Innovation & Digital Transformation

Digital Transformation is not just an operational option, but an integral part of the Group’s strategic priorities, which aims at and will contribute to:

• Improving corporate performance by increasing turnover and profitability while reducing operating costs (e.g. through improved productivity and operational flexibility, increased quality and speed of corporate operations, faster commercial response and personalized customer experience).
• Effectively addressing competition, taking into account that most energy companies in the Mediterranean (and globally) have embarked on their digital journey, already reaping significant benefits.
• Promoting new working practices, empowering existing human capital with new knowledge, skills and modern operating practices, while adopting new approaches to team organization, collaboration and efficiency. In addition, new capabilities for responding to and minimizing risks during a crisis (as was the case in COVID-19) are incorporated.

The Digital Transformation program aims to leverage and integrate digital technologies and skills such as advanced Data Analytics, Machine Learning, Cloud, Artificial Intelligence, Process Optimization/Automation and the Internet of Things into all areas of the Group’s business activity, structurally changing the way the Group operates and generates value.

It also aims to change the overall culture and way of doing business of the Organization and its people. In order to implement digital initiatives more effectively, joint/mixed working groups have been organized by subject, consisting of colleagues who are familiar with business needs and processes, associates specialized in digital technologies and people responsible for the implementation and monitoring of these initiatives (following modern agile methodologies). This approach is accompanied by a program of upgrading skills and strengthening the organization with new ‘digital’ capabilities, enabling all potential participants to contribute to this effort.

Given that the Group integrates multiple business activities, the program is structured around three different pillars, with corresponding initiatives:

• Digital Refinery (including Petroleum Marketing), aiming at becoming a collaborative, connected and digital refinery that will motivate and value employees, contribute to operational safety, create additional economic benefit for the company, and improve the operations of the production units.
• Digital Group Support Functions, aiming at achieving more efficient corporate operations through digital
  solutions in the decision-making process.
• Digital Retailing, aiming at better knowledge and service to partners and corporate customers, as well as increased interaction in the retail sector, creating significant commercial added value for the organization and customers.

Additional initiatives related to new business activities (e.g. use of digital actions to support the energy transition) are expected to be included in the near future.

The most important prerequisite for the successful implementation of the Digital Transformation program is the upgrading of the company’s human resources, through the acquisition the necessary digital skills, such as:

• Upgraded program management skills to achieve the Group’s Digital Transformation.
• Upgraded skills and specialized knowledge in digital technology concerning the key areas of activity in the Group’s Digital Transformation (advanced analytics, process automation, Internet of Things, etc.).
• Specialized knowledge in digital technology, but also in-depth knowledge of the business processes in the operational units that it may affect.

It is therefore a priority to realize the required infrastructure by creating Centers of Excellence (CoEs) for Advanced Data Analysis and Modeling (Data Science), and for Automation and Robotics solutions (Process Automation). The Centers of Excellence aim to support digital initiatives on issues related to their expertise by providing specialized services and implementing best practices across all development pillars.

In 2021, those directly involved with the Group’s digital initiatives attended more than 350 hours of distance learning on relevant concepts and digital technologies through the centers of excellence and more than 700 hours to date. In addition, the design of the Digital Academy, which will offer complex learning programs in various digital technology disciplines, was completed.

Finally, significant steps are being taken to introduce and assimilate new models and collaboration tools, creating multi-disciplinary project teams that implement overlapping actions with the participation of employees from different operational directorates of the Group. By eliminating geographical constraints, using modern teleworking channels, and exploitingthe advanced capabilities of technology, the Group is rapidly transforming itself, evolving the ways in which employees communicate and collaborate.