Host: Welcome to A.I.S. Insights, the podcast where we translate complex research into actionable business intelligence. I'm your host, Anna Ivy Summers.
Host: Today, we're diving into a fascinating case study about one of the world's largest energy companies. The study is titled, "How Shell Fueled Digital Transformation by Establishing DIY Software Development."
Host: It details how Shell successfully empowered its own employees, many with no technical background, to create their own software applications using low-code platforms, completely changing the way they innovate.
Host: With me to break it down is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Great to be here, Anna.
Host: So, Alex, let's start with the big picture. Digital transformation is a buzzword we hear constantly, but the study notes that these projects have incredibly high failure rates. What’s the core problem that Shell was trying to solve?
Expert: You're right, the failure rate is staggering—the study even quotes a figure of 87.5%. The core problem for many large, traditional companies is a massive bottleneck in the central IT department.
Expert: Business teams on the front lines see problems that need fixing today, but their requests for a software solution can get stuck in an IT backlog for months, or even years. This creates a huge disconnect between technology and immediate business needs.
Host: So IT becomes a gatekeeper instead of an enabler.
Expert: Exactly. And that frustration leads to challenges like poor governance, cultural resistance, and a failure to get the wider workforce engaged in the transformation journey. Shell wanted to break that cycle.
Host: How did the researchers get an inside look at how Shell did this? What was their approach?
Expert: They conducted an intensive case study. This involved in-depth interviews with 18 key people at Shell, from senior executives who sponsored the program all the way to the frontline engineers and geologists who were actually building the apps. This gave them a 360-degree view of the entire process.
Host: So what was the secret sauce? What did the study find was the key to Shell's success?
Expert: The secret was a program they aptly named "Do It Yourself," or DIY. They essentially democratized software development by giving employees access to low-code and no-code platforms. These are tools with drag-and-drop interfaces that let people build powerful applications without needing to be a professional coder.
Host: That sounds potentially chaotic for a company of over 80,000 employees. How did they manage the risk and ensure it was done effectively?
Expert: That's the most critical finding. They didn't just hand out the tools and hope for the best. The study highlights two things: first, a structured four-phase process to roll out the program, focusing on building a culture of change.
Expert: And second, a brilliant governance framework called the 'DIY Zoning Model'. Think of it like a traffic light. The 'Green Zone' was for low-risk, simple apps that any employee could build freely.
Host: Like automating a personal spreadsheet or a team workflow?
Expert: Precisely. Then there was an 'Amber Zone' for more complex apps that handled more sensitive data. For those, the employee had to partner with specialists from the IT department. And finally, a 'Red Zone' for business-critical systems, which remained firmly in the hands of professional developers.
Host: That’s a very smart way to balance freedom and control. So, the structure was there, but did it deliver real value?
Expert: The results were massive. The study documents millions of dollars in cost savings. For example, one app built by refinery engineers to manage pump repairs reduced downtime and aimed to cut repair time by 50%.
Expert: Another app, which helps optimize furnace settings, created a potential value of up to $3 million a year at a single site. It also dramatically improved safety, efficiency, and employee engagement.
Host: This is a great story about Shell, but Alex, this is the most important question: what can our listeners, who lead very different businesses, learn from this? Why does it matter for them?
Expert: There are three huge takeaways. First, democratize technology. The people closest to a problem are often the best equipped to solve it. Empowering them with the right tools unburdens your IT department and delivers faster, more relevant solutions.
Expert: Second, governance can be an enabler, not a blocker. The 'DIY Zoning Model' proves you don't have to choose between speed and safety. A risk-based framework allows innovation to flourish within safe boundaries.
Expert: And finally, and most importantly, treat it as a cultural transformation, not a technology project. Shell succeeded because they invested in training, coaching, and building communities. They used events like hackathons to generate excitement. They understood that true transformation is about changing how people think and work together.
Host: So it’s about putting the human element at the center of your digital strategy.
Expert: That’s the perfect summary.
Host: Fantastic insights, Alex. To recap for our listeners: Shell's success shows that empowering your employees through a well-governed citizen development program can unlock incredible value, bust through IT backlogs, and drive real cultural change.
Host: Alex Ian Sutherland, thank you so much for breaking that down for us.
Expert: My pleasure, Anna.
Host: And thank you for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we uncover more valuable lessons from the world of research.