TechnipFMC plc (FTI): Business Model Canvas

Key Partnerships

TechnipFMC plc relies on key partnerships to bring together the necessary expertise, resources, and technologies to deliver world-class solutions to the oil and gas industry. These partnerships are critical in ensuring that the company can meet the demands of its clients and remain at the forefront of innovation in the sector.

Some of the key partnerships that TechnipFMC plc has established include:

• Collaboration with oil and gas companies: TechnipFMC plc works closely with major oil and gas companies around the world to provide them with the expertise and technologies they need to successfully operate in the sector. By collaborating with these companies, TechnipFMC plc is able to gain valuable insights into their specific needs and tailor its solutions to meet those requirements.
• Subcontractors and suppliers: TechnipFMC plc relies on a network of reputable subcontractors and suppliers to provide the necessary materials, equipment, and services for its projects. These partnerships are essential in ensuring that the company can deliver its projects on time and within budget.
• Joint ventures in specific regions: TechnipFMC plc has formed strategic joint ventures with local partners in key regions around the world. These joint ventures allow the company to have a presence in these regions and access local expertise and resources.
• Strategic alliances with technology providers: TechnipFMC plc works closely with technology providers to incorporate cutting-edge technologies into its solutions. By forming strategic alliances with these providers, TechnipFMC plc is able to offer its clients the latest innovations in the industry.

Key Activities

TechnipFMC plc (FTI) engages in a variety of key activities to support its business model. These activities include:

• Design and manufacturing of subsea production systems: TechnipFMC specializes in designing and manufacturing subsea production systems for the oil and gas industry. These systems are essential for extracting oil and gas from beneath the ocean floor.
• Installation and maintenance of equipment: The company also provides installation and maintenance services for the equipment it manufactures. This ensures that the systems continue to function properly and efficiently throughout their operational lifespan.
• Research and development in oil extraction technology: TechnipFMC invests heavily in research and development to stay at the forefront of oil extraction technology. This allows the company to continuously improve its products and services to meet the evolving needs of the industry.
• Project management and engineering services: Additionally, TechnipFMC offers project management and engineering services to oversee the implementation of its solutions. This includes coordinating with clients, suppliers, and other stakeholders to ensure successful project delivery.

By focusing on these key activities, TechnipFMC plc (FTI) is able to maintain its position as a leading provider of subsea production systems and services in the oil and gas industry.

Key Resources

TechnipFMC plc (FTI) has a wide range of key resources that enable the company to deliver innovative solutions in the oil and gas industry. These key resources include:

• Advanced engineering capabilities: TechnipFMC has a team of highly skilled engineers who develop cutting-edge technologies and solutions for their clients. These advanced engineering capabilities allow the company to tackle complex challenges in the industry.
• Global workforce skilled in technology deployment: With a global workforce spread across different regions, TechnipFMC has access to a diverse pool of talent with expertise in technology deployment. This allows the company to quickly adapt to changes in the market and implement new technologies efficiently.
• Patents and proprietary technologies: TechnipFMC owns a number of patents and proprietary technologies that give them a competitive edge in the market. These technologies are the result of years of research and development, and they help the company to differentiate themselves from competitors.
• Extensive supply chain and manufacturing facilities: TechnipFMC has built a strong supply chain network and owns state-of-the-art manufacturing facilities. This allows the company to efficiently produce and deliver their products and services to clients around the world.

By leveraging these key resources, TechnipFMC is able to drive innovation and deliver value to their customers while maintaining a competitive edge in the industry.

Value Propositions

TechnipFMC plc offers a range of value propositions that set us apart from our competitors in the oil and gas industry:

• Integrated solutions for subsea, onshore/offshore, and surface projects: We provide end-to-end solutions for oil and gas projects, from exploration and production to transportation and refining. This integrated approach allows us to streamline operations and maximize efficiency for our clients.
• Cutting-edge technology: We invest heavily in research and development to stay at the forefront of technological innovation in the oil and gas sector. By leveraging cutting-edge technologies, we are able to improve efficiency and productivity in oil and gas extraction, ultimately helping our clients reduce costs and increase profitability.
• Strong focus on safety and environmental sustainability: Safety and environmental sustainability are top priorities for TechnipFMC plc. We implement strict safety protocols and adhere to environmental regulations to ensure the well-being of our employees, clients, and the planet. By prioritizing safety and sustainability, we build trust with our clients and stakeholders and contribute to a more sustainable future.
• Customized service offerings: We understand that each client has unique needs and challenges. That's why we offer customized service offerings tailored to meet the specific requirements of each project. Whether a client requires subsea solutions, onshore/offshore services, or surface project support, we have the expertise and resources to deliver tailored solutions that exceed expectations.

Customer Relationships

TechnipFMC plc (FTI) places a strong emphasis on building and maintaining long-term relationships with its customers through various means:

• Long-term service agreements: The company offers long-term service agreements to its clients, ensuring consistent support and maintenance for their equipment and systems.
• Technical support and consultancy: TechnipFMC provides technical support and consultancy services to its customers, helping them optimize the performance of their operations.
• Client training programs: The company offers client training programs to educate and empower its customers to effectively use its products and solutions.
• Regular updates and upgrades: TechnipFMC regularly provides updates and upgrades to its equipment and systems, ensuring that customers have access to the latest technology and innovations.

Channels

TechnipFMC plc utilizes a variety of channels to reach its customers and drive sales. These channels are crucial in effectively delivering the company's products and services to a diverse range of industries and clients worldwide. The main channels employed by TechnipFMC plc include:

• Direct sales force: TechnipFMC plc employs a dedicated team of sales professionals who directly engage with customers to understand their needs and offer tailored solutions. This direct approach allows the company to build strong relationships with clients and provide personalized service.
• Company website and digital portals: The company's website and digital portals serve as essential channels for providing information about TechnipFMC's products and services, as well as allowing customers to make purchases online. These platforms also serve as valuable resources for customers to access technical documentation, training materials, and customer support.
• Industry conferences and trade shows: TechnipFMC plc actively participates in industry conferences and trade shows to showcase its latest innovations, network with potential clients, and stay informed about industry trends. These events provide valuable opportunities for the company to engage with key stakeholders and raise brand awareness.
• Network of local and regional offices: TechnipFMC plc operates a network of local and regional offices worldwide to provide a physical presence in key markets. These offices serve as important channels for customer support, project management, and sales activities. By having local offices, the company can ensure timely and efficient communication with customers and respond quickly to their needs.

Customer Segments

TechnipFMC plc serves a variety of customer segments in the oil and gas industry, providing a range of services and solutions to meet the needs of each segment. The main customer segments for TechnipFMC plc include:

• Oil and gas exploration and production companies: These companies rely on TechnipFMC plc for expertise in subsea exploration and production, as well as surface facilities and infrastructure.
• National and multinational energy corporations: TechnipFMC plc works with energy corporations to provide integrated solutions for their offshore and onshore projects, helping them to optimize production and minimize costs.
• Governments seeking infrastructure development: Governments turn to TechnipFMC plc for assistance in developing energy infrastructure, including pipelines, refineries, and petrochemical facilities, to support their energy needs.
• Offshore and onshore energy projects: TechnipFMC plc collaborates with a wide range of companies involved in offshore and onshore energy projects, providing them with innovative solutions and technology to enhance their operations and increase efficiency.

Cost Structure

TechnipFMC plc (FTI) has a complex cost structure that is essential for the successful operation of the company. The cost structure includes:

• High R&D expenditure: TechnipFMC plc (FTI) invests heavily in research and development to stay ahead of competition and drive innovation in the industry. This includes costs associated with developing new technologies, improving existing products, and exploring new market opportunities.
• Cost of maintaining a global supply chain: TechnipFMC plc (FTI) operates on a global scale, which requires a robust and efficient supply chain to deliver products and services to clients around the world. This includes costs associated with transportation, logistics, inventory management, and supplier relationships.
• Labor costs of skilled workforce: TechnipFMC plc (FTI) hires skilled professionals across various disciplines, including engineers, project managers, technicians, and support staff. The company invests in training and development programs to ensure its workforce has the necessary skills and expertise to deliver high-quality solutions to clients.
• Capital costs for manufacturing equipment and facilities: TechnipFMC plc (FTI) operates manufacturing facilities to produce equipment and components for its clients in the oil and gas industry. The company incurs capital costs for purchasing and maintaining state-of-the-art equipment, as well as constructing and maintaining manufacturing facilities.

Overall, TechnipFMC plc (FTI) carefully manages its cost structure to balance the need for innovation, global expansion, skilled workforce, and manufacturing capabilities while ensuring profitability and sustainable growth in the long run.

Revenue Streams

Sale of engineered equipment and systems: TechnipFMC plc generates revenue through the sale of a wide range of engineered equipment and systems to clients in the oil and gas industry. This includes subsea production systems, surface wellhead systems, drilling equipment, and well completion tools. The company's expertise in engineering and manufacturing high-quality products allows them to command a premium price for their offerings.

Service agreements and maintenance contracts: In addition to selling equipment, TechnipFMC plc also generates revenue through service agreements and maintenance contracts with their clients. These agreements ensure that the equipment and systems sold by the company continue to operate efficiently and effectively over their lifespan. This recurring revenue stream provides a stable source of income for the company.

Licensing of technology and patents: TechnipFMC plc also generates revenue through the licensing of their proprietary technology and patents to other companies in the oil and gas industry. This allows them to monetize their intellectual property and establish partnerships with other organizations. The company's reputation for innovation and cutting-edge technology makes their licenses highly sought after in the industry.

Project management and consultancy fees: Another key revenue stream for TechnipFMC plc is project management and consultancy fees. The company provides a range of services to clients, including project management, engineering design, and consultancy services. These services are essential for clients looking to undertake complex projects in the oil and gas sector. TechnipFMC plc's expertise and track record of successful project delivery enable them to command premium fees for their services.

• Sale of engineered equipment and systems
• Service agreements and maintenance contracts
• Licensing of technology and patents
• Project management and consultancy fees