As we enter an era of hyper connectivity, industries and companies must adapt to accommodate this new environment badged globalization 4.0 by the World Economic Forum (WEF). In this blog, we outline a simple model to take advantage of it.
The Four Challenges of Globalization 4.0
For governments and corporations alike there are four main challenges to overcome:
- Responsibility and accountability for environmental awareness and support.
- Navigation and mitigation of the outcomes of geopolitical tensions.
- Planning and incorporation of the evidential shifts in long standing economic theories.
- Acceptance and integration of technologies into everyday corporate processes.
The Oil & Gas Effect
The nature of the oil and gas industry places it at the forefront of meeting these challenges, and in some cases stakes and hurdles are even higher for these companies. According to an oil and gas study carried out by Accenture, CFO’s are being asked to balance traditional book keeping with the more strategic and operational issues, including:
- Volatility of commodity pricing and currency management
- Increasing financial and non-financial reporting
- Complex tax and legal requirements in national, multi-national, and global environments
- Stakeholder expectations regarding CSR and ESG
- Traditional extraction based and modern renewable asset based business models
- Skill set shifts from the adoption of new technologies
- Faster, more insightful decision making
The 6 S’s enabling CFO Success
In order to meet and excel in these challenges, the oil and gas CFO requires modern solutions to support and enable actions and decision making in the following areas.
- Structure – Provide for quick and compliant multiple entity setups and consolidations using a variety of entity models including JV’s, associations and asset ownerships.
- Stabilize – Identify, track, and manage or mitigate risks and opportunities incorporating scenario based outcomes into forecasts.
- Streamline – Visualize processes to highlight bottlenecks and provide causality analysis leading to more efficient processes.
- Shape – Up skill your talent with role and person competency tracking matrices and gap analysis to add value to your most important asset base.
- Seize – Assess and plan asset portfolios for effective long term maintenance, renewals and profitability decisions.
- Show – Provide pertinent data and information to decision makers in the format they need it, where they need it, when they need it, to allow accurate and timely decision making.
Contact Tiger General Now!
Our knowledge at Tiger General has given us the tools and experience to help several companies address their barriers and goals. If you need a new piece of equipment, fill out the Tiger General Truck Inquiry Form today!