Understanding Digital Transformation
Digital transformation is a crucial aspect of modern business operations, especially in industries like energy where the challenges of energy security and sustainability continue to be at the forefront. KBC's focus on digital transformation stems from the recognition that technology plays a significant role in addressing these challenges. Beyond just the technology aspect, KBC emphasizes the importance of the transformation process itself. Adapting business models, enhancing customer interactions, and reshaping the overall customer experience are key elements that drive successful digital transformation.
Digitization versus Digitalization
It is essential to distinguish between digitization and digitalization when discussing the impact of technology on business processes. Digitization involves the conversion of non-digital data into digital formats, while digitalization goes beyond this by fundamentally changing how technology is used and how it shapes interactions with employees, customers, and partners. The shift from digitization to digitalization represents a holistic approach where not only the formats change, but also the underlying business models and user experiences are transformed.
Challenges in Digital Transformation Adoption
The adoption of new digital technologies in industries like oil and gas encounters various hurdles. While traditional technologies may have been embraced quickly due to their visible benefits, digital transformation faces challenges related to people and processes. Skepticism towards unfamiliar technology and resistance to changing established business models hinder the widespread adoption of digital solutions. Overcoming these hurdles requires a shift in mindset towards accepting and integrating digital technologies effectively into existing operations.
AI in Digital Transformation Projects
KBC's collaboration with BakerHughesC3.ai exemplifies the integration of AI technology in digital transformation projects. Leveraging AI capabilities, such as predictive analytics and autonomous asset management, enables organizations to optimize processes and enhance decision-making. Projects involving AI applications span the entire supply chain, from sensors and data management to asset maintenance and process design. Through advanced tools like Petro-SIM®, KBC can provide valuable insights across the oil and gas industry value chain, supporting informed decision-making and efficient operations.