So what exactly is the new economy and what can it do for an established industry like oil and gas?
It’s a question more and more oil companies are facing — a question that, for many, remains unanswered. “What people are struggling to understand is where the real value is,” explains QByte vice-president Mike Fielding.
“There’s been a lot of arm waving, but no demonstrating. Everyone’s trying to understand how much (they can save).”
Fielding, whose company supplies software to the energy industry, says the savings are there, but he admits e-business is not an easy sell for oil and gas. The industry, a welcome forum for new technology, is cautious when it comes to the new economy.
“There are lots of announcements, big fan fare and 12 months later, the (dot-com) company is gone,” Fielding says. “It spooks people. They’ve invested a lot of money and they’re not getting a return because the person with their business model is gone.”
According to the experts, many oil and gas companies are still standing on the edge — trying to decide when, and if, to make the plunge.
“Most companies are still doing things the way they did five or 10 years ago,” explains Dr. Tom Keenan, dean of continuing education at the University of Calgary. “They may be using computers to ‘automate’ things they did before, but very few are using computers to ‘informate,’ which is to fundamentally change their business model and process to take advantage of new technologies.”
If waking up to the new economy and taking advantage of those technologies has been slow, ever-changing terminology in the B2B world may be partly to blame.
What was once called a browser is now a portal. Things that were portals six months ago are now e-marketplaces. That constant and confusing change makes just getting through the jargon half the battle.
“It’s changing so rapidly, people are making things up as they go,” says Janet Lynch, Ziff Energy Group senior associate. “And that makes it confusing if you’re the head of an oil company and this isn’t your thing. Every time you pick up a newspaper or magazine, it’s different.”
For Lynch and other insiders, the advice — if you’re not from a dot-com age, is to surround yourself with people who are. Beyond that, however, many agree industry conferences are a good place to learn the jargon, look at what is available, and assess business needs.
“It brings together oil and gas peers in a relaxed atmosphere where they can share experiences . . . and hear the value of what new technology could mean,” says QByte’s Fielding.
QByte is hosting this week’s Changing Landscape conference in Kananaskis (at the Delta Lodge Thursday and Friday). From who the oil and gas e-business providers are and what they are offering, to “the darker side of technology,” Fielding hopes the ninth annual conference will be a conduit for change.
“I think people are e-businessed out,” Fielding says. “They’re tired of e-everything. They’re looking for something to hang their hat on. They’re looking for something tangible — they want to see it.
“I think we’ll be able to demonstrate the value (of e-business), but it will take strong companies and industry champions to convince people.”
Experts agree — convincing prosperous, profitable companies to change is no easy task. And why should they? If the oil industry is making money without taking the risk, playing it safe could save companies the headache of adapting to the rapidly changing arena of the new economy.
“As long as the oil prices stay up and bonuses are rich, a lot of companies won’t do much,” Keenan says.
“However, the ones who do will be the leaders who can withstand future cycles.”
