Identifying the small start-up companies that frequently fly under the radar had been difficult for our client. They had researched for many hours without finding suitable results. Unwilling to ignore the ‘unknown unknown’, the client engaged Pangea on a project to try and uncover an area that they knew had the potential to impact their business in both positive and negative ways.
Rather than looking for the companies directly, we spoke to recent formers from the technology functions at the majority of Oil Operators – including CIOs, CTOs and senior team members – to understand if they had used any new companies in relation to their upstream processes. Using advanced screening questions set by the client, we were able to filter through the responses of interest. The client chose to conduct over 20 telephone interviews to gain insights on the small companies that were tested and the reasons behind choosing them.
A wide array of reasons emerged for having chosen smaller providers. These ranged from low-cost products and personal relationships; to desperation and solving niche problems that our client was unaware Oil companies felt were important. Once our client had established trends and observed that some of the start-ups had been used by multiple Operators, it began a full due diligence process with the intention to proceed towards an acquisition of at least one of the companies it had discovered.
Taking such a proactive approach to analysing a challenging area of the market has given our client’s organisation an edge over its competition when it comes to new offerings in this intensely contested space. The endeavour has the potential to result in millions of dollars in increased revenue.