Gazprom’s development bolstered by digital technologies

RELEASE

The Gazprom Board of Directors took note of the information about the ongoing and future deployment of advanced digital technologies within the Gazprom Group.

It was highlighted that advanced digital technologies were among the essential tools for development in the global economy. They make an enormous contribution to the evolution of production industries and business processes, enhancement of corporate governance efficiency, and strengthening of companies’ market positions in various sectors.

In January 2008, Gazprom adopted its Informatization Strategy aiming to improve the transparency and efficiency of its activities, streamline corporate governance, and facilitate sustainable development. The document sets out a number of measures to create and adopt information technologies (IT) based on best global practices at the parent company and subsidiaries. Every year, Gazprom approves an updated plan for IT projects, regularly monitors timeliness and conducts quality assessments, and carries out rigorous cost control at every stage.

Thanks to the consistent implementation of the Informatization Strategy, the Company developed and successfully put into operation the Integrated Information Environment (IIE). The IIE consists of 38 information management systems that were introduced at Gazprom and a number of its subsidiaries, helping automate the most important business processes. In addition, a Corporate Data Bank was created on the basis of key performance indicators. With an extensive capacity for monitoring and analyzing the Group’s efficiency, the Data Bank serves to support the adoption of managerial decisions by the Company’s top executives. A high-performance Data Processing Center, in which Gazprom’s computational capacities are concentrated, was built in compliance with the stringent requirements for information security.

As a result, an integrated information landscape is now in place, encouraging cooperation among more than 79,000 professionals at Gazprom and a number of subsidiaries. There is an excellent foundation for achieving greater efficiency of corporate governance.

In late 2017, Gazprom approved the 2018–2022 Comprehensive Target Program for the Development of the Integrated Information Environment of the Gazprom Group. The key targets of the Program are to introduce automated solutions at every level of corporate governance across the Group and to bring the IIE to the next level in line with the digital economy-oriented trends.

The Program is underpinned by three basic principles: integration, innovativeness, and import substitution. It employs cutting-edge IT solutions to maximize connectivity among information management systems and to synergize Gazprom’s businesses. Preference is given to domestic solutions that have the required functional capabilities.

The Program contains a list of top-priority measures aimed at, among other things, improving the efficiency of operations, investments, marketing, and financial management processes.

Emphasis is placed on IT support for business management purposes. Specifically, it is planned to provide for the integrated automation of operational accounting and planning, as well as to create a single virtual data storage for information on work modes and equipment condition received from facilities in real time. The automated process management systems that are currently in operation at the subsidiaries will also be integrated into the Group’s IIE along with the tools for monitoring, modeling and forecasting the technical condition of operational assets.

There is also significant potential to bring production activities to a new level through the use of an advanced business management model (Industry 4.0 concept). It is planned, inter alia, to use the abundant computational capacities and the big data processing platform to generate digital models of the operational facilities (“digital twins”).

The Management Committee was instructed to carry on with the deployment of advanced digital technologies within the Gazprom Group.

Background

The Industry 4.0 (fourth industrial revolution) concept envisages a wide use of digital technologies and application of proactive management tools to operational facilities and processes across the entire value-added chain for maximum business profitability.

The use of “digital twins” in line with the concept will, inter alia, result in a more integrated approach toward assessing the potential of such facilities, finding new opportunities to achieve greater efficiency, and optimizing capital and operating expenses.

 

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