The Energy Transition Part 2– Industry Forward Podcast Ep 10 – Summary

On the Industry Forward Podcast, Dale and I recently had the chance to talk with John Nixon, Vice President of Global Strategy for Energy Chemicals and Infrastructure at Siemens Digital Industries Software. John walked us through how the energy industry is approaching its transformation for the future, including the key challenges and technologies that may prove crucial to the global energy transition.
The second part of our discussion looked at the transformative power of digitalization in the energy sector, highlighting how digital transformation is revolutionizing industries by enabling faster product development, improving manufacturing yields, and reducing scrap rates. We talked about how digitalization can unlock critical data to help streamline the management of the immense capital projects undertaken in the energy industry, and how this movement of data continues to pay dividends into commissioning and operation.
The Impact of Digitalization
In the past, we have examined the widespread benefits of digital transformation for the design, engineering, testing, and maintenance of products and manufacturing systems in other industries like aerospace, automotive, and electronics. Reflecting on these benefits, Dale speculated that digital transformation and the Digital Twin could accelerate the time-to-market for new products or features by 30-50%. With this in mind, Dale opened the discussion by asking John how energy companies are approaching their own digital transformations, and if there are any unique advantages these companies can enjoy.
John detailed the dramatic changes in the energy sector, particularly due to the oil price crash of 2014-2015. He recalled an interview from the time in which an energy company executive stressed the need for a manufacturing mindset in capital projects. This mindset can help improve the efficiency of large construction projects and field operations, which have typically lagged what is possible in the controlled setting of a factory floor.
John highlighted how manufacturers have leveraged digitalization to improve the efficiency of their operations steadily in recent years, and that such results are what energy companies are targeting. Fortunately, digitalization in the energy industry can deliver immense benefits for companies undertaking massive energy projects. Digitalized requirements tracking, for instance, can capture customer specifications, contract line items, regulations, and other inputs to the design and build process. These requirements are accessible and constantly updated, vastly improving the likelihood that designs will be first-time-right and minimizing rework required in the field (the last place you want rework!).

Capital Project Clouds ease Commissioning, Operations
John also discussed the benefits of continuous handover, which is enabled by digitalization. Traditionally, data handovers between different project phases – such as construction to commissioning, then to operations – occur in large “lunges” where months or even years-worth of data is handed over at once. Digitalizing the design, engineering, and planning of a new energy facility enables the creation of a cloud for all project data and this means that contractors and owner-operators can begin exchanging data from the start of the project. This continuous handover gives each project phase more time to gather and organize data, spreading out the investment of effort to get a facility into commissioning and then into operation. Moreover, instead of becoming overwhelmed with data, project leads and engineers can check for requirements compliance and ensure a smooth transition into commissioning.
Long-Term Operational Excellence
I also asked John how digitalization plays into the long-term operations of these energy generation facilities. This lead to a discussion on importance of model-based financial optimization (MBFO) and model-based systems engineering (MBSE). John described how the integration of real-time operational data and a detailed forensic history of assets in a facility can help companies make informed decisions that balance revenue, profitability, safety, and reliability. This approach drives operational excellence and ensures the best outcomes for the environment, customers, and shareholders.
The Future of Digitalization in Energy

As the conversation concluded, John and Dale reflected on the transformative impact of digitalization for the energy sector. John stressed that digitalization is a necessity for companies to remain competitive moving into the future. He quoted a trade show speaker who said, “The future belongs to those who understand the power of data and digitalization.” Dale added that companies are realizing the necessity of transformation, and true business transformation requires digital transformation. Companies that embrace it will thrive and gain a competitive advantage.
By adopting a lifecycle approach, leveraging digital twins, and embracing the industrial metaverse, energy companies can navigate the complexities of modern energy projects and achieve operational excellence.
You can listen to the podcast on the Industry Forward Podcast to hear more from John and Dale!