For major manufacturing industries working with complex equipment, like Oil & Gas, unplanned downtime is a major challenge. Research shows that for offshore oil and gas organizations just 1% of unplanned downtime—or 3.65 downtime days per year—can cost organizations $5.037 million each year. On average $49 million annually in financial impacts due to unplanned downtime. For the worst performers, the negative financial impact can be more than $88 million.
This significant cost can be minimized through multiple digitization methods, ranging from virtual reality training for routine tasks to applying algorithms to predict crucial equipment breakdowns. The industries have gradually implemented short-term digital solutions that have proven to be effective. Although digitization has the potential to further reduce unexpected downtime, Deloitte pointed out in recent research that, “just ‘doing’ digital things will not make an organization digital.” To effectively embrace the benefits of digitization, organizations must move beyond technological advancements.
However, this has not translated into widespread digital transformation or mainstream technology adoption in the industry yet. One of the key reasons for this lack of wider acceptance is the perception that deployment requires additional hardware, resources, and training, or overhead in-short. This nudges teams to “kick the can down the line” and let somebody else worry about it at a later time. By doing this repeatedly, there’s already a significant backlog in technology implementations in many sectors.
New technologies always come with new problems that teams across verticals need to resolve. That said, the act of solving these problems should NOT discourage them from implementing a solution that’s inherently valuable for the business.
It’s exciting to identify solutions that solve their immediate problems while building a broader digital transformation strategy – in our case, leveraging the metaverse.