Scot-Tech Engagements 3rd Annual Oil & Gas IT Conference held 15/16 Mar 2016 - Aberdeen. For more information visit www.scot-tech.com or email ray@scot-tech.com
5. 5Information Classification: Open All Rights recognised
Collaborating locally to lead the way globally in deflationary digital services
6. The next 20 minutes
The 7 critical cloud considerations
Future ready technology and
emerging trends for 2020
Ensuring IT remains deflationary
and returns agility
10. 10Information Classification: Open All Rights recognised
Cost Assurance: Price matching
Hardware
operational
budget of
<£1m
Azure
cost
estimator
tool
Azure £250K
per year
brightsolid
£185K
per year
brightsolid includes: service desk, remote
back-ups and DDoS protection
11. 11Information Classification: Open All Rights recognised
Be confident and expert in Security
Hosting up to Government level ‘Official
Sensitive’
18. 19Information Classification: Open All Rights recognised
Save
money,
cost and
capex
To enable
DR
Focus on
the
important
Provide
flexibility
& Agility
To try
new
services
Move to
Digital
services
So we can, but why move to cloud?
21. 22Information Classification: Open All Rights recognised
Emerging 2020 trends that we like
Predictive
Analytics
Shared
Services
Machine
Learning
Free
Apps
23. 24Information Classification: Open All Rights recognised
Free applications and infinite
development opportunities
In micro services in open
source application layers
28. 29Information Classification: Open All Rights recognised
Aberdeen City Council
Migrated
entire
infrastructure
in under 6
weeks
No
disruption to
service
Significant
monthly
savings
29. 30Information Classification: Open All Rights recognised
“In brightsolid, we have found a partner with whom we can
innovatively work as we digitally transform our council
services whilst also reducing our operational costs.”
Aberdeen City Council Finance
Policy and Resources Convenor Councillor
Willie Young
Technical Innovation with Personal Service
31. 32Information Classification: Open All Rights recognised
Regional data
centres and
clouds
Price
matching
Community
shared
economies
Ensuring IT remains deflationary
41. Copyright of Shell International BV
ADOPTING AN OPEN STANDARD FOR
MANAGING IT
Ard de Bruijne
Strategy, Planning & Architecture Manager Global Functions
42. Copyright of Shell International BV
DEFINITIONS AND CAUTIONARY NOTE
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.
Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent
with the Society of Petroleum Engineers 2P and 2C definitions.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.
Resources plays: Our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are
sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer
to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.
‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control.
Companies over which Shell has joint control are generally referred to as “joint ventures” and companies over which Shell has significant influence but neither control nor joint control
are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or
company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than
statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on
management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ
materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal
Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are
identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’,
‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could
cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in
crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful
negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly
qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional
factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2014 (available at www.shell.com/investor and www.sec.gov ).
These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 15 March, 2016. Neither Royal Dutch Shell
nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In
light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance
that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including
in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also
obtain this form from the SEC by calling 1-800-SEC-0330.
43. Copyright of Shell International BV
AGENDA
The environment
What is IT4IT anyway?
The Shell IT4IT Journey
45. Company name appears here
ABOUT SHELL IN 2014
$1.2 billion
Amount we spent
on R&D
70+
Number of countries
in which we operated
$160million
Spent on voluntary social
investment worldwide
$13.7billion
Spent in lower
income countries
10%
Our share of the world’s LNG
sold
40+
Number of LNG vessels we
manage and operate
3.1million
Our equity production in
barrels of oil equivalent a day
51.8%
Share of our production that
was natural gas
94,000
Average number
of people we employed
24 million
Tonnes of LNG we sold
$45billion
Cash flow from operating
activities
2%
Our share of the world’s
oil production
3%
Our share of the world’s
gas production
46. Copyright of Shell International BV
NAVIGATING A DISRUPTIVE ENVIRONMENT
49
EVERYTHING
TO CLOUD
INFORMATION FROM
DATA &
ANALYTICS
COLLABORATION
ACROSS ALL
(MOBILE) DEVICES
CONTROLS, LEGAL,
REGULATORY &
CYBER DEFENCE
BUSINESS PLATFORMS
GUIDEINVESTMENT
DECISIONS
DIGITALISATION
AND INTERNET
OF THINGS
47. Copyright of Shell International BV
IT DIMENSIONS – WHAT WE OPERATE
RESTRICTED
PLACES 10 global data centres, 367 server locations
132,610 telephone numbers
11,285 wireless access points
1,505 terabyte data traffic per month
1,298 GB network capacity
PEOPLE 140,000+ desktops and laptops in1800 sites
73,400 Mobile phones & Blackberries
110,000 service desk calls per month
52,000 user requests per month
6m internal e-mails per day; 1.2m spam rejected each month
19,847 users with Push email to own phones
50,150 virus detected and cleaned per month
3107 Workspace servers
PORTFOLIO
349 Business critical apps and services
164 ERP instances operated
980 changes to Business critical apps per month
24 Applications Operations Managed Service Contracts
5452 Applications hosted, additional desktop apps
4,618 databases
17,918 servers
11 PetaByte applications storage
PROJECTS
1,300 Infrastructure & Services projects per year
100 Project programs per annum enabling $35bn of Capital development
50 Locations of Projects
COMPETITIVE
INFRASTRUCTURE
3,600 virtual technical
workstations
Enabling data from
millions of seismic
sensors
5,400 servers,
delivering 2 PetaFlops
(2*1015 floating-point
operations per second)
34 PetaBytes technical
storage
50. Copyright of Shell International BV
IT SERVICE
IT’S CORE ISSUE: MOST OF OUR FOCUS GOES INTO
DELIVERY, NOT NEARLY ENOUGH INTO OUTCOME
Manage Capabilities
People, Process, Information, Tools
Measure Outcomes
Metrics, Actions, Improvements
Plan Build
Operat
e
Deploy Retire
51. Copyright of Shell International BV
THE THREE DILEMMAS OF IT MANAGEMENT:
COST, AGILITY, MANAGEABILITY
Speed & Agility
vs.
Diversity & Complexity
Technology Disruption
vs.
Manageability
Cost Containment
vs.
Growth
Base Cost
Investment
Budget
IT function requirements
Reduce costs
Reduce risk
Business requirements
Increase agility & speed
Improve performance &
experience
52. Copyright of Shell International BV
CONSORTIUM CREATED END-TO-END VALUE CHAINS
plan build deploy run
53. Copyright of Shell International BV
SUMMARY: BETTER, FASTER, AFFORDABLE,
CONTROLLED
• Integrated workflows improving the quality of
delivery
• Reduced downtime
• Operations become a “broker of services”
BETTER
• Agile development and DEVOPS
• Improved Project execution
• More self-service
FASTER
• Reduces cost for IT4IT (integration / sourcing
options)
• Reduce overall IT cost
AFFORDABLE
• Improved understanding of and response to risks &
threats
• Enhanced monitoring and exception handling
CONTROLLED
And we believe we can achieve this through a holistic approach to IT4IT
55. Copyright of Shell International BV
COMMUNITY DEVELOPMENT – AN EVOLUTIONARY
MODEL
Shell proprietary Standard Open Industry Standard
2010: Delivery Model 2012: Segment Architecture 2014: Reference Architecture
2012/09: Consortium kicked off
PWC, HP-IT, ING, Munich Re, HP-SW,
Achmea, later extended with AT&T,
Accenture, USF
2013-2016: Continued Growth of
consortium
Over 40 Members at time of this presentation
2013/10: Open Group
First affiliation discussions
2014/10: Public launch at
The Open Group IT4IT
forum and standard
2015/06:
V2.0
57. Copyright of Shell International BV
RETURN TO THE ‘COMPACT IT ESTATE’ WITH COST
TRANSPARENCY
IT BUSINESS MANAGEMENT
Application
overview
IT Management Information
Project
Overview
Infrastructure
overview
Infrastructure
optimization
TRUSTED DATA SOURCES
Config
Management
Applications/
Services
Projects
Application/
service costs
Infra
Invoice Data
Utilization
Budget
Actuals
ERP
63. Characteristics of Culture
• Pernicious: acts through people who come and go
• Rewards those who protect it and perpetuate it
• Culture tolerates policy, governance, new process
• …Or rejects it
• Has mechanisms that help it evolve/survive
• Has trigger points for change
• Culture and policy dual for influence….unless they are aligned.
64. Framing the Problem Set
IS Leadership Group is diverse
Varied IT savvy
Cultures from 3 continents
Domain of expertise vary
Not culture of statistics
Few time motion studies
No framework for ROI
Executives don’t have time
We have them for 1 hour per
month
Don’t have time for homework
Decision culture dominated by
desire for broad/input consensus
6
7
65. Tullow IS Solution
Has to start good debate - at a glance
Has to provide right contextual understanding for decisions/debate
Has to enable a decision at the right level of specificity
Can’t imply scientific process where it doesn’t exist
Must empower appropriate challenge between executives
Must place the executives in complete control
Not asking for their opinion
Asking them for approval to spend their money
All plots must have narrative about notional 125% ROI
No hard ROI calculation required
But a good narrative is
6
8
70. Why It Worked
Right level of detail for contextual understanding
Considering the time available
Considering varied IT savvy
Provides confidence to act
Compares RELATIVE strategic fit and RELATIVE ease of implementation
Group chooses spending limits
Produces quadrant to focus attention/debate
Ensures debate leads directly to spend decisions
Visual
Ability to focus quickly on areas for debate and decision
Matches their allotted time to the task
Forum allows for broad participation
Decision method infers consensus
Format minimizes time investment required
7
3
71. Take-Away – Guiding Principles
• Simplicity
– Level of specificity must match the level of accuracy
– Use only attributes that the group can make decisions on
• “Snap-shot” decision making
– Visual with data and text detail as backup
– If they haven’t read anything….can they still contribute to a decision?
• Trust their gut
– Create ability to do a deep dive into areas that don’t “feel right”
– Details can (not always by any means) confound judgement
– IT facilitates decision making – leads from the back
Hidden value: nearly all initiatives have some IT component… our solution
brings the strategy debate to IT, as opposed to asking for a seat at a table in
the next room.
7
4
77. IT Strategy
Developing an IT Strategy for a low cost environment
James McLean
IT Manager, UK
March 17,
2016
80
78. Content
Drivers for a strategy formation
• Business outcome driven: Are you aligned to your business strategy?
• Understand your capabilities: Are you able to deliver?
• Sourcing strategies: How do you deliver whilst remaining agile and
scalable?
• Demand led: Should your charge model reflect cost dynamics?
79. Drivers for an new IT Strategy Formation
• Industry Drivers
• Oil price volatility
• Decommissioning is essentially a new business in the UK industry
• Steadily Declining Production
• Aging fields/assets
• Successive cost reduction rounds and the need to operate
differently
• IT Drivers
• Headcount and Cost constraints
• Doing more with less
• IT Industry driving to the Cloud as a transformative capability
80. • Drivers for a strategy formation
Business outcome driven: Are you aligned to your
business strategy?
• Understand your capabilities: Are you able to deliver?
• Sourcing strategies: How do you deliver whilst remaining
agile and scalable?
• Demand led: Should your charge model reflect cost
dynamics?
81. An Approach for Developing Strategic Alignment
Business change
well understood
IT implications
identified
Understand Business
Demand
Business
Capabilities
IT Implications
Business &
Market Context
Determine Strategic
Direction
Vision
Strategic
Objectives
Change
Requirements
Vision and
strategic objectives
Role of IT
IT operating model
Assess Capabilities
People
Process
Technology
Current state
understood and
aligned internally
Determine Required
Actions
Control
Supply
Risks & Issues
Future state
described in terms
of impacts on the
Business of IT
capabilities
Implement
Develop Roadmap
Projects/Program
Timeline and
Resources
Communication
Roadmap and
action plan defined
Strategic direction
communicated and
accepted within
business and IT
84. • Drivers for a strategy formation
• Business outcome driven: Are you aligned to your
business strategy?
Understand your capabilities: Are you able to deliver?
• Sourcing strategies: How do you deliver whilst
remaining agile and scalable?
• Demand led: Should your charge model reflect cost
dynamics?
85. Approach to Assessing Capabilities
Assess Capabilities
People
Process
Technology
Current state
understood and
aligned internally
ITIL framework can
provide structure
Deliver Change
Business Relationship Management
Service Operation
Operational Management
Service Desk
Capacity
Management
(design)
Request fulfilment
Change
Management
(FSOC)
Config/Asset Mgmt
Identity
Management
Security Monitoring
Incident Control
2nd/3rd line support
Apps Dev/ SDLC
Boundary&
Feasibility
PPM
PMO
Impact Assessment
IM-enabled
BusinessChange
DeliveryPortfolio
Planning
Event Management
IM Management
Design
Solution Delivery
Strategic Alignment
TfL IM Demand
Harmonisation
Reporting and
Communication
Establish IM
Success Criteria
IM Budget setting
Transition
Applications
TTO/ Service
Introduction
Operational
Testing
Apps Maintenance
Services (AMS)
Apps Mgmt (SAM)
Financial and Commercial
Performance and Resourcing
Security, Risk, Compliance
Strategy and EA
Procurement/
Sourcing
Workforce
Management
IM Function
Financial Planning
Vendor
Management
Service KM
IM Strategic Planning EA
Cyber Security
(policy/
requirements)
Risk Management and
Control
Performance
monitoring
Projects and Change
BRM/ demand
management
(projects)
Demand sensing/
shaping BusinessAnalysis
Business As Usual BRM
Requests for
Service
Capacity
Management
(forecast)
IM-based
Changes
Problem
Management
Incident
Management
Fin Mgmt for IM
Services
Agree IM Strategy
Service Portfolio
Management
Standards
Compliance and Audit
BU Investment
Portfolio Management
86. High Level Example: Capability view of an IT Organisation Level 0+1
Application
Support
Consultancy
Application
Development
Application Support
Database Support
Enterprise Content
Management
Project Management
Administration
Application
Development
Application
Development
Business Intelligence
Application Support
Project Management
Administration
Business
Partner
Business Analysis
Project Management
Change Management
Asset Management
Administration
Data Services
Data Management
Physical and Digital
Record Management
Compliance
Advisory
Strategy
Project Management
Technical
Reprographics
Administration
Planning,
Control and
Compliance
Service Portfolio
Management
Stakeholder
Management
Governance
Strategy
Planning and Control
Compliance
Administration
Support
Infrastructure
Operations
Compliance
Consultancy
Strategy
Operational Support
Project Management
Administration
Project
Management
Solution Design
Project Planning
Budget Management
Project Delivery
L0
L1
87. Future State Example of IT Capabilities – Level 0 + 1
Strategy and Planning Service Development Service ManagementBusiness Relationship
Management
Information Management
Business
Enablement
Strategy
Business
Performance
Planning
Demand
Management
Communications
Planning
Stakeholder
Management
Business
Performance
Management
Information
Management
Strategy
Information
Architecture
Information
Resource
Management
Content
Management
Business
Intelligence
Record
Management
Project & Program
Management
Enterprise
Architecture
Portfolio
Management
Human Resources
Management
IT Financial
Management
Vendor
Management
IT Strategy
Management
Service
Architecture
Service Operation
Solutions
Development
Infrastructure
Development
Service Transition
Service Delivery
Service Design
Service Strategy
IT Risk &
Compliance
L0
L1
Strategy and Planning
Enterprise
Architecture
Portfolio
Management
Human Resources
Management
IT Financial
Management
Vendor
Management
IT Strategy
Management
IT Risk &
Compliance
88. • Drivers for a strategy formation
• Business outcome driven: Are you aligned to your business
strategy?
• Understand your capabilities: Are you able to deliver?
Sourcing strategies: How do you deliver whilst remaining
agile and scalable?
• Demand led: Should your charge model reflect cost
dynamics?
89. How to Deliver and Remain Agile
• Flexible to adapt to volatility
• Use of small boutique companies on turnkey activities
• Identify commodity services and execute at lowest costs possible
• Never sacrifice stable IT operations
• Is it differentiating?
• Know what you are investing in for the long term
• Long term planning allows for strategic adjustments through volatility periods
• Stay the course on the differentiating services
• Flexible workforce
• Agile
• Scalable +/-
90. • Drivers for a strategy formation
• Business outcome driven: Are you aligned to your
business strategy?
• Understand your capabilities: Are you able to deliver?
• Sourcing strategies: How do you deliver whilst
remaining agile and scalable?
Demand led: Should your charge model reflect cost
dynamics?
96. The changing world…
The 3D printing revolution you have not heard about
Traditional hearing aid manufacture
9 steps and 1 week to complete
3D printed hearing aid
3 steps and 1 day to completion
100. Lets do things differently
The IoT’s promise lies not in helping companies directly manage their existing assets,
supply chains, or customer relationships—rather, IoT technology creates an entirely new
asset
113. Recap from 2015 – ICT as an enabler
The Levers for Change
Challenging the Statics – Upgrade or Die
Enabling Technologies
Collaboration – Supply Chain
Timing is everything.
March 2016 @RamblingGeek 116
114. The Results…
• Operational IT costs
• 2015 actuals vs 2014 actuals, 30% reduction
• 2016 forecast vs 2015 actuals, 9% further reduction
• Forecast 2016 vs original 2014 budget, 40% reduction
March 2016 @RamblingGeek 117
• CAPEX Reduction
• 2015 actuals vs 2014 actuals, 50% reduction
• Risk Management is key – technology debt.
115. What we did
Identification – Own it, push the limits.
March 2016 @RamblingGeek 118
Identifying the LEVERS
High Cost items/Scope to change
Supply Chain Partnering
–the limits of hammering rates-squeezing the balloon
Retendering -time to deliver
Timing is everything
Challenging the statics
Ownership
DO-IT, Measure it.
What gets measured gets done
Taking 6 months just doubled your target!
10% cut straight away ( same as 20% in June!) – get after it
Upgrade or die… manage your risks
Software and maintenance, license count….
Bottom up, own the cost, own the saving
10/20/30%... 30 % option key – imagine the impossible
Not waiting for the axe to fall… own it
Savings tangible, SMART, linked to budget codes
116. Examples
Offshore bandwidth – Work Smarter
Market Test – Do more with less
In-source, out-source, right source-take control
Sub Surface Licencing
Discretionary effort
Retender – if your not willing to work with us, we check the market
Shift Left – Challenge the norm.
March 2016 @RamblingGeek 119
118. Market Test – Thinking outside the box
March 2016 @Alan_Norrie 121
Service Desk
Desktop Support
Server/Storage
Support
Networks Support
Applications Support
Software Vendors
Software Vendors
Software Vendors
Software Vendors
Software Vendors
Hardware Vendors
ERP Support
Database Support
1st Line Support 2nd Line Support 3rd Line Support
Operations Centre
Telecoms Support
Renegotiate Retender
Commodity
Strategic/Core Strategic/Core
Commodity
119. Shift Left – A smart way to drive down cost
March 2016 @Alan_Norrie 122
1st Line 2nd Line 3rd Line
Shift Left
Commodity Commodity/Strategic Strategic/Core
The Business
Strategic/Core
• Worked with our supplier to implement the change, not at them
• Merged Service Desk and Desktop Support – Technical Service Desk
• Established SMEs within Service Desk – Infrastructure, Apps & Networks
• Formalised KB Framework for 2nd and 3rd line teams
• Prioritise workloads (Do less, better)
Incidents, requests, problems, CSIs
• Continual Service Improvement – Objective is to reduce incidents.
120. 2015 – The Numbers
March 2016 @Alan_Norrie 123
0%
20%
40%
60%
80%
100%
120%
£-
£0
£0
£0
£0
£0
£0
£0
1 2 3 4 5 6 7 8 9 10 11 12
Performance
Cost
Series2 Series1 Series3 Series4
IT Leadership Meeting
Transitioned from Managed Service to ‘Hybrid’ T&M
Formalised ‘Shift Left’ & Established Technical Service Desk
122. Conclusions
There are savings there, but we all need to make the effort
Rate cuts don’t cut it! Part of the solution, but not game changing
Right sourcing will be key (complicated managed services-tail wagging the dog)
Ownership (bottom up) is key to most sustainable savings
Need to make this a sustainable industry
Aberdeen bubble needs to burst
IT more susceptible to global players
We are all competing Globally
February 2016 125
125. Leadership in Times of Crisis:
How to avoid unnecessary casualties
Steven Ward BSc(Hons) PgDip MBCS MCMI
126. Agenda :
• In times of crisis, what makes the right sort of leader
• The importance of avoiding stress for your team...and you
• “Directors are Divas”
• Learning from other industries
• In the eye of the storm
• Generous applause (possible standing ovation)
135. What makes the right sort of leader
Brigadier General
Roland Bradford VC MC
• Born in country Durham 1892
• Joined the Durham Light Infantry in 1912 at 20
• Promoted to General in 1917
• Youngest to achieve this in his generation
• Military Cross + Victoria Cross
• Fought at the Somme and Cambrai
156. Roland’s story
“By his fearless energy under fire of all description, and
his skilful leadership of the two Battalions, regardless of
all danger, he succeeded in rallying the attack, captured
and defended the objectives, and so secured the flank”
Citation for VC, Oct 2016
157. Roland’s story
• Killed by stray shell 30th Nov 1917
• Aged 25
• Original grave marker on display in Durham cathedral
• Abide With Me still official hymn of DLI
"... in the long roll of the young dead Roland Bradford is in some
ways the most conspicuous figure...."
John Buchan (39 Steps – WWI chronicler)
163. Oil & Gas ICT Summit
Paul Phillips – Regional Vice President – Western Europe
164. 167
No Business is Immune to the Winds of Change
• 2015 has been a difficult year
• Increased pressure on budgets
• Industry is changing, continued acquisitions and mergers
• Innovation more important than ever
• Infrastructure refresh drives efficiency
165. 168
• IT is touching end-users directly, like never before, IT has to become a business enabler.
No Business is Immune to the Winds of Change
173. 176
Web-Scale Datacenters
Simple, Scalable, Efficient
Design Principles
• Unbranded x86 servers: fail-fast systems
• No special purpose appliances
• All intelligence and services in software
• Extensive automation and rich analytics
• Distributed everything
Benefits
• Linear, predictable scale-out
• Always-on systems
• Fast innovation in software
• Operational simplicity
• Lower TCO
178. 181
Gartner Magic Quadrant for Integrated Systems
Strengths
• Nutanix is a complete infrastructure solutions
company, providing its customers flexibility in
their choice of hypervisors and cloud usage
• Nutanix has gained market credibility and
established a worldwide presence
• The Acropolis scale-out architecture, along
with the ability to scale compute and storage
independently, enables users to grow Nutanix
deployments incrementally to meet application
needs
179. 182
Nutanix Xtreme Computing Platform
Make Cloud Invisible
Make Virtualization Invisible
Make Storage Invisible
The Journey To Invisible Infrastructure
181. 184
Tomorrow’s Hybrid App could live on Nutanix
Staging DRProductionDev/Test
Hybrid App Lifecycle
On-Premise On-PremiseCloud Cloud
The Need for a Web-Scale Operating System
191. Data Analytics for Oil and Gas:
Challenges and Opportunities
John McCall
Smart Data Technologies Centre
Robert Gordon University
192. The Value of Information
• Data Engineering
– Essential plumbing
• Visualisations and Dashboards
– Useful Filters and Views of Data
• Data Analytics and Decision Support
– Value added here
– Value added = Cost subtracted
• Industry must reduce CAPEX and OPEX by 20% - 40%
• Logistics
• Maintenance
193. The Barriers
• Microsoft Excel !!!
– Ad – hoc methods are a barrier to data sharing
– Inefficiencies literally hard-coded into operations
• Lack of Awareness
– Substantial academic literature, largely ignored
– Lessons not learned from other industries
• The Race To Be Second
– Makes sense when huge capital outlay required
– Makes no sense when:
• Capital outlay is small
• Returns on Investment are huge
195. Data Fusion in Large Scale
Measurement Platforms
• Integrate data
from multiple
sensors (~50,000)
• Fuse different
measurements
• Anomaly
detection in real
time
• Filter data for
inspection and
further action
Source: Rattadilok (2015)
196. Logistics Optimisation
• Highly complex supply chain
– People, parts, trucks, vessels, helicopters, cranes
• Operational uncertainty
– Weather, equipment failures, non-productive time
• Primitive information systems
– Excel, email, bits of paper, …
• Over-resourcing traditionally affordable
198. Logistics Optimisation: Benefits
• Optimise KPIs
– Manage trade-offs effectively
• Typical resources savings 20% - 40%
– supply vessel @ £15K/day hire
– Each vessel saved = £4.5M per year
– 20% x 150 vessels x £4.5M = £135M
• Similar savings can be realised
throughout the supply chain.
• This is standard in some industries
199. Maintenance
• Corrective maintenance
– Classic “fail and fix”
– Fixing may be hugely expensive or impossible
• Preventative and Predictive Maintenance
– Maintain before failure
– Schedule maintenance based on prediction
• Value added = Cost subtracted
– Reduced maintenance requirement
– Planned, not reactive activity
– Fewer, faster, more productive shutdowns
201. Industry Future
• New analysis techniques from academic
literature
– e.g. Dynamic Bayesian Networks
• Modern CMSs integrate with SCADA
– Relate operating condition and performance
• Model features of individual systems
• More sophisticated multivariate analyses
• Automation of analysis
202. Where to Start?
• Identify main areas of pain
– Target rich environment!
• Seek partners
– Data/experience sharing within / outside industry
– Vendors – logistics and analytics platforms
– Academic researchers
• Help is available
– Data Lab
– CENSIS
– OGIC
– Scottish Enterprise
203. Conclusion
• Data Analytics can significantly enhance:
– Offshore Logistics
– Predictive Maintenance
• Needs to be embedded in operations
• There is no shortage of techniques!
– Academic literature sizeable and growing
– Gap with industry practice
• Combined industry and academic
collaboration can make transformative step
changes
217. Steve H & Scottish Enterprise
• An Engineer – 15 years in a
Multinational – Oil & Gas Services
• A Business Professional - Strategy,
M&A, Operations, HR, Business
Development, Innovation.
• A coach, mentor & advisor
• A facilitator – helping to make things
happen
Overview
1. SE Supports individual companies to
grow ...grants/expertise/networks
2. SE develops, invests & manages
projects to help sectors to grow
– Creating conditions to encourage growth
– Removing barriers / obstacles that
prevent growth
– Identifying opportunities and investing in
resources to realise them.
“We identify and exploit opportunities for Scotland's economic growth
by supporting Scottish companies to compete, helping to build globally
competitive sectors, attracting new investment and creating a world-
class business environment.”
218. Predict, Prevent, Produce More
Topics
Wednesday 16th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Objectives
1. Share with you our thinking about
the Data Science opportunity
2. Encourage you to volunteer your
companies, data, resources to
exploring these opportunities
3. Update you on our plans to
consult with you about this
opportunity and to seek your active
involvement both today and later
on.
219. Can Data Science Help Maximise
Economic Recovery?
Schematic to Help Facilitate
Discussions
220. 1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
221. Test, Modify & Confirm our
Assumptions:
Are these valid?
Are they sufficient?
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
222. 5 Major
Challenges
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
223. Current
Production
Efficiency
is <60%
5 Major
Challenges
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
225. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Too many
vendors offering
unproven
golden bullet
solutions
5 Major
Challenges
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
226. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
5 Major
Challenges
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
227. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
5 Major
Challenges
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
228. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
5 Major
Challenges
Test, Modify & Confirm our
Assumptions:
Are these valid?
Are they sufficient?
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
229. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
4 Strategic
Ambitions
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
230. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
4 Strategic
Ambitions
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
231. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
4 Strategic
Ambitions
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
232. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
Support
operators to
build
the Investment
case ,prove &
de-risk
Investment in DS
4 Strategic
Ambitions
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
233. Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
Support
operators to
build
the Investment
case ,prove &
de-risk
Investment in DS
4 Strategic
Ambitions
Support DS
companies to
develop
Competitive
aligned
Risk/reward
proposals
1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
234. 1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
Support
operators to
build
the Investment
case ,prove &
de-risk
Investment in DS
Support DS
companies to
develop
Competitive
aligned
Risk/reward
proposals
4 Strategic
Ambitions
Test, Modify & Confirm our
Assumptions:
Are these valid?
Are they sufficient?
235. 1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
Support
operators to
build
the Investment
case ,prove &
de-risk
Investment in DS
Support DS
companies to
develop
Competitive
aligned
Risk/reward
proposals
4 Strategic
Ambitions
Next steps:
Develop the evidence base ,
economic model and potential
actions / investments
236. 1. Improve the viability of UKCS Operations.
2. Improve the viability of Scottish O&G Companies
3. Increased sales & exports of Scottish developed
Digital/ Data Oil & Gas products & services
Strategic
Objectives
Current
Production
Efficiency
is <60%
Current
UKCS
Exploration
Activity is
nearly nil
Current price
per boe is
<$50 and this
is likely to be
reality for
a while
Too many
vendors offering
unproven
golden bullet
solutions
The cost of
implementing
data
science solutions
is perceived
to be prohibitive
Improve
reliability &
efficiencies
through
DS
Increase &
Sustain
Exploration
through
DS
Support
operators to
build
the Investment
case ,prove &
de-risk
Investment in DS
Support DS
companies to
develop
Competitive
aligned
Risk/reward
proposals
4 Strategic
Ambitions
Next steps:
Develop the evidence base ,
economic model and potential
actions / investments
Co-ordinated Team
Approach
237.
238. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Activity
1. On Line
2. We need your help to help us
build the evidence of need and
demand for support & investment.
239. Predict, Prevent, Produce More
In Development….
1. A case for Digital / Data
as a TLB theme
2. Digital / Data to be a part
of the appropriate
solution centres within
the OGTC
…connected to….
3. A Data Science for O&G
Centre
4. A support programme
Activity
1. On Line
2. We need your help to help us
build the evidence of need and
demand for support & investment.
240. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
241. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Can Data Technology Help
improve Productivity?
Find the Missing Platform?
242. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Can Data
Technology
Help find &
recover
hydrocarbons?
Predict the
Predictable?
243. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Can Data Technology help to
reduce lift cost?
Prevent the Preventable?
244. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Can Data Technology inform
Capital Investment decisions?
Increase ROI
245. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Opportunity
1. Can Data Technologies increase
uptime and improve efficiency?
2. Can Data Technologies improve
prediction and reservoir modelling
accuracies?
3. Can Data Technologies better
inform capital investment
decisions?
4. Can Data Technologies reduce lift
cost?
However “they” have been saying that
for decades...
246. Data2Text
Founded 2009,
3 scientist’s + 1
entrepreneur
Merged to form
Arria NLG in
2013
Floated on AIM
in 2014 for
£100M
Current trading
at £35M and 50
data scientists
247. Examples of Where Data Technology Could Realise Value?
Area of
Applicat
ion
Exploration
Operations &
Maintenance
Supply Chain /
Logistics
Engineering
PotentialProblems/Opportunities
1. Predict and
identify where
best to drill for
optimum oil flow
2. Understand the
geology/seismic
for the region not
just at a block
level.
3. Understand
subsurface
dynamics and
microbiology
1. Prevent critical
equipment failure
2. Identify
opportunities to
optimise pressure
& flow control
3. Manpower
scheduling
4. Improved
weather impact
analysis and
forecasting
1. Reduce total cost
of carriage and
supply
2. Reduce CO2
emissions from
carriage
3. Reduce working
capital and
optimise inventory
profiles
1. Identify optimum
solutions for
complex problems
based on previous
experience
2. Analysis of
equipment &
process
performance
3. Identify ways to
extend life of
assets
248. Examples of Where Data Technology Could Realise Value?
Area of
Applicat
ion
Exploration
Operations &
Maintenance
Supply Chain /
Logistics
Engineering
PotentialProblems/Opportunities
1. Predict and
identify where
best to drill for
optimum oil flow
2. Understand the
geology/seismic
for the region not
just at a block
level.
3. Understand
subsurface
dynamics and
microbiology
1. Prevent critical
equipment failure
2. Identify
opportunities to
optimise pressure
& flow control
3. Manpower
scheduling
4. Improved
weather impact
analysis and
forecasting
1. Reduce total cost
of carriage and
supply
2. Reduce CO2
emissions from
carriage
3. Reduce working
capital and
optimise inventory
profiles
1. Identify optimum
solutions for
complex problems
based on previous
experience
2. Analysis of
equipment &
process
performance
3. Identify ways to
extend life of
assets
We Are Actively Seeking projects at the Company,
Supply Chain or UKCS Region Level
249. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Will this secure,
protect or grow
jobs...or will we lose
more jobs?
250. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
251. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
252. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Create / Attract &
Anchor New High
Growth Data Technology
Ventures
255. Digital Founders
Cohort 1 April – Sept 15
Next Cohort Live Now - March to Sept 16
Applications now open for early stage
A 20 week programme built around USA best practice
designed to accelerate investor readiness and growth
plans.
256. Digital Founders
Cohort 1 April – Sept 15
Next Cohort March to Sept 16
Applications now open for early stage
A 20 week programme built around USA best practice
designed to accelerate investor readiness and growth
plans.
We need people with
ambition, big ideas,
hungry to change the
world....
257. Digital Founders
Cohort 1 April – Sept 15
Next Cohort March to Sept 16
Applications now open for early stage
A 20 week programme built around USA best practice
designed to accelerate investor readiness and growth
plans.
And we need
mentors, investors,
problem owners to
support...
258. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Support Companies to
Grow, Innovate &
Internationalise
259. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Develop Innovative,
Novel Methods,
Technologies, Services...
260. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Pathfinders Wanted
1. Do you have a datastream or data
set that you think might have hidden
value within it?
2. Do you have a problem where you
need a business case to validate
investment in technology?
3. Do you have a digital technology or
usage case that you would like us to
test and evaluate?
We are looking for bold pathfinders .
We have resources , we want your
problems so we can prove value.
Contact: steve.harrison@scotent.co.uk
or duncan.hart@thedatalab.com to
arrange a discussion.
261. Myth Busting
1. We don’t have time
2. We can’t spare the
people
3. We don’t have the
data
4. We can’t afford it
5. It can’t be that good
6. Lets wait
Predict, Prevent, Produce More
Pathfinders Wanted
1. Do you have a datastream or data
set that you think might have hidden
value within it?
2. Do you have a problem where you
need a business case to validate
investment in technology?
3. Do you have a digital technology or
usage case that you would like us to
test and evaluate?
We are looking for bold pathfinders .
We have resources , we want your
problems so we can prove value.
Contact: steve.harrison@scotent.co.uk
or duncan.hart@thedatalab.com to
arrange a discussion.
262. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Digital Entrepreneurs
Wanted
1. Do you have an idea for a Data
Technology venture but unsure
where to start?
2. Would you like to be a Digital
Offshore millionaire, but don’t have
a killer idea?
3. Do you have an idea for a Data
Technology but not the ability to
develop it?
We are looking for bold entrepreneurs.
We have resources , we want to help
you build a venture of scale & value.
Contact: graham@Elevatoruk.com or :
steve.harrison@scotent.co.uk to
arrange a discussion.
263. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
8. FAMA
Evidence Gathering
1. Listen to you and others
2. Establish the demand and urgency
3. Understand the challenges,
constraints and friction
4. Explore ideas, plans and ambitions
5. Flush out potential projects
264. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Evidence Gathering
1. Listen to you and others
2. Establish the demand and urgency
3. Understand the challenges,
constraints and friction
4. Explore ideas, plans and ambitions
5. Flush out potential projects
Resource Approval
1. Develop the project concepts
2. Seek industry endorsement and
buy-in
3. Gain necessary approvals and
permissions
4. Start to deliver support (ASAP)
265. Predict, Prevent, Produce More
Topics
Wednesday 10th March
1. Who is in the room?
2. The Strategic Ambition
3. Perspective Gathering
4. Challenge 1 : Where to find
value quickly?
5. Challenge 2:How to get
economic gain from this?
6. Finding Value
7. Consultative Study
Review
1. Share with you our thinking about
the Data Science opportunity
2. Encourage you to volunteer your
companies, data, resources to
exploring these opportunities
3. Update you on our plans to
consult with you about this
opportunity and to seek your active
involvement both today and later
on.
270. What is a model?
A geoscientist’s view
• A conceptual, and often
computational
representation of a real
system
A machine learner’s view
• A computational framework
within which I can make
predictions based on data
271. Uncertainty, risk and utility
people
sensors and sampling
simulators
and
models
reality
observe
design approximate
design
data
decisions
275. Is there a recipe?
1. Understand the problem you want to solve
2. Choose your solution components wisely
3. Design your ‘experiment’
4. Avoid unnecessary complication – keep it simple
5. Get the right people
6. Acknowledge you are probably wrong – validate
7. Don’t be afraid to change your plans
8. Accept uncertainty, but do it better than others!
276. Take home
• Statistics, machine learning and IT
developments offer great tools
– understand your problem first
– choose your tools, prefer simple ones
– question your models and validate
– iterate and refine
281. Oil & Gas ICT Leaders – March 2016
Surviving the downturn
and preparing for the next wave of IT
Doug Webster – IT Consultant and former Global ERP Manager, Shell
282. Outline and objective
1. Why is this downturn different from any other ?
2. The “Big Disruptors” in the next wave of IT
3. The challenges ahead – survival and growth
4. The changing role of IT and business leaders
Objective: to share experiences, put some material into the room and
stimulate questions, comments and other points of view. There is no
one-size-fits-all recipe but there are common guidelines emerging that
may help many organisations.
8 slides in 15-20 minutes.
283. The current downturn
• Many articles written by many experts on cause and effect
– Supply and demand imbalance
– Economic slowdown in China
– Political battle between Saudi Oil and US Shale producers
• Some alarming facts but nobody knows what will happen next
• Downturns are not new – they happen every 10-15 years !!!
– Capital spending drops from £8billion to £1billion in 2016
– Share price falls of 30-95% in 18 months
– UK oil industry estimates 65,000 job losses
– Rising company debt levels
– Very little company consolidation…...., yet
284. Previous downturns and the IT response
• 2008 – dropped from $147 to $32
• 1998 – dropped from $25 to $11
• 1986 – dropped from $27 to $9
• How IT responded to previous downturns
– Cut contractor rates
– Cut training budgets
– Reprioritised projects
– Outsourced, insourced and renegotiated contracts
– Reorganised departments
– Stopped recruiting
– Laid off contractors and permanent staff
– Managed company mergers
– Demonstrated the value of IT
– Innovated
• Sound familiar?
• In 2016 this will
be
– Essential
– Expected
– Helpful
– Appreciated
• But not enough !
285. Why is this downturn so different?
1. UK Oil & Gas at the mature end
of the curve
– Most companies operate globally
– UK investment may not recover
– Lower costs, higher rewards
elsewhere
– UK must flatten the decline curve
2. IT is experiencing a revolution
– The third era of IT has arrived
• Gartner’s Digital Dragon
• The Age of Digitalization
– The way in which we experience IT
at the individual, social and
corporate level will change forever
– IT leaders in O&G caught between
surviving and innovating
$ $ $ $
UK Oil & Gas maturity curve
Maturity
$ =
downturn
Source: Gartner
286. Software providers (SAP, Microsoft etc)
re-invent themselves as Cloud providers
The integrator role diminishes
Niche players emerge and survive
100% of apps on Cloud by 2025
The “Big Disruptors” in the next wave of IT
50% of the world data produced in the
last two years
Video further fuels the explosion
New tools, new insights at super speed
Data Management is business critical
Tens of billions of smart connected
devices
Big opportunity for O&G in process
control, maintenance, supply chain,
energy grid etc
Everything to Mobile
The user is the dominant design point
Mobility first design mentality
Fashion mindset for apps and devices
Many form factors
100% of apps are mobile by 2020
Everything to Cloud
Big Data gets Bigger
Cyber
Security
The role of Business and IT changes
Internet of Things
New business models evolve in all industries
287. The challenges for today’s IT leader
Two-speed or bimodal IT function
A strategy and guidelines for 2016-2025
Leadership courage & capability
Business support
Act local, display global, act global
Survival
Do more with less
Operational excellence
Continuous improvement
Tell the story in business relevant
language
Growth
Innovate and replace the core with new
technology
New tools – rapid prototyping, fail-fast,
hybrid teams
Seek out opportunities e.g. consolidation,
decommissioning, drone technology
Essentials
288. The changing role of IT and Business
• Business will consume market technology in the cloud and not
design, build and deploy solutions
• Business leaders become increasingly IT savvy
• Hybrid skills and a very different skill set emerge for IT professionals
• IT becomes a navigator not an integrator of technology, working in
partnership to coach, teach and educate business.
• Not all IT leaders will adapt to the next wave of IT
289. Closing message
• The current downturn is different from others because of it’s position
in the maturity curve and a parallel revolution in IT
• IT Leaders must help their companies survive through the downturn
and prepare for an exciting new era of IT
• The winners will be those who can combine the technologies and
ecosystems to create new business models
• It is less about technology and more about how you use it
315. Digital Drives Collaboration and Integration
Collaboration:
Workflow reinvention to optimize the
relationship between partners,
process, people, information and
digital technology
Efficiency improvements through the
reduction of business cycle times
Improves the speed to react
#
Integration:
Enables cross-functional and
intercompany collaboration
Requires end-to-end data integration to
complete the link from sensor data to
long-term investment decisions
Data integration enables the predictive
upstream oil and gas business