EA JOURNEY IN A GLOBAL ORGANIZATION

Transcription

1 EA JOURNEY IN A GLOBAL ORGANIZATION The Upstream Americas Enterprise Architecture Journey Kathy Long UA Unconventionals Business Process Management Lead

2 DEFINITIONS AND CAUTIONARY NOTE 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 over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to joint ventures and companies over which Shell has significant influence but neither control nor joint control are referred to as associates. In this presentation, joint ventures and associates may also be referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) 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, goals, intend, may, objectives, outlook, plan, probably, project, risks, schedule, seek, should, target, will 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 regulatory measures addressing climate change; (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 risk factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended December 31, 2012 (available at and ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 11 June Neither Royal Dutch Shell plc 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. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC-0330.

3 Agenda About Shell... What is Enterprise Architecture in Shell? How did Enterprise Architecture originate in Shell s tight/shale gas and oil business? What have we done so far? What have we learned? Q&A 3

4 Profile + 70 countries where we operate Worldwide, we have around 87,000 average number of employees 3.3 million barrels of oil equivalent we produce every day 44,000 Shell service stations worldwide In 2012 we Generated an income of $26.8 billion; Had net capital investment of $29.8 billion; and Invested over $1.3 billion in R&D Royal Dutch Shell plc is listed on the stock exchanges of Amsterdam, London and New York 4

5 Our Businesses Upstream refers to the ways we find and extract crude oil, natural gas and oil sands. Downstream refers to the ways we transform them into products. 5

6 Does this look familiar? We need to get our ACDs defined for this process and think about our lines of defence after all, we re following ISO 9001 here... We really need to think about Heijunka for this process. Also let s not forget we must go to GEMBA! Have we consulted the segment or reference architecture for this process? What are they saying? 6

7 What is Enterprise Architecture in Shell? 7

8 Why Enterprise Architecture? Opportunities Strategy Stakeholders Value Chains Principles Mission Values Weaknesses Organizations Events Triggers Responsibilities Roles Financial Assets Jobs Goals Constraints Objectives Vision Threats Requirements Strengths Processes Services Functions Skills Objects Facilities Information Time Data Legal Cost Locations Knowledge Tools Applications Systems Products Methodologies Procedures Workflow Business Rules Risks People Projects Budget Tax Models Databases Middleware Use Cases Hardware Networks 8

9 What is the Enterprise Architecture Program (EA4U)? EA4U (Enterprise Architecture for Unconventionals) is a 5 year plan to improve how we manage and use data in Onshore, with incremental improvements along the way. Apps Current State Steps to get there: Define Onshore Business Model Business Processes fit for Purpose Integrated Systems Implemented Data Architecture in place Sustainability imbedded Data A B C D Future State Trusted Data Warehouse EA4U Vision The Right Data to the Right people at the Right time in the Right format A B C D 9

10 Onshore Enterprise Architecture Program (EA4U) Purpose Data Architecture Fit for Purpose Processes Defined Business Model The right data & Information to the right people at the right time in the right format Integrated Systems Sustainability Long term, ongoing Onshore Business Transformation Provide toolkit framework for the rest of the Onshore business and Global business Leverage current systems that manipulate data to get the information we need. 5 year business improvement plan Standardize processes across assets Underpins staff efficiency essential for profitable growth, 40% staff inefficiency today Foundation: Aera Data Model and Experience, Process Excellence, LEAN 10

11 EA Framework The EA team identified the key processes using the Upstream Business Model (UPBM) and assigned Process Architects and Process Managers to each of the key process. Provide general details about the operation. Understand relationships between processes. Clear lines of responsibilities....you can t make it better if you don t know what it is. Technology Application Data Business 11

12 How did EA get Started? A Process-Focused, Data-Driven, Problem-Solving Culture European EA4U The End of the Journey NEO Aera Method Ukraine start 2009 Onshore EAP study start 2010 Manufacturing Mindset Process before function Enterprise before unit Emphasis on processes that add value Go to Gemba (leaders in the workplace) Standards wherever possible Technology to solve problems, not as an aspiration Culture/Leadership Business decisions based on facts, not emotions Clear accountability, responsibility through transparency Relentless pursuit of improvement through waste elimination and defect prevention SHELL Leaders as teachers Organizational alignment Simplicity and standards versus complexity Commitment that goes beyond compliance Respect for people Information Systems The business defines the data needs Enterprise Architecture supports faster, more cost effective decision making Data Quality processes that focus knowledge workers on utilizing information Real time information replaces reports and guess work Build a business, not an IT empire 12

13 PRE-2012 Data Is a Mess What to Expect and When 2012 Build the System to Store the Data Well Data Finance Data Geology Data Other Data Corporate Information Factory Well Data Simplify & Standardize the Processes 1 Finance Data Geology Data Other Data Quality Data is Easily Accessible 1. Data 2. Data 3. Data 4. Data 5. Data Corporate 6. Information Data Factory etc Integrated Data: Easily Analyzed & Reported 40% time Wasted 13

14 Shell Enterprise Process Model 14

15 The Route to Value Increased focus on true end-to-end processes ( value streams/value chains ) Creating a focus on continuous improvement rather than the discipline or methodology Developing an understanding of different discourses around process by bringing BPM, Quality Management, LEAN and IT professionals together in a single network Focussing on board-level priority processes Aligning around a common vocabulary and process framework (the Enterprise Process Model) Pushing for aligned process governance across end-to-end processes 15

16 Upstream Business Model 16

17 Process Managers EA4U Initial Process Scope GOVERNING PROCESSES Plan Exploration and Appraisal CORE PROCESSES Abandon Wells Abandon Facilities ENABLING PROCESSES Manage Enterprise Architecture 17

18 What have we done so far? 18

19 Work package relationship Phase 1 Phase 2 Parameter Concepts Many Relationships Item Equipment & Materials Surface Placement Facility Monitoring Facility Information Fluid Participation Factors Directional Survey Information Wellbore Information Geologic Information Employees & Contractors Field and Reservoir Information Segments of Reservoirs 19

20 What have we learned? 20

21 Challenges faced by Regional Architecture Projects Understanding Business Process Management Ensuring an Alignment to the Enterprise Process Structure Following a structured approach to Process Management Understanding & Increasing the Maturity of Process Providing Process Governance 21

22 Enterprise Architecture Challenges Multiple Process Architectures Minimal alignment between models Other groups have their models as well Organization need to coordinate process change Understanding the effect of changes made in one part of the world Inconsistent Program, Process and Project Approaches Need consistent process to support Business Management System 22

23 Key Takeaway Messages EA4U is a complex transformation program Partnership with Global IT program to develop footprint for deployment in Upstream globally 2013 Focus is primarily foundational data projects for Enterprise Architecture /Corporate Information Factory build Initiating only process maturation of Demand Management Council and Process Councils (as able) Key process changes begin very late in 2013 No major IT programs started; move to complete Business Improvement Projects/Quick Wins 23

24 Questions? 24

25