Energy Transition and Digital Transformation: The Two Go Hand In Hand
The term energy transition has quickly become a standard go-to phrase. We hear it in conversations, on podcasts, and read about it in other blogs across a wide range of industries. But what does energy transition mean? It turns out, finding a definitive answer was more difficult than I anticipated. My research produced no clear definition but instead revealed a common theme time and time again—digital transformation.
Many organizations have long integrated digital technologies into numerous areas of their business. Others—perhaps many—energy producers still need to shift when it comes to digitally transforming their operations. Sure, industry implemented many digital technologies and innovations around operational management over the past decade, but this transformation, the one behind the energy transition, is bigger. Much bigger.
For many energy producers navigating the energy transition will be a journey filled with more questions than answers. And that's a good thing. Unlocking success in digital transformations, with a solid strategy in place can yield powerful and innovative findings. And we’ve all heard the phrases, "what can't be measured can't be managed" or "we don't know, what we don't know." Organizations can reap a wealth of operational insights, realize new efficiencies, and advance their energy transformation goals through a new digital data lens. These data insights can lead to additional investments in digital technology.
Making the digital transformation is easier said than done. Many operators admit that much of their tracking occurs manually by individual departments via spreadsheets. From environmental data like emissions and water usage to workforce and supplier diversity to community investment and policies and accounting methods, much of this data exists, but in various formats, potentially from a host of different states. Making the process of collecting and analyzing the data time-consuming and complicated.
It's time for producers to embrace digital transformation. Digital tools that help track progress toward cleaner and more efficient energy production are essential for the energy transition. At a minimum, successful businesses must be able to consolidate and aggregate the data through an efficient, transparent process. And even better, measure their investments in digital. In fact, a 2021 survey from EY noted that, companies are accelerating their digital spending in 2022 because they believe the spend will double their return on digital investment (RODI).
The energy transition and digital transformation go hand in hand. The sooner all energy producers adopt the robust digital tools needed to measure and report their energy data and demonstrate progress towards better practices and efficiencies, the better positioned they will be to help lead the energy transition.
Where do you start? Find a partner that helps you identify technology that aligns with your business goals—think BIG PICTURE. Commit to making the digital transformation so that you can own and guide your organization’s energy transformation.
Impacto is an ESG tracking technology and full-service consulting firm that partners with organizations to implement digital transformation, create sustainability solutions and build custom ESG frameworks that drive growth, build trust, and make a positive impact on the world.
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