Innovation Management for a Digital Service Provider in the Oil & Gas Industry

  • David Präsent

Student thesis: Master's Thesis

Abstract

The oil and gas industry, traditionally characterized by its conservative and risk-averse nature, faces increasing pressure to adopt innovative digital solutions to remain relevant as a global energy supplier and address environmental challenges. This thesis investigates the implementation of a structured innovation management process for a digital service provider within the upstream oil and gas sector. The study aims to develop a comprehensive framework that enables the efficient creation and management of new digital products, leveraging the principles of innovation management and agile methodologies. The research begins with an extensive literature review, exploring the fundamental concepts of innovation management. The case study focuses on TDE, a digital service provider specialized in drilling data analytics, performance monitoring, and benchmarking solutions. TDE's role as a market leader in this domain makes it an ideal candidate for examining the practical application of innovation management models. The research involves a thorough review of industry characteristics, evaluation of existing models, analysis of organizational data, and expert interviews with key stakeholders to gain insights into the challenges and opportunities faced by the company. One of the primary findings is the significant role that service companies play in driving technological advancements within the oil and gas industry. The study reveals that service providers are often at the forefront of innovation, contributing new technologies. However, the industry's inherent risk aversion, slow technology adoption, and complex regulatory environment lead to significant barriers for the implementation of digital solutions. To address these challenges, the thesis proposes a structured innovation management process tailored to the unique needs of digital service providers in the sector. This framework integrates agile methodologies, encouraging iterative approaches, crossfunctional collaboration, and continuous improvement through feedback loops. It emphasizes the importance of managing technological and human factors, fostering a culture of innovation, and leveraging external knowledge through open innovation and strategic partnerships. The proposed process aims to enhance the efficiency and effectiveness of new product development, enabling service providers like TDE to deliver innovative solutions that meet evolving customer expectations and industry standards. By adopting this structured approach, digital service providers can better navigate the complexities of the oil and gas industry, contributing to its sustainable future and maintaining their competitive edge in a knowledge intensive environment. This master thesis provides valuable insights and practical recommendations for digital service providers seeking to implement a robust innovation management process.
Date of Award2024
Original languageEnglish
SupervisorOliver Schauer (Supervisor)

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