Digital Procurement Transformation of Gazprom Neft PJSC

Digital transformation of Gazprom Neft PJSC is a response for a set of global challenges. At the same time, procurement processes that permeate all company business processes have huge digitalization potential. Relevance of this work is justified by the fact that within approved in Gazprom-Neft digital strategy the procurement process is not identified as a priority for transformation. At the same time, there is a significant potential for efficiency increase and value creation for the company. The main goal of this work is to propose scenarios for application of advanced technologies in the procurement process of Gazprom Neft. This work includes the definition of digital transformation its impact on State’s economy and oil and gas sector, description of PJSC Gazprom Neft approach for digital transformation, deep dive in procurement system, as well as digital technologies, the description of the proposed digital projects and scenarios for applying digital technologies. This work consists of Introduction, 3 (three) Chapters, Conclusions and Appendices. The first chapter consists of three sections and is devoted to theoretical definition of “innovation” and “digitalization” concepts, as well as the answer to “Why do companies need digital transformation?” section 3 describes the impact of digitalization on Russian oil and gas companies. Chapter 2 covers PJSC Gazprom Neft approach for transformation and describes company’s digital strategy. Provides information on company’s key figures and the update of the company business strategy 2030. Description of the existing procurement system of Gazprom Neft and the status of integrated transformation described in Chapter 3. The final chapter consists of proposal for digital transformation program of Procurement function of Gazprom Neft - a description of projects and scenarios for applying disrupt technologies. The conclusion describes key findings of this study. The Appendix provides the description of digital technologies considered in this study, as well as their appliance in different companies. An overview of the Russian market for the described technologies is given.