Australian energy firms face data challenges despite digital tools

New research by Appian reveals that Australian energy companies face significant challenges in data accessibility despite widespread digital adoption.

The Appian Asia-Pacific Data Trends Survey 2024 examined over 300 professionals across the energy, utilities, and oil and gas sectors, highlighting that 78% of Australian energy companies have adopted new digital tools over the past five years but still struggle with data silos.

Luke Thomas, Area Vice President of Asia-Pacific and Japan at Appian, stated, "Energy companies are under more pressure than ever before to streamline operations and respond quickly to market changes and demands. This is driven by heightened scrutiny over recent energy price spikes, alongside efforts to support Australia's goal of reducing its greenhouse gas emissions by 43% by 2030 and reaching net zero emissions by 2050. Our research results show that digital adoption alone is not enough. Without a unified approach to data management, organisations risk not realising the full value of their digital investments and not keeping up with market demands."

A key challenge identified by the survey was data silos, with 42% of respondents indicating this as a primary concern. Ray Croxon, Area Vice President of Solutions Consulting at Appian, explained, "For Australian energy companies, the biggest cited problem is that organisational information is inaccessible because it's regularly stored in different systems and in different formats. It's not so much being able to have the data but having it in a format that's easy to consume."

Thomas echoed these concerns, noting, "Today, energy companies in Australia heavily rely on digital processes and accurate data to function. Yet due to data silos, their workers operate with incomplete or inadequate information to manage complex and critical operations."

The survey also revealed the broader business impacts of these data issues. Operational efficiency was a notable area of concern, with 55% of businesses reporting that data problems led to inefficiencies. Delays, duplicated efforts, and wasted resources were cited as consequences of poor data management.

Customer service is also affected by data challenges. Croxon noted, "Fragmented or inaccurate data can lead to poor customer experiences. This can manifest as delays in resolving customer enquiries, incorrect billing, or misaligned service offerings."

Another significant impact is on reporting and analysis. The report highlighted that 56% of businesses faced difficulties in deriving insights for reporting and analysis, affecting their ability to perform predictive analytics, operational forecasting, and strategic planning.

Compliance and auditing were not spared, with 31% of energy companies noting that fragmented data hampered these critical processes. "In an industry where regulatory scrutiny is intensifying, the inability to maintain a transparent, auditable data trail poses serious risks. Companies may face challenges responding to regulatory requests, leading to delays in filings, fines, or even non-compliance penalties," Thomas mentioned.

Appian's solution to address these challenges involves the implementation of a modern process automation platform with a data fabric. Thomas concluded, "A data fabric is an architectural layer and toolkit that seamlessly integrates data across disparate systems, whether on-premises or in the cloud. By creating a centralised, unified view, a data fabric helps these companies leverage their digital investments for meaningful business outcomes."