Jane Scott, VP & CIO at Baker Hughes - Implementation of application road maps


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Jane Scott, VP & CIO at Baker Hughes spoke at the CIO Event, March 2013

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  • Closed on BJS acquisition a month agoAdded key product lines to Baker Hughes including pressure pumping, cementing and hydraulic fracturing
  • The “8 Pillars Strategy” is designed to facilitate integration using tool suites and there are 8 core pillars required to run our businessTypically, a pillar is one integrated platformThe pillars have 3 layers or levels level 1 is the pillars and is the lowest level level 2 is the modules within the pillars or the defined vendor offerings within the platform level 3 is the sub-parts within the modulesOur goal is to purchase modules (parts of integrated platforms) and reduce the number of integration points and custom integrationsPillar Level facilitates integration of systems there is a real cost of non-compliance with the pillar strategy (license, integration, on-going support & maintenance) business processes do not necessarily occur within a single pillar; Each pillar houses multiple business capabilities which are enabled by tools that are linked together to deliver business capabilities that span multiple pillars by selecting the appropriate combination of tools to enable business capabilities we can reduce the number of systems and the complexity within our environmentBusiness Platform Level this is where business problems are solved the Business Platform provides a view of the business, regardless of which pillar the transaction is coming from; data used in transactions across pillars is consistent because of data rules (and consistent master data)Platform key Green indicates we have a platform and it is in production environment Yellow indicates the platform is selected, but is not yet in production environment If we have not selected a technology strategy for the capabilities within the pillar, the pillar is red
  • Customer Relationship Management Pillar CRM pillar contains “pointers” to other pillars and information about customers Provides information about customers and provides association between customer and activities with business
  • Example of how a customer order includes multiple processes that flow between pillars
  • Jane Scott, VP & CIO at Baker Hughes - Implementation of application road maps

    1. 1. Jane Scott – VP IT, Baker HughesApplication Roadmaps
    2. 2. AGENDA• Baker Hughes - overview• Business Engagement• Understanding the IT Gaps• Roadmap Content• Do’s and Don’ts• Q&A
    3. 3. About Baker Hughes • Revenues: $20 billion • R&D: $500 million plus • 60,000 employees • Facilities in 90 countries • Operations in 100+ countries* 3 © 2009 Baker Hughes Incorporated. All Rights Reserved.
    4. 4. Products and Technology Drilling and Evaluation drill bits, drilling systems, wireline Fluids and Chemicals drilling fluids, upstream and downstream chemicals Completion and Production completion systems, wellbore intervention, intelligent production systems, artificial lift Reservoir Reservoir technology, Gaffney Cline & Associates, consulting services, field development and integrated operations support, reservoir solutions Pressure Pumping Cementing, hydraulic fracturing4 © 2009 Baker Hughes Incorporated. All Rights Reserved.
    5. 5. Business Engagement Business Value Creation (BVC) - A methodology for developing an IT plan to meet or exceed business needs covering • What must be done • What could be done • What will be done and why • How and when Business IT IT Challenges Analysis Plan5
    6. 6. BVC – Building Blocks Mega Trends Competitive Business Trigger Threats Business Assessment Objectives EventsChallenges Gaps Existing IT IT Assets BHI E&Y E&Y Strategy Estimated Assessed Assessed Threat Vectors July 2009 Jan 2010 July 2010 CommentsAnalysis 1 7 7 Malware Deployed intrusion detection and 2 7 7 Hack & Attack prevention technology Deployed BOTnet detect 3 7 7 Remote Control and blocking technology 4 7 Disruptive Event SAP disaster recovery testing 7 scheduled for Aug 18 5 7 7 Inappropriate Use 6 7 7 Malicious Use 7 7 Denial of Service 8 7 7 Social Engineering 9 7 7 Physical Intrusion 10 7 7 Annoyance Robust solutions available. Capable of Evolving solutions available. Capable of Immature solutions available. Not mitigating risk to an acceptable level. mitigating partial risk – not completely able to mitigate risk. IT Delivery & Results & IT Plan Projects Change Validation Cadence
    7. 7. Baker Hughes IT Core Platforms Digital Quality Maintenance PLM Oilfield Mgmt. Mgmt. ERP CRM HCM Mfg. Execution System Business Platform Data Rules Active Directory Platforms IT Infrastructure Foundation Document Management DNS In place Radius Partially in place Missing7 © 2010 Baker Hughes Incorporated. All Rights Reserved.
    8. 8. Field Srv Mgmt•Operation Data/Planning CRM•Order Management•Well Planning Field Service Management. Market Reserach & Analytics Market Research & Analytics E-Commerce •Customer Data Mining Marketing •Customer Profitability Automation •Dashboards Salesforce Digital •Data Quality Quality Maintenance Automation PLM •Forecasting Oilfield Mgmt. Mgmt.E-Commerce •MPM (Marketing Performance Mgmt)•Customer Portal •Sales Performance Mgmt•E-Catalogs •Web Analytics•Inventory Mgmt•Sales Partner Mgmt Marketing Automation Execution HCM Mfg. ERP CRM •Campaign Mgmt SalesForce Automation •E-Marketing System •Account Mgmt Business Platform •Event-Driven Marketing •Activity Mgmt •Loyalty Mgmt •Lead Mgmt •MRM (Marketing Resource Mgmt) •Opportunity Mgmt •Segmentation •Price Optimization & Mgmt •Social Media •Proposal Mgmt •Sales Content Mgmt •Tender Mgmt Data Rules •Territory Mgmt Active Directory Platforms IT Infrastructure Foundation Document Management •Wireless Mobility DNS In place Radius Partially in place 8 © 2010 Baker Hughes Incorporated. All Rights Reserved. Missing
    9. 9. Sample Process Flow: Customer Order Product goes to design Product is manufactured Quality check is performedCustomer places Digital Quality Maintenance PLM order Oilfield Mgmt. Mgmt. Order is fulfilled ERP CRM HCM Mfg. Execution Order is shipped to customer System Design is stored As-built Repository 9 © 2010 Baker Hughes Incorporated. All Rights Reserved.
    10. 10. Heat Map Legend • Text to describe the yellow & red components of the current state heat map (the gaps).Roadmap color legend 10 © 2011 Baker Hughes Incorporated. All Rights Reserved.
    11. 11. Process or Pillar Application Roadmap Logistics Example Differentiating IT Technology PROCESS - Technology Plan Parity - Industry standard technology 2011 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 BoP 1 BoP 2 BoP 3 Outbound SAP EC 6.0 Common Single system Transportation Planning Inbound Fluids North Pressure Pumping (SAND) RYDER Chemicals North America Common Single system "Ryder 4PL" for North America Road transport Manage For Hire Transportation America USA SCO (Supply Chain Optimizer) Transplace used by BPC and Fluids will be decommissioned Landed Cost Optimization LlamaSoft - used to optimize the position of SAND - USA Communication with External systems SAP EC 6.0 with WebMethods Logistics - Transportation Management Monitor transportation services Global visibility with primary freight partners - Global deployment Implement TMS - Common system for example Oracle OTMSupply Chain CASS - freight billing / audit company Switch to common system RYDER for freight payables in USA Only Freight procurement, payment and audit RYDER - Freight Billing & Account Payable program in USA only Mange Rail distribution TransCore, Qrt 2 is currently deployed for Pressure Pumping. - It will be extended to Fluids and Chemicals at a later date Manage Private Fleet (Not used) Compliance with Transport Regulations ATRION (MSDS / HS&E system integrated with SAP EC 6.0 Duty Management Ricardo duty tracking and monitor in Great Britain only. Proof of concept Dubai - to provide common system (SAP / GTS) available to be deployed at further locations Import/Export Compliance with Trade Regulations SAP EC 6.0 - Standard functionality is being deployed in the Rest of the World including Pressure Pumping Compliance Restricted Party Screening - RPL Deploy extended functionality to allow Automated Export data AES integration with US Customs Trade Automation Document retention for Customs Audit Documentum / Share point Pilot South America /Brasil to provide a common global platform for document retention and retrieval - Option: Siemens content management system KEY BENEFITS / KPIs TMS Strategic IT app - Platform pillar in place today Where we want to be Overall on-time delivery moved to 90% or better is the primary driver for T&L group • Enable BHI to be more competitive vi Tactical IT Application - in place today Enough in place today to perform the job Supports the Supply Chain initiative that no product > 7 days late • Address the core root-cause issues c Solution isnt first choice Gaps/ Missing something Most systems are deployed in USA but design allows expansion to rest of the world • Provide a rapid TMS solution for futu No IT technology identified No solution Switch to common systems and procedures / Standardized reporting Process does not exist Functionality can be deployed to any Hub location Through improved planning and optimiza • Cost savings of 8% of freight under managemen • Cost reduction of 6% due to reduced Expedited f PRODUCT - System Plan (Numbers are $ 000s) Process Roadmap should highlight new business capabilities Pillar Roadmap should highlight application rationalization & enhancements 11 © 2011 Baker Hughes Incorporated. All Rights Reserved.
    12. 12. Future State Assessment of Technology Portal Collaboration & Prod Decision Supp & Ana UI Components Enterprise Business Processes (external to the TRM) Qlty Mgt Oilfield Digital Maint. CRM HCM Exec PLM ERP Mgt Mfg Execution Security Application Integration Platform Data Platform Infra Services and Applications H&S Client Computing Networking12 © 2011 Baker Hughes Incorporated. All Rights Reserved.
    13. 13. DO’s and DON’TsDO:• Prioritise• Partner with vendors• Eliminate duplicate and redundant applications• Think about the user experience• Measure progressDON’T• Forget Mergers and Acquisitions• Assume standardisation is required• Blind the business with science
    14. 14. QUESTIONS?