One of the more memorable experiences from my years with GE’s renewable energy business was managing through a growth spurt in the wake of the 2008 financial crisis. From 2009-2012, US-installed wind capacity more than doubled, from 25 to 60 gigawatts. The 14 gigawatts installed in 2012 remain a single-year record.

It is no coincidence that GE’s wind business also adopted field service management software in 2012. Business growth had quickly exposed our service challenges: tracking the installed base (or “as-running configuration”), managing crews, and enabling field technicians to maintain a proliferation of wind turbines across the country. As installations leveled off after 2012, the aftermarket became even more critical to the business. Thanks in part to our improved digital capabilities, our service revenues doubled between 2012 and 2015.

Outlooks on Digital Service Initiatives Divide the Industry

The COVID-19 crisis—and government responses—will likely differ from the financial crisis in important ways, including their impact on the energy industry. Renewable energy may receive less government stimulus support this time, yet its much greater maturity and investor support today could help it sustain reasonable, albeit lower, growth despite manufacturing disruptions. The oil sector, meanwhile, is experiencing a historic drop in oil demand that is rippling across the industry. Analyst firm Rystad Energy projects a contraction of 1 million jobs—over 20%—in oilfield services this year. Producers and service companies have already announced spending and workforce cutbacks to stave off major losses or potential bankruptcies.

It is reasonable to question the relevance of digital initiatives amid such uncertainty, and we expect to see a divergence in the industry. Some—call them the “paralyzed” group—may push them out indefinitely, citing a need to focus on cash flow and surviving a market downturn. To those companies, I would ask two questions. First, could a digital service initiative actually help you in addressing your new priorities of cash, revenue recognition, and cost-out? And second, could a digital service initiative better prepare you to take advantage of the eventual recovery?

The second group of companies—call them the “catalyzed” group—may push forward with, or even prioritize, their digital service initiatives. They would answer “yes” to both questions. These are companies that see a potential competitive advantage in staying ahead of the curve. They recognize that some investments that make sense in a non-crisis setting may make even more sense during a crisis.

Staying Competitive Requires a Dynamic Solution

Already, we are seeing energy companies pay more attention to certain capabilities of, and outcomes from, field service. Dynamic safety checklists, for example, become even more important in ensuring workers address emerging distancing or equipment requirements. Remote expert collaboration, meanwhile, can accelerate problem-solving while supporting the business case for a reduced onsite presence—whether that is temporary or longer-lasting. Some power and utility asset operators report that they are enforcing shift management to keep field workers in smaller groups. Others have shown greater interest in remote operations, utilizing asset analytics and mobile collaboration, to minimize site visits by field personnel.

Solutions may also be reevaluated for their ability to drive metrics and outcomes different than those for which they were originally considered. For example, an oilfield service company that not long ago was looking for a solution to manage dramatic business growth may now be more focused on accelerating invoicing, cash flow, and revenue capture in order to survive the market downturn. Or a turbine manufacturer might now seek to prioritize “customer intimacy” and contractor utilization as market and workforce conditions change.

Ultimately, companies that will continue to successfully service the energy sector will rely on solutions that are flexible and adaptable to the industry dynamics, cycles, and evolving business models of the profound long-term transition that their industry is undergoing. The COVID-19 crisis does not change this fundamental reality, but it may accelerate the divergence between companies that see digital service investments as a luxury and those that understand it to be an existential requirement and core to their competitive advantage.

Continue Reading: Asset 360™: What Is It & How Will It Benefit Your Business?

About Seth Dunn

Seth DunnSeth Dunn is director of industry development, power & utilities, at ServiceMax. In this role, he is responsible for defining ServiceMax’s value proposition and go-to-market strategy with GE customers across power generation, transmission & distribution, and renewable energy. Seth joined ServiceMax after 12 years with GE’s Renewable Energy business in a variety of commercial, policy, marketing, and product roles. Prior to GE he researched energy and environmental issues for the Worldwatch Institute. He holds BA, MEM and MBA degrees from Yale University.

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