We live in a great time when technology is making significant strides forward, and changing our everyday lives. In the new environment of deregulation in the Gas Industry, there are dizzying arrays of alternatives to performing everyday tasks. Whether it is reading meters, installing pipes, acquiring data from remote sensing devices or introducing information systems, the list goes on. Unfortunately, along with the myriad of choices in new technology, there is the unenviable task of making sure that the technology is appropriate while avoiding the perils of blindly adopting newly emerging solutions.
Although it sounds elementary, sometimes the most basic questions are not fully answered before adopting a technology The introduction of potential technological advancements warrants investigation using an approach that minimizes risk.
Contrary to popular belief, most companies do not perform extensive economic review of technologies. The technology is typically assessed for its primary attributes with only a cursory examination of strengths and weaknesses. In order to gain the maximum advantage from new technology we should more appropriately review the key factors the will ensure success.
Does the Technology have the Manufacturer’sTechnical Support?
Sometimes early product introduction means the manufacturer has limited
field use experience and the user is ostensibly on their own for resolving
problems. This can be particularly true if a system is significantly modified
to fit each company’s internal requirements. It is important to investigate
this aspect as one of the decision-making tools. It will affect the use
of the item if you want a turnkey package, but the manufacturer
expects you to understand the product is not extensively field-tested for
all application alternatives.
How will the Technology save costs
If a company is expecting cost savings then there should be a thorough
economic analysis of what the technology will accomplish towards this end.
It is possible that the technology can perform tasks or operations that
could not be accomplished in the past. In that case there can be a cost-benefit
analysis to ensure that the expenses are appropriate in comparison to what
will be accomplished. In the economic analysis, capital costs, cost of
implementation, operation and also training must be weighed against cost
savings.
Occasionally "low tech" approaches have bottom line savings that are
more effective than "high tech" solutions whose cost cannot be easily justified.
Simple "off the shelf" components can be effective. It is important not
to give any technology a "halo" effect that rationalizes its use despite
cost/benefit analysis to the contrary.
Will the Technology affect Operational Efficiencies?
This aspect reminds the parties involved that many adopted technologies
have a "ripple" effect throughout the organization. The cost/benefit of
the adoption of the technology to all areas of the enterprise must
be considered. Savings in one area may be over compensated by additional
costs in other functional areas affected by the decision. A "whole cycle"
approach should be taken for the analysis so that all parts of the corporation
are on the same wavelength.
Is this a Niche, or a Blanket use Technology?
New technologies are successful when they are applied to the relevant
problem to be solved. This may mean that the technology is specific to
a unique problem and is very successful in that one arena. In these cases
the company may find itself with a "toolbox" of different niche technologies
to use for solving problems. Avoid a "one size fits all" approach when
it doesn’t make sense.
Can current Personnel use it; will it need a Skilled Contractor?
The usefulness of technology is very specific to the appraising company.
If the activities in question are outsourced, the adoption of the technology
becomes more complicated. The company may chose to require contractors
to use the technology, perform an analysis to determine if it will mean
more or less costs for the contractor, and then negotiate terms accordingly.
New technology may be utilized by the acquiring corporation but will
require a specially trained employee(s). These costs must be taken into
account.
Is the Technology a "Closed" or an "Open" system?
A very important consideration for data acquisition, or computer-based
technology, will be the commonality of protocols or file formats that it
uses. Some protocols and file formats can be proprietary to the vendor’s
own products, and would have difficulty transferring information to other
corporate systems. The architecture of these devices should use common
industry protocols in order to be as successful as possible.
Will it support the Preferred Infrastructure?
All corporations have internal systems and communication channels that
are either in use, or planned for the future. Any new technology introduced
should dovetail into these systems.
Are there Non Technical Considerations?
There are barriers to the introduction of new technology that can be
non-technical in nature, which may produce stumbling blocks to their use.
These considerations can be "political" or emotional in nature, and no
amount of cost/benefit analysis addresses them. The organization will have
long term and short term objectives that should be met. Any consideration
of new technology should address internal management concerns that directly
affect the approval process within the organization.
Where appropriately introduced, applied and used, new technology can help us face the significant challenges present in today’s competitive energy marketplace – let’s tap the full power of the technology by selecting the best for our purpose.