2008 Gartner Conference It Business Value

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2008 Gartner Conference It Business Value

  1. 1. GARTNER CONFERENCE 2008 IT/Business Value Presented by: Tracy Nolan – CIO November 13, 2008 RAISING PERFORMANCE. TOGETHERTM
  2. 2. GARTNER CONFERENCE 2008 Cameron International Overview RAISING PERFORMANCE. TOGETHERTM 2
  3. 3. GARTNER CONFERENCE 2008 Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries… • Products used to control, direct, adjust, process, measure and compress pressure & flows • 175 years continuous history • Headquartered in Houston, TX • $ 5 + billion in annual orders • 2/3 of business non-USA London • $ 10 + billion market cap • 15,500 + employees Houston • 260 + locations worldwide Singapore • 50 + strong product brands • 11 operating divisions holding leading positions in global oil & gas and process markets •More information at www.c-a-m.com RAISING PERFORMANCE. TOGETHERTM As of January, 2008
  4. 4. GARTNER CONFERENCE 2008 Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries. Downstream Upstream Exploration Development Transportation Refining & Mktg Process Ind Production GAS AIR FLO PET SUR PRV DSV Surface EGV FLC Subsea DRL SUB Scale $ 500 Million Based on 2007 orders; Red = Drilling & Production Systems group; Green = Valves & Measurement group; Gray = Compression Systems group RAISING PERFORMANCE. TOGETHERTM
  5. 5. GARTNER CONFERENCE 2008 Drilling & Production Systems group Drilling Systems • CAMERON Surface Systems • CAMERON • MCEVOY • WILLIS • WKM • IC • TUNDRA • STEROM Subsea Systems 15K Marine • CAMERON Tahiti Field Tengizchevroil Land • WILLIS Development BOP Stack Wellhead & Tree Flow Control • WILLIS • CAMERON • LEDEEN Petreco Process • PETRECO • WEMCO • KREBS • KCC • VORTOIL • BFCC One of two identical Metrol • UNICEL Dual Media Filter Packages • METROL Compact Retrievable supplied to Chevron • EDGE Insert RAISING PERFORMANCE. TOGETHERTM
  6. 6. GARTNER CONFERENCE 2008 Valves & Measurement group Distributed Valves DEMCO • NAVCO • NUTRON • TXT • WHEATLEY • WKM • Floating Gate Butterfly Cryogenic THORNHILL CRAVER • Ball Valve Valve Valve Ball Valve TBV • TECHNO • Engineered Valves CAMERON • GROVE • Subsea Welded body Welded body Bolted Body PowerRSeal RING-O • Ball Valve Trunnion Ball Valve Trunnion Ball Valve Gate Valve TOM WHEATLEY • WKM • Process Valves ORBIT • FOSTER • Top Entry Bolted body Orbit Rising Stem Severe Service ENTECH • Trunnion Ball Valve Trunnion Ball Valve Ball Valve Floating Ball Valve GENERAL • TK • WKM • Measurement Systems NUFLO • BARTON Plug Ultrasonic Liquid Turbine Flow Scanner • Valve Flowmeter Flow Meters Systems CLIFF MOCK • CALDON • RAISING PERFORMANCE. TOGETHERTM
  7. 7. GARTNER CONFERENCE 2008 Compression Systems group Reciprocating Compression • AJAX • COOPER- • BESSEMER • CSI • ENTERPRISE • SUPERIOR • TEXCENTRIC • TSI Integral Engine / Compression Products Centrifugal Compression Products Centrifugal Compression • JOY • MSG • TURBO-AIR Reciprocating Compression Products Legacy Engine Products RAISING PERFORMANCE. TOGETHERTM
  8. 8. GARTNER CONFERENCE 2008 Cameron is a leading provider of flow equipment aftermarket services to worldwide oil, gas and process industries. Downstream Upstream RAISING PERFORMANCE. TOGETHERTM
  9. 9. GARTNER CONFERENCE 2008 IT Mission and Strategy RAISING PERFORMANCE. TOGETHERTM 9
  10. 10. GARTNER CONFERENCE 2008 IT Mission Serve Protect Empower Simplify Lead We will provide the highest level of customer service and measure ourselves by customer satisfaction We will protect our information assets and comply with all regulatory agencies We will provide information to the right people at the right time to drive decision making to the right level in the simplest, fastest and most convenient way possible We will lead and facilitate the adoption of best practices across our businesses and benchmark with world class companies And, of course, we will do it in the most cost efficient way possible RAISING PERFORMANCE. TOGETHERTM
  11. 11. GARTNER CONFERENCE 2008 IT Business Value What/Examples Strategy Products and services become Close partnership with divisions to Information Based enhanced by information technology; develop offerings and rethink our Products and Services e.g. Remote monitoring, preventative business model when it comes to maintenance contracts aftermarket and services Provide customers and obtain from Close Partnership with divisions to customers information to make develop offerings and bring Six Sigma Customer Extension Cameron and the customer more and digitization to the customer for the productive customer Process Re-engineering/ Turn Data into Information and use to Using Six Sigma and process streamline processes. Self Service, reengineering as tools to work closely Digitalization Operational Dashboards, Business with business partners to provide data Intelligence, ease of use and determine opportunities to digitize streamlined processes Day-to-day business transactions Provide global business functionality systems ERP’s, HRIS, AutoCAD in the simplest most cost effective Business Transaction manner – SAP single Global instance Processing – Single source of truth Basic IS Services Networks, PC’s, Reduce Costs, Standardize, Infrastructure Servers, E-mail, Help Desk Consolidate, Simplify, Protect, Outsource RAISING PERFORMANCE. TOGETHERTM
  12. 12. GARTNER CONFERENCE 2008 The New World RAISING PERFORMANCE. TOGETHERTM
  13. 13. GARTNER CONFERENCE 2008 Dates That Changed the World Netscape goes Public RAISING PERFORMANCE. TOGETHERTM
  14. 14. GARTNER CONFERENCE 2008 What does this mean to Cameron? Serve Design Build Account Anywhere Anywhere Anywhere Anywhere Intercompany AutoCAD/Inventor Machine Tool CRM Lock box Standardization Standardization Customer Integrations Wire Transfer Vault Machine Tool Variant Configuration IP/Sourcing/Mfg Search and Retrieval Monitoring Global Trade SAP PLM Streamlining CAM Standardization Service Companies Product Data Bar Coding Source Management Kronos Anywhere Mfg Planning Initiative Supplier Relationship Management Vendor Self Service Procurement Data Mining Intercompany RAISING PERFORMANCE. TOGETHERTM
  15. 15. GARTNER CONFERENCE 2008 Governance RAISING PERFORMANCE. TOGETHERTM 15
  16. 16. GARTNER CONFERENCE 2008 IT Organization Global Process Leaders Global Supply ShopFloor Administrative NPI/ETO Commercial Aftermarket Chain Support Activity Partner with process thought leaders from businesses Verify process steps Map information flow Determine Key Metrics and Benchmark Determine best practices Identify key gaps Determine Potential Solutions Prioritize within Process Execute plan together with “business CIO” and COE’s Hold Qtrly Steering Committee Meetings with Functional VP’s from all Divisions RAISING PERFORMANCE. TOGETHERTM
  17. 17. GARTNER CONFERENCE 2008 IT Organization Business CIO’s (IT Directors) Drilling & Production Valves & Measurement Compression Systems Group Division Systems Activity Partner with Business Leaders Determine IS Strategy based on Business Strategy Prioritize across Processes and functions “Owns” Business’ IS Strategy Works with Global Process Leaders and COE’s to execute strategy Represents CCC initiatives to Business’ leaders Determine Level of Business analyst Support for Organization Qtly Steering Committee with Division Business Leaders from each Group RAISING PERFORMANCE. TOGETHERTM
  18. 18. GARTNER CONFERENCE 2008 IT Organization COE leaders Acquisitions Infrastructure SAP Regional & Quality & Web Services PMO Development Leadership Deployments Compliance Activity Cost Effective Solution Delivery Project Management and Execution Deliver changes based on Business Analysts Specifications Vendor Management – Develop Flexible Workforce Model Develop a Service Catalog for services rendered (i.e.. Infrastructure charge per seat, programming costs) Daily Operations Compliance and Governance RAISING PERFORMANCE. TOGETHERTM
  19. 19. GARTNER CONFERENCE 2008 IT Organization Global Supply ShopFloor Administrative CIO NPI/ETO Commercial Aftermarket Chain Support Business Business Business Business Business Business Analysts Analysts Analysts Analysts Analysts Analysts Drilling & Production Systems Division Business Business Business Business Business Business Analysts Analysts Analysts Analysts Analysts Analysts Valves & Measurement Group Business Business Business Business Business Business Analysts Analysts Analysts Analysts Analysts Analysts Compression Systems Division Business Business Business Business Business Business Analysts Analysts Analysts Analysts Analysts Analysts Petreco Process Systems Division Acquisitions Infrastructure SAP PMO & Web Services Quality & Asia Development Europe Deployments Compliance RAISING PERFORMANCE. TOGETHERTM
  20. 20. GARTNER CONFERENCE 2008 Major IT Initiatives 6-Sigma Governance Transition & Define Measure Design Build & Test Analyze Control Business CTQ’s Flowdown Failure Modes Benchmarking System Prototype/ Hardware/ Problem Analyst Effect Analysis (FMEA) Information Pilot Software Statement/ Baseline measures Installation Mission Help Desk Training Internal Best Technical Project CTQ’s User Training Practice Architecture System High Level Identification Review Configuration Process Map Project CTQ’s Data Conversion System Cutover Evaluation Criteria CTQ Defect Functional Programming and Multi-generation Valves & Analysis Specifications Integration Plan/ IN-OUT Measurement Communications/ Detailed Process development Scope Document Marketing Plan Maps Of Current High Level map Technical Process Of re-engineered Specifications Unit Testing Business Sponsor/ Monitoring Plan Process IT Sponsor Compression Systems Initial Project Risk Service Level FIT Testing Chuck Burg Business CTQ Audit Assessment Identify Potential Agreement Business Leader/ Project CTQ Audit Solutions Load simulation IT Leader Rough-cut cost Organizational and response time Control Charts and expectation Solution Customer Change Plan Testing High Level Plan References Process CTQ’s Sponsor Tollgate Review and update User Acceptance Support Plan And Sign-off Detailed Resource Risk and Resource Initial Resources/ Plan Plan Systems Operation Key Decision Sponsor Tollgate Review Makers And Sign-off Cost/Benefit Sponsor Tollgate Analysis And Sign-off Production Launch RAISING PERFORMANCE. TOGETHERTM
  21. 21. GARTNER CONFERENCE 2008 A Little More on Six Sigma RAISING PERFORMANCE. TOGETHERTM 21
  22. 22. GARTNER CONFERENCE 2008 The Six Sigma Equation Y = F (x) OUTPUT SIGNAL IN-PROCESS PARAMETERS RELATIONSHIP or EQUATION THAT EXPLAINS Y IN TERMS OF X Gives Distance traveled Car speed, traveling time Gives Money to Spend Income, Commitments, Credit Rating OUTPUT (Y) IS DETERMINED BY THE VALUES OF THE IN-PROCESS PARAMETERS (X’s) RAISING PERFORMANCE. TOGETHERTM
  23. 23. GARTNER CONFERENCE 2008 Six Sigma Maturity Model Phase 5 Phase 2 Phase 3 Phase 4 Phase 1 Customer view Focus Cluster Correlation Learning Customer Metric Big Y y1 y3 yn Big Y Y unit measure Y unit measure Y=f(x) Y=f(x) x xn x x1 x x n xn xm x x 2 x x 9 6 m m n n y2 y4 Cluster Cluster What’s Reported Identify our Key Processes Big Y metrics validated Identify Key Processes for # Projects To Customer/Market (Big Y) by customer at unit Customer $’s Saved Determine Big ―Y‖ Metrics level Determine Customer Metrics # Black belts Trained Identify ―X‖ Metrics f (Function) modeled Determine ways to improve # Green Belts Trained Cluster projects around Big ―Y‖ Critical X’s identified customers performance Certifications Projects success based Predictable improvements Measurements tied to on improvement in ―X’s‖ Identified and customer success Continue phase 1 metrics forecasted with less emphasis To From Outside-In Inside-Out RAISING PERFORMANCE. TOGETHERTM
  24. 24. GARTNER CONFERENCE 2008 Six Sigma Phase 2/3 What are the top 1 to 3 processes to focus on? If my business/division was the world class provider of this process, our customers would reward us by making us the fastest growing and most profitable company in our industry? How do I measure this process? What is the ―Big Y‖ measurement and what are the Critical X metrics? What is my Baseline? And What would be World Class? How do I benchmark? Set incremental goals for achieving World Class? How many resources and projects will I need to impact the ―Big Y‖? What will be the target measures for ―Big Y‖ and the ―Critical X’s‖? RAISING PERFORMANCE. TOGETHERTM
  25. 25. GARTNER CONFERENCE 2008 Six Sigma Phase 2/3 If my engineered valve business could manufacture and delivery to the customer in 4 weeks or less, our customers would reward us by making us the fastest growing and most profitable company in our industry! How do I measure this process? Big Y Lead Time = Delivery Date – Order Date < 28 days What is my Baseline? Lead Time Mean = 300, Median = 290, Std Dev = 110 And What would be World Class? Lead Time Mean = 45, Median = 45, Std Dev = 10 How do I benchmark? Against companies who manufacture Large Assemblies which require custom engineering work…. What are the ―Critical X’s‖? RAISING PERFORMANCE. TOGETHERTM Sample Only
  26. 26. GARTNER CONFERENCE 2008 Six Sigma Phase 2/3 New Product Inquiry To Project Intro Global Supply Order Manufacturing Aftermarket Back Office Management Engineer to Chain Order Opportunity Market Project Portfolio Low-cost suppliers Throughput Field Service Attract and Tracking Identification Management Dispatching Retain Top Vendor Cycle time Talent Quotation & Design for Supplier/ management Reduction Remote monitoring Proposals Manufacturability Manufacturing Compensation DFSS integration Material Quality Asset utilization Customer Property Configurator Mgmt Tax Design for Change Distribution NetworkSchedule Optimization Customer Aftermarket Management Configuration adherence Customer Maint. Service Opportunities MTS,ATO,MTO, Integration A/R Resource Transportation ETO Terms Modular Design Leveling strategy Asset Discovery A/P Manufacturing flow Cross-Selling 3D Model Project Demand management Field Data Cash CAD/CAM Accounting management Collection Management Quick Market Cost/Margin Capacity Intelligence Engineering Planning Intercompany Change Risk Management Sub Contractor Management Optimization Target Costing Cost Control Manufacturing Scale-up Supply Chain integration RAISING PERFORMANCE. TOGETHERTM
  27. 27. GARTNER CONFERENCE 2008 New Product Inquiry To Project Intro Global Supply Order Manufacturing Aftermarket Back Office Management Engineer to Chain Order Opportunity Modular Design Supplier/ Vendor Throughput Attract and Tracking Manufacturing management Retain Top 3D Model integration Cycle time Talent Quotation & CAD/CAM Material Quality Reduction Proposals Change Intercompany Engineering Management Transportation Asset utilization Configurator Change strategy Management Resource Schedule Quick Market Leveling Demand adherence Intelligence management MTS,ATO,MTO, Big Y ETO Delivery date – Order date Lead Time Manufacturing flow Critical X’s management Opportunity Mgmt % for Orders Taken not Capacity Demand Mgmt Identified in demand plan Planning Configurator % New Design Sub Contractor Modular design % Design reuse Optimization 3D Models % 3D Models Eng Change Orders #/Unit Throughput Units/Day Cycle time Schedule Changes/month Asset Utilization % Equipment Utilization Sub-contract Sub contract delivery performance Optimization Capacity Planning Machines Order RAISING PERFORMANCE. TOGETHERTM Machines Installed On Time
  28. 28. GARTNER CONFERENCE 2008 Six Sigma Phase 2/3 Scorecard # # $’s # Projects Projects BB’s Planned Base Line Current Target Trend Completed Saved Big Y Lead Time Critical X’s Demand Planning % Unidentified Orders Engineering % New Design % Design reuse % 3D Models Engineer Chg Orders Manufacturing Units/Day Schedule Changes/month % Equipment Utilization Sub contract delivery Capacity Machines Order Machines Installed On Time BIG Y – Lead Time # Projects/Savings Total 80 200 70 Savings 1% of Sales 60 150 2% of Sales 50 Savings BaselIne 100 3% of Sales 40 Current 50 30 Target 0 20 1-Mar 1-Nov 1-Oct 1-Apr 1-Jun 1-Aug 1-Jan 1-Jul 1-May 1-Dec 1-Feb 1-Sep 10 0 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC RAISING PERFORMANCE. TOGETHERTM
  29. 29. GARTNER CONFERENCE 2008 IT Metrics RAISING PERFORMANCE. TOGETHERTM 29
  30. 30. GARTNER CONFERENCE 2008 IT Metrics Information Based Products and Services Customer Extension Process Re-engineering/ Digitalization Business Transaction Processing Infrastructure RAISING PERFORMANCE. TOGETHERTM
  31. 31. GARTNER CONFERENCE 2008 $ Cash From Operations Results $ Revenue $ Earnings per share 3 800 7 2.5 600 6 5 2 400 4 176% 285% 3 1.5 500% 200 2 1 1 0 0 0.5 0 On Time Delivery Infrastructure Cost/User SAP Installs Days 100% $4,000 100 $3,000 80% 50 $2,000 60% 78% 55% 75% $1,000 40% 0 $- 20% 2005 2006 2007 2008 0% 2006 2007 2008* Locations Days * Estimate RAISING PERFORMANCE. TOGETHERTM
  32. 32. GARTNER CONFERENCE 2008 BUT…………..”past results are not an indicator of future….” • Reduce Travel • Reduce Headcount Reduce Spending • Increase Support • Increase Productivity Do More with Less • Capture Best Practices • Retain and Attract “Stars” Loss of Knowledge RAISING PERFORMANCE. TOGETHERTM
  33. 33. GARTNER CONFERENCE 2008 Web 2.0 RAISING PERFORMANCE. TOGETHERTM 33
  34. 34. GARTNER CONFERENCE 2008 The New World of IT RAISING PERFORMANCE. TOGETHERTM
  35. 35. GARTNER CONFERENCE 2008 IT Business Value 2006 As Cameron Grows Bigger and Bigger Can these technologies help us keep our small company feel? 2009 Will these technologies help us reduce Risks and Costs Quickly? RAISING PERFORMANCE. TOGETHERTM
  36. 36. GARTNER CONFERENCE 2008 Office Communicator/ Unified Messaging Instant Messaging Start a live meeting Out-going calls Incoming calls Missed Messages Voice Mail to EMail Conference call Share – Desktop, files AD Integration ―Presence‖ RAISING PERFORMANCE. TOGETHERTM
  37. 37. GARTNER CONFERENCE 2008 My Site SAP/AD Integration Organization Contact Info Colleagues Skills, Interest, Schools My Home RAISING PERFORMANCE. TOGETHERTM
  38. 38. GARTNER CONFERENCE 2008 Live Meeting Scheduled meetings Meet Now – Outlook, IM Share Desktop Documents Web pages White Board Poll Audio/Phone Conference Record a meeting RAISING PERFORMANCE. TOGETHERTM
  39. 39. GARTNER CONFERENCE 2008 Intranet portal Corp/Group/Personal News/Links/Scorecard Functions across top One-click to most important Search RAISING PERFORMANCE. TOGETHERTM
  40. 40. GARTNER CONFERENCE 2008 WIKI’s The wiki concept has been around for over 10 years. In its simplest form, a wiki—the Hawaiian term for quot;quickquot;—is an online destination where users can freely create or edit Web page content using only a browser. RAISING PERFORMANCE. TOGETHERTM
  41. 41. GARTNER CONFERENCE 2008 My Helpdesk – “eat your own dog food” RAISING PERFORMANCE. TOGETHERTM 41
  42. 42. GARTNER CONFERENCE 2008 MyHelpdesk My PC Info Tickets Top Solutions Announcements Survey Knowledge Search Live Chat RAISING PERFORMANCE. TOGETHERTM 42
  43. 43. GARTNER CONFERENCE 2008 Knowledge Search Type in your question And look for answer Didn’t find it? Try Live Chat Found it! RAISING PERFORMANCE. TOGETHERTM 43
  44. 44. GARTNER CONFERENCE 2008 Knowledge Article (IT WIKI) RAISING PERFORMANCE. TOGETHERTM 44
  45. 45. GARTNER CONFERENCE 2008 Watch Video RAISING PERFORMANCE. TOGETHERTM 45
  46. 46. GARTNER CONFERENCE 2008 Bring Innovation to the Business RAISING PERFORMANCE. TOGETHERTM 46
  47. 47. GARTNER CONFERENCE 2008 How does Cameron…? Capture, Share, & Reuse • Knowledge Eliminate Duplicate Processes • Promote Process Reusability • Link common global resources • Train Knowledge Leaders • Expedite Learning Curves • Do more with less • RAISING PERFORMANCE. TOGETHERTM 47
  48. 48. GARTNER CONFERENCE 2008 FAST Knowledge provides Employees with Options Options for Knowledge Access: • FIND Content – trusted, validated • knowledge content (self-service) ASK Colleagues – Peer-to-peer • problem solving (ask & discuss) SHARE Experiences – defining • value through knowledge sharing TRUST – Show trust through • providing lesson learned RAISING PERFORMANCE. TOGETHERTM 48
  49. 49. GARTNER CONFERENCE 2008 FAST Knowledge Main Site Links to all FAST Team Sites • Document Search on all FAST Sites • Instructions/User Help • • Requesting a new FAST Site • How to… • Guidelines & Rules Latest news, events, etc. from all • FAST sites Provides general “look & feel” for • all FAST Sites RAISING PERFORMANCE. TOGETHERTM 49
  50. 50. GARTNER CONFERENCE 2008 FAST Knowledge Team Site Links to all Site Functionality • FAST Site Search • Provides user with “15-second” • quick look for new content News, events, links, on-line • presence, etc… Top 10 Documents searched • Spotlight stories that will rotate • RAISING PERFORMANCE. TOGETHERTM 50
  51. 51. GARTNER CONFERENCE 2008 FAST Knowledge Find Access to all “approved” site • documents 3 methods to search • Can extend to “All FAST Sites” & • People search Members can submit new docs for • review Listing & links to FAST Team “My • Sites” and communication tools RAISING PERFORMANCE. TOGETHERTM 51
  52. 52. GARTNER CONFERENCE 2008 FAST Knowledge Ask, Share, & Trust ASK • Discussion Forums • Members & higher can add content • Leader/Core Team must be timely in • responsiveness SHARE • Share Success Stories from FAST Site • information Assign dollar value to Success • Story/Savings validated by Team Leader • Trust • Show trust by sharing lessons learned • to other FAST members Assign dollar value to lost opportunity • cost RAISING PERFORMANCE. TOGETHERTM 52
  53. 53. GARTNER CONFERENCE 2008 IT Business Value - Summary RAISING PERFORMANCE. TOGETHERTM 53

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