Pega Upstream Oil & Gas Capabilities Overview

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1 Pega Upstream Oil & Gas Capabilities Overview Pegasystems, Inc APRIL,

2 Overview Pega delivers a unified, strategic application development platform that empowers upstream oil & gas companies to leverage the increased pace of change across today s energy landscape into a competitive advantage. Pega helps increase efficiency while lowering cost and risk. Whether you are looking to speed the well delivery process for unconventionals, improve maintenance operations, increase returns from existing assets, track AFE costs more accurately or extend the functionality of your SAP system, Pega supports these efforts by providing the right information to the right person at the right time. Pega allows you to transform isolated, siloed functional organizations and manual processes into an integrated, high velocity, automated business solution across the upstream value chain. New opportunities for improvement in upstream operations are being made available by technologies such as big data / Internet of Things (IoT) and predicative analytics. By harnessing these technologies and applying them to support real-time decision making, Pega helps improve the productivity of assets and lower cost and risk. The following provides an overview of the Pega technology and some example use cases for upstream operations. 2

3 WELL DELIVERY WHAT WE FIND Highly complex process with many moving parts both internally within the operating company and externally with contractors. NPT throughout the process due to the many manual handoffs both between functional organizations and contractors Many opportunities for improvement using business process automation and lean / six sigma concepts Siloed systems supporting various parts of the process with limited or no integration Excel, and the telephone are the glue that keeps the process functional Different processes across assets and geographies PEGA SOLUTION Orchestration of the well delivery process through integration of people, process and technology Single interface to the process available on the desktop, tablet or smartphone Integration of data from existing systems without losing existing investment in installed systems Integration of real-time six sigma concepts Full audit capabilities to determine who did what, when and where to support continuous improvement BENEFITS Reduced NPT and faster time to first oil through improved information and automation Improve visibility into well delivery performance, boosting ability to anticipate and react faster to problems in the future WELL DELIVERY PROCESS COMPLEXITY 3

4 ASSET SURVEILLANCE WHAT WE FIND Inconsistent processes across assets, regions and countries Valuable well data is locked in spreadsheets that cannot be easily shared across the organization Staff need to access multiple systems, often having to write down info from one system in order to enter it into another system Well economics are very dynamic requiring both CAPEX and OPEX data that is often unavailable Lack of predictive analytics to help staff determine the next best action Real-time information is not integrated with information from business systems like SAP PEGA SOLUTION Integration of real-time dynamic field data with business and economic data for full asset understanding, insight and action Predictive analytics to help guide operators to make improved decisions Simplify workflows with business rules and automation Operational dashboards developed by the asset team not IT Incorporate best practices from across all asset teams BENEFITS Improved collaboration across the asset management team Reduced time spent searching for and organizing data Quickly identify problems and isolate the underlying causes The platform reviews all wells and recommend actions for the day based on up to date economics TODAY S INTEGRATED DESKTOP 4

5 MAINTENANCE WHAT WE FIND Getting the required preventative maintenance work completed with current resources levels due to missed schedules and incomplete information Making high-dollar maintenance decisions without adequate data Many times work cannot be assigned to the best technician due to lack of visibility into needs and schedules Limited use of big data and predicative analytics Difficulty prioritizing scheduled and unscheduled work Limited use of smart devices in the field to aid troubleshooting Controlling costs due to lack of visibility into operations PEGA SOLUTION Integration of maintenance information from all sources including SAP, Maximo, field scheduling and in-house applications to provide single view of all maintenance activities Use of predictive models and analytics to dispatch the right technician with the right parts and information Use of mobile devices to receive and manage work orders, perform inspections, manage work requests, capture readings, and track inventory Combines real-time field data with business rules and information to improve maintenance outcomes BENEFITS The closed-loop maintenance and field service process, helps optimize asset performance while reducing maintenance costs and improving maintenance outcomes. Effectively define maintenance plans, tasks, and inspections to support a culture change from reactive to preventive maintenance. Embed best practices across the organization through maintenance rules and logic. 5

6 AFE MANAGEMENT / FIELD TICKETING WHAT WE FIND Tracking all of the field costs associated with well construction and delivery that are accruing in real-time is difficult at best and in most cases all but impossible CAPEX leakage of 3%-9% across projects is typical Economic decisions are often made with outdated or nonexistent cost data. Authorizers are most likely in a different location to where the cost is incurred and do not have a full picture of the current budget position to effectively support decision making. There are many, many touch points where costs are incurred and no methods in place to capture these electronically A lack of performance metrics due to paper-based processes and siloed systems. Use of mobile and GIS PEGA SOLUTION Automated matching between the AFE, MSAs, Rate Cards, etc. as needed to process field tickets Full integration with business systems (SAP) and other legacy costing applications BENEFITS Reduction in CAPEX leakage. More effective decision making based on up-to-date information from the field Improved accounts payable efficiencies Potential cost savings through early payment discounts 6

7 INCIDENT MANAGEMENT WHAT WE FIND The lack of best practices, methods and procedures for incident response Increased government regulations Manual processes, limited event/incident tracking systems, and multiple, siloed point solutions are common Complex communications and potentially competing goals across diverse teams from operations, service companies, response organizations Protocols and processes exist, but are not automated - responses and mitigations are often manual, driven with spreadsheets and documents Status tracking is manual, and not holistically represented across groups and systems Lack of active feedback or continuous improvement Reporting and tracking process metrics are challenging PEGA SOLUTION End to end automated incident analysis and evaluation Determine the best response actions and plan for the future with predictive analytics. On demand collaborative communication Universally accessible platform & Cloud supported solution Case management portal with specialized views for different workgroups of users Seamlessly integrates with legacy systems to expand and simplify access to information BENEFITS Enables quick, appropriate responses during incident resolution to reduce injuries, damages and costs Guides users to follow corporate protocol and processes while also providing the flexibility to manage unplanned events Supports detailed status tracking and automated handoffs to significantly improve coordination efforts and ensure timely reporting Provides comprehensive information capture, validation, and case linking to identify trends and act on lessons learned to proactively prevent future occurrences 7

8 APPLICATION MODERNIZATION / RATIONALIZATION WHAT WE FIND Large number of legacy applications across the upstream value chain that are costly to maintain Islands of information due to legacy systems that cannot interface to newer technologies that have been deployed High costs to support and maintain Wasted staff time copying information from one system to another to get work done Lack of integration of legacy applications with web, mobile, and cloud technologies Lack of visibility across end-to-end operations Decisions are made with out of date information due to legacy integration issues Changes to Legacy (Enhancements) can consume up to 50% of IT spend PEGA SOLUTION Re-purposing or consolidation of legacy software to align it more closely with current business needs Align project and organizational objectives to focus on fast, efficient and cost effective legacy application migration Re-architect to enhance business value by updating the functionality and constructs of legacy applications and data BENEFITS Modernizing legacy applications is a low-risk, costeffective way to conserve critical intellectual property and maximize investments Legacy application support costs are decreased Users experience consistent, standardized processes across assets and geographies IT gains capacity to work on more value-added projects by reducing staff deployed to support legacy apps 8

9 SAP AGILITY WHAT WE FIND SAP enterprise resource planning (ERP) systems many times are the greatest contributor to technology inertia. SAP implementations in upstream operations are often large, complex and fragile, and adjusting them to fit changing business needs is a slow and expensive process Execution gaps existing between what the business teams need to run the business and what SAP can deliver Frustration with lack of being able to find the right information at the right time to support real-time decisions High cost of ownership PEGA SOLUTION Layer on to SAP to close execution gaps through rules/logic/analytics and intelligent user interfaces Business and IT collaboration BENEFITS Rapidly leverage SAP applications with new work automation and user experience capabilities 9

10 ADDITIONAL UPSTREAM APPLICATION AREAS Production forecasting Provides easy to develop solution to support the collaborative production forecasting process and the calculations while allowing trained business users to customize their tool without external support which reduce overall TCO for application maintenance and infrastructure costs. Supply chain orchestration Provides "adaptive business layer" to integrate supply chain data from multiple systems with a focus on planning, inventory, and allocation for upstream supply chain operations. Management of Change Takes the MOC process beyond regulatory compliance to a proactive level. Big Data / Predictive Analytics Provides a platform for leveraging new predicative analytical models based on big data constructs developed within the business. Pega makes predictive models directly actionable in business applications to improve decision making and guide users with recommended actions. 10

11 Applications built on the Pega 7 Platform benefit from a unique set of capabilities Complete. A unified platform with everything you need to deliver end-to-end improvement by integrating, automating and improving complex front- and back-office business operations. Fast. 6.4x faster than Java Enterprise Edition to build robust business applications, according to an independent study by Capgemini. Scalable. Build applications that meet the diverse needs of multiple business units, assets,, geographies and business segments. Directly Capture Objectives. Visual tools enable business-it collaboration to deliver applications faster and more accurately for maximum business value. Situational Layer Cake. By automatically tailoring applications to the business context in which they operate, Pega 7 makes it dramatically easier to re-use common policies and procedures and apply them in multiple business units, assets and geographies. Omni-channel UX. Pega 7 delivers an elegant and intuitive user interface that works across all channels. With the Pega Mashup, you can even embed the Pega UI into your existing websites and mobile apps. Case Lifecycle Management. By organizing work by goals, stages, and steps instead of processes and transactions, Pega manages the full scope of work in a way that everyone can easily understand. Next Best Action. Leverage big data, historical data and event streams to optimize decision making. Deliver the right information or more importantly the right action in real time. 11

12 Summary Architected for Scale Easy to use for the department, powerful enough for the enterprise Architected for Agility Complete and unified model-driven platform Integration to existing systems of record Leverages existing investments while supporting emerging technologies Mobile user experience Connects your users wherever they are System Operations Deploy, Monitor and Secure your Pega solution on premise or on cloud 12

13 WHY PEGA? Leading companies around the world rely on Pega to run their businesses Chevron, GE, Toyota, BG, Cisco, Aker Solutions, Siemens Analysts agree Pega is the leader Gartner collaboration between business and IT people overcome organizational roadblocks well-suited to top-down, large-scale business transformation Forrester Pegasystems received the highest scores among all vendors for current offering and strategy Twenty-eight years of growth and solid financial performance 13

14 BETTER BUSINESS SOFTWARE FOR THE DIGITAL ENTERPRISE Build for Change 14