Digitalization has the potential to create around $1 trillion of value for Oil and Gas firms. Of that amount, $580-$600 billion is expected to accrue to upstream companies, approximately $100 billion to midstream firms and $260-$275 billion to downstream companies.

The potential for digitization of deposits is 125 billion barrels – this is how much in the medium term it is possible to increase the return of already discovered fields only by improving the organization of work. According to expert estimates, the integrated use of IT technologies allows oil companies to increase the oil recovery rate by 2-7 percentage points and at the same time reduce operating costs by a quarter.

Due to the development of all technologies, technically recoverable reserves can grow by 35%, and the cost price can decrease by 25%. 36% of the world’s oil companies are now actively using Big Data technology, and another 38% intend to adopt it in the next 3-5 years.

Two — thirds of the global market for specialized industry programs is controlled by five companies- Shlumberger, Landmark, Aspen Technology, Honeywell, and Invensys. Energy giants also use the services of specialized companies.

By 2025, due to the use of the Internet of things in the oil and gas industry, global GDP can grow by 0.8 % (or by 816 billion us dollars).” Wood Mackenzie estimates the effect of digitalization on the 10 largest mining projects at $ 20 billion us dollars, or 40% of the total net present income of projects (net present value, NPV).

Digital transformation in the industry could create benefits worth about $640 billion for wider society. This includes approximately $170 billion of savings for customers, roughly $10 billion of productivity improvements, $30 billion from reducing water usage and $430 billion from lowering emissions. Environmental benefits include reducing CO2e emissions by approximately 1,300 million tonnes, saving about 800 million gallons of water, and avoiding oil spills equivalent to about 230,000 barrels of oil.

Sam Palisano, IBM SEO

Products, services, customers, etc. no longer obey the exclusive philosophy. Everything around has become inclusive and diverse. What does it mean? According to the modern marketing classic Philip Kotler : being inclusive is not about being similar, it is about living harmoniously despite differences.

Social circles are the main source of influence, overtaking external marketing communications and even personal preferences. Communities have become ever more powerful. Random conversations about brands in such communities are now more credible than targeted advertising campaigns. The main tasks of a marketer are to understand his entire audience, to please virtually every customer and make them talk about the brand by word of mouth. Inclusivity and diversity strategy can help greatly.

In fact, diversity is not anything new. Back in 1995, IBM included diversity as the main part of the firm’s business strategy. IBM CEO at the time, Sam Palmisano, said “We made diversity a market-based issue. It’s about understanding our markets, which are diverse and multicultural.” The company recognized, that this is the only way they can compete in the future. The result was amazing and overwhelming. They rose from $10 million in 1998 to $300 million in 2001¹ . Many companies have embraced the idea of diversity. Today’s this is rightfully considered as major trend of the last few decades. It just became more visible and relevant with the advent of the digital marketing era..

Inclusivity and diversity strategy can be fruitful for more than just products and services. Let see on with P&G statement: “With more than 140 nationalities represented in our workforce, our own diversity helps us reflect and win with the consumers we serve around the word. The more we understand people, their needs and challenges, the better we can delight them with our products and services”² . Research carried out by McKinsey found, that companies with racially diverse strategies outperform industry norms by 35%³ . In other words, these companies better understand their audience and create multinational Buzz (conversation) around brand.

Nike was embroiled in a scandal after that company said it would pause Montaño contract and stop paying her if she wanted to have a baby. Olympian competed while eight months pregnant. In 2020, Nike launched an inclusive collection after realizing its mistake⁴. The collection is designed to take women through all the stages of pregnancy and beyond. Nike wants to appeal to female athletes despite the company itself has not always supported women.

Mistakes in the details of the marketing strategies have led big brands to apologize. They suffered big image losses. Brand buzz is an main part of strategy in the digital marketing era. Image helps in attracting the “right” brand advocates. It is important who will be a follower of your brand. It is important who will defend their brand in social communities on the Internet. Because decision making is no longer an individual decision, but a decision of the crowd.

Thus, inclusivity and diversity is a proven strategy that can work in your favor. This will help create a “positive aura” around your company and benefit. However, be careful, because a good name is sooner lost then won.

References

1. Harvard Business Review, Diversity as Strategy by David A. Thomas,2004

2. P&G 2019 Citizenship Report

3. McKinsey, Why Diversity matters, by Vivian Hurt, Dennis Layton, and Sara Prince, 2015

4. Nike News, Creating a Bond Between Motherhood and Sport, 2020