The impact analysis of breakthrough technologies on the development of russian oil and gas companies
Breakthrough innovations - the method of developing entirely new types of software or services that alter habits of end-user activity or fundamentally change the normal use of some technology. Blockchain - an indicator of institutional evolution.
Рубрика | Менеджмент и трудовые отношения |
Вид | дипломная работа |
Язык | английский |
Дата добавления | 17.07.2020 |
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Introduction
The relevance of this report stems from the fact that the technological progress of the biggest oil and gas corporations is accompanied by increased demand, the expansion of the scale of enterprises using information technology. Such demand is associated and related to the rapid and speedy growth of information systems and new technologies. The introduction of breakthrough technology or a range of technologies potentially increases the efficiency of oil and gas corporations.
In order to improve and increase competitiveness on the global market, oil and gas enterprises must increase productivity and efficiency of certain operations, namely: reduce costs and optimize the development. All of these aspects will help enterprises enter new markets. Using the correct implementation of breakthrough technologies, it is essential for organizations to maximize the benefits of using those same technologies, increase the speed of decision taken, their quality and be able to process large flows of data.
Technology is advancing faster and taking less time than ever before to be widely adopted. This took 10 000 years to get from writing to printing, but just 500 more to get to email. We are now at the beginning of a modern era - the era of revolutionary technologies. Economic breakthroughs and transformative innovations, such as industrial power, telecommunications or the Internet, are radically transforming people's way of living in the age of the Industrial Revolution. The application of these innovations contributes to the emergence of alternative business structures and creates an impetus for new entrants to enter the industry and disrupt the existing order. Market leaders must recognise potentially disruptive innovations and evaluate them carefully. Early research can demonstrate the benefits and limitations of cutting-edge technology as they begin to impact the economy and culture. Innovation, however, is crucial to creating competitive advantages in global markets so that businesses can benefit from economies of scale.
There are two forms of breakthrough innovation: tech-innovation, which is based on major advances in existing technology and replacement of existing alternatives, and market-innovation, which addresses new emerging markets(Silva et al., 2017).
Unlike incremental innovations, revolutionary technologies have the ability to generate new markets and influence customer tastes and habits, owing to a comparative edge and a successful place (Silva et al., 2017). Although analysts and industry leaders understand that breakthrough technologies are crucial for both regeneration and sustainability in volatile environments and for the long-term growth of an organization, businesses continue to concentrate on incremental, short-term and less risky innovation(Silva et al., 2017).
Technology advances, such as: Internet, artificial intelligence, mobile communications, and 3d printing. The introduction of emerging technology directly affects the countries' economies, financial institutions and international business. For many enterprises, introducing and stimulating breakthrough technologies is a very risky strategy. All of this will lead to the rise of new rivals who have a significant effect on the competitiveness and development of companies, however when investing in large quantities of innovative technologies, firms can collapse and face bankruptcy.
In connection with the foregoing and, given the high prospects for introducing breakthrough technologies in the oil and gas industries, the aim of the study is to create an impact analysis of breakthrough technologies on the development of Russian Oil and Gas enterprises - Gazprom Neft PJSC and Rosneft PJSC.
To achieve this goal, it is necessary to solve the following tasks:
1. To study the theoretical dimensions of breakthrough technologies;
2. Find the main types of breakthrough technologies that can be used in the oil and gas industry;
3. To research the market of breakthrough technologies and their effect on enterprises and their productivity;
4. To conduct a study of thegas and oil industry in Russia with a view to using breakthrough technologies;
5. Conduct a comprehensive and a comparative analysis of the application of breakthrough technologies in the companies: Gazprom Neft PJSC and Rosneft PJSC;
6. Formulate practical recommendations on breakthrough technologies of oil and gas enterprises.
The subject of the study is the impact of breakthrough technologies on Russian oil and gas enterprises.
The study objects are the companies Gazprom Neft PJSC and Rosneft PJSC.
To complete the final qualification work, the following study methods will be used: comparative analysis, statistical analysis, coefficient analysis, etc.
The study's practical importance is demonstrated by the conclusions drawn from the review of Gazprom Neft PJSC and Rosneft PJSC activities regarding the implementation of innovative technologies, taking into account future prospects.
1. Theoretical foundation
The combination of conventional baggage of experience, expertise and knowledge with new technological approaches based on modern information technology can have a tremendous synergistic impact in the oil and gas industry, which plays a key role in the country's economy and has enormous but not yet realised opportunities.
The world's leading energy firms, which started to adopt new technology on a broad front in the early twenty-first century, have already gained a substantial head start in the competitive market, proving to be enthusiastic followers on a lesser scale. The fusion of conventional baggage of experience, expertise and knowledge with new technological approaches focused on modern digital technology will have a considerable synergistic impact in the oil and gas industry, which plays a key role in the country's economy and has enormous yet not yet realised opportunities.
But Russian oil companies have turned out to be catching up, and more delay will cost them the loss of competitive positions, as the 'digit' helps to solve problems quicker, more effectively and with less risk, expands opportunities horizons
The theoretical foundation section presents the analysis of key concepts of the current report such as 5g communication, 3d printing, blockchain, artificial intelligence, virtual reality in various fields. Subsequently, chapter contains a number of parts: subsections are devoted to the examined all factors which was written above and their impact on the development of international business.
Breakthrough technology definition
Breakthrough innovations are the method of developing entirely new types of software or services that alter habits of end-user activity or fundamentally change the normal use of some technology (Roland Ortt et al., 2007). One of the most important examples of cutting-edge technology is the use of laser and networking devices, such as telegraph, television, cell telecommunications and the Internet.
A characteristic of breakthrough technologies is that today it is not the ownership of any resource that plays the main role, but the accessibility of data about this resource and the probability of using it to schedule its operations. Data, its availability, consistency, quantity, the capacity to access it rapidly and draw the appropriate conclusions is an integral part of the modern economy.
On the official website of PricewaterhouseCoopers (PwC), a global audit and consulting company, 8 breakthrough technologies for 2020 have been highlighted(PricewaterhouseCoopers. (n.d.). “The Essential Eight technologies”):
1. Artificial intelligence
2. Augmented reality
3. Blockchain
4. Drones
5. Internet of things
6. Robotics
7. Virtual reality
8. 3D printing
There are 3 stages after the creation of breakthrough technology:
1. Stage of innovation
2. Stage of adaptation to the market
3. Stage of market stabilization.
Stage of innovation - is the period when the product moves from the "Invention" stage to the "First market entry" stage.
The stage of adaptation to the market is the phase when the product is already on the market and smoothly moves to large-scale production and distribution.
The stage of market stabilization is the phase when the final product is already at the stage of large-scale production and the company must distribute this product to achieve a complete replacement of the technology.
5G is the fifth generation wireless infrastructure for telecommunications without wires networks(Navarro, 2020). This technology was developed in 2018, but started to be widely circulated in 2019. The 5 g platform uses the same frequency spectrum as its predecessor-4g but it will soon be substantially different. At the start of the 5G rollout, the bandwidth varied from ~50 Mbit / s to more than 2 Gbit / s, so when maximum coverage is achieved, the bandwidth would rise to 100 Gbit / s-this is 100 times faster than 4G.
The use of 5g is associated not only with the quick download of any heavy files (for example, downloading a file that is more than 5 gigabytes in volume will take about 5 seconds) but also creating the basis for creating virtual reality and completely autonomous cities.
In 2019, the global enterprises that were implementing 5g communications around the world encountered certain problems. The media began to disseminate information that says that the towers that are responsible for transmitting 5g signals emit radiation that cause cancer in people(Moskowitz, 2019). In the Russian Federation, the implementation of 5g communications has been postponed indefinitely, since the frequencies used by the technology - 3.5 GHz are used for military communications(Jones et al., 2019). In this regard, on the territory of Russia at the moment it is impossible to use the system of building towers, since changes in frequency will entail a deterioration in the quality of communication.
In 2020, during the epidemic of the dangerous coronavirus Covid-19, which was caused by the SARS-CoV-2 coronavirus, several activists started to disseminate information that the towers that are used to transmit the 5g signal cause the coronavirus. In Britain, activists severely damaged the 5g towers, which led to minor system failures(Parveen et al., 2020).
Additive manufacturing or 3D printing is the technique of creating a three-dimensional structure by linearly applying various materials (plastic, cement, human cells) layer by layer(“Additive manufacturing -- General principles -- Part 1: Terminology”, n.d.).Among the 3D printing applications, the development of functional products for the needs of the most interested sectors, such as the aerospace industry, automotive, engineering, military-industrial complex and prosthetics, is in greatest demand. Where there is an overwhelming need to produce precise goods and their prototypes in the shortest possible period.
Figure 1 presents information from the page of the PricewaterhouseCoopers where it is indicated the percentage of the Top international companies in 2020 from the Automotive, Healthcare and Industrial sectors invested money in a 3d printing system (PricewaterhouseCoopers. (n.d.). “The Essential Eight technologies”).
Figure 1. Top industries making 3-D printing investments over next three years
Blockchain appeared as a new term with the establishment of bitcoin, which achieved big success after it appeared. Nakamoto in 2008 first presented the blockchain in his work “Bitcoin: A Peer-to-Peer Electronic Cash System.” However, a blockchain can function as a distributed data system for any cryptocurrency, not only bitcoin. It is generally believed that the blockchain and not only bitcoin would have a major effect on the world. Robinson said, «The number of people who use bitcoins to buy goods and services is less than the number of participants registered in the Kuwait Airways frequent flying program. And yet ... the blockchain technology behind Bitcoins is gorgeous and will completely change the world.».
Blockchain is a distributed ledger system. Banking, securities and insurance are using blockchain to boost performance, among other matters relating to the ledger. Blockchain will guarantee the immutability and validity of records. Scientists regarded blockchain as an indicator of institutional evolution and an economic development allowing the application of a new technology for general use. Blockchain can be used to get notarization services, though its Internet properties make it faster and more convenient than a conventional service. In summary, blockchain is a sort of distributed infrastructure in which individuals may communicate without central authority(Zhu et al., 2020).
The core fields of blockchain technology application:
1. Authentication and access control;
2. P2P transactions;
3. Supply chain management;
4. Smart contracts;
5. Metadata traceability;
6. Asset / Title registration
Artificial intelligence or AI is a set of computer systems capable of executing activities that involve human intelligence. Examples of such tasks include decision-making, acknowledgement of human speech, interpretation of texts and speech, visual perception of objects.
Artificial intelligence refers to the ability of computer-controlled machines or robots to perform tasks that are similar to humans.Artificial intelligence is used to develop robots that have human intellectual properties, behavior, learning from past experience, the ability to feel and the ability to make predictions and determine the value of a particular situation(Turan et al., 2017). Robotic technologies are widely used in modern life, which has gained popularity and relevance in various sectors, such as industry, hospitals, schools, the military, music, games, quantum science and many others(Wong et al., 2016).AI is an effective tool that enables computers and software to control the thinking of robots using expert systems that illustrate intelligent behavior, train and effectively advise users. AI is known as the ability and potential of robotics to solve problems and causes. There are various innovations in artificial intelligence, for example robot machines, in which the driver does not have to steer or steer them. Artificially intelligent technologies robots also include intelligent machines that process a huge amount of data that a usual person cannot execute. Therefore, robotics takes on repetitive tasks that require creativity and a knowledge base. In addition, artificial intelligence is a combination of different technologies that enable robotics to independently understand, examine or complete human activities. In this case, programs for artificial intelligence (robots) are created for a specific purpose such as training, action and understatement, while human intelligence is mainly associated with various multitasking skills. In general, the artificial intelligence tool is primarily associated with an emphasis on robotics, which represents human behavior.
Examples of artificial intelligence at the moment are:
· Self-Driving Cars (Google, Tesla)
· Manufacturing
· Robotics (Boston Dynamics)
· Navigation Systems (NASA)
· Assistant Robots (ASIMO)
· Chatbots - (Telegram)
· Human vs Computer Games
The main task of Artificial Intelligence is to help people and reduce human casualties in situations such as:
· Wars
· Dangerous Workspaces
· Car Accidents
· Natural Disasters
Virtual reality (VR) is a computer-simulated technology that allows users to communicate with the universe or the environment generated on a computer. Virtual reality allows humans to immerse themselves in a virtual and secure world. Virtual reality is currently widely used in gaming; however, the potential of this technology does not stop there. The following are various ways of applying VR technology in various fields:
The military
Countries and states slowly introduce the use of virtual reality in soldiers training, as this allows them to conduct a huge range of simulations outside the battlefield.
A simulation of reality can put a soldier in various unforeseen situations, recreate an unusual environment in which soldiers need to instantly make the right decision. Accordingly, the military also uses Virtual Reality to simulate fighter flights, simulate combat to improve shooting skills and eliminate opponents, train military doctors so that during an emergency, doctors can save soldiers and simulate car controls so that soldiers navigate the terrain while driving a convoy. The key benefits of using VR in the army are safety and lower training costs. Virtual reality safely copies dangerous situations, without injuring soldiers during training(“Reduce Costs for Military Training with Virtual & Augmented Reality,” n.d.).
Sports
VR has fundamentally affected the sports industry for players and sportsmen. Virtual reality is used as a teaching tool in many sports, while helping to measure athletic performance and analyze the technique of athletes(Akbaєet al., 2019).
Mental health
Virtual reality has become the main treatment for post-traumatic syndrome. Using VR therapy, a person enters into a recurring traumatic situation in order to determine the source of the problem and eliminate it.
Virtual reality is also used to treat depression, anxiety and fears. What is more, virtual reality provides patients with a safe environment for dealing with the things they fear while remaining in a controlled and safe environment (Freemanet al., 2017).
In February 2020, in South Korea Vive Studios (company specializing in creating virtual reality and VR glasses) recreated a full copy of the girl who died more than a year ago. This work was commissioned by her mother, as she had been depressed for months. VR technology helped the mother to cope with the loss of her daughter, and gloves and an augmented reality helmet allowed the woman to touch her daughter again. The company took more than 8 months to recreate the exact copy of the girl, her habits and her speech. This was made possible thanks to the old family archives(“Mother reunited with dead seven-year-old daughter in virtual reality”, n.d.).
Medical training
Medical students often use VR for practical operations and procedures. Virtual patients are used to enable students to develop skills that will be applied in the future in the real world(Pensieriet al., 2014).
Education
Virtual reality has been adopted for learning in education. Students and schoolchildren can interact with each other in a three-dimensional environment. Schoolchildren are sent on virtual museumstours or it is possible to recreate an era to study Istria. Application of virtual reality in education opens up new opportunities for obtaining knowledge(Hu-Auet al., 2018).
Internet of things (IoT) is a network of items or computers fitted with sensors, applications, network hardware and capable of capturing and transmitting data over the Internet. The word refers to any computer that can be reached via a network.
Key scopes:
1. Recording the flow of products and materials;
2. Inventory monitoring;
3. Remote data collection;
4. Self-service;
5. Online service delivery;
6. Real-time consumer data collection;
7. Adaptive pricing structures.
The fourth industrial revolution was the principal subject of the World Economic Forum in Davos in 2016(Botha, et al., 2016). At that point on, the fundamentals-emerging technology-started to be debated more vigorously on an order of magnitude. There is now no single economic or technological forum complete without them.
Turning to history, the transition to mechanized manufacturing fundamentally transformed the world more than 200 years ago, creating modern markets and ensuring the pace of technological growth. Since then, the planet has experienced four technological revolutions including the announced Industry 4.0.
1. Industry 1.0, is the change from manual labor to machine labor, industrial production development, and steam engine expansion.
2. "Industry 2.0" was identified by the development and modernisation of conveyor systems.
3. "Industry 3.0" emerged with electronic growth, the introduction of computers, and automate progress.
4. Following the 2011 international industrial exhibition in Hanover the idea of "Industry 4.0" was brought into practice. The fourth industrial revolution was officially one of the 10 focus areas under Germany's state-run high-tech policy until 2020. Industry 4.0 is a shift to fully integrated, real-time, interactive development powered by intelligent devices in continuous contact with the external world, moving beyond one company's borders.
The oil and gas industry are frequently and undeservedly viewed as rather conservative, while the discovery and development section has always held pace with science and technical advancement. Thus, in the 1970s and 2010s, the advent of modern technologies and IT goods that can solve complex problems led to a technical boom in the industry: new methods for raising oil recovery emerged, and programs were developed for modeling and analyzing geological exploration results. Since the 1990s, degrading the capital base has become one of the reasons for the growth of manufacturing technology in the world. As a portion of the main reserves is exhausted.
Despite the fall of the first line of the most profitable firms in the world, oil giants are successfully implementing the technologies of Industry 4.0. The founders are BP and Shell, who have been exploring this field since the early 2000s. Today, all major oil and gas firms have included digitization in their market sector growth plans, actively cooperate with IT firms and set up their own centers of expertise. This concern is due to the fact that the implementation of digital technologies would lead to a major rise in oil production and economic output in the future.
Today, digital counterparts of areas, reservoirs or materials are being introduced, enabling testing and predicting different situations that may arise during the oil production process, contributing to the user-friendly visualization of results, thus reducing the number of possible failures and force majeure. Furthermore, this research leads to addressing the issue of an ongoing process of upgrading and retrofitting of equipment in mature fields without excessive costs.
The science of "smart products" is at the preliminary stage of growth. They have additional features, such as the ability to retain defined physical and chemical characteristics when environmental conditions shift to extreme levels and can be used at all stages of oil production. Super-hard materials or those with a memory effect are highly successful in the processing of "difficult" gasoline. Displacement agents for polymer floods improve oil recovery, and polymer gels can differ in length, even with minor variations in light or temperature. Ultralight 10 materials are being developed to reduce the mass and metal consumption of oil production structures. Such innovations, nevertheless, remain at the pilot stage and are commonly used mainly in the aerospace industry. Additive processing or 3D printing allows to create the most complicated component from scratch. They have the highest printing quality and density and therefore dramatically minimize production time and eradicate the waste problem. However, their presence in the industry remains negligible.
The blockchain is effectively starting to be used to record the status / origin of materials / stocks, to record the state while gathering information from sensors to certify and trace the origin of products, to automate the identity of vendors, to sign sales contracts and also to remove fees for transactions amongst market participants.
At present, augmented reality is primarily used in the development of interactive training courses. Using the presence impact, which is generated using virtual reality, helps to carry out the appropriate behavior in situations as similar to the real as practicable, without doing any harm. Another benefit of VR is the continuous exposure to instruction, and not just when the object is available. Another area of use for augmented reality is computer simulation. The introduction of VR models helps to recognize defects that could not be noticed on a flat screen-e.g. small variance, poor access to facilities, lack of room to install the repair device, and other considerations relevant to ergonomics. Augmented reality software, introduced in smart glasses, optimizes routine functions such as monitoring of facilities and inventory management by reducing the time taken to perform specific procedures and decreasing the amount of mistakes.
After analyzing international companies, a table (Appendix 1) was created that shows the types of breakthrough technologies and experiences using the above-mentioned breakthrough technologies not only in foreign companies, but also in companies located in the Russian Federation.
Therefore, successful digital innovation will not only improve oil production or reduce workforce costs but will also allow access to new hydrocarbon supplies that have been hidden from industrialists for many years. The oil sector requires a qualitatively new level of engineering, machinery and applications introduced and incorporated, and thus the configuration of the optimum technical portfolio must continuously shift in line with the technological innovation of the fourth industrial revolution. It is therefore important to keep a close eye on global trends, to search for new possibilities and to crack the barriers to competition within the main industry for the Russian economy.
2. Literature review
Surveying the future of science, technology and business - A 35-year perspective
This article indicates that a survey was conducted among readers about what people have expectations regarding the development of technology and the science and business improvement in the long term for 25-35 years. Readers were asked questions about alleged technology development forecasts. Questions for the study were:
*What science and technology developments will dominate over the next 35 years, across a wide spectrum of fields?
*What are the gaps between desired products and anticipated science or technology capabilities, and between the anticipations of educated businesspersons and those of scientists?
The integrated review of the four studies, together with selected additional data points, results in this paper's 35-year snapshot of the research and business climate and a summary of the differences between anticipated advances in science, technology and industry, on the one hand, and consumer demands, on the other.
Methodology that were used by them:
1. Collaborative expert opinions on trends and trend interactions;
2. Choosing the time horizon;
3. Selecting and querying the surveyed populations.
The analytical article aims to analyze and research the potential prospects of robotic technology and the use of artificial intelligence from different points of view. The research question is as follows: Should people continue to create reserves to pay dismissal pay to employees of enterprises, or should people calculate and analyze the cash reserve to gradually reduce the value of property, in this case robots, and if people take into account the reserve for gradual reducing the value of robots, how exactly will the human resources department work?
The first hypothesis is that a new era has come in the world economy and finance called the “space economy” due to the main cause of the economy, low allocation of resources and optimization among the population.
Figure 2. Main Economics Cycles in 20th and 21st Centuries
Centered on digital technology such as artificial intelligence, cognitive science, robotics and mechatronics, big data and processing, cloud computing, neural networks or global innovations such as social media and the potential trajectory of financial markets, humans and industry ecosystems, but should not be limited to governments and associated organisations, new prospects should be pursued. Cost savings or benefit optimisation. Technological developments, diverse sciences with the aid of integration between them, will stimulate research to accomplish these goals, and there will certainly be more developments in the coming years that will bring dramatic shifts in industry, life and also the world economy(Manyikaet al., 2013).
In addition, planetary searches for intelligent life and other Earth-like planets by numerous public agencies such as NASA (U.S. National Aeronautics and Space Administration) or ESA (European Space Agency) or new private commercial firms (Dirican, 2015) have also begun. Both of these programs and requirements have driven the entry into the Space Industry Phase. Most experiments to hit more worlds and far beyond the Solar System, and to provide strategic advantages in the military, implicitly allow companies to employ much of these inventions, developments and applications for industrial and technical purposes.
Car manufacturers and the automobile industry use the results of the Formula 1 Championship introduce them in passenger cars. ARPA (United States Defense Advanced Research Project Agency), founder or internet and cloud technology, to promote the classified communication needs of the army, ABS (Anti-Lock Braking System) system of cars to unexpectedly interrupt the needs of race vehicles, Teflon (Polytetrafluoroethylene, the greatest-known brand label in PTFE-based formulations is Teflon by DuPont Corporation) not to inflame space.
Amazon.com is a leader in robots and space innovation, uses drones for order fulfillment, and its CEO, Jeff Bezos, is planning to launch the first spacecraft operation. Boeing, Facebook, Lockheed Martin, Northrop Grumman, Aero Vironment are other businesses that invest in drone technology.
According to the study called Creativity versus Robots, office managers, call center workers, librarians, cattle and crop farmers, loggers, miners, car salesmen and hotel staff are the most accessible to computerization and jobs could be replaced by robots, and only 21 percent of the jobs are highly creative among 721 jobs (Mizroch). Scientists concluded that unemployment would increase due to a substitute option for these efficiencies and creativity made by capital owners or human resources managers. This is where the mystery ends. Purchasing power is reduced by devalued currencies and inflation, individuals with low wages or work cuts are unable to conserve money and do not buy anything that will spark deflation. Investors' reluctance to invest in new jobs will continue to decrease due to short-term market demand which will generate a problem. The more demand falls, the more productivity is required on the supply side. The more market forces are balanced in the economy, the more monetary policies ease the flow of capital and lower interest rates and promote more creativity(Stiglitz, 2016).
The present impacts and the anticipated disruptive changes of the AI and robotics on the economy and industry that are the earlier stages of the "Space Economy" will be as follows: the cost of development, connectivity, marketing and workers as well as the cost of financing and resources by measuring the effect of the value proposition in real time / online and selling to customers on the balance she gets.
In this report, the difference between the long-term business analysis and the short-term analysis is narrowed in two respects. Firstly, by explaining the market research approaches that can be applied earlier to the production process and the introduction of new technology, so that consumer analyses can be implemented in tandem with prospective studies. Second, the difference is filled by simply integrating a prospective forecast and a current analysis. We continue the article from the point of view of the market research discipline and identify the problems in the market analysis that involve new approaches. The quality of market research findings is always poor as cutting-edge innovations reach the industry. The hypotheses for relevant market study findings are introduced in order to investigate this issue. In some cases, as innovative innovations first reach the industry, these expectations do not apply and consumer analysis is troublesome, and in some situations customer desires and preferences are not at all at stake and emphasis is focused on technical problems (Roland Ortt et al., 2007). Potential options for business research in former cases are proposed. There are four different approaches:
1. Adaptation of current methods;
2. Combining customer studies with market dynamics analysis or prospective studies;
3. Application of statistical models;
4. Assess and know strategies.
These methods depend on the number of subgroups of premises and are thus valid in various contexts.
In the initial stages of the product creation process, customer expectations for a product are frequently derived from their appraisal of the definition. Concept research refers to a range of marketing study-based methods used to assess the degree of prospective consumers' interest in the new product idea and to modify or develop the idea. The primary aim of the design test is to predict the reactions of customers to the new idea before they devote significant funds to it.
Throughout reality, evaluating a concept is a process in which chosen participants (mostly a group of prospective customers) are asked to assess the idea (product presentation) on the basis of a variety of parameters. This is also important to allow experts to suggest customer desires instead of prospective buyers.
There would be a distinction between two methods to evaluating needs: primary and indirect approaches.
In the form of a straightforward approach, participants are asked whether they have any concerns in a particular situation or in relation to a certain group of goods. In the context of an indirect approach, customer experience with already existing goods (belonging to the same group as innovation) or consumer experience with particular circumstances (in which technology can be used) should be explored in order to infer unrecognized or implicit requirements.
When breakthrough technologies are introduced in the first time into the market some of the assumptions or the valid conceptual test results may not be met. What is more, if this is the point then disjunctive market study approaches are needed. In this study studiers show that by adapting and combining methods or by developing new methods it is possible to get rid of this problem. Depending on the situation various approaches are required.
The first way is to adapt methods, that exist of consumer study. The second approach is to pair a customer report with a business review of the system or prospective data. The third approach is to circumvent traditional business and future research approaches and to use quantitative models. The fourth way is to explore the market by introducing products in the market and afterwards learn from the market reactions and adapt the product.
However, market study is generally not an appropriate approach to indicate discontinuous market changes such as when new technologies arrive at the market or when events harass the market. Market study and futures study represent a powerful combination for understanding new market conditions and guiding product development and marketing, particularly when explorations are needed most but are most difficult to obtain.
Through this study, researchers evaluate to what degree technological progress (both tech-innovation and market-innovation) has a positive effect on economic and strategic export growth. Tech-innovation integrates technical advances to boost consumer value as compared with current industry alternatives. Their findings show that technological innovation has a positive effect on companies' economic and strategic export success. Such relationship strengthens as more human services are available and the exporter will become more geared towards the importer. In less competitive economies, the favorable association between technical advancement and all forms of export growth is getting much greater.
The research questions are:
*Evaluating the effect on export success of tech-innovations and market-innovations?
*Understand whether and how breakthrough technical advances and business trends affect the success of exports under various conditions?
The hypotheses in this study were:
1 hypothesis: Tech-innovation is positively related to success in economic exports and strategic export results.
2 hypothesis. Market-innovation is strongly related to economic export success and strategic export results.
There are crucial issues of important strategic and realistic consequences: Under what conditions the tech-innovation or market-innovation partnership with firm efficiency can be maximized? More precisely, which capabilities, resources, and external conditions enhance the impact of breakthrough innovation on performance?
Exporters with more experiential, size, financial, and physical capital are in a better position on the international market than the less equipped competitors. To have an impact on export results, a tech-innovation or business-innovation needs to have export capital available to bring such innovations to the business. For example, with these resources' firms could ensure quality, export market promotion, and the necessary size and scope needed for an international business. The less money the exporter has at his fingertips, the less the company would be able to understand the importance of its tech advances and business developments. And the theories are as follows:
3 hypothesis: Tech-innovation should have a bigger effect on economic efficiency, and strategic success under high resource availability conditions.
4 hypothesis: Market-innovation will have a greater effect on economic growth and competitive progress under the conditions of high abundance of capital.
Several research have shown that market awareness plays a balancing function between policy and success (Hsieh et al., 2008), as this enables exporters to be competitive, responsive and able to adapt to rapid demand shifts in the export business environment.((Navarro-Garcнa et al., 2014) Hult and Ketchen (2001) point out that it is not demand awareness on its own. For example, selling new technology requires interfunctional coordination to solve technical and market issues and achieve speed(Im et al., 2004).
The effect of business orientation on export success persists when paired with other practices and capabilities. This is in accordance with the research of Cheng and Huizingh (2014), who opened that market orientation enhances the connection between open innovation and financial performance. Comparably, other recent report demonstrated that customer awareness helped companies exploit their product creativity(Story et al., 2015). Subsequently, the following hypotheses are proposed:
5 hypothesis: Tech-innovation will have a stronger impact on economic performance and strategic performance under conditions of high availability of marketing capabilities.
Competitive intensity is defined as “the behaviors, resources and ability of competitors to differentiate” (Jaworski et al.,1993). The desire and ability of rivals to mimic or use alternative tools produces a higher degree of competition and eliminates the positional advantage. As a result, firm output is influenced not only by the internal factor of limited available resources and established skills, and the external market factor in which the firm operates (Chmielewski et al., 2007), but also by the interaction of the two factors.
Once it comes to innovation, the less competitive the market, the more interest the creative operation of a company can generate. When the export market is less competitive, there is less emphasis on competition as standardization and routinization are necessary to lead to better results(Cherrington et al., 2001). On the other hand, in highly competitive markets, importers have more freedom to choose and change their exporters (Chan et al., 2012); (Zhao et al., 2006), whereas lower competitive intensity would suggest the opposite. Thus, the hypothesize:
6 hypothesis: The effect of tech-innovation on economic performance and strategic success under conditions of low competitive intensity would be greater.
7 hypothesis: Market-innovation would have a greater impact on economic performance and strategic success under low competitive intensity conditions.
This paper provides a framework for recognizing solutions and challenges a variety of infrastructure vendors with disruptive innovations in the "alcohol of disillusionment," FIR's information technology strategy, which identifies market cases to pick the most profitable ones. We do validate the methods for the 5G research project.
The aim of the approach presented is to allow technology providers to develop new technologies and promote the implementation of technology. Small and medium-sized companies (SMEs) in particular, such as start-ups, will benefit from the approach described, as it allows them to recognize the most competitive value of their technologies for the application of the Industrial Internet of Things technology. Particularly small and medium-sized enterprises (SMEs), such as start-ups, should take advantage of the approach presented, as it allows them to recognize the most productive potential of their technology regarding the implementation of the Industrial Internet of Things.
The innovation cycle around the design of digitized systems, products and business models is focused on Internet of things applications that precede manufacturing companies' strategies and emerging innovations that contribute to developments in digital technology. The requirements of the global Industrial Internet of Things market resulting from digital approaches have been taken into account, in particular in the implementation of the 5G technology. Therefore, 5 G's main promise involves the discovery of huge machine-type connectivity, ultra-critical low-latency connectivity, and large internet broadband interaction (Ludwig et al. 2018). The goal is to build new displays that show the advantages of innovation by showcasing their exclusive points of sale.
On the basis of the question of finding new industrial applications for modern technologies, the first phase is summarized as follows:
1) Abstraction: study of systems and usage of related innovation;
2) Recognition: Comparing the advantages of current cases of usage and evidence of practical application;
3) Choice of software based on the best possible advantages;
4) Calculation: Measurement of costs and benefits. The use case groups are contrasted with an economic perspective based on their varying benefits and values. To this end, business model canvases are generated(Osterwalder et al., 2010). The value propositions are made concrete by defining specific advantages per use case class and the greatest advantages in general. From the economic point of view discussed with experts, the revenue streams lead. The other canvas blocks are typically not available. Based on this analysis using the canvasses of the business model, the use case is established which is ideally suited to producing economic benefits.
5) Demonstration: Evaluation of the most striking benefits. In order to get as much interest from a wide variety of possible customers, the most interesting use case needs to be identified. Towards this purpose, a situation review is carried out using the nine-screen process. The goal is to evaluate and present potential developments in the future in a coherent way. The test results are cautious use cases for validating the methodological approach, which can also be used for marketing purposes.
Analysis of academic articles allowed us to determine the gap between academic research and practice in international companies. At the moment, breakthrough technologies are used by a small number of companies, since the introduction of a certain breakthrough technology requires not only high costs, but also a thorough study of the trajectory of application of this or that technology. There is a gap between studies of the impact of breakthrough technologies on companies and their implementation in the activities of enterprises.
The main objective of this study is to determine the positive and negative factors that arise when an oil and gas company begins to introduce or has already introduced breakthrough technologies.
The main question for today is - what breakthrough technologies do oil and gas companies need to implement to improve financial results and increase competitiveness? Since investing in breakthrough technologies is a financially expensive task, will this document show how exactly breakthrough technologies affect the competitive advantage of oil and gas companies using the examples of Gazprom NeftPJSC and Rosneft PJSC?
The paper will consider hypotheses that will be proved or disproved:
H1: breakthrough technologies have a positive effect on the activities of gas and oil companies.
H2: Gas and oil companies are not currently ready to introduce breakthrough technologies.
In this paper, to analyze the situation on the international oil and gas market and to analyze the situation in the oil and gas industry in the Russian Federation, qualitative and quantitative research methods were used. As a qualitative study, a number of questions were developed that were sent to employees from Gazprom NeftPJSC and Rosneft PJSC.
Interview questions:
1) Does the company use breakthrough technologies such as 5g, Artificial intelligence, 5g communication, 3D printing, or the blockchain system?
2) In what areas does the company use breakthrough technologies?
3) If a company uses a breakthrough technology, what impact does this technology have on the company's performance?
4) If a company uses breakthrough technologies, how long did it take, and what stages of implementation were used to implement the breakthrough technology successfully?
5) Were there negative aspects or negative consequences after the introduction of the breakthrough technology?
6) Is there a development Department within the company that is responsible for implementing breakthrough technologies in various processes?
7) How did the introduction of breakthrough technologies affect the company's financial position?
8) How did the introduction of breakthrough technologies affect the company's competitive advantage?
9) If the company does not apply, is it going to use breakthrough technologies in the future?
10) What should breakthrough technologies be implemented in the company if certain developments are still not used for one reason or another?
Responses to interviews from an employee of Gazprom NeftPJSC:
1) Our company actively monitors all breakthrough technologies that can be implemented or adapted to the activities of Gazprom Neft PJSC.
At the moment, the company is developing using or trying to use technologies such as: 3d printing, blockchain, artificial intelligence and augmented reality (VR) system.
2) 3d printing is currently being tested for printing components of large corporate equipment. The subsidiary Gazprom Neft Supply has already tested parts printed on a 3D printer, which were placed in the gearbox and engine cooling system in trucks.
The blockchain system has been tested in logistics. Using this system, the company was able to control the movement, speed of shipment, location and quantity of goods. As a result, all information was reflected in the blockchain system, where each operation was formed by a new block, which made it possible to improve the security of information, which should be kept secret.
Gazprom Neft PJSC is trying to introduce artificial intelligence and machine learning to look for additional oil and gas locations that are currently hidden. This system will be used, since there are deposits that were impossible to identify using traditional research methods.
Augmented reality is already used in the construction and control of facilities. Moreover, augmented reality allows the use of digital design and the creation of virtual models of objects to analyze the feasibility of building training for employees who work at potentially dangerous objects.
3) All breakthrough technologies are currently only being tested, but analysts are already building a model in which all production will be optimized.
Using 3d printing allows to reduce the cost of parts for vehicles. Perhaps in the future 3d printing can be used in the construction of facilities, which will reduce the cost of building materials and reduce the cost of labor.
The use of blockchain allows to create an ecosystem in which all participants in the process will interact with each other. For example, when transporting goods using the blockchain, the producer, logistics partner, warehouse and consumer will be connected by one system. At the same time, the company will be able to abandon the usual supply chain control systems, and the system itself allows to safely store data, automate processes such as settlement with contractors and quality control.
The use of artificial intelligence in the search for new deposits of natural resources will allow the company to double the speed of obtaining information about the location of oil and 40% accelerate the implementation of all components derived from oil.
Augmented reality is already used in employee training. This reduces the cost of organizing staff training.
4) The introduction of breakthrough technologies always takes a huge amount of time.
There are entire departments that are studying the possibility of applying one or another breakthrough technology. If analysts and other specialists see the possibility of implementation, then this issue is put forward for consideration by the senior management. The full implementation of breakthrough technology can take from 6 months to 10 years.
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