In this opinion piece, Wits Business School head and director Professor Maurice Radebe writes about the Fourth Industrial Revolution (4IR) and its impact on the energy industry in sub-Saharan Africa.

The hype surrounding the Fourth Industrial Revolution (4IR) is ongoing, and even gathering momentum since Covid-19 forced many businesses to fast-track their digitalisation strategies. 

On the one hand, this has opened up many opportunities for businesses to reimagine themselves, cut costs, explore new revenue streams, etc. However, because change in itself always brings about uncertainty, there is still widespread confusion as the world struggles to keep up with the rate of change and disruption.

When it comes to understanding the role of 4IR technologies, I believe it is useful to look at concrete examples of where such technologies have been implemented in ways that have unlocked real value for an organisation and the industry in which it operates.

The critical first step when considering your organisation’s next step in the 4IR is to understand the entire value chain. By taking a holistic view, we reduce the risk of operating in silos, which does not serve an organisation’s long-term sustainability.

It is only by understanding the value chain of an organisation that one can ensure that the 4IR can serve three key purposes: to improve the performance of the organisation (which includes efficiency and cost optimisation); to improve the value provided to customers, including value proposition evolution/re-invention; and to enable the organisation to remain or become a more responsible member of society.

It has taken time for the energy industry in South Africa, like most industries, to transition towards the 4IR, given that such change demands a long-term strategy that also has to take into account legacy systems and thinking.  

Many organisations have learnt the hard way that implementing fancy new equipment and employing numerous consultants do not necessarily add value. Organisations have to learn that 4IR is not only about the technology, but it is also about the people, how to make technology work for the people and therefore there has to be ‘bigger picture’ thinking in terms of the organisation’s entire value chain.

Looking at the oil and gas industry as an example, the value chain comprises three streams: upstream (exploration and production); midstream (storage and transportation) and downstream (refining, supply, trading, and product marketing).  

To ensure optimal process efficiencies and safety within all streams, plant maintenance is of critical importance; it goes without saying that unplanned shutdowns can have a devastating knock-on effect. Whether it is an exploration plant or a processing plant, operations have to continue 24/7, 365 days a year, and whatever maintenance is necessary must be planned and carried out without disruption. 

This is why predictive maintenance has been a game-changer in the industry, and this has only been possible through breakthroughs in big data, cloud computing and sensory technology.

There are numerous other examples of where 4IR technologies have added significant value to the oil and gas industry. These include:

The Internet of Things – Sensory Types
Sensor technology provides critical plant or processing information, such as temperature, humidity, motion, the presence of chemicals, etc. thus helping to prevent accidents which may otherwise have been caused by human error.

Digital Operating Centre (DOC)
Thanks new surveillance technologies, we can now receive real-time alerts regarding life-threatening incidents. Flow data and work simulation technology helps to determine optimal workflow, prioritisation and allocation.

Surveillance Drones
Drone technology has been another massive value-add to an industry whose major pipelines, for example the 700km pipeline from Gauteng to Mozambique, require constant monitoring for wear and tear. Drones have provided an incredibly safe, quick and efficient way of doing this while also being able to relay info to the DOC in real time. 

Connected Workers
Smart, wearable devices are another game-changer in the industry: workers in the field can now be equipped with smart devices such as glasses, watches, Bluetooth trackers, belts and bracelets which are programmed to give and receive alerts and provide real time data. This assists with monitoring the location and safety of workers and also helps with planning and scheduling.

Warehousing and Transportation
Delivery drones are now being used as an extremely efficient way of transporting spares and tools to plants, especially those offshore. On the road, sensor-enabled trucks offer real-time tracking which saves a significant amount of time in root cause analysis in the event of an accident.

Virtual Reality and Digital Operations
Operations engineers can now be enabled with virtual or augmented reality glasses.  There are many applications for this technology, including being able to conduct virtual tours of a plant which can now take less than 30 minutes, instead three or four hours.

These exciting 4IR opportunities cannot be leveraged without proper leadership, and by that I mean leadership with clarity of vision. Leadership which appreciates the profound impact of technological change on the industry, the firm, its people and indeed on the broader society.

Leaders in the oil and gas sector have to for example, understand that these 4IR opportunities are not happening in a vacuum, but within the broader context of the energy transition. Again, I emphasise that a successful 4IR strategy in any industry or organisation requires a thorough understanding of the value chain.  It demands utmost focus on one very important question: what is going to give [your organisation] maximum value? today and ensure sustainability into the future? 

Moreover, leaders need to be agile when managing change: they need to implement changes quickly – and, if they fail to add value, they need to learn from the experience and move forward quickly.

These leadership skills are especially important in the context of Africa where we cannot afford to waste time or money.  The continent missed out of the first, second and third industrial revolutions.  If we are to succeed in the 4IR, and if we are to defeat poverty, unemployment and inequality, we need a 4IR vision for the entire continent which is driven by focused leadership.