Technology Innovations Enabling Business Transformationsap.lianacms.com/media/events/library/assets/enr-forum/hisham... · 06.10.2015 · information in this document is not a commitment,

Focus on Operation Excellence in the Context of Low Oil Price: Technology Innovations Enabling Business Transformation

Hisham Gouda

Sr. Director, Oil & Gas Industry

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050

100150

1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15 Jan-20 Jan-25 Jan-30 Jan-35 Jan-40

Historical

Forecast

Low

High

A matter of perspective

Source: Energy Information Administration


Increasing business complexity

NetworkEnterpriseProcessFunctional


Some factors

Cost control

Disciplined investment/cash flow

Customer focus

License to operate


Success = resilience

re·sil·ience (noun) \ri-ˈzil-yən(t)s\

1. the capability of a strained body to recover its size and shape after

deformation caused especially by compressive stress

2. an ability to recover from or adjust easily to misfortune or change


Integrated Operations

Resilient Oilfield with Mash-Ups

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

8

Digital Operations

5 Y

Time Horizon

Valu

e o

f tr

ansfo

rmation

Operationalized

Asset Intelligence

Asset

Modeling

Digital Oilfield

Resilient

Oilfield

Now

Predictive

Asset

Intelligence

Transport

Optimization

Enhanced

Scheduling

Asset

Surveillanc

e

Unconventional/

Complex Drilling

Shared High

Frequency Drilling

Data

Remote

Monitoring

Remote

Operations

Management

Real-time

Drilling

Profitability Based

Production

Fully Aware

Production

Optimizatio

n

Resilient Operations

Production Optimization

Asset Integrity

Delivery Logistics

Informed Drilling

Mobility

Cloud

Big Data & Analytics

Maximize ROCE

Safety Aware

ROCE = return on capital

employed


Resilience comes from simplicity

User experience

Engineering/

procurement

Upstream

operations

Downstream

operations

Maintenance/

EH&S

Human resources

Finance

Applications

SAP S/4HANA

Analytics


Our connected future

Connected refining

Connected bulk logistics

Connected fuels

Connected cars

Connected oilfields

Connected projects

Connected workforce

Connected drilling


A resilient platform and path to simplicity

Co

mp

lexit

y

Grow and

innovate

Run

Simple

• Customers

• Partners

• SAP

Path to

simplicity

Engineering/

procurement

Upstream

operations

Downstream

operations

Maintenance/

EH&S

Human resources

Finance

AnalyticsApplications

SAP S/4HANA

Business

User experience

Technology


Engineering/

procurement

Human resources

Upstream

operations

Downstream

operations

Maintenance/

EH&S

Finance

An integrated & focused business process model


An integrated & focused business process model

Capital and

Effectiveness

Capital Planning

Portfolio and

Project Management

Strategic Sourcing and

Supplier Management

Procure to Pay

and Business Network

Integrated Digital

Oilfield Operations

Hydrocarbon

Production Management

Hydrocarbon

Revenue Management

Field Logistics

Hydrocarbon

Supply Chain

Hydrocarbon Supply and Distribution

Hydrocarbon Processing Visibility

Commercial Sales and Marketing

Secondary Distribution and

Fuels Retailing

Convenience Retailing

Operational

Integrity

Risk Analysis

and Governance

Workforce Competency

Asset Integrity

Environment,

Health, and Safety

Enterprise Information

Management

Data Architecture and

Integration

Information Governance Content Management Information Archival

Human Resources Core Human Resources and

Payroll

Talent Management Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Planning

and Analysis

Accounting and Financial

Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and Compliance

Management

Platform and

Technology

Enterprise Technology Analytics Technology Mobile Technology In-Memory Technology

14© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Focusing on Production













15% uplift via improved

data flows & analysis

Improved data flows and analytics can statistically improve

production rates by 5-15% depending on data availability

One operator generated more than $1.0 bn in shareholder value from improved information processing across its asset base for an investment of only $50 mn!

141210842 60 18 2016 22 24 26 28 30 32

ActualproductionArps’ forecast

MonthlyProduction

Month

Improvement for gas-producing assets1 Improvement for liquids-producing assets1

20 20 2412 2214 16 184 6 8 10 28 30 3226

Month

MonthlyProduction

Arps’ forecast

Actualproduction

Note 1: These results were for matured oil & gas fields in the United States and Canada and leveraged existing SCADA applications in the field; differences in results between gas and liquids-producing assets is largely explained by differences in data collection methods typically employed across North America.

Source: A.T. Kearney

Business case for improving data flows & analytics

Client Examples

5% uplift via improved data

flows & analysis


STO Project: 300000033

Search

Cumulative Totals

Expenses ( M USD)

Actual and Target

8.2

3.5

Project Budget

Sanctioned to Date

85MUS

D

Milestone Trend

STO Project: Refinery STO2015 80.2 MUSD

Project ID: 30000033

Start: 21 May 2015

Project Manager: Kate Jacob

End: 30 Jun 2015

Project Structure

300000033

STO Scope

500000055

Scope Items

342

STO Work Orders

Work Orders

4809

STO Work Packages

Work Packages

300Milestones

11

Status: In Preparation

Project Progress

31%

Next Milestone:

Scope Challenge

Michael Smith

Focusing on Uptime


STO Project: 300000033

In ProcessHL Scope Sign Off

Agreement on High Level Scope

among all stakeholders

21.03.2015

Mark Brown

Not StartedPrepare Detailed Scope

Prepare detailed scope in collaboration

31.05.2015

Mark Brown

Not StartedLong lead materials & services

Prepare list of long lead materials & services

06.06.2015

Armin Schwarz

Not StartedOrder long lead materials & services

Place orders for procurement

10.06.2015

Armin Schwarz

Not StartedPrepare for scope challenge

Setup the scope challenge meeting and invite stakeholders

and voting members

10.06.2015

Mark Brown

Activity Due

Status

Definition Execution EvaluationPlanning &

Preparation

40%95% 0% 0%

My Activities Sort by Due Date

Michael Smith


Refinery STO 2015

In Scoping Phase

10014284

10014285

Equipment no Edit Remove Select

XYZ

ABC

08/31/14

12/10/14

STO Owner Added on

10014288

10014289

MNS

JKL

07/31/14

09/20/14

Functional

Locations

2

Equipment

4

Motor

Turbine

Description

Tanker

Super Motor

Start Date:

End Date:

Project Manager:

28JUNE2015

30JUNE2015

Kate Jacob

Michael Smith


Equipment Details

A

Search

Equipment

9003563890035638

Equipment

Plant 0001

Equipment

90035670

Plant 0002

Equipment

90035637

Plant 0003

Equipment

800065387

Plant 1000

Plant 0001

Functional Location IN-BLR-03

Workcenter:

Person responsible

Status

Address:

Company code

Cost center:

Mechanik

38089

Available

Plant 2A

0001

645876489

Add to Scope Maintain Work Item

Michael Smith


Work Items of Equipment 90035638

Status

Open

Scope Item

ACME

Plant

Work Item

Work Item Description Phase Offset Account

0001Before STO Preparation

0002During STO STO

0003After STO POST

0004General activities Cleaning

Work Items (4)

SearchReset

Michael Smith


Operations of Work Items 0001 of Equipment 90035638

Status

Open

Scope Item

ACME

Plant

Operation

Operation No Task list Operation description Control Key Workcenter Offset Account

001050000021 Isolate the equipment PM01 100450003

002050000043

Scaffolding PM02 200776544

003041000051 Erection PM03 000678332

004065120003 Remove scaffolding PM01 000322235

Operations (4)

SearchReset

Michael Smith


Integrated financial planning

SAP Fiori apps – dashboards for CFOs

SAP Upstream Operations Management

application enhancements

SAP Joint Venture Accounting

application optimized to run on the SAP

HANA platform

Transactional availability for remote sites

Retail fuel network operations

SAP solutions for customer engagement

and commerce (SAP Cloud for Customer

solution)

SAP Master Data Governance

application, enterprise asset

management extension by Utopia

Usability improvements in SAP

Enterprise Asset Management

Ariba Network enhancements

Fieldglass/Ariba software integration

SAP Production and Revenue Accounting

enhancements (SAP HANA platform

optimization)


application enhancements (forecasting

and revenue integration)

Traders and schedulers workbench

enhancements (SAP HANA optimizations,

SAP Fiori)

Natural gas transmission

Further Enhancements for SAP Predictive

Maintenance and Service solution

Risk assessment improvements to SAP

Environment, Health, and Safety

Management

Total workforce – creation of integrated

solution to manage end-to-end workforce

lifecycle for both contingent and own labor

Simplified project management and

portfolio management in the cloud

Managed cloud for upstream operations

management

Global revenue accounting

Managed cloud for downstream

Continue downstream transformation (for

example, SAP HANA optimizations,

simplifications)

Using predictive and real-time analytics to

improve safety and risk management

Collaboration in the cloud for asset

information

Overview of SAP road map for Oil & GasRoad map highlights

Future directionRecent innovations Planned innovations








HANA platform





solution)










optimization)






SAP Fiori)






Management







management





simplifications)




information


Future directionRecent innovations Planned innovationsRecent innovations



SAP Upstream Operations Management application enhancements

SAP Joint Venture Accounting application optimized to run on the SAP

HANA platform



SAP solutions for customer engagement and commerce (SAP Cloud

for Customer solution)

SAP Master Data Governance application, enterprise asset


Usability improvements in SAP Enterprise Asset Management








HANA platform





solution)










optimization)






SAP Fiori)






Management







management





simplifications)




information


Future directionRecent innovations Planned innovationsPlanned innovations



SAP Production and Revenue Accounting enhancements (SAP HANA

platform optimization)

SAP Upstream Operations Management application enhancements

(forecasting and revenue integration )

Traders and schedulers workbench enhancements (SAP HANA

optimizations, SAP Fiori)


Further Enhancements for SAP Predictive Maintenance and Service

Risk assessment improvements to SAP Environment, Health, and

Safety Management








HANA platform





solution)










optimization)






SAP Fiori)






Management







management





simplifications)




information


Future directionRecent innovations Planned innovationsFuture direction

Total workforce – creation of integrated solution to manage end-to-end

workforce lifecycle for both contingent and own labor

Simplified project management and portfolio management in the cloud

Managed cloud for upstream operations management



Continue downstream transformation (for example, SAP HANA

optimizations, simplifications)

Connected car

Using predictive and real-time analytics to improve safety and risk

management

Collaboration in the cloud for asset information


Product Roadmap - SAP S/4HANA for Oil & Gas

SAP Simple Finance

1.0 w/o JVA

• Further core simplifications

• Further optimizations & simplifications for Oil & Gas solutions

• SAP Simple Finance 1503

• With JVA enablement (wave one)

• PRA optimizations

• TSW optimizations (wave one)

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice.This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Suite on HANA incl. Oil & Gas

solutions

1

Build Foundation

2

Simplify Innovate

and Optimize

3

• SAP Simple Logistics with Oil & Gas solutions (upstream & downstream)

RECENT PLANNED FUTURE


SAP

Suite on

HANA

1

SAP

S/4HANA

with Simple

Finance

2

SAP Cloud

Solutions

Cloud for

CustomerFieldglass

Ariba

SuccessFactors

Build Foundation Simplify Innovate and Optimize

SAP

S/4HANA

on-premises

SAP HANA Cloud

Platform

SAP

S/4HANA

managed cloud

SAP

S/4HANA

public cloud

3

Customer Path to Success with S/4HANA


Time to value

Max.

90-120

days

Business Release

Traditional approachPain and

suffering

Provides for quick time to value

or

Maintains momentum and enthusiasm

Peace of

mindor

+

-

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Thank you جزيالشكرا

Contact information:

Hisham Gouda / هشام جودة

Sr. Solution Manager for O&G Industry Business Unit

[email protected]

mailto:[email protected]

Technology Innovations Enabling Business Transformationsap.lianacms.com/media/events/library/assets/enr-forum/hisham... · 06.10.2015 · information in this document is not a commitment,

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