that is “business” AI that embeds in business processes to achieve specific outcomes.
Thank you so much, Stephane, for sharing your insights. Check out our previous interview with Stephane when he was announced as the new head of Oil, Gas, and Energy in September. Continuing our look back on 2023, let’s turn to the main highlights.
Main highlights
SAP Primary Distribution for Oil & Gas
Find out the new features and functions of SAP S/4HANA 2023 release scope for the Industry Solution Oil & Gas:
- Integration of TSW nomination/actualization with TM for freight costing
- Integration of TD shipment / Load & and delivery confirmation with TM for freight costing
- Utilization of TM standard process flow: FU (via FU building rule) => FOR/FB => FSD
- MD Mapping: TSW locations, TD transportation connection points, vehicle type, event type
- TM integration relevance at TSW movement scenario level, TD bulk shipment type level
- TSW integration in planning and execution
- TD integration at load or delivery confirmation (config.)
- Enhancement of Doc flow in TM and IS-Oil
- Bi-directional navigation between IS-OIL and TM objects
- Integration Monitoring and reprocessing
- Integration validation in TSW / TD for missing customizing, objects mapping, pegging ..etc.
- Find out more by reading this blog on the release highlights and this blog on S/4HANA in Utilities
SAP IAM
- AI and Machine Learning Integration: in 2023 we witnessed a considerable rise in the integration of AI and Machine Learning in the enterprise asset management (EAM) systems. These tools remarkably improved the predictive and pre-emptive maintenance regimes, leading to significant cost savings and increased asset longevity.
- IoT-Oriented Asset Management: Internet of Things (IoT) saw wider adoption in 2023, leading to a more comprehensive and real-time data collection about asset health. Resulting in increasing the adoption of SAP asset performance management (APM). Modern sensors and smart devices offer advanced tracking and monitoring capabilities, enhancing predictive maintenance, and reducing downtimes.
- Cloud-Based EAM Systems: The adoption of the SAP cloud-based EAM became mainstream in 2023, promising superior scalability, flexibility, and cost-effectiveness. It also paved the way for remote asset management, making it a cornerstone for businesses dealing with the challenges imposed by the pandemic and remote locations.
- Sustainability and ESG Focus: the SAP EAM applications increasingly integrated Environmental, Social, and Governance (ESG) factors, aligning asset management objectives with sustainable and ethical principles. This has improved long-term value creation for stakeholders and reduced environmental impacts.
- Digital Twins: The adoption of digital twins increased in 2023, providing a detailed replication of physical assets in a digital milieu. This has led to efficient asset modeling, smart simulations, and predictions, which significantly improved EAM success.
- Mobile EAM: With numerous employees still working remotely, the use of the SAP mobile EAM solutions increased significantly. The ability to access, update, and utilize asset data from any location provided unrivaled flexibility and up-to-the-minute reporting.
Check our latest service and asset management apps here:
- Data Security Measures: In response to heightened cyber threats in 2023, companies have established robust cybersecurity measures within their EAM systems. The integration of AI both detected and prevented potential malicious attacks, preserving the integrity of important asset data.
In retrospect, 2023 was a game-changing year for SAP enterprise asset management. It brought about significant transformations grounded in advanced technology and sustainability principles, paving the way for an exciting future.
Fuel retailing
SAP takes one step forward to CO2 emissions tracking in Secondary Distribution
In 2023, the add-on for Secondary Distribution (S4SCSD 3.0) has benefited from 2 new releases, the FPS 02 in June, and the FPS 03 in December. Amongst other additional functions and benefits, the CO2 emissions tracking was further enhanced with the addition of more related functions:
- New Fiori app to maintain vehicle parameters for CO2 emissions tracking,
- New Fiori app to analyze carbon footprint by visualizing calculated COA emissions for trips scheduled in IDM and by adding analytics functionality to get deeper insight into the CO2 emissions data.
In addition, new functions and benefits have been added to the Secondary Distribution Management and Retail Fuel Network Operations solutions:
- New Fiori app to further enhance the visibility into fuel stocks over a given period,
- SAP Fiori app to display the current dip readings of a product and compare it with book data,
- Significant improvement of the parallel processing of RFNO documents,
- New zooming capability to track vehicle locations directly on a map in real time and get more visibility into the logistics data,
- Enhanced localization for Portugal, following local regulation evolutions.
With these new enhancements, SAP and Implico are demonstrating the continuous evolution and investments, for the benefit of our customers.
Check the solution roadmap here.
And find the Solution online information overview here
Sustainability
We are moving forward with big steps to achieve NetZero for all industries. As Oil, Gas & Energy have various opportunities to endeavor the sustainable energy transition we would highly recommend the sustainability track from this year’s SAP Conference for Energy and Utilities in Basel. We were sharing about current discussions on green hydrogen with speakers from E.ON and Yara, and introduced SAP Green Token as our solution to track green hydrogen. To learn more please take a look at the blog article by Kim Maren Ekrutt – Head of Innovation & Sustainability IBU Energy & Utilities.
Staying on the topic of hydrogen, we see a number of Energy customers launching hydrogen projects to tackle their individual energy transition and reduce their carbon footprint.
SAP´s partner Prologa Energy introduced the Cloud for Hydrogen Production and Supply Management to the market which complements SAP´s Sustainability Footprint solution suite.
A recently published Point-of-View named “SAP’s strong footprint in the Hydrogen Industry”, available here, provides an overview of customer projects and solutions.
SAP Field Logistics
Release highlight: new Fiori analytical app “Logistics Tracking”
- View the progress of stock, non-stock, and service-related items-based logistics milestone events.
- Get information about risks that occur in the logistics journey, identify issues, and drill down to business documents and details.
- Part of best practices scope item 6VA
SAP Signavio / SAP Ariba
SAP Ariba integration for SAP Signavio Process Insights – May 2023 Release.
SAP Signavio provides several accelerator to support the transformation to SAP Ariba by analyzing and designing the new processes. The Value Accelerators can be split by the following use cases and Signavio products:
Process Analysis Accelerator:
- Process Intelligence: analysis the procure-to-pay process in SAP Ariba with SAP S/4HANA and SAP ECC, the first cross system accelerators
- Process Insights: analyze the whole source-to-pay process of the customer SRM system to identify blockers and issues, as well as receive recommendations to transform to SAP Ariba
Process Design Accelerator:
- Explore the content via SAP Signavio Process Explorer (customer consumption by SAP Signavio Process Manager:
- Includes implementation content (best practices) from SAP Ariba to design and for re-use content within fit-to-standard processes. All Ariba best practice processes can be found under the SAP Solution Portfolio from SAP S/4HANA
- Use the process library on SAP Business Network for Supply Chain for the 2305 release to design the To-Be processes regards Supply chain
A guided E2E demo in Ariba content within Signavio and our tools can be found here.
Artificial Intelligence
SAP Business AI is aimed to make our business applications more intelligent, infusing AI technologies into our applications. Furthermore, SAP provides business process-specific AI services that our customers can adapt to their own workflow, e.g., business document processing, data attribute recommendation, RPA, etc
Data is essential for the success of business AI. SAP has access to business data covering finance, supply chain, human resources, travel, etc. In order to make business AI successful, we continue to build the best technology and leverage the best tools on the market.
The value of AI for business increases exponentially when combined with industry-specific data and deep process knowledge, and this is exactly what SAP does. Joule – the AI copilot from SAP that truly understands your business. Joule revolutionizes how you interact with your SAP business systems, making every touchpoint count and every task simpler.
Just Ask is a natural language querying product that enables non-technical users to easily access and search to data stored in SAP Analytics Cloud models.
The product utilizes advanced AI and proprietary LLM algorithms to understand user queries and deliver data in the form of a quick and easy-to-consume data cards, without needing to navigate complex tools or understand technical details.
This solution makes it simple for teams to collaborate and make data-driven decisions. Check out the Joule Demo and Just Ask video and the SAP Business AI for Industries page to find out more.
In Partnership with our Customers
The Innovation Center for Energy (ICE), which launched successfully alongside key strategic customers in late 2022, is an initiative from SAP intended to provide the infrastructure and personnel needed to prioritize, develop and bring-to-market cloud native, industry-specific standard innovations. Focused on the Energy sector and based in Houston, Texas, ICE provides a forum for customers to jointly discuss pain points, validate ideas, provide feedback, and remain engaged throughout the software development process: from ideation and conception to design and delivery. Deloitte serves as the primary partner for the program.
Since kickoff, innovation topics have been identified and prioritized by customers, definition workshops have been conducted and initial delivery on certain topics have already taken place. First delivery on the topic of “Mobile Application for Inventory and Warehouse Operations”, one of five innovation topics prioritized by customers, occurred in October 2023 with further releases on schedule for 2024.
As ICE makes progress and the participating customer base continues to grow, further innovation topics will be considered under the original program scope:
- The end-to-end Energy industry value chain with a focus on leveraging machine learning to streamline supply chain workflows, improve asset utilization, reduce non-productive time of personnel, and increase worker safety
- Energy transition and sustainability
As we close out 2023, the voice of the customer continues to be at the forefront of the Oil, Gas and Energy industry unit at SAP. Our ICE External Program Manager, Mahdi Eydgahi, and our ICE Internal Program Manager, Frederik Meyer, are readily available to discuss the program.
In Partnership
Industry Cloud was prominent in Energy during the year. SAP completed the first annual Energy Partner Summit in Dallas to excite, enable and advance industry use case awareness within the service and solution Energy partners. The new Validated Partner Use Case (VPUC) model was explained and accepted by various services companies. Several VPUCs are being finalized for availability next year.
The Industry Cloud Guidebook significantly increased its software portfolio to thirty-eight Energy solutions, including seven Endorsed apps. More partner solutions are coming, as nine partners were selected to participate in the SPRINT1 (2023 edition). Those SPRINT1 partners are currently completing development of ten different solutions that will become available on the SAP Store.
Customer Stories 2023
Find this year’s inspirational customer stories below.
- Open Grid Europe: Gaining New Geospatial Data Capabilities to Better Understand Asset Performance
- Santos & Oil Search - Best Run SAP Industry Disruptor Finalist
- Atem: Speeding the Digitalization of a Strategic Acquisition with Transformation as a Service
- Snam: Committing to Energy Safety, Sustainability, and Growth Opportunities
- Baker Hughes: Journey with SAP
- Marler Integrity: Makes Pipe Dream a Reality with SAP Business One
- VINCI Energies: How Do Intelligent Enterprises Transform Their Service Business?
- Engie: Standardizes Processes and Policies Across its Subsidiaries With SAP Business One
- MOL: Refining Relationships with Suppliers Through Standardized Collaboration
- OMV: Achieving Modern HR in the Cloud in Collaboration with SAP Services and Support
- OMV: Paving a Path to Modern HR in the Cloud with Transition Planning for SAP SuccessFactors Solutio...
- OMV: How Does a Road Map to Digital Transformation Help Bring Sustainability Goals Within Reach?
- OMV: How Does a Company Become a Sustainable Leader Through a Digital Transformation to Modern HR?
- Baker Hughes: Boosting Supply Chain Resilience Through Ambitious Procurement Transformation
- MAIRE: Fostering the Global Energy Transition with its Own Transition to the Cloud
- SHV Energy: Optimizing Goods Transportation Planning and Execution with the SAP Transportation Manag...
- Singapore LNG Corporation Optimizing Business Processes with SAP Cloud and Digital Core
- One Source of Truth: Oil and Gas Leader Deploys SAP Globally
- Optimizing Asset Inspection with SAP, Digital Twin, and Augmented Reality
Events 2023
In the ever-evolving landscape of the Oil, Gas, and Energy sector, staying at the forefront of technological advancements and dialogue is not just an option but a necessity. The year 2023 witnessed a series of events that brought together industry leaders, experts, customers, and partners to explore the latest trends and innovations.
International SAP Conference for OG&E
Basel, Switzerland | 18-20 April 2023
SAP led the way at our global event in Basel, Switzerland, where over 850 industry experts, customers, and partners explored the latest trends and technological innovations in the energy and utilities industry.
Website
ISC Post Event Blog
SAP Sapphire:
The SAP Sapphire events, conducted virtually and in Orlando, Barcelona, and Sao Paulo, served as a global melting pot of innovative ideas, connections, and insights.
Virtual May 16-17
Orlando, United States Sapphire & ASUG May 16-17, 2023
Barcelona, Spain May 24-25, 2023
Sao Paulo, Brazil June 1-2, 2023
SAP Sapphire Website
Business Transformation Tour - Oil & Gas and Chemicals Chapter:
Virtual, hosted from the United Kingdom | 12 July 2023
SAP, alongside IDC and Intel, took part in this virtual event from the United Kingdom to explore how technology can enhance business resilience and drive digital innovation.
Website
ASUG Best Practices:
Dallas, TX, USA | 13-15 September 2023
The event in Dallas, Texas, was a pivotal event in 2023, bringing together individuals and teams from the energy industry to share insights on cost reduction and efficient decision-making using cutting-edge solutions.
ASUG Website
ADIPEC:
Abu Dhabi, UAE | 2-5 October 2023
Organized by ADNOC, ADIPEC provided a comprehensive platform for industry leaders, SAP, and its partners to showcase ground-breaking solutions and discuss the future of the energy sector.
ADIPEC Website
SAP & Partners at ADIPEC 2023
SAP Feature in ADIPEC Show Dailies Magazine
ADIPEC Post Event Blog
SAP for Asset and Service Management Conference:
Madrid, Spain | 25-26 October 2023
The event in Madrid offered an in-depth exploration of cutting-edge technologies and strategies in asset and service management. It brought together industry leaders, professionals, and experts to delve into innovative solutions, digital transformation, and industry best practices for enhanced operational efficiency and service excellence.
Website
Reuter's Energy Transition North America
Houston, Texas | 7-8 November 2023
SAP took center stage at Reuters' Energy Transition North America with Daniela Haldy-Sellmann, SAP's Head of Energy and Utilities, leading the charge as a distinguished panel speaker. Engaging with industry leaders, Daniela discussed SAP's strategic plans and initiatives on the sustainable road to energy transition. Her insights highlighted SAP's commitment to driving positive change and innovation shaping the future of the energy sector.
Website
Hart Energy Executive Oil Conference and Exhibition
Midland, Texas | 15-16 November 2023
The event provided a unique platform for SAP to share our vision for the industry, showcasing how our technologies and solutions are revolutionizing the energy sector and contributing to its growth.
Website
Planned Events – 2024
As we step into the promising year of 2024, SAP is excited to unveil a line-up of significant events in the oil, gas, and energy industry. SAP is set to host and be a part of various key conferences and exhibitions, offering a global platform for exploring industry trends, engaging in innovative discussions, and fostering strategic collaborations. Don't miss out on these upcoming events:
SAP Conference for Energy and Utilities in Seville
Seville, Spain | 23-25 April 2024
Website
CERAWeek
Houston, Texas | 18-22 March 2024
Website
SAPPHIRE
TBD | June 2024
Website
BPOG
TBD | TBD
ADIPEC
Abu Dhabi, UAE | 11-14 November 2024
Website
Reuter's Energy Transition North America
Houston, Texas | December 2024
Website
As these gatherings draw closer, SAP is committed to delivering insightful experiences that will shape the future of this ever-evolving industry. Stay connected and keep an eye out for updates as we navigate through these impactful events throughout the year.
Bidding farewell to an eventful year, we look forward to the promise of 2024, where innovation, collaboration, and transformation will continue to shape the Oil, Gas, and Energy industry. Here's to another year of progress and success!
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