2 March 2015
2 Mar 15
Insight: Innovation – one of the keys to surviving and thriving in the current Oil price crisis
The energy sector is currently seeing the threat of significant job losses following the global plunge in oil prices. The impact is being felt particularly hard in mature, high cost regions such as the North Sea. Schlumberger, BP and many others have recently confirmed job losses, and many Exploration and Production companies are actively seeking to reduce costs further – cutting capital budgets and addressing high operational costs.
As a consequence, many companies which supply services to the Oil & Gas sector, are experiencing substantial pressures. They are being asked to cut prices significantly, increase service levels and responsiveness and to share risk as never before. Many have been forced to review their cost structures, headcounts and cash flows and as a result are considering a range of hard commercial choices such as cutting jobs, reigning in capital spending and postponing expansion plans.
But there are ways that companies can rise to these challenges, weather the current storm and even thrive. One key differentiator that can enable companies to remain competitive is how efficiently they can run and control their business – something that is more possible than ever before – by utilising innovative Cloud based IT solutions.
Cloud solutions have spread rapidly in recent times as organisations have realised the considerable benefits available. These include a reduction in inventory, better use of assets, improved deployment of personnel, enhanced reporting and greater visibility across the business. Cloud also significantly reduces the costs of refreshing and maintaining IT and delivers far greater opportunities for more flexible and scalable working practices.
Andy Bird, CEO of Inoapps, believes that the benefits of Cloud will strike a chord with oil & gas companies seeking cost-efficient improvements. In his view; “We are seeing that many supply side organisations in the sector are looking to become more cost-efficient and agile whilst also reducing overheads. However, they often find that their existing business systems just aren’t capable of delivering what they need. In reviewing their back-office, many discover that rather than delivering streamlined core business processes, their systems are cumbersome, hinder service delivery and are hard to maintain. Their dilemma is how transform their business without incurring significant cost.”
Many companies who have decided to modernise their systems have favoured Oracle’s Cloud software solutions. This is due to the seamless integration between its business applications and its rapid implementation methodology. As a leading Oracle software provider Inoapps (www.inoapps.com) supplies a proven range of Oracle Cloud software solutions and we’re confident that by utilising the transformational potential of Cloud technology, oil sector service companies can counter the impact of the current adverse economic conditions.
CFO and CIO’s who have concerns about how to fund business improvement and transformation initiatives, can also put their minds at rest. Through Inoapps’ InClusive® solutions range, companies can obtain a complete Oracle Cloud Application with no upfront costs, but on a cost-effective monthly basis. This new Software as a Service (SaaS) solution is ideal for businesses seeking cost-effective OPEX system alternatives that can transform business control, profitability and performance.
This means companies can punch above their weight by using the same systems as much bigger organisations, but at a fraction of the cost of outright purchase. This cash flow friendly solution gives companies all the benefits from go-live whilst spreading the costs over a manageable budgeted timeframe.
Inoapps’ comprehensive InClusive range includes: Oracle’s Enterprise Resource Planning, Human Capital Management, Customer Experience, Supply Chain Management and Enterprise Performance Management products – something for every aspect of a business. So, although there are undoubtedly tough decisions to be made in the current climate, investing in IT need not be one of them. Now is the time to make your systems work the way you need them to.
Contact our Oil & Gas Expert Tim for guidance, support or advice on how modern IT solutions can revolutionise your business.
+44 (0)870 112 2000
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+44 (0)870 112 2000
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