For HPCL, digital transformation is not merely about deploying standalone tools; it is about embedding AI, automation, analytics, and low code/no code capabilities into core business operations. In an interaction with Express Computer, Anil Mathew, Head- Digital Transformation, HPCL, discusses how the energy major is leveraging these technologies for demand forecasting, predictive maintenance, supply chain optimisation, and refinery operations. He also highlights the importance of business ownership, employee led innovation, governance, and safety in advancing HPCL’s ambition to become a digital first energy company by 2030.
How are AI, automation and low code/no code driving HPCL’s digital transformation?
At HPCL, we do not view digital transformation simply from a tool implementation perspective. We look at it from a business perspective. Before implementing any use case or technology, we assess the business metrics it will impact. We have adopted a layered digital strategy in which AI, generative AI, intelligent automation, advanced analytics, and low code/no code technologies complement one another. It is not about any one specific technology. We have implemented several use cases across demand forecasting, predictive maintenance, supply chain optimisation, customer churn analytics, and operational decision making. In refineries, for instance, we have deployed soft sensor based, real time product quality prediction algorithms. This is where we are seeing tangible benefits. We are also using generative AI in initiatives such as CPO Procurement 2.0, where we are automating the end to end value chain, from purchase order to purchase requisition and from purchase requisition to purchase order, with human agents in the loop. In addition, robotic process automation is being used across support functions, while low code/no code platforms are enabling business users to rapidly develop workflow automations.
One of our biggest differentiators is that these technologies are not being implemented as isolated initiatives. They are integrated across enterprise programmes. For example, our enterprise supply chain transformation initiative cuts across several business units, including LPG, SOD, Lube, and IMM. It is an enterprise wide programme rather than a standalone technology initiative. Employee led innovation is another important component. Through HPCL Digital Innovation, we recently conducted a hackathon in which employees identified real operational problem statements and received training to develop models using low code/no code platforms. This allows validated innovation to emerge directly from business users who are closest to operational challenges. Ultimately, our aim is to use these technologies to create measurable business impact and drive organisational transformation.
How is HPCL ensuring digital innovation addresses enterprise wide problems rather than working in silos?
HPCL is among the most diverse energy businesses, with operations across refineries, retail, pipelines, LPG, lubricants, aviation, and more. Given this diversity, we approach digital transformation through an enterprise architecture lens and a strong governance mindset, rather than limiting it to individual functions. We recently refreshed our digital strategy and created a North Star for each function. This involved workshops with business units, as is assessments, and an understanding of their aspirations. Based on this exercise, we defined where each function should aim to reach over the next two to three years. This helped us identify initiatives that need to cut horizontally across the organisation, as well as those that need to be pursued vertically within specific functions. Our supply chain transformation is a relevant example. Rather than optimising demand planning, procurement, production, logistics, and distribution separately, we are bringing them together into an integrated ecosystem. This programme spans LPG, SOD, Lube, IMM, and other relevant business units. We have also created cross functional teams for such initiatives. The business leads the programme, for instance, the LPG team may lead a relevant initiative, while Digital and IS play an enabling role. This model ensures that value creation remains rooted in business outcomes.
Governance is equally important. Every major digital initiative is assessed not only for technical feasibility, but also for enterprise scalability, business value, integration capability, and long term sustainability. The hackathon was also designed to reinforce this philosophy. Employees from different functions came together to solve business problems. For example, teams from LPG and aviation could jointly work on a problem statement, while ideas developed in one business unit could be evaluated for applicability across other locations and units. This is how cross pollination takes place.
What have HPCL’s employee led initiatives revealed about operational challenges and digital opportunities?
Employee led initiatives have demonstrated that the strongest digital opportunities often come from people who are closest to operations, because they understand the pain points and challenges firsthand. In our recent hackathon, around 1,680 employees participated, with more than 500 teams registering across refineries, marketing business units, pipelines, SOD, LPG, terminals, and support functions. The ideas reflected the specific operational pain points employees wanted to address through technology. Several common themes emerged. Employees explored how computer vision could reduce manual inspections; how AI based monitoring could improve safety; how digital twins could optimise plant operations; and how RPA could automate repetitive business processes. Other ideas focused on predictive maintenance, reliability improvements, energy optimisation, and improving decision making through data. Many of these ideas combined domain expertise with emerging technology, rather than treating technology as an objective in itself. Fundamentally, the business process was at the centre, with technology serving as the enabler. The hackathon also revealed the growing digital maturity of our workforce. Employees are no longer simply asking whether AI can do a particular task. Earlier, the conversation was often, “Can AI do this or that?” Today, employees are asking more outcome oriented questions: Can we eliminate repetitive work? Can we improve our processes? Can we receive early warnings? Can we work smarter? Can we reduce manual effort? That represents an important cultural shift.
How does HPCL evaluate and scale employee led ideas from experimentation to implementation?
Innovation becomes valuable only when it can be scaled. Otherwise, it remains a proof of concept or a presentation. At HPCL, we have established a structured innovation pipeline. Since ideas originate from employees who understand the operational challenges they face, we take them through multiple stages. These include business problem validation, training for prototype development, mentoring, and structured evaluation by senior functional and technology leaders. The evaluation goes beyond technical novelty. We assess the business value of an idea, its scalability, its potential for implementation, expected benefits, and integration requirements with existing systems such as SAP, CRM, and other foundational platforms.
We also consider cybersecurity and safety requirements, which are essential when developing and scaling digital solutions. The most promising ideas are then aligned with the relevant strategic business units for implementation. The SBU becomes the sponsor of the initiative, while Digital and IS serve as enablers. This is how the programme management model operates. The approach ensures that innovation does not end with the hackathon. Recognition and awards are only one part of the process; the objective is to transition promising ideas into structured implementation. The programme is owned and run by the business, with Digital and IS enabling the journey.
How does HPCL balance digital experimentation with governance, cybersecurity and safety?
As a critical energy organisation, HPCL must ensure that digital innovation coexists with strong governance. Every digital initiative goes through an established governance mechanism that considers cybersecurity, enterprise architecture fit, data governance, safety compliance, vendor assessment, and potential risks. We encourage rapid experimentation during ideation and proof of concept stages. However, production deployment undergoes rigorous review. A dedicated team evaluates cybersecurity and security aspects, ensuring that every aspect of an idea’s scalability is thoroughly assessed. Regulatory compliance is also integral to the process.
Business ownership is another important element. The business acts as the sponsor, while the technology team works closely with business functions throughout the lifecycle. This ensures that digital solutions remain operationally practical and aligned with business objectives. Our philosophy is simple: move fast during learning, but move responsibly during deployment. This allows us to encourage innovation while preserving the reliability and safety expected from an organisation like HPCL.
How are AI and automation changing collaboration between HPCL’s business and technology teams?
One of the biggest transformations is not technological; it is the shift in how business and technology teams collaborate. We are still undergoing this transformation. Earlier, business teams would provide requirements and technology teams would implement them. With the advent of AI, the model has become far more collaborative. Business experts increasingly participate in solution design from the beginning, while technology teams bring AI capabilities, data science expertise, and platform knowledge to the table. Low code/no code technologies have further empowered business teams. They enable users to build workflows, dashboards, and automations themselves, reducing dependence on traditional software development for every requirement. However, users must continue to follow the overall governance framework.
Our hackathon clearly demonstrated this collaborative model. The teams were multidisciplinary, bringing together domain experts, operations teams, and technology professionals to solve business problems jointly. While the business leads these initiatives, Digital and IS enable them. Finance is also part of the value realisation matrix, helping establish baselines and measure the value generated by the models being implemented. As a result, digital transformation does not remain a technology or tool implementation exercise. It becomes a way to help the business achieve its performance metrics.
What changes are needed for HPCL to become a digital first energy company by 2030?
HPCL aspires to become a digital first energy company by 2030. However, technology alone cannot create a digital enterprise; the transformation must be cultural. Change management is therefore the most important element in developing a digital first culture. We are focusing on three key dimensions.
First, we need to build digital capability across the workforce. New employees may be more agile and familiar with AI technologies, but middle management and senior employees must also become comfortable using these tools. Every employee, irrespective of age or functional role, should understand how data, AI, and automation can improve business performance. Second, we need to foster a culture of continuous innovation. Employees should feel empowered to identify problems, propose solutions, experiment responsibly, and contribute ideas. The hackathon is one way of encouraging this culture. Third, we need to strengthen cross functional collaboration. Many initiatives span multiple business units and functions, so it is important to think and act as One HPCL.
Success will not come simply from deploying advanced technologies, because technology can be acquired by any organisation with sufficient resources. Success will depend on how effectively we implement and culturally adopt these technologies. Adoption will be the key. AI should become our operating system, rather than an extended workflow. Just as computers and the internet have become integral to our lives, AI should become embedded in our day to day work and operations. That is the aspiration.