How to Keep Business Running Smoothly Amid M&A in the Oil and Gas Industry

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Demands for products in the oil and gas industry have grown exponentially recently, and there doesn’t seem to be any to slow down Overview. As oil prices continue to linger around the price of over $100 a barrel, mergers and acquisitions (M&A) in the sector have hit a three-year high, along with private equity deals that could have a record year. While the first half of 2021 saw the lowest oil and gas activity in the past 10 years, it began to rebound in the second half. And now, investor hesitations about the sustainability of returns in the O&G seem to be fading. This can be seen in the $2.1 billion in M&A deals announced in May.

It’s an exciting time of opportunity, but with every deployment strategy comes challenges. For example, sticking to the same standardization of tools, solutions, and technologies across operations can waste significant time and resources. To navigate mergers and acquisitions, business leaders need to invest in technology specifically tailored to petroleum service providers, enabling easy migration of data and processes, post-acquisition, to help companies achieve business results. they want in a period of consolidation.

By investing in digital transformation, acquiring companies can better manage multiple business units, with different processes, through a single system when integrating new organizations. These companies can also be integrated quickly at low cost. By creating a technology environment, post-acquisition processes and data migration become more streamlined and financially sound. They offer domain-specific features to meet the unique needs of each entity while allowing them to communicate openly with each other. Ensuring that business processes remain adherent and financially viable during the flow period ensures the ability for maximum communication, when it comes to all aspects of running each business.

By using an end-to-end Field Service Management (FSM) solution, companies can easily solve typical digital transformation issues such as business process workflow, knowledge transfer and customer adoption. users, as well as change management in the field and in the back office. Miscommunication issues can be solved easily by streamlining communication between accounting, field operations and office management, all at the touch of a button.

Implementation of change management

Implementing a change within a workforce after a merger or acquisition is a very delicate process. Digital transitions and technological changes must start at the top. From top to bottom, every employee should be on the same page. It is up to senior managers to ensure that all members of their workforce understand the reasons and benefits of changing operations. Once everyone is in sync with change management procedures, it leads to fewer errors and a more productive work environment. Employee engagement creates a relationship that helps them understand and trust the process.

Training workers on a new platform is the next step to full digital onboarding. Emphasis must be placed on integrating the user with tools and programs to help him in the digital transition. The faster and more effectively the user can adapt to new systems, the faster the business will see the return on investment from its digital investment.

Several oil companies are struggling to develop their workers and adapt to an increasingly tech-savvy customer base. To combat this, oil and gas companies can use configurable educational content to ease the software learning curve. E-learning solutions are available to teach workers how to navigate digital platforms, with interactive tests that help train employees. Employees will quickly adapt and understand how to use the software and better understand how it simplifies their daily tasks and improves their daily work functions.

put it all together

Amid mergers and acquisitions in the oil and gas industry, implementing FSM solutions can help companies navigate and scale newly acquired layers of technology, helping to create full transparency and open communication in all aspects of the management of each entity. Companies considering a move to digital solutions must also ensure they see the change in their people, implementing a robust change management plan and ensuring that oilfield service providers can deliver the results. trades they want during periods of rapid consolidation.


About the Author:
Matt Danna is Senior Director of Product Strategy at ServiceMax and has worked in software for over 25 years. Mr. Danna’s background brings in-depth knowledge of software engineering, sales engineering, and product management. He primarily works with customers, key stakeholders, implementers, account managers and developers to ensure alignment between all parties.

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