Breaking Silos, Building Connections: The Energy Industry Value Chain

The Imperative for Value Chain Modernization (VCM)

The energy sector is navigating a period of unprecedented volatility and transformation. From extreme weather events and geopolitical disruptions to the accelerating push for decarbonization, energy companies face mounting pressure to deliver both short-term profitability and long-term sustainability. The ability to adapt, innovate, and optimize across the entire value chain—from production to consumption—has never been more critical.

Yet, many organizations remain hampered by legacy operating models, fragmented data, and entrenched silos—organizational, technological, and procedural. These barriers not only limit agility and efficiency but also obscure opportunities for value creation, risk mitigation, and decarbonization. Value chain modernization (VCM) is the strategic response: a holistic, digitally enabled approach to breaking down silos and building the connected, resilient, and profitable energy businesses of the future.

Why VCM Is Essential for the Energy Transition

Decarbonization is fundamentally reshaping the energy landscape. Regulatory mandates, such as the Inflation Reduction Act in the US and the EU’s Renewable Energy Directive, are driving massive investments in renewables and new business models. However, aligning these long-term sustainability goals with the need for near-term profitability requires a holistic view of the value chain.

Energy companies are discovering that decarbonization can be profitable—if approached strategically. For example, investments in renewable generation, digital grid transformation, and customer-centric retail models are opening new revenue streams and operational efficiencies. But to realize these benefits, organizations must be able to track, measure, and optimize performance across all divisions and partners. This is only possible when data, incentives, and processes are unified across the value chain.

The Silo Challenge: Data, Organization, and Process

The gravest threat to VCM is the persistence of silos:

These silos not only impede efficiency but also blind organizations to the value that exists in the gaps between functions. As one industry leader noted, “There’s value in the gap between those organizations, or between those silos, and if somebody is not looking across the entire value chain, you may not be able to capture it.”

The Digital Foundation for VCM

Modernizing the value chain is not solely a digital initiative, but digital platforms are essential enablers. The most advanced energy companies are building unified data ecosystems that:

For example, a major downstream energy company partnered with Publicis Sapient to build a Value Chain Analytics & Visualization Platform. By integrating data from trading, operations, and finance into a single cloud-based platform, the company achieved a 10% improvement in profitability, reduced inventory, and increased asset utilization—demonstrating the tangible impact of breaking down silos.

A Roadmap for Overcoming Barriers and Realizing VCM

  1. Break Down Data Silos:
    • Invest in cloud-native data platforms that centralize and standardize information across the enterprise.
    • Use APIs and data integration tools to connect legacy systems and enable seamless data flows.
    • Prioritize data quality, security, and governance to build trust and compliance.
  2. Align Incentives and Leadership:
    • Redesign performance metrics and rewards to encourage cross-functional collaboration and enterprise-wide value creation.
    • Empower leaders to make decisions in the interest of the whole organization, not just their own division.
    • Foster a culture where sharing information and collaborating across silos is the norm, not the exception.
  3. Digitize and Automate Processes:
    • Replace manual, error-prone workflows with automated, digital processes that span the value chain.
    • Leverage AI and advanced analytics for forecasting, optimization, and scenario analysis.
    • Implement platforms that support end-to-end visibility, from production to customer, including sustainability and ESG metrics.
  4. Innovate and Scale New Business Models:
    • Use digital platforms to enable new revenue streams, such as carbon credit trading, renewable energy marketplaces, and customer-centric retail offerings.
    • Track and evaluate value chain performance using both robust KPIs and predictive analytics.
    • Continuously iterate and improve, using agile methodologies and cross-functional teams.

Real-World Impact: Case Studies

The Path Forward: Three Steps to VCM Success

  1. Break Down Data Silos: Use technology to unify data and enable seamless information flows, empowering smarter, faster decisions across the value chain.
  2. Create Incentives for Sharing: Align metrics, rewards, and leadership behaviors to drive collaboration and enterprise-wide value creation.
  3. Clarify Commercial Benefits: Track and communicate the tangible business impacts of VCM—improved profitability, resilience, and sustainability—to build momentum and secure investment.

Partnering for Transformation

Value chain modernization is a journey, not a one-time project. It requires vision, leadership, and the right technology foundation. Publicis Sapient partners with energy leaders to design and execute VCM strategies that break down silos, build connections, and unlock end-to-end value—enabling organizations to thrive in the new energy era.

Ready to accelerate your value chain transformation? Connect with our experts to start your journey today.

Publicis Sapient is a digital business transformation partner helping established organizations get to their future, digitally-enabled state. Our holistic, agile, and data-driven approach empowers clients to reimagine their products and experiences and embrace change by putting digital at the core of how they think, organize, and work. Learn more at publicissapient.com.