Open Innovation as Enabling Paradigm to Empower Digital Transformation in Oil & Gas Organizations

Abstract

The purpose of this paper is to describe the process employed by Eni to enable digital innovation across the organization. In particular, it focuses on illustrating the reinforcing role played by the unit dedicated to the open innovation initiatives in identifying the most promising digital solutions and innovative providers. The present paper analyzes the case of Eni, one of the biggest oil companies in the world and among the first esatblishers of a Digital Unit that reports directly to the CEO, based on an internal study using the qualitative methodology. A description of processes for development / execution of open innovation initiatives is provided, alongside a view on the main stakeholders involved that make this approach a value creation driver. The paper tackles also elements of novelty and efficiency regarding both the organizational (structural) aspects and the work, as well as information flows within the company and across the departments involved. Ultimately, this case study is meant to illustrate the main features and success factors that made Eni Digital Open Innovation Unit effective in promoting an organizational and cultural development and by this supporting the digital transformation and encouraging corporate dynamism. Valuable insights can be therefore drawn on how organizational and procedural decisions, adoption of new instruments and ways of working through digital empowerment and open innovation philosophy dissiminated by the Digital Department can boost the attainable results throughout the organization.