Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Masterclass A Tom Kunz , Shell, Presentation at The Chief Data & Analytics Officer Forum, Singapore

278 views

Published on

Welcome to the Chief Data and Analytics Officer Forum, Singapore.

The CDAO Forum Singapore gathered some of the region’s leading data and analytics executives to share their insights and case studies on developing the infrastructure, ecosystem, buy-in, culture whilst providing the strategies to turn data into a strategic asset.. This two day event presented a roadmap from the building blocks of data strategy, governance and value awareness to championing the benefits of increased returns, better customer service and reduced risk enabled by data analytics.
http://www.cdaosingapore.com

We are delighted to announce the dates for our Melbourne Chief Data & Analytics Forum, 5-7 September 2016.
http://www.cdaoforum.com/

http://coriniumintelligence.com/

Published in: Data & Analytics
  • Be the first to comment

  • Be the first to like this

Masterclass A Tom Kunz , Shell, Presentation at The Chief Data & Analytics Officer Forum, Singapore

  1. 1. Copyright of Shell Shared Services (Asia) B.V. Creating an Effective Data Governance Framework a.k.a., just get on with it! Tom Kunz, Data Manager, Downstream, Finance Operations Data, Shell Shared Services (Asia) B.V. July 2016 All Rights Reserved Shell Shared Services (Asia) B.V. Chief Data and Analytics Officer Forum Singapore July 27-28, 2016
  2. 2. Copyright of Shell Shared Services (Asia) B.V. DEFINITIONS AND CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this presentation, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, [27-28, July 2016]. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
  3. 3. Copyright of Shell Shared Services (Asia) B.V. Agenda 1. Who is Shell? 2. What’s a person to do? 3. Making the business case 4. Finally, let’s talk Governance 5. Summary
  4. 4. Copyright of Shell Shared Services (Asia) B.V. Big company challenges and strengths Who is Shell? 1 4
  5. 5. Copyright of Shell Shared Services (Asia) B.V. Shell’s Businesses 5
  6. 6. Copyright of Shell Shared Services (Asia) B.V. Who is Shell? + 70 countries with operations $28.9 billion of new capital investment 93,000 average number of people employed 22.6 million tonnes of LNG sold 3.0 million barrels of gas and oil produced every day 43,000 Shell service stations worldwide $265 billion of revenue 12 seconds Average time between plane re- fuelings by Shell 1.1billion expended on R&D 2015 Peformance
  7. 7. Copyright of Shell Shared Services (Asia) B.V. Consolidating Finance Processes: Service Centers 7 increasing efficiencies and optimizing benefits of global scale Expenditure: manage finance processes relating to Accounts Payable and Payroll/Accounting including Travel and Entertainment expense Record to Report: manage processes for Financial Close, Local Statutory Reporting, Direct Tax, Indirect Tax, Cash Management, Liquidity and Foreign Exchange management Revenue: responsible for operating finance processes for Intra-Group Billing and the Offer to Cash process Management Information (MI): manage processes for Internal Performance Reporting and annual Budgeting Data: (or Master Reference Data): manage E2E Data processes, standards and quality assurance and drive development of company wide Data strategy Hackett Benchmark end 2006 Finance cost as a % of revenue 0,0% 0,5% 1,0% Shell Median First Quartile Other cost Technology cost Outsourcing Labor cost
  8. 8. Copyright of Shell Shared Services (Asia) B.V. Finance Operations Over half of Shell’s Finance staff are now in Finance Operations: 8 Revenue Expenditure Hydrocarbon Reporting & Analysis Tax Data
  9. 9. Copyright of Shell Shared Services (Asia) B.V. The Problem with Data 9 Fr a gm ent a tio n Here a touch… There a touch… Everywhere a touch, touch…
  10. 10. Copyright of Shell Shared Services (Asia) B.V. Upstream & Technology Downstream Contracts & Procurement Finance, HR Data Manager Data Manager Data Manager Accounts Assets & Projects Organisation & People Real Estate Contracts Convenience Retail Product B2B Customers Card Customers Retail Site Customers Facilities and Equipment Materials and Services Vendors Procurement Contracts Products Etc… Data Teams Process Managers “Certification” Data Process Management Business Knowledge Personal Competencies Data Manager Functional Excellence Assurance, Design, Improvement, Program Sr. Team Leader Team Managers Run & Maintain Analysts Improvement & QA analysts Sr. Process Improvement Specialist A Process-based Master Data Organisation
  11. 11. Copyright of Shell Shared Services (Asia) B.V. Why does this have to be so hard? What’s a Person to do? 2 11
  12. 12. Copyright of Shell Shared Services (Asia) B.V. Data Domain Responsibility Summary Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Business GM The Owner Business Process Sets and Drives the Agenda Global Data Value Owner Drive Data Quality Improvement Data Definition Owner The Expert on data and its uses Data Process Design Owner Expert on how the the process fits together Data Process Manager Manages and improves the E2E process Data Architect Defines IT Data Sources and Uses Key: Champions Positive Neutral Casual Don't Know Governance Challenges 12  GM Champion (Process Owner) + a Business Champion (Global Data Value Owner + PM Champion (Process Manager) = Great Progress  A Business Champion + PM Champion = Good Progress  Anything else = Half hearted (at best)
  13. 13. Copyright of Shell Shared Services (Asia) B.V. Are you a believer or are you not? Making the Business Case 3 13
  14. 14. Copyright of Shell Shared Services (Asia) B.V. For Data, Only Two Moments Really Matter The Moment of UseThe Moment of Creation Path From Creator To Customer DATA CREATOR DATA CUSTOMER The whole point of data quality management is to connect the two! Note that they DO NOT occur in IT Used with Permission Thomas C. Redman, Ph.D. © Data Quality Solutions 2000-2016
  15. 15. Copyright of Shell Shared Services (Asia) B.V. Friday Afternoon Measurement Protocol Assemble “last 100 records” Assemble 2-3 experts Mark “obviously- erred” data in red Summarize and interpret results Used with Permission Thomas C. Redman, Ph.D. © Data Quality Solutions 2000-2016
  16. 16. Copyright of Shell Shared Services (Asia) B.V. Count the “Perfects” After Fig 18.2, Redman, Data Quality: The Field Guide Attribute 1: Attribute 2: Size Attribute 3: Amount etc record perfect? (y/n) Record A Jane Doe Null $472.13 n Record B John Smith Medium $126.93 y C Stuart Madnick XXXL Null n D Thoams Jones n Record 100 James Olsen One Locked Place $76.24 n Count perfect 67 Data Quality = 67%! The interpretation is a full third of recent customer orders had a serious DQ issue. A worry indeed! Used with Permission Thomas C. Redman, Ph.D. © Data Quality Solutions 2000-2016
  17. 17. Copyright of Shell Shared Services (Asia) B.V. Business Scenario Review  Identify and review E2E processes, business scenarios, interfaces, and key data requirements  Confirm that critical data required to deliver the most important transactions for the business scenario are subject to quality assurance processes  Identify gaps that require corrective actions  Gather specific examples of pain points and evidences of critical to success process or data that has no data quality standards  Determine preventive or detective measures to address gaps 17
  18. 18. Copyright of Shell Shared Services (Asia) B.V. 18 Workflow 1 System 1 System 2 System 3 System 4 Workflow 2 System 5 System 6 Combo 2 Combo 3 Combo 4 Combo 5 Combo 6 Combo 7 Combo 8 Pain Points BUSINESS SCENARIO REVIEW – DATA MAP Copyright of Shell Shared Services (Asia) B.V.
  19. 19. Copyright of Shell Shared Services (Asia) B.V. Complementary Functional Plant Maintenance Processes Potential Pain Points in Process Data Flows – Pump Example Data Risk Examples Master Data incomplete – awaiting as-built specs and drawing Incomplete / Inaccurate Purchase Specification data (Purchase Order issues) Incomplete Bill Of Materials Incomplete documents (Pump Spec sheets, Pump Curves, ...) Incomplete/ invalid maintenance plans Work Order left open 1 2 3 4 5 6 Procurement Buys the Equipment Hardware Flow Equipment delivered to site PSSR Equipment StartUp Technical Asset Plant Maintenance Processes Equipment Specifications Data Flow Master Data entry into ERP Master Data entry into Connected Applications Maintenance Plans Material Master tracking Purchase Order creation Work Order 1 Data Flow Equipment Testing AReliability Study Bill of materials B C Close Work Order Procure Asset and Acquire Initial Asset Data & Information 2 3 4 5 6 MI Measurement Points
  20. 20. Copyright of Shell Shared Services (Asia) B.V. Identifying Critical Fields: FMEA (Failure Modes and Effect Analysis) 20 Field Name Describe the Failure Mode Potential Failure Effects Sev. Potential Causes Occ. Current Controls Det. Risk Profile Number Equipment Data input inaccurate and wrong category applied resulting in wrong ownership of data Business not able to find records. Additional time required to search. Additional time to correct data 3 Human input error when filling out the request form 3 Approvers check requests for consistency. Data analyst valid request check 8 72 Human error by data analyst when inputting to system 3 Statistical Process Control checks 5 45 • A step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service. • “Failure modes” means the ways, or modes, in which something might fail. Failures are any errors or defects, especially ones that affect the customer, and can be potential or actual. • “Effects analysis” refers to studying the consequences of those failures. • Failures are prioritized according to how serious their consequences are, how frequently they occur and how easily they can be detected. • Failure modes and effects analysis documents current knowledge and actions about the risks of failures, for use in continuous improvement.
  21. 21. Copyright of Shell Shared Services (Asia) B.V. Calculating the Cost of Poor Data Quality C •Critical objects/fields/records selection : Determine scope of work and identify critical fields. E •Engage with the Business to determine End to End usage: Determine objects/fields/records complexity, how the data is used and an E2E perspective. C •Characteristic of the object/field/record: Determine failure modes, effects of poor quality, pain points and their costs. O •Occurrence of failure modes: Determine failure mode occurrence likelihood from control incidents, data quality standards or using data profiling V •Validate with Business partners: Get agreement with business partners that they support the calculation and the outcome of the exercise
  22. 22. Copyright of Shell Shared Services (Asia) B.V. The Cost of Poor Data Quality in Offer to Cash 2012 BUSINESS SCENARIO 2013 CRITICAL FIELDS REVIEW Understanding of OTC business models and Pain Points Definition of fields, purpose, usage, users of data, failure modes and criticality CONSISTENT LANGUAGE WITH THE BUSINESS …. FOCUSED ON $$ STRONGER LINK BETWEEN DEFECTS AND BUSINESS PROCESS FAILURES. COPDQ for > 150 CMD FIELDS MORE POWERFUL DATA QUALITY REPORTS… VISIBILITY ON COST OF GETTING DATA WRONG CRITICALITY CMD FIELDS ContractSet-Up Process2 Process3 Process4 Loading&Delivery Process6 Process7 Process8 Process9 Process10 Process11 Team1 SalesSupport Team3 Team4 Team5 Team6 Credit Team7 Team8 Team9 Team10 TOTALREWORKCOST PERDEFECT(USD) TOTALWORKING CAPITALDELAY(USD) OTHERPROCESS FAILURECOST(USD) TOTALDETECTIVE COST(USD) TOTALUNITCOST (USD) SEVERE Field 1 x x x x $X $X $X $X $X $X $X $X $X $XX SEVERE Field 2 x x x x x x x $X $X $X $X $X $X $X $X $X $X $X $XX HIGH Field 3 x x x $X $X $X $X $X $X $X $XX HIGH Field 4 x x x x $X $X $X $X $X $X $X $X $X $XX MEDIUM Field 5 x x $X $X $X $X $X $X $X $XX MEDIUM Field 6 x $X $X $X $X $X $X $X $XX LOW Field 7 x x $X $X $X $X $X $X $X $XX LOW Field 8 x $X $X $X $X $X $X $XX $XX $XNON-CRITICAL FIELDS (AVE) CRITICAL FIELDS (MEDIAN) COPDQ APPROACH - ABCIMPACTED PROCESS IMPACTED TEAMS (REWORK COST) A. Tax Reporting B. Loading & Delivery C. Billing D. Pricing E. Debt Collection & Cash Alloc F. MI Reporting G. Manage Order H. Financial Reporting I. Credit Assessment Country 1 $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX - $XXX $XX $XXX Country 2 $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 3 $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 4 $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 5 $XXX $XXX $XXX $XXX $XXX $XXX $XXX - $XXX $XXX $XX $XXX Country 31 $XXX $XXX $XXX - $XXX $XXX - - $XXX $XXX $XX $XXX Country 32 $XXX - $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 33 $XXX - $XXX $XXX - $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 34 $XXX - - $XXX $XXX - $XXX $XXX $XXX $XXX $XX $XXX Country 35 - $XXX $XXX $XXX $XXX $XXX $XXX - - $XXX $XX $XXX Country 36 $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX Country 37 $XXX - - - - - - - - $XXX $XX $XXX Grand Total $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XXX $XX $XXX COST OF ERRORS ON CRITICAL FIELDS (US$) SUBTOTAL CRITICAL ERRORS (US$) NON- CRITICAL ERRORS (US$) GLOBAL COMMERCIAL Grand Total (US$)
  23. 23. Copyright of Shell Shared Services (Asia) B.V. Metadata
  24. 24. Copyright of Shell Shared Services (Asia) B.V. Metadata: What we have learned…. 24 Frequency and number of updates to each field in the customer master Fields with data in them, but not used in the design Critical Fields not included in the data quality compliance standards Discover fields that are candidates for mass upload tools Reduce effort by no longer populating unused fields Identify which fields are not in data quality standards that should be
  25. 25. Copyright of Shell Shared Services (Asia) B.V. Maybe there really is something we can do Finally, let’s talk Governance 4 25
  26. 26. Copyright of Shell Shared Services (Asia) B.V. Words of the Day! 26 Footer Date Word cloud from the Data Governance Financial Services Conference – Sep 8-9 2016
  27. 27. Copyright of Shell Shared Services (Asia) B.V. Shell’s Data Journey 27 Migrate Data Quality Standards Reporting Governance Workflows Targets & Cleansing COPDQ Visualization Analytics • Roles • Process Owners • Process Design • Data Definitions • Business Rules • Critical Fields • Metadata • Segmented • Drill down • Automated Creators Global Data Value Owners Local Data Value Owners Data Councils • Automated • Preventative Checks • Tracking • Agreed, auditable costs • Integrated reporting • Communication • Record level • Agreed goals • River vs Lake • Data accuracy • Aging of defects • Profiling for value • Predictive • Prescriptive • Profiling Training & Education Data Awareness**Data Knowledge**Data Skill**Data Mastery**Project Management**Supervisory**Technical**Resiliency**Critical Thinking**Lean Sigma Lean Sigma Continuous Improvement E2E Efficiency**Tracking**Automation**Value Stream Mapping**Statistical Process Control**Time Studies**Pain Point Mapping**Benchmarking
  28. 28. Copyright of Shell Shared Services (Asia) B.V. Governance Challenges 28 Data Domain Responsibility Summary Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Business GM The Owner Business Process Sets and Drives the Agenda Global Data Value Owner Drive Data Quality Improvement Data Definition Owner The Expert on data and its uses Data Process Design Owner Expert on how the the process fits together Data Process Manager Manages and improves the E2E process Data Architect Defines IT Data Sources and Uses Key: Champions Positive Neutral Casual Don't Know  GM Champion (Process Owner) + a Business Champion (Global Data Value Owner + PM Champion (Process Manager) = Great Progress  A Business Champion + PM Champion = Good Progress  Anything else = Half hearted (at best)
  29. 29. Copyright of Shell Shared Services (Asia) B.V. Core Data Governance Roles 1. Data Executive (DE)/Process Owner: accountable to ensure data is managed through its life-cycle, accountabilities are assigned, and quality assurance is executed 2. Data Definition Owner (DDO): accountable to ensure data definitions and data business rules are defined. Less critical as process matures. 3. Data Process Design Owner (DPDO) accountable to ensure data processes fit for purpose and current with business needs. Less critical as process matures. 4. Data Value Owners (DVOs): accountable to ensure data is of high quality, enabling the execution of business processes without failures. Mandatory. 5. Data Requestors (DRs): accountable for identifying data values on behalf of DVO 6. Data Process Managers (PMs): accountable for maintaining the data and managing optimizing and improving data processes DE/PO DDO DPDO DVO PM Global Local 1 2 4 3 6 DR 5
  30. 30. Copyright of Shell Shared Services (Asia) B.V. “Provocateurs” disrupt the dynamic that leads to hidden data factories • Dissatisfied with the status quo. • Courage to try something new. • Great corporate citizens. • Achieve “real results” within their spans of control. • At all levels! There is a little provocateur in all of us Used with Permission Thomas C. Redman, Ph.D. © Data Quality Solutions 2000-2016
  31. 31. Copyright of Shell Shared Services (Asia) B.V. Provocateurs Can Go Only So Far organization time Progress of a Typical Data Quality Program traction real results plateau next level = more data Order-of-magnitude improvement on some data Used with Permission Thomas C. Redman, Ph.D. © Data Quality Solutions 2000-2016
  32. 32. Copyright of Shell Shared Services (Asia) B.V. Data Governance Assessment • What is it that is working well in regards to leaders taking accountability for their data journey? • What is missing or not working so well?  Do you have someone who is taking responsibility for the data journey in each of the businesses?  Do you have someone in the business that can make the following things happen?  Is IT seen as an enabler rather than an owner of data?  Are there subject matter experts in the business that willingly assist you to identify, value and fix pain points?  Are critical data fields understood?  Do you have data quality standards that are owned by the businesses they support? Do you have a business focal point for working on them?  Do you have business partners who are committed to first time right requests/data entry. Are they held accountable?  Do you know to whom to send data quality reports?  Are the businesses committed to cleansing critical defects?  Do you have someone with the authority to change/fix a process (or allow it to be changed/fixed by your team) in the event the Business/IT/Data Team requirements change?  When new opportunities for work to be migrated to the Data Team are identified, can you make it happen?  Do you measure the River errors and COPDQ on a high level dashboard visible to business VPs?  Do you have support for building and using an easy to access/use metadata repository?  Are the businesses interested in and do they understand the importance of data accuracy?  Do you have go to persons who can commit resources to CI projects to solve data problems? 32
  33. 33. Copyright of Shell Shared Services (Asia) B.V. Governance when it is working 33 • Data processes are managed • Collective understanding of the E2E data processes with supporting metrics • Master data and its importance understood – critical fields are known • Business takes ownership for data quality • Data Requestors get it right the first time • Feedback loops are working • Process designers are valued • Metadata is managed • Continuous Improvement is a mindset • Results are more important than politics
  34. 34. Copyright of Shell Shared Services (Asia) B.V. Summary  Data Governance is a consultants dream  Stop waiting  Find the coalition of the willing and go to work  You do not need sophisticated IT tools to start on the journey  Timing is everything  There are prizes to be won  Welcome to the world of change management 34
  35. 35. Copyright of Shell Shared Services (Asia) B.V. Questions and Answers 35

×