Abstract

Current business conditions, including the emphasis on lower costs and improved profitability, are causing us to rethink how we invest, evaluate, and assure results from technology in the upstream business. A number of issues immediately arise around technology in the business including: a new funding model, the role of research and development versus technical services, proprietary developments versus partnering/alliances with others, attracting and retaining the best technical people, and champions/mentors for technology and technical people.

In addition, technology in the upstream is continuously changing. A business decision to reduce or eliminate funding for technology will erode technical capability, and will result in a changed business strategy to no longer compete at the previous level. In most of the world, technical capability and, particularly, proprietary capability founded in people, expertise, and experience are door openers to new business opportunity.

As a result, funding technology at the correct investment level, selecting the right technology areas for investment, and retaining the appropriate intellectual capital are critical business decision elements for the successful company. In conclusion, a methodology to measure the business impact of technology is necessary to keep the investment on track and, therefore, is a critical part of any technology strategy.