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Is There a Problem with the Way the Oil and Gas Industry Delivers Technology Innovation?

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Edited by Brian George McRitchie, Sunday, 7 Nov 2021, 16:03

                           

As a Chartered Engineer and Manager within a medium sized Oil and Gas company, this is a subject close to my heart; that of Technology Innovation and ensuring it is delivered to the highest standard, safely, on time, and fit for purpose. However, this ‘wish list’ is becoming more and more difficult to achieve, especially as we enter (or arguable, have entered) the 4th Industrial Revolution. But does it have to be so difficult? 

Why is the project so important to me?

  • This project is, therefore, important to me as it will allow me to make changes to the way technical innovation is delivered within the company which has stagnated using old processes, procedures and ideologies that stem back from before the financial crisis of 2009, the resultant oil and gas down turns and the recent pandemic, supply chain issues and resource problems that are still ongoing. These older processes and ‘attitudes’ meant that the industry, in the past, did not have to think outside the box to push for efficiency in what was a very buoyant market making huge profits. Products, tooling and even using technologies that already existed was, as a result, not a priority. Why change something that is perceived not broken and making a lot of money?

As I write this complacency and obsolescence within the industry is an issue that involves a lot of resource to keep operating. Contracts that require the update of technological systems are often fraught with delays and budget issues.  This is because of an insistence to develope the solution entirely in-house from the ground up utilising a reduced workforce and a perception that it will bring in more revenue. Sometimes, companies already exist that have a solution, in part, or even all of the technological solution needed. Research and Development, innovation and delivery strategies therefore need to change from the old pre downturn and pandemic days to suit the future 4th industrial revolution and the need to move to renewable, sustainable projects as the world weeness itself off fossil fuels.

What role do I expect to take?

Making change in an organisation that has cultural behaviours driven by influencers who have been employed within my organisation for over fifteen years, makes this change more difficult.  Changing an engrained culture over a short period of time is a challenge and so my role will be initially as the instigator for the need for change using evidence of past history as evidence. I will then champion the change by using concepts, theories and frameworks that could be used, modified, or discarded so that a hybrid system is eventually developed that will meet our needs. This will utilise resource needed to implement and police, systems and controls that could be put into place and all considering the various behaviours that will influence its direction and eventual success. My role will also make sure I am there, from start to finish, keeping it on track. 

Theories, Models and Frameworks

To sell the need for change, within my organisation, and then eventually instigate and lead the change, theories, concepts, and frameworks will be used to help sell what is ‘best practice’. This will help sell change to the organisation’s influencers and other actors in such a way that they do not perceive the change as only my opinion. Theories, concepts, and frameworks will also attempt to show what is ‘best practice’ through peer reviewed research.  

Examples of such theories, models and frameworks are:

  • As part of the need to change I intend to carry out a scoping exercise and show that the organisation has an ‘implicit’ embedded R&D and Innovation model, embedded deeply within existing delivery processes. It could be argued that having a separate ‘explicit’ innovation strategy using the following would allow for major efficiencies to be integrated:

Dodgson, M., Gann, D. and Salter, A. (2008) The Management of Technological Innovation, Oxford,              Oxford University Press. 

George, Gerard and Bock, Adam J (2011) ‘The Business Model in Practice and its Implications for Entrepreneurship Research’, Entrepreneurship theory and practice, 35(1), pp. 83–111.

Freeman, C. (1987) Technology policy and economic performance: Lessons from Japan, London, Pinter.

  • To make the change a reality, other, more general theories will be used to help in the process:

 Oakland J.S and Tanner, S.J. (2006) ‘Quality management in the 21st century – implementing successful  change’, International Journal of Productivity and Quality Management, vol. 1, no. 1-2, pp. 69-87.

                                                  


 Teece, D.J. (2009) Dynamic Capabilities and Strategic Management: Organizing for Innovation and Growth, Oxford University Press.

                                           

 

 Tidd, J. and Bessant, J. (2009) Managing innovation: integrating technological, market and organizational change, Hoboken, NJ, Wiley.

 Schein, E. H., (1984) ‘Coming to a new awareness of organizational culture’, Sloan Management Review, 25:2, pp. 3-16.

 Schmidt, R., Lyytinen, K., Keil, M. and Cule, P. (2001) ‘Identifying software project risks: an international Delphi study’, Journal of Management Information Systems, vol. 17, no. 4, pp. 5–36. [Online].

 Holmes, A. (2004) Smart Risk, Chichester, Capstone Publishing Ltd.

                                               

 

Bartol, K.M. and Martin, D.C. (1998) Management, 3rd edn, Boston, Irwin/McGraw-Hill.

                                               

 

The idea is, therefore, to cover a number of theories using the above, which should cover - Stakeholder Management, Politics’, Corporate Finance, Risk Management and Culture.

 






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Joanne Pearson

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Hi Brian, great to read your initial thoughts in your blog - some really good work understanding the theoretical approaches around change and some more depth around your specific industry too and as we will discuss in the tutorials the leading the project change is an important element however in your situation do also tailor this to what works within the timescales available.  I can see you are focusing on 'instigating' the change and I agree a piece of work/change focusing on creating a foundation/perhaps including a pilot or investigation will be your best option for this piece of work in the timescales which are available.

Good to note the focus on theory and initial ideas and I think just keep your scope straightforward and relevant and aim to address the questions I've added below will get you on the right track

What could be a relevant research question that you will investigate? - keep this concise and it should be able to be answered within a couple of months after your research design/literature review etc probably from Jan to Feb 2022
What is the change you wish to implement? This should be a change you can implement so needs some concrete outcomes...
How will you answer your research question(s)? Are you going to collect primary or secondary data? How will you collect this data? How much data do you want to collect?  Again consider the scope here 
Are any ethical issues involved that you have to consider? Will you be able to obtain ethical approval to collect primary or secondary data? How long will it take you to acquire ethical approval? 

You will be using a Gantt chart to track your progress do make an initial outline before you create this to see if you can access the resources/stakeholders required for your research within the timescale too.

Overall a really interesting topic now as you are heading into the first month or so of the module starting defining these further and shaping your research questions too.

Do think about your overall research approach when considering aims and objectives and how measurable these can be in such a short period of time Many thanks Joanne Pearson