accenture services achieving high performance energy

8/18/2019 Accenture Services Achieving High Performance Energy

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Achieving HighPerformance in the

Energy Industry


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Did you know?In 2002, Accenture founded theAccenture Global Energy Board, whichconsists of directors of leading auto-motive, chemicals, energy and utilitiescompanies; external industry experts;and distinguished academics fromaround the world. This is a forum fordiscussing how the future of energywill evolve; the effect that possiblechanges in energy sources will haveon society, politics, the economy andthe environment; and the actions thatcompanies need to take in response tothese changes.


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Achieving high performance in energyDedicated Accenture consultants provide upstream, gas, trading,refining and marketing services to energy companies aroundthe world.

Plan and manage the enterprise

Accenture’s Energy industry group spans the entire energyvalue chain

Exploration Gas Refining Marketingand Production

Hydrocarbon supply chain

Non-hydrocarbon supply chain

Support services

Energy Industry Value Chain

Did you know?The Accenture Energy industry group isinvesting extensively in Accenture’s

business process management initiative.This initiative focuses on defining leadingindustry processes and a comprehensivemodel for the energy industry across allsegments, including industry-specificbusiness processes, process flowcharts,key performance indicator (KPI) frame-works and capability assessment models.The logical operating model has beendeveloped not only for oil and gas, butalso biofuels, engineering/procurement/ construction (EPC), oilfield services, oil

sands and capital projects.

Our upstream consultants work withnational oil companies (NOCs) andinternational oil companies (IOCs) onprocess excellence, integrated oilfieldsolutions, upstream data management andupstream application management. Our gas team covers the processing andtransport of natural gas by supermajors,energy merchants, pipeline operators,

marketers and distributors, focusing onareas such as liquefied natural gas, shalegas, intelligent pipeline, commercialoptimization, operations, trading andrisk management and capital projectsmanagement.

Our downstream services help companiesimprove and manage trading, refining,wholesale and retail marketing, lubricantsoperations, plants, and the hydrocarbonsupply chain.


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What we offer Extensive research exploring theenergy industry, as well as ongoingHigh Performance Business researchencompassing more than 6,000companies worldwide.

Industry offerings to develop businessstrategies, reduce time to first oil andgas, optimize operations and provideback-office functional services includingsupply chain, enterprise resourceplanning (ERP), information technologytransformation and finance functions.

Tools, methodologies and templates fora consistent approach to developmentand delivery. Our robust business processframework addresses not only oil and

gas, but also biofuels, EPC, oilfieldservices, oil sands and capital projects.

Decades of experience working withmore than 150 leading oil and gasorganizations in more than 30 countriesaround the world.

Business value Gain insight into innovative approachesand solutions, as well as future industrytransitions.

Focused solutions that address specificindustry needs.

Scale fast with effective delivery thathelps realize solid, sustainable businessresults.

Tap into a heritage of wide-rangingindustry knowledge that takes fulladvantage of local and global skills.

Calgary

Houston

Buenos Aires

Rio

Amsterdam

Stavanger

London Vienna

Aberdeen

Madrid

Lagos

Moscow

Luanda

Bangalore

JohannesburgCapetown

TokyoBeijing

PerthBrisbane

Kuala Lumpur

Jakarta

Manila

Abu Dhabi

Lisbon Rome

Accenture has a presence in many key energy geographies


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As part of this research initiative,Accenture studied energy companies andthe attributes that are common amongthe high performers. To understand whatsets them apart, we looked at a numberof key elements of high performance foreach company in our sample. In this way,we identified energy companies thathave delivered solid shareholder returns,achieved superior growth, profitability

and consistent earnings and are wellpositioned for the future.

High performers do not always boast thelowest global exploration, developmentor acquisition costs, yet they do manageto achieve very good returns on theirinvestments. Success is based on thedevelopment of distinctive business modelsthat allow them to excel. While theirbusiness models vary, high-performancebusinesses share six key attributes:

• A growth-focused strategy• Mastery of niche technologies• Operational excellence• Strong, involved leadership• Organizational effectiveness• A culture geared to growth and high

performance

Accenture offers a range of energy-specificsolutions to help energy organizationsaddress their key issues and achievehigh performance. For example, we havedeveloped comprehensive approaches tohelping organizations optimizeplants, enter and operate in emergingmarkets, create sustainable operations,develop business models for greenfieldoperations and maximize production.

Through a combination of innovativethinking and cutting-edge research,Accenture helps organizations understandthe energy industry landscape—today andtomorrow—and the actions they need totake to survive and thrive.

Research heritageAccenture’s ongoing High Performance Business research,which encompasses more than 6,000 companies worldwide,provides insights into the characteristics and practicesthat enable some organizations to consistently outperform

their peers.Did you know?Accenture recently announced anInnovation Center for Energy andUtilities. The center focuses onaccelerating the industry's paceto high performance by facilitatingindustry dialogue and developingthought leadership across thetopics of capital, customer influ-

ence, innovation, policy andsustainability, resources, talent,and technology.


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Industry insight Find out more about Accenture's ongoing commitment to create innovative thinking andresearch in the energy industry through our thought leadership series:

• Accessing Oil and Gas Reserves: Rethinking Upstream Offers by International Oil Companies

• Achieving High Performance with Business Process Management in Energy• Betting on Science: Disruptive Technologies in Transport Fuels

• Changing the Game: Plug-in Electric Vehicle Pilots

• Charting Energy's Future to 2015: Achieving High Performance in the Future Energy Landscape

• Developing Local Content Programs: Insights for Global Players to Achieve High Performance in Today'sCompetitive Energy Landscape

• Downstream Energy Transformation

• Energy Industry Trends Review—Quarterly Publication

• National Oil Company Study: Transforming the Competitive Landscape for Global Energy

• Non-Hydrocarbon Supply Chain for Oil and Gas Companies: Finding Opportunities for High Performance

• Plug-in Electric Vehicles: Changing Perceptions, Hedging Bets

• Review of Carbon Accounting and Reporting in the Oil and Gas Industry

• Risk Management—Energy Industry Report

• Securing Your Talent Reserves: An Accenture Perspective on Building Strategic Talent Management Capabilitithe Energy Industry

• Six Questions Every Executive in the Energy Industry Should Ask About Cloud Computing

• Top 10 Technology Trends in Energy

• Transforming the Finance Function for High Performance • Understanding the Future Energy System

Visit www.accenture.com/energy for more information.


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Services and solutions for energy companiesBacked by our industry research and experienced consultants, Accenture provides abroad set of services including consulting, technology and outsourcing services. Wehave identified 12 high-value opportunity areas that are particularly relevant to energycompanies.

Strategy services

The day-to-day management of anoilfield services or energy business hasgrown increasingly challenging, andlong-term planning requires acute vision,strategy and execution. Key strategyservices that Accenture provides tointernational and national oil companiesinclude:

Portfolio managementLooks at asset portfolios, often seekinginsight with regard to new operatingmodels, new leadership capabilities andinnovative ways to help ensure leadingpractices flow between new configurationsof assets.

Risk managementUses risk-adjusted performancemanagement methods and tools to help

clients protect and increase economicand shareholder value.

Renewables/clean energy strategyFocuses on helping clients understandand assess low-carbon technologieswithin the context of the wider energyecosystem, including technologydevelopment, government policy andconsumer preferences.

Operational improvementservices

Maximizing the effectiveness, efficiencyand safety of assets is a key focus area forenergy companies. In operations, Accenturefocuses on five key improvement areas forenergy clients:

Time to first oil/gas

Assists clients with managing theircapital projects to get to first oil or gason time and within budget by maximizingthe processes, readiness requirements anddecision making throughout the capitalproject life cycle.

Production optimizationSeeks to maximize the value of currentproduction infrastructure.

Plant optimizationFocuses on optimizing refineries and plantsincluding maintenance, reliability andsafety concerns.

Commercial optimizationSeeks to manage the complex and interre-lated decisions spanning the entire hydro-carbon value chain—from crude supply andtrading, through refining, product supplyand trading, logistics and distribution,wholesale and retail marketing.

Operations/integrity managementDeveloping operating models andprocesses that link action oriented riskmanagement plans with operationalperformance metrics and accountability.

Functional services

We provide oil and gas companies withcapabilities to manage and improveenterprisewide corporate functions sothey can focus on their core businesses.Key functional services include:

Integrated supply chainFocuses on streamlining and integrating

supply chain processes and systems basedon shared data sources, enabled by lateralcooperation across the organization. Itcovers all components and functions as-sociated with supply chain activity in thenon-hydrocarbon value chain, includingcapital project activities.

Finance transformationAssists finance executives with asignificant change agenda to streamlinethe front- and back-office finance

organization, and standardize systems,processes and data. This includesgovernance and support throughtransformation phases, while determiningthe best tools and analytics to supportthe organization.

IT TransformationImproves IT performance via large-scalechanges to culture, processes andtechnology.

Process-led enterprise solutionsEnable organizations to choose, design,build and implement an end-to-endprocess-led ERP solution. The servicesinclude the full ERP life cycle, ranging fromERP strategy, operating model design, ERPsolution design, implementation and op-eration. The process-led approach enablestight alignment with business priorities,maximizing business value potential.

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The challengeA major national oil company (NOC) iscollaborating with Accenture to implementa companywide, integrated digital fieldmanagement program aimed to improveproduction, reduce costs, increase oilrecovery and improve the safety ofoperations. Joint project teams areimplementing a number of initiatives

at two of the NOC’s sites: an onshorebrownfield and an offshore deepwatergreenfield.

Efforts at the onshore site are focusedon developing and implementing anintegrated digital field managementsolution to support operations. Accentureis developing a number of technicalcomponents, as well as designing andimplementing three collaborativeenvironments, redesigning key business

processes, and conducting changemanagement activities to help facilitatethe move to the new approach. Work atthe offshore site involves implementingan integrated software planning solutionto help the NOC improve offshore servicesplanning. That program is expanding toinclude the development and implemen-tation of a collaborative solution inte -grating real-time production operationsinformation, processes and technology.

High performance deliveredThe NOCexpects to improve productionactivities by enhancing collaborationbetween onshore and offshore teamsand strengthening communications,both internally and with service providers.The program is also designed to improvethe NOC’s ability to monitor productionperformance and reduce the need for

Case study: Increasing upstream operational efficiencyrework across production-related areas.Most important, the new environmentwill give decision makers the integrated,accurate information they need to iden-tify, analyze and act on problems andopportunities.

Accenture, overall, delivers its services and solutions to clientsaround the world in more than 30 industries.

Consulting • Business process management• Change management• Customer relationship management• Finance and performance management• International development• Mergers, acquisitions and alliances • Mobility Services• Operations• Risk management• Strategy• Supply chain management• Sustainability• Talent and organization performance

Technology• Analytics• Application modernization and

optimization• Capacity services• Cloud services• Data center• Digital marketing• Human capital management• Information management• Infrastructure• IT service excellence• IT strategy and transformation• Mobility services• Network technology • Open Source• Oracle• SAP• Security• Systems integration• Technology architecture• Testing services• Workplace enablement

Business processoutsourcing• Application outsourcing• Bundled outsourcing• Capacity services• Engineering BPO• Finance and accounting BPO• Human resources BPO• Infrastructure outsourcing• Learning BPO • Networking BPO• Procurement BPO• Supply chain BPO• Testing services


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Our goal is to create long-termrelationships working cost effectivelyto maintain, adapt and optimize oursolutions together. Our alliance networkincludes more than 150 market leadersand innovators.

This provides our clients with special-ized skills and tailored solutions for eachclient’s needs. Alliances help Accenturedeliver innovative solutions more quicklythan any company could do alone.

For instance, we collaborate withMicrosoft, Oracle and SAP on industrysolutions and engage in new technologydevelopments before they are widelyavailable in the marketplace. Some of ourenergy industry alliance and relationshippartners include:

• Cisco Systems• Dell• EMC• Hewlett-Packard• Informatica• Microsoft• Oracle• OSIsoft• SAP To review a complete list of Accenture’salliance partners, visit www.accenture.com/alliances.

Rewarding relationships

Did you know?• Microsoft has awarded Accenture and

Avanade its global systems integrationPartner of the Year award six times

• Oracle has recognized Accenture forfive years running as their leadingsystems integrator

• SAP has recognized Accenture asits leading partner for the fifthconsecutive year


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The challengeFacing increased business complexity, agrowing number of employees and tightermarkets for professionals, a major oilcompany collaborated with Accenture toestablish a world-class approach to sharedservices. Focusing on five functional back-office areas—human resources, finance,procurement, information technologyand facilities management—the companyworked with Accenture to transformpeople, processes and technology in those

areas.

Accenture assembled a global teamof consultants from more than 10countries, and worked with the oilcompany to thoroughly define andstandardize services and optimize thebalance between business needs and thecomplexity of the shared servicesoperations.

High performance deliveredThe newly established global sharedservices center is applying approximately 40leading practice-based services that aregenerating a 15 percent reduction in costs.In addition, the shared services approach isgiving the company truly global businessservices supporting every office throughoutthe world, leading-edge technology thatprovides the foundation for superiorprocess support and the optimized useof people in an extremely competitivemarket for professionals.

Overall, the shared services organizationis expected to deliver 5 to 7 percentannual improvement—and the optimizedback-office functions are expected toenable high performance in other areasof the business to drive increasedcompetitiveness.

Case study: Optimizing service delivery

The challengeA major energy company saw its costsrising on a number of fronts and decidedto take a close look at the potential forincreased global sourcing. The companyasked Accenture to assist it in determiningwhat sourcing in low-cost countries (LCC)could mean for the company, and how totake advantage of sourcing opportuni-ties. Accenture developed an LCC sourcingstrategy and a plan for implementing thatstrategy. The effort drew on specialists inChina, Eastern Europe, India, Latin Americaand Russia and examined sourcing pos-sibilities across the company’s upstream,downstream and petrochemicals business.

High performance deliveredThe assessment covered the wholeprocurement spend of the company(more than $25 billion), and identifiedsignificant spending that was suitable forLCC sourcing, providing an opportunity forsignificant potential savings. For each ofthe sourcing activities, Accenture teamsin LCCs assessed local supplier marketreadiness, while the Accenture Europeanteam assessed the company’s implementa-tion ability and the potential savings. Theproject team also developed a benchmarkreview of LCC sourcing practices in the oiland gas industry. In the end, each of thethree business segments had a clear planfor moving ahead and realizing increasedsavings, and all three are now pursuingthose initiatives.

Case study: Assessing low-cost country sourcing


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Our most important asset is our people.The global makeup of our workforceenables us to serve our diverse and globalclient base. The continued developmentof our employees is part of our heritage.

Our people receive significant and focusedtechnical, functional, industry, managerialand leadership skill development andtraining appropriate for their roles andlevels throughout their careers.

We see career development asessential for the success of ourclients and ourselvesWe run a comprehensive performancemanagement system and reward both

individual performance and teamwork tostrengthen our employees’ commitmentto our clients and our values.

In recent years, a broad spectrum ofcritical issues, from the global economiccrisis and climate change to the needsof disadvantaged individuals andcommunities, has challenged the character

of organizations. Such challenges offeran opportunity for businesses such asAccenture to demonstrate courage, valuesand leadership.

We seek out sustainabilityWe work with companies and public-serviceorganizations around the globe to integratesustainability approaches into their businessstrategies, operating models and valuechains.

We are using the latest “green” buildingtechniques in our offices around the world;for example, we have the highest rating, “6Green Star” for our Sydney office.

We build skills for successOur corporate citizenship activities—includingtime, skills and financial giving—support aglobal focus known as Skills to Succeed. Thisinitiative educates people around the world,building skills that enable them to participateand contribute to the economy.

We operate according to strongvaluesSix core values guide our decision makingas well as our interactions with clients andour colleagues. These simple, yet powerful,values—Stewardship, Best People, Client

Value Creation, One Global Network,Respect for the Individual and Integrity—complement Accenture’s Code of BusinessEthics and shape the culture and characterof our company.

Our commitment to our people

Our commitment to the community

Did you know?Accenture spent approximately $800million in professional development of

its employees in fiscal year 2011.

Did you know?Accenture's was named one ofEthisphere 's "World's Most EthicalCompanies"in the Business Services

category (2008-2011).


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ConclusionEnergy companies find themselves in a complicatedand evolving landscape, with challenges such as skilland talent shortages, cost pressures and the need toinvest in new technologies. Spanning the entire energy

value chain, Accenture’s Energy industry group providesindustry insights, industry offerings, delivery assets anddecades of experience for each segment of the oil andgas industry to help navigate the changing landscape.


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About AccentureAccenture is a global managementconsulting, technology services andoutsourcing company, with approximately244,000 people serving clients in more than120 countries. Combining unparalleledexperience, comprehensive capabilitiesacross all industries and business functions,and extensive research on the world’smost successful companies, Accenturecollaborates with clients to help thembecome high-performance businesses andgovernments. The company generated netrevenues of US$25.5 billion for the scalyear ended Aug. 31, 2011. For moreinformation, visit www.accenture.com.

Copyright© 2012 AccentureAll rights reserved.

Accenture, its Signature, andHigh Performance Deliveredare trademarks of Accenture.

accenture services achieving high performance energy

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