The Digital Transformation Program of JSC NC “KazMunayGas”
In February 2019, Samruk-Kazyna JSC presented a new approach to the implementation of the Transformation Program, which is based on such principles as simplicity, clarity and real benefits.
In May 2019, at a meeting of Samruk-Kazyna Fund Management Council (FMC) chaired by the First President of the Republic of Kazakhstan – Leader of the Nation Nursultan Nazarbayev, it was decided to switch to the Digital Transformation Program, which is an essential competitive advantage in the world where new technologies play a key role.
Based on the new vision of the Fund and giving due consideration to the company’s specifics, JSC NC “KazMunayGas” has developed its own approach to building the portfolio of the Digital Transformation Program projects.
According to the new approach, “transformation” means the process of an organization’s transition to a new quality level of operation as a result of accumulated quantitative changes (people, processes and technologies). Digital transformation projects should meet the following key criteria:
- Comprehensive change of people, business processes and technology;
- Large scale of changes (organizational and operational scope); and
- Real economic benefit / Support to the strategic KPIs.
For the purpose of project selection, a special tool has been developed – a funnel of the three criteria.
On 16 July 2019, at a meeting of KMG’s Modernization and Transformation Council, a new portfolio of the Company’s Digital Transformation Program built using the above-mentioned selection approach was approved. The portfolio includes 14 projects and 14 activities. The main content of the portfolio is made up by the projects and activities aimed to improve KMG’s core business.
All projects and activities are aimed to implement the transformation initiatives, such as reengineering production and corporate business processes, ensuring industrial safety, creating a high-performance culture, introducing a new procurement model and digital solutions for business.
In view of current trends in process modernization of enterprises based on the industrial revolution Industry 4.0, KazMunayGas will gradually introduce digital technologies in all lines of its activity. Digitalization projects in oil and gas exploration, production, refining and transportation are designed to improve the quality of the data used, raising the level of operational asset management, expanding the capabilities and means of diagnostics and analysis of processes, improving the quality of forecasting and modeling, obtaining high-quality factor analysis and reducing production losses.
The raised level of asset digitalization will lead to major changes in the company’s activities and will contribute to the operational efficiency of KMG.