Information is the most valuable resource there is in the business world apart from customers. To capitalize on the available information, tech companies have created data analytics tools that track minute metrics and turn them into actionable information. As the prevalence of data analytics has grown, there is no major industry that does not employ it to some degree.
In the energy sector, possibly the world’s most important industry, data is as valuable as oil and gas. The information gathered via data analytics is used to fine-tune everything from marketing to operations. Continue reading to see how data analytics is reshaping the energy sector.
Believe it or not, even if you don’t know what data analytics is, you’re probably already using it in your business to some degree. Data analytics is the process of mining obscure data for trends and metrics that give acute details about business operations. Companies use them for everything from developing marketing strategies to launching new products and optimizing their company’s productivity.
The energy sector is one of the largest globally, with the global oil and gas industry trailing only health insurance and pension funds in the global market as far as value. Even though it generates billions of dollars every year in revenue, it is also the industry with one of the highest overhead costs.
One of the greatest things about energy data analytics software is that it can cut operational costs. It isn’t easy to cut costs in the oil and gas industry without cutting staff. The job requires a lot of specialized, heavy-duty equipment and advanced transport methods for the goods. All of those factors combine to create high overhead costs.
However, with energy analytics software, you can pinpoint areas of wasteful spending. With features like scenario analysis, you can even forecast results based on various conditions to create plans to work around hurdles in production and avoid possible economic downturns.
With scenario analytics, you’re able to predict outcomes and measure them against the actual outcomes. For instance, you can create hypothetical situations such as different economic atmospheres to predict how your company will perform in such conditions.
Because the gas and oil industry is global and the markets codependent, any hitch in production could be devastating to your company and your customers. Machine learning tools can identify failures in your system and create algorithms that help mitigate common problems like malfunctions and scheduling maintenance ahead of time to catch them.
Master data management software, smooths the process of integrating new software into your energy analytics infrastructure, making data more readily accessible across multiple platforms. It also offers features like data visualization, which facilitates a greater ability to make data-based decisions in real-time by making metrics easier to interpret for all users.
As the owner of an energy company, you should constantly be on the lookout for opportunities to expand into new markets. Using various data sources, you can pinpoint markets ripe for development and execute a strategy fine-tuned to that region of the world.
If you’re wondering whether or not your company needs energy analytics software, then there are a few questions you should ask yourself. Do you need to cut operational costs? Do your operations need to run more efficiently? Are you looking for new regions where you can expand your business? If you answered yes to one or all of those questions, your company could use energy analytics software.