Present in 30 countries and the largest energy company in Norway, Equinor provides energy for 170 million people daily and operates the world’s largest integrated offshore pipeline system. It is the No. 1 pipeline gas supplier in Europe and the third-largest net seller of crude oil in the world. In 2022, the company celebrated 50 years of turning natural resources into energy for people and progress for society.

From Manual to Machine-Driven Processes

In the past, Equinor had relied on manual processes for decision-making in asset management, but as the company expanded, it began embracing a data-driven approach, using automated dashboards. However, its decision-makers recognized the need for further advancements and envisioned adopting condition-based maintenance (CBM).

This transformation would allow for a more autonomous, machine-led, and data-driven approach to asset management, freeing up valuable internal resources and enabling team members to handle multiple cases simultaneously.

“Equinor wanted to progress from condition monitoring to condition-based maintenance,” Tom Naastad Svennevig, lead engineer at Equinor, explained. “For the past eight or nine years, we have operated a monitoring center where a few equipment groups are being monitored by use of home-grown dashboards as well as third-party expert systems. However, as the number of plants onboarded to the center increased, it required more and more resources. We believe that applying condition-based maintenance on equipment where it is possible to connect a remedial action to a degradation mechanism will relieve the resources working in the monitoring center.”

CBM is paradigm shift in asset management, allowing companies to move from traditional calendar-based maintenance schedules to a proactive approach powered by data-driven insights. While traditional maintenance strategies often lead to unplanned downtime, CBM empowers operators make informed decisions based on real-time equipment condition, mitigating disruptions and maximizing asset reliability.

“The primary purpose of condition-based maintenance for us is to provide confidence for continued safe operation and avoid disruption,” Svennevig added. “We believe that several degradation mechanisms we had in the past can be detected automatically, and actions being taken without human intervention.”

Benefits of an Integrated Solution

For Equinor, SAP Asset Performance Management stood out as a superior choice, offering a range of tangible benefits, particularly, according the Equinor manager: “In contrast to third-party solutions that require data migration, SAP Asset Performance Management seamlessly integrates with existing SAP systems, eliminating the need for redundant data entry and ensuring data accuracy across all platforms.”

Other benefits that Equinor perceives include:

• Reduced administrative burdens and increased overall efficiency
• Automatic updating of asset information across all relevant components
• Importing equipment condition status from third-party expert systems
• Storing evidence for safe operation and triggering actions for degraded conditions
• Generating notifications based on condition monitoring rules for prompt responses to potential equipment issues
• Seamless ingestion of sensor data from field systems into SAP Asset Performance Management
• Pre-assigning tasks to maintenance notifications based on asset strategies and failure modes
• Empowering maintenance teams to act swiftly and effectively, minimizing downtime and preventing potential equipment failures Seamless scaling to accommodate additional equipment and assets

Optimizing Asset Status Visualization with SAP Asset Performance Management

Effectively visualizing asset status is crucial for making timely and well-informed decisions, which is why SAP Asset Performance Management offers comprehensive dashboarding capabilities through embedded SAP Analytics Cloud. This allows users to select specific assets or entire fleets for a detailed overview in a centralized view, which enables quick identification of potential issues and facilitates proactive maintenance interventions.

The dashboard utilizes clear, intuitive labels to indicate asset health status, ranging from “excellent” to “unacceptable,” which streamlines decision-making. Critical alerts are prominently displayed in orange, immediately grabbing the attention of maintenance personnel, and providing necessary context and guidance, ensuring that timely and appropriate actions are taken.

Additionally, the dashboard seamlessly integrates with Equinor’s wider SAP ecosystem, enabling real-time data exchange and integration with existing maintenance processes.

Effective Change Management: Important for CBM Implementation

Equinor has implemented a CBM-driven maintenance approach. CBM is running in production. The job to roll out the solution has started. The process of change management is main focus going forward.

“We will achieve this through clear leadership commitment, comprehensive communication, a pilot project for proof of concept, streamlined data smoothing for accurate monitoring, role redefinition for CBM management, establishment of KPIs for continuous improvement, and employee empowerment through involvement,” the Equinor manager explained. “Our objective is that this will result in transitioning to a proactive maintenance approach for 40% of our equipment and significant reductions in maintenance costs and asset downtime.”

“SAP Asset Performance Management helps us streamlining maintenance processes and facilitating proactive preventive maintenance,” Svennevig concluded.

Karin Fent is senior director of Global Customer Success Digital Supply Chain at SAP.

Top image courtesy of Equinor | Ole Jørgen Bratland © Equinor

The 2024 Economist Impact report highlights the strategic importance of procurement in managing risk and driving sustainability. As previously reported, procurement is gaining prominence in the C-suite, and it can play a critical role in driving resilience, including with environmental, social, and governance (ESG) objectives.

In the Economist Impact report, titled “Across the procurement-verse: Changing trends in the procurement function” and sponsored by SAP, surveyed executives share increased confidence in procurement to deliver against risk-mitigation objectives. Particularly when it comes to internal risk, which involves stakeholder management and strategic alignment, confidence levels rose to 83% this year, from 64% last year. This illustrates that procurement is becoming more aligned with key stakeholders across the organization.

However, a “state of permanent crisis” has shaken executives’ confidence in procurement’s ability to manage external risks such as geopolitical shifts, supplier threats, and liquidity risks.

Procurement’s role in business strategies is ever-growing, but it is imperative to maintain agility.

Heightened Attention to Risk Management

Ongoing inflation, global conflicts, and fluctuating commodity prices have placed risk management at the center of business strategies. Procurement plays a pivotal role in this effort by identifying high-quality alternative products and services while limiting costs.

Yet, respondents noted concerns over procurement’s ability to manage external risk factors, as only 41% of respondents said they are highly confident in its ability to control vulnerabilities. Comparatively, in 2023, 62% of business leaders expressed assurance in procurement’s handling of these factors, like supplier shortages, market fluctuations, and supply chain disruptions. Several drivers are pushing this trend, as the report notes that organizations experience four supply chain disruptions every day. Also, inflation continues to influence organizational decision-making, as monetary uncertainty was listed as the top organizational risk priority for procurement. Additional key external factors impacting organizational strategy over the next 12 to 18 months are macroeconomic (71%) and legal and regulatory risks (70%).

Diversifying Supplier Relationships

Businesses have looked to ease fears of shortages by moving away from sole sourcing suppliers. According to the survey, 40% of executives aim to prioritize supply chain diversification to build trusted and long-lasting relationships. In fact, three of the top five strategies listed in the survey are focused on mitigating risk, including reshoring/nearshoring and multi-sourcing.

Visibility has also been listed as one of the highest two priorities for a second consecutive year, proof that it is an urgent need for organizations to invest in technology that increases access to supply chain metrics, develops connections with suppliers, and identifies alternative sellers. Platforms that utilize automation, AI, and advanced analytics are another way to enable procurement teams to make data-driven decisions that improve efficiency and reduce risk.

Sustainability: Procurement’s Green Thumb

ESG ranked second on the list of priorities for the next 12 to 18 months, an increase from fifth in 2023.

“Procurement’s work at the convergence between the business and wider supply-chain ecosystem thus offers it a unique strategic opportunity to lead the sustainability agenda,” the report states. By engaging with sourcing and suppliers, two critical stakeholders in achieving sustainability KPIs, procurement can use its role to translate companies’ green ambitions into tangible results.

New regulations such as the European Sustainability Reporting Standards (ESRS) and Corporate Sustainability Reporting Directive (CSRD) have driven companies to enhance their sustainability practices.  According to the Economist Impact report, procurement has capitalized on this opportunity to gain the confidence of executives across the C-suite, with 68% of business leaders expressing belief in procurement’s abilities to deliver against ESG objectives. This is an increase from 49% in 2023, signaling that procurement’s remit has expanded beyond cost management.

Sustainability has also become a critical risk category, as 39% of respondents listed compliance as a driver to becoming greener. A failure to conform to governmental policy can lead to penalties and fines that limit growth.

SAP recently hosted a webinar to discuss strategies that leading companies are using to develop sustainable supply. The discussion also includes insights into how procurement can add value to ESG initiatives beyond compliance and reporting.

Leveraging Technology for Sustainable Sourcing

Procurement’s role in engaging buyers and suppliers to drive sustainability is pivotal. CPOs can set standards for sustainable sourcing and supplier practices, reducing carbon footprints and helping reach ESG benchmarks.

The increasing alignment of procurement with C-suite priorities is seen through the increased focus on sustainability and risk management. The shift in reporting lines toward COOs and the greater involvement in strategic discussions highlight the growing influence of procurement in organizational decision-making.

The expanded role of procurement has placed it at an inflection point, with heightened expectations to deliver results beyond cost mitigation. How will procurement leaders meet these new demands? Investing in technology offers a solution for uncovering valuable insights that to demonstrate procurement’s value. Coupled with developing people and processes, this approach allows procurement leaders to successfully fulfill their increasing remit.

Utilizing SAP Business Network for Strategic Priorities

Business leaders should look for a platform to bridge the gap between companies and buyers and suppliers, enhancing visibility, collaboration, efficiency, and compliance. By leveraging such a comprehensive solution, companies can streamline their procurement processes, reduce silos, mitigate risk, and achieve substantial time and cost savings.

SAP Business Network can align these benefits with the strategic priorities of risk management and sustainability. The technology has facilitated 780 million B2B transactions and $5.8 trillion in annual commerce, highlighting its vast influence across 190 countries. There has also been a 13% growth in transacting relationships and a 7.3% increase in B2B transactions over the past 12 months, a testament to our growing global community.

Embracing the Future of Procurement

With growing confidence from executives and risk-focused strategies, procurement is well-positioned to lead organizations through today’s complex business environment. The Economist Impact report underscores this belief, but procurement teams must aim to ensure long-term success by leveraging digital transformation.

Through in-depth interviews and targeted research, the Economist Impact report provides a broad analysis of the state of procurement.

View the infographic and download the report.

Gordon Donovan is global vice president of Research, Procurement & External Workforce at SAP.

At 14, Coco Yoshizawa of Japan recently became the youngest medalist at the 2024 Summer Olympics, using a skill she mastered during primary school to bring her to the podium. Coco and her peers are proving on an international stage that it is never too early to accomplish incredible feats. The Olympic Games are not the only place we can look to for young, driven leaders.

A recent global study by We Are Family Foundation (WAFF), produced in part with support from SAP, introduced the complexity of incorporating intergenerational collaboration into projects, highlighting how youth in particular face a lack of opportunities to lead and contribute. Young people are often left out of the conversation when it comes to the world’s unprecedented challenges, despite offering a unique and personal perspective on shaping the future.

People under the age of 30 make up more than half of the world’s population. Why block these important voices?

Laalitya Acharya is an impact entrepreneur who invented an AI-driven device to detect water contamination in seconds. In parallel, she founded an organization aimed at finding the intersection of research, advocacy, and policy work through summits discussing action to scale clean water solutions. She continued as an active activist on the topic of closing the water gap by attending events like COP28 as a We Are Family Foundation delegate — all before the age of 20.

Age has not stopped either of these accomplished youth from taking action. In fact, in most cases, being young can be an asset. Young people embody the qualities needed to lead in an increasingly unpredictable and technology-driven time — from the determination to be a leader in one’s athletic field to enacting meaningful change on climate issues.

In honor of International Youth Day 2024, here are three reasons we should never let age become an obstacle to actualize powerful ideas.

1. Young Entrepreneurs Offer Fresh Perspectives

Young impact entrepreneurs like Laalitya are governed by their life experiences and insights, shaped by a rapidly changing global landscape and unprecedented access to technology. Laalitya’s innovation, for example, was born out of a family trip to India, where she was inspired to research solutions when she was personally affected by contaminated water. With an interest in AI, she wanted to find a unique way to blend technology with advocacy to change the “mold of what we think about as water advocacy.”

When given the opportunity, youth can bring groundbreaking ideas and challenge traditional engagement models at the corporate and policy levels. Companies like SAP are leveraging these unique insights with initiatives like Youth to the Table, in which they enable young leaders to rethink the status quo in conversations with key partners at events like COP and The World Economic Forum.

2. Young Innovators Show a Strong Sense of Resilience and Adaptability

In an era characterized by constant change, from the onset of COVID-19 to the developments in AI, young people have an intrinsic ability to navigate uncertainty and apply a dynamic approach. While the entrepreneurial journey is rarely easy, tech-driven acceleration adds a level of urgency that forces them to remain scrappy and leverage the resources available to them in the moment. 

Renata Koch Alvarenga, a young activist from Brazil, understood the power of accessibility when she founded EmoderaClima at 22. The initiative looks to tackle the climate crisis through the lens of gender equality in the Global South, providing an online database with multilingual educational content to empower young people impacted by climate change in Latin America. As she looks to make resources accessible to all, she is required to adapt to the ever-changing business and policy setting in Brazil. Young people like Renata leverage resources like technology to adapt to difficult environments, a testament to their unique strengths as leaders.

3. Young People Emphasize the Importance of Community

Technology has not only given young impact entrepreneurs activists a louder voice than ever, it gives them a community at their fingertips. Whether it was the community they were born into or the community they’ve created, young people are more likely to support the causes and people they care about than former generations. Per a study on young changemakers by The Possibilists in partnership with SAP, 92% of respondents are motivated by the opportunity to do something for their community.

Young people know how to mobilize for their cause or community. Innovators like Larissa Napoli (27), who is the coordinator and member of the Quebrada Agroecológica, a project that promotes water security and agroecology in several Brazilian communities, are fueled by a sense of dedication. Much like the 70% of gen-Z were involved in social or political causes in 2021, she and her colleagues started locally and scaled their initiative through the power of digital channels. Their passion translates into meaningful action that can influence key decision-makers.

SAP believes in the power of collaborating with young impact entrepreneurs and innovators. Through partnerships with ChangemakerXchange, Generation Unlimited, The Possibilists, and We Are Family Foundation, we gather insights and promote initiatives that enact inclusive change. From bringing youth delegates to COP28 to introducing young changemakers at SAP events, we aim to give young innovators a valued voice.

If you are interested in learning more on how to close the intergenerational gap, We Are Family Foundation’s study offers interesting insights on the competitive advantages of working with young leaders.

We invite you to join us in this work; let’s inspire future solutions through meaningful solutions that erase age as an obstacle and ensure everyone’s opinion is valued.

Selina Henn is Strategy and Operations associate for Corporate Social Responsibility at SAP.