Ensuring consistent business unit involvement in new technology development and implementation: Gazprom Neft approach

UDK: 334.75(73):622.276
DOI: 10.24887/0028-2448-2018-1-6-11
Key words: technology strategy, new technology, R&D, upstream, technology management, business unit motivation, technology implementation
Authors: M.M. Khasanov(Gazprom Neft PJSC, RF, Saint-Petersburg), V.R. Filimonova (Gazpromneft NTC LLC, RF, Saint-Petersburg), A.V. Shushkov (Gazpromneft NTC LLC, RF, Saint-Petersburg), K.V. Smirnov (Gazpromneft-Vostok LLC, RF, Tomsk),

As it is evident fr om multiple research findings many R&D projects in oil and gas companies fail to reach full-scale implementation phase due to inability to provide profitable outcome for business units. This can be explained by lack of full alignment and support between technology development and business units (end users of technology). The balance between technology ‘push’ and ‘pull’ fully depends on the level of involvement of business units at early stages of technology development, correct goal and key performance indicator setting at each stage-gate and specification of necessary result delivery time.

Considering current macroeconomic situation of world oil and gas industry, maximisation of return on investment in technology becomes more important for stable long-term company development. In order to facilitate profitable innovation implementation throughout the company, Gazprom Neft developed and introduced a transparent mechanism for business unit involvement into the process of R&D development. Business unit, as the end user of new technology sets the priorities for upstream technology and key parameters for desired technology solutions. Therefore, if at any stage business driven technology needs change, this should have a direct effect on technology portfolio as early as possible.

Current article focuses on mechanisms and instruments that were implemented to ensure and stimulate full alignment of business needs and technology abilities in Gazprom Neft at any stage of new technology development process.

References

1. Sequeira M., What to cut and where to invest: developing a “ruthless” approach to R&D management, OTM Consulting, 2016, URL: https://www.otmconsulting.com/insight/what-to-cut-wh ere-to-invest-developing-a-ruthless-approach-to-...

2. Spath J., Transforming the Upstream service industry to increase operator margins, Journal of Petroleum Technology, 2016, V. 68-05, pp. 54–57.

3. Roussel P.A., Saad K.N., Erickson T.J., Third Generation R&D: Managing the link to corporate strategy, Harvard Business Press, 1991.

4. Yakovlev V.V., Khasanov M.M., Prokofiev D.O. et al., Technology development in upstream division of Gazprom Neft, Journal of Petroleum Technology, 2017, V. 69-4.    

As it is evident fr om multiple research findings many R&D projects in oil and gas companies fail to reach full-scale implementation phase due to inability to provide profitable outcome for business units. This can be explained by lack of full alignment and support between technology development and business units (end users of technology). The balance between technology ‘push’ and ‘pull’ fully depends on the level of involvement of business units at early stages of technology development, correct goal and key performance indicator setting at each stage-gate and specification of necessary result delivery time.

Considering current macroeconomic situation of world oil and gas industry, maximisation of return on investment in technology becomes more important for stable long-term company development. In order to facilitate profitable innovation implementation throughout the company, Gazprom Neft developed and introduced a transparent mechanism for business unit involvement into the process of R&D development. Business unit, as the end user of new technology sets the priorities for upstream technology and key parameters for desired technology solutions. Therefore, if at any stage business driven technology needs change, this should have a direct effect on technology portfolio as early as possible.

Current article focuses on mechanisms and instruments that were implemented to ensure and stimulate full alignment of business needs and technology abilities in Gazprom Neft at any stage of new technology development process.

References

1. Sequeira M., What to cut and where to invest: developing a “ruthless” approach to R&D management, OTM Consulting, 2016, URL: https://www.otmconsulting.com/insight/what-to-cut-wh ere-to-invest-developing-a-ruthless-approach-to-...

2. Spath J., Transforming the Upstream service industry to increase operator margins, Journal of Petroleum Technology, 2016, V. 68-05, pp. 54–57.

3. Roussel P.A., Saad K.N., Erickson T.J., Third Generation R&D: Managing the link to corporate strategy, Harvard Business Press, 1991.

4. Yakovlev V.V., Khasanov M.M., Prokofiev D.O. et al., Technology development in upstream division of Gazprom Neft, Journal of Petroleum Technology, 2017, V. 69-4.    



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