Innovating competitive advantage – Remote monitoring of petroleum distillates

Abstract

The business models and technologies of bulk automotive liquids logistics have remained un- changed for decades. However, digital innovations such as sensor networks are likely to enable a new level of operational efficiencies. Widely adopted, sensor data from bulk containers could transform the industry’s cost-efficiency, customer service and added-value services.

However, currently it is unclear how the industry business models should adapt to the looming leap in available technology. If not embraced in magnitude and extent large enough, the promise of technological innovation will fail in revolutionising the way petroleum distillates are distributed.

This study researches how a conservative industry such as distillates logistics can best embrace innovation opportunities within technology and business models. First a review of current research in the fields of distillates logistics and disruptive innovation is conducted. The identified gaps in knowledge are then reflected upon extensive interviews with industry experts.

Key findings of the research include a notion on potentially disruptive technological opportunities requiring particular approaches to spotting and nurturing them. Also, especially in the industry of distillates logistics, ecosystems and Value Networks play a significant role in developing operational value from first pure technological developments.