Merging Operational & Financial Datasets to Measure Business Performance

Transcription

1 Merging Operational & Financial sets to Measure Business Performance PPDM AGM October 2010 Page 1

2 Convergence of Topics Projects & Programs Master Management Production Operations Virtualization Drilling Operations Information Maturity Model History & Lineage Taxonomies & Hierarchies Business Performance Financial Page 2

3 Our Discussion Today E&P Domains Financial Operations Technical Operations Production Engineering Drilling Geology Paleontology Geochemistry Seismic Land Well Financial Reporting Page 3

4 Chasm Chasm IM Maturity Model L1 L2 L3 L4 L5 Business Focus Governance Funding Information Lifecycle IM Capability Information Architecture Information Delivery Information Supply Most E&P Organizations Performance Management / Converging Financial and Operational data Page 4

5 Value Forward Looking / Prospective / Forecasting / Play Analysis Efficiently provide clean technical data to Chief Scientists, Petroleum Engineers, Geologists, Drilling Engineers, Reservoir Engineers, Production Engineers and other consumers who need to perform operational analysis Provide management information needed for forecasting operational trends Provide management the information needed to forecast financial performance Actual Performance Results vs. Objectives Gap Provide management the information needed to analyze operational results Provide management the information needed to analyze actual financial performance Correlate the impacts of operational trends on financial performance in order to: Reconcile and explain variances Improve use of working capital Improve revenue forecasting and cash flows Page 5

6 Relevant Questions Have we decreased work orders or improved work order turnarounds? If so, what are the results on our financial performance? Have we decreased unplanned downtime or optimized maintenance procedures based on market conditions? If so, what is the financial impact? Why does accounting s view of the world differ from operational projections? Who is right? How do we reconcile? Is one asset carrying the costs that should have been allocated to another asset? How do we know? Page 6

7 The Gap Drilling Applications Prod Spatial Staging Operations (PPDM) Consisten Delivery Layer Reporting & Analytics Layer Reports Reports Land Well Master Facility Master Field Master Applications Other SoRs SAP BW These questions cannot be addressed without this data! Page 7

8 Bridge the Gap Drilling Applications Prod Spatial Staging Operations Well Master Common Reference Account Master Facility Master Field Master Org/Asset Master Consisten Delivery Layer Reporting & Analytics Layer Reports Reports Land G/L Journal Entries (Actuals) Applications Other SoRs The hard part! SAP BW Page 8

9 Virtualization Drilling Applications Prod Spatial Staging Operations Well Master Facility Master Field Master Common Reference Account Master Org/Asset Master Consisten Delivery Layer Reporting & Analytics Layer Virtualized Service Reports Reports Land Virtual Schema Other SoRs SAP BW Applications SAP BW Virtualization allows data to remain in place Page 9

10 Reconciliation Example Page 10

11 Correlation Challenges Commonality between financial and operational data is not well understood beyond the high-level Semantics between financial and operational data - may as well be speaking different languages Inertia - already consolidated in respective repositories Cultural (people) biases toward their own understanding Application platforms supporting financial and operational datasets are from different planets mapping - multiple hierarchies exist that are not easily matched Financial transactions occur that are not reflected in the operational data Top side adjustments Allocations of fixed asset costs and use of working capital Organizational silos exist between stakeholders of operations and financial data Page 11

12 Scope Dimensions Page 12

13 Approach One bite at a time Incrementally push the scope dimensions Virtualization vs. movement of data Usually org culture and policies driven Communicate at a business object level Keep technical details in the technical architecture Keep the business benefits in focus What aspects of operations and financial performance are we measuring and how will it improve decision making Page 13

14 Summary Organizations are beginning to mobilize around these types of solutions PPDM is key Converged and correlated financial and operational data delivers the benefits that the C-levels are most interested in attaining Page 14

15 Contact Us John Ruddy Paul Haines Page 15