Changes in the LNG market are substantial and lasting. We believe that businesses need to move fast and proactively to take steps to mitigate risks as well as exploit new opportunities. There is a premium to be earned in the form of new customer relationships and capturing new markets as first entrants. At a minimum, those who do not act now will suffer both reduced market share and a high cost burden.
Business and operating models of LNG businesses have to adapt to win in a transformed marketplace.
Changes don't happen overnight: creating a fundamental shift in ways of working is typically a 12–36 month journey.
Taking a function by function approach to transformation is not the answer. Businesses need to take an end-to-end perspective to effect the required scope of change in a sustainable way.
Understand where the value will be created and use this to focus on the business and operating model changes.
Prioritize key areas where businesses should focus their transformation effort.
The six accelerators highlighted in this paper include:
Changes to an operating model are interrelated. Processes, infrastructure, capabilities and incentives all need to be considered to achieve the desired change.
Jeremy Kay, Global Strategy Leader, ENR, KPMG in the UK
Christopher Young, Director, Oil & Gas Strategy, KPMG in the UK