Applying AI, Big Data, and Digital Technologies Across the Entire Oil Refining Industry
[Asia Economy Reporter Hwang Yoon-joo] SK Energy announced that it will further accelerate deep change centered on digital transformation (DT). The current main business, petroleum refining, is vulnerable to external variables, causing repeated crises. To overcome this, the company decided to transform its business structure into an innovative business model focused on eco-friendliness and platforms through DT.
SK Energy CEO Cho Kyung-mok recently held a monthly video conference called 'Happiness Design Valley,' attended by all company division heads and above, to review the DT strategy prepared over the past year and finalize the 'three major DT promotion directions': Digital Operational Excellency (Digital O/E), Digital Green, and Digital Platform.
CEO Cho emphasized, "The recent unprecedented crisis is difficult to overcome with conventional levels of change, and even if overcome, it cannot guarantee survival and growth in the long term. Digital transformation is both a fundamental solution to the current crisis and a new growth engine."
He added, "Based on digital DNA, let us accelerate deep change beyond the limits of the petroleum business and leap forward as a ‘digital innovation company based on the petroleum business’ that provides new value to customers. Please create concrete execution plans by business and task aligned with the three strategic directions and push them strongly and boldly." The execution progress will be checked monthly at ‘Happiness Design Valley.’
◆ To strengthen Digital O/E, expand ‘Smart Plant’ to all processes at Ulsan CLX= SK Energy will further enhance 'Digital Operational Excellency' to improve the competitiveness, productivity, and stability of numerous processes and facilities at SK Ulsan CLX, its core production base. To this end, the ‘Smart Plant’?which integrates AI and big data technologies and was first introduced in some processes at Ulsan CLX in 2017?will be expanded to all processes at Ulsan CLX.
With the expansion of Smart Plant, SK Ulsan CLX’s productivity and economic efficiency will improve through ▲a more optimized process operation system, ▲enhanced equipment reliability and cost reduction, and ▲strengthened safety, health, and environment (SHE) competitiveness at a world-class level by preventing major accidents and improving emergency response capabilities.
Additionally, SK Energy is reviewing a 'Smart Logistics Business' that applies big data techniques to optimize logistics and reduce costs.
◆ Leading the industrial paradigm with Digital Green as ‘Eco-friendly and Essential Environment’= Under the policy to accelerate 'Green Balance 2030' promoted by SK Innovation affiliates, SK Energy plans to pursue Digital Green to transform its petroleum business?which currently has negative social value (SV) in environmental aspects?into an eco-friendly and essential environment company.
SK Energy is actively applying AI and big data analysis technologies on-site to expand into businesses providing eco-friendly solutions. Plans include integrating AI technology into the factory wastewater treatment process with a 'Digital Water Solution' and building a 'Bio Aviation (B-Aviation) Platform' in preparation for the aviation fuel market, where pollutant emission reduction obligations will be fully enforced starting in 2027.
◆ Expanding platform business to provide convenience to customers through Digital Platform= SK Energy plans to further expand its Digital Platform strategy by leveraging its infrastructure to offer customers a wider range of lifestyle conveniences, evolving into an All-In-One Car Care Platform that integrates all automobile-related services.
To this end, digital technologies will first be applied to over 3,000 SK Energy gas stations nationwide to improve services such as fueling, logistics, car washing, and parking to be 'faster and more convenient.' Additionally, by enabling used car transactions and electric vehicle charging, SK gas stations will become ‘customer lifestyle convenience open platforms.’
SK Energy began its business model transformation into a platform operator by launching the peer-to-peer parcel service Home Pick in 2018. Going forward, it will continue to discover platform services that enhance customer convenience by integrating digital technologies like Home Pick.
Im Soo-gil, head of the Public Relations Office, said, "SK Energy’s digital transformation initiative will create new economic and social value through advanced technologies in the energy and petrochemical industries, becoming a deep change aligned with the Green Balance 2030 direction."
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