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Information Led Transformation

    The Information Agenda Guide for Chemicals and Petroleum
    Accelerate your Inform...
Trusted information is a strategic asset

  Leaders from around the world are focused more              better informed,...
Trusted information is a strategic asset                            In a recent survey of CEOs from chemicals and petroleu...
•	 Improve worker productivity                                 In establishing an Information Agenda for the organization,...
CIOs, working with their line of business colleagues, can                          Information Strategy                   ...
Information Governance – enhancing information quality,
chemicals or petroleum company to:

1.   Manage information over its lifetime — Reducing
     the costs associated with m...
involved continues to grow.

                                                                   Proof of compliance is so...
Alternate energy investments isn’t just good PR, it can be a
Chemicals and Petroleum supplies the integrated vision
needed to help achieve the business goals and objectives of
a conve...
or transforming business processes. Ultimately, Business Analytics and Optimization     © Copyright IBM Corporation 2009

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IBM Oil | Information Agenda Guide Can Help with Business Optimization


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Read about how IBM can help companies implement business optimization through Information On Demand, Information Infrastructure solutions, and Business Analytics and Optimization.

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IBM Oil | Information Agenda Guide Can Help with Business Optimization

  1. 1. Information Led Transformation The Information Agenda Guide for Chemicals and Petroleum Accelerate your Information Led Transformation
  2. 2. Trusted information is a strategic asset Leaders from around the world are focused more better informed, real-time decisions as they turn than ever on the economic, social and environmental their information into a strategic driver to accelerate implications of global integration, where free trade innovation, business optimization and competitive agreements, the Internet and globalization are making differentiation. the world simultaneously smaller, flatter and smarter. When built on a foundation of trusted information The systems and processes that enable goods to that can be shared, re-used and applied as a be developed, manufactured, bought and sold, and strategic asset, an information-led transformation services that deliver everything from electricity, finan- allows organizations to optimize every transaction, cial transactions and efficient healthcare systems, process and decision at the point of greatest impact. to name a few, are driving us to become a smarter In doing so, they can move analysis from a back planet. office operation limited to business analyst experts to What all of this means is that for the first time in his- an approach that enables everyone in optimize their tory, almost anything can become digitally aware and decisions based on real-time, predictive analytics. interconnected. This brings major implications for the It can deliver immediate and cumulative value with value that can be derived from such systems. With so each step, resulting in sustainable practices and much technology and networking abundantly avail- processes that create a smarter organization; one able at such low cost, what wouldn’t you put smart that can make better informed decisions ranging from technology into? What service wouldn’t you provide a everyday moves to major strategic bets. customer, citizen, student or patient? What wouldn’t you connect? What information wouldn’t you mine for This thought is not lost on chemicals and petroleum insight? companies. Just a 1.5% increase in recovery from existing wells would yield enough oil for half a year’s The foremost issue facing enterprises today is the global consumption, lowering the cost of fuel—which waste, inaccuracy and volume of missed opportuni- would mean lower prices for travel, homes, food and ties that stem from the single root cause of information consumer products. Put simply, we need smarter raging out of control. oil and gas fields. And that means gathering and managing real-time data from across the entire This information explosion is creating challenges, but production stream, in vast quantities. One oil field forward-thinking organizations are turning it into an alone can generate the equivalent of 200 DVDs’ opportunity. They are leveraging information to identify worth of data per day. Making sense of all this opportunities for profitable growth, cost take-out, information is critical for better decision-making— and proactive risk management. They are pursuing about exploration, production and management. an information-led transformation to help them make 2
  3. 3. Trusted information is a strategic asset In a recent survey of CEOs from chemicals and petroleum There is unprecedented change taking place in the chemicals companies, it was recognized that significant change is and petroleum industry today. Consumer and regulatory inevitable, even desirable. CEOs were concerned, however, pressures are driving more and more industry innovations, about their ability to manage that change. Having an including consolidation, green energy initiatives, energy Information Agenda™ creates an enterprise-wide vision that trading and carbon credit trading. Companies are struggling will allow them to execute and manage that change with the with replacing an aging infrastructure, installing an intelligent desired result in mind. utilities network, managing information from an aging workforce, increased regulatory oversight, concerns over As a result, chemicals and petroleum companies are cyber security, planning and managing new construction and launching new initiatives designed to drive new intelligence, pressure to improve financial performance, all while satisfying business optimization and ongoing competitive advantage an increasing demand for better customer service. through improved recovery rates, automatic, remote field monitoring and reduced workforce strain – and these initiatives In addition, customers continue to look to their chemicals and all depend on information. petroleum companies to take a lead role in environmental issues. The companies that prosper will be those that are Information On Demand perceived to take a leadership role in environmental issues. Information On Demand is a comprehensive set of information management solutions that help companies optimize The key to managing these activities is successfully managing business performance. Chemicals and petroleum companies all of the information in your enterprise. Successful chemicals can optimize business performance through Information and petroleum companies will be those that find a way to On Demand which results in improvements in operations, make their information work as a strategic resource. Those efficiency, reliability and service. that don’t have a plan will be frustrated and overwhelmed with increasing volumes of information. It is critical to be able to access, analyze and control information, within time frames that are required for a Chemicals and petroleum companies have been investing chemicals or petroleum company to manage and operate in point solutions to improve individual aspects of the in real-time. Chemicals and petroleum companies can use business. However, new initiatives must go beyond efficiency information to: improvements, focusing instead on better understanding of the business, optimizing assets, reducing outages, involving the • Better operate and maintain their assets customers, improving financial performance and managing • Increase reserves regulatory interactions. • Better manage partnerships 3
  4. 4. • Improve worker productivity In establishing an Information Agenda for the organization, • Gain insight into their customers the CIO, working with line of business colleagues, puts • Improve the quality and results of their regulatory information to work to achieve both short-term and long-term interactions strategic changes. • Improve customer service An effective Information Agenda helps organizations achieve This level of challenge and coordination can only be achieved several key objectives: through a common information management strategy. • Identify data and content that are vital to the organization • Identify how, when and where information should be Information On Demand in action: Opportunities for made available Chemicals and Petroleum Industry Optimization • Determine data management processes and governance practices Oil and Gas • Identify and prioritize the information projects that deliver • Increase recovery of oil in place the most return • Facilitate high-impact teaming • Align information use to match the organization’s • Convert data into actionable knowledge and broadly business strategy deploy it • Create and deploy an information infrastructure that meets both immediate and future needs Chemical and Refineries • Become a Globally Integrated Enterprise • Increase effectiveness of Business Intelligence • Leverage excellence in forecasting and analytics The Information Agenda Guide for Chemicals and Petroleum IBM ® accelerates the process and minimizes the risk for • Drive high-impact execution in capital programs creating an Information Agenda through industry-specific • Create advantage from health, safety, security and Information Agenda Guides. IBM’s Information Agenda Guide environmental initiatives for Chemicals and Petroleum is a practical, proven approach for turning a client’s Information On Demand vision and strategy into reality. An Information Agenda For organizations that want to get started on the path to Information On Demand and establish a foundation for new intelligence but do not know where to begin, an Information Agenda is needed. An Information Agenda is a comprehensive, enterprise-wide plan that explains how to take the information being generated across, and even outside of, the organization and put it to use to better run the business. 4
  5. 5. CIOs, working with their line of business colleagues, can Information Strategy Enterprise Information Information Strategy Infrastructure build a best-in-class information management vision for their Creates a vision to guide decisions and help the Identifies the technology components and capabilities to organization determine how establish a common information organization and create a detailed roadmap to realize it. The best to support business goals framework Enterprise goal is to transform the organization to unlock the business Information Information Information Governance Agenda Infrastructure value of information for competitive advantage, enabling Information Governance Roadmap organizations to deliver trusted, accurate information to Implements policies and practices Establish a plan for executing optimize business performance. for managing, using, improving and protecting information across the Roadmap discrete projects to realize short- and long-term return on investment organization The Information Agenda Guide for Chemicals and Petroleum can help direct businesses as they develop their own an organization’s existing information architecture, and the Information Agenda in a matter of weeks through Information objectives that are of most importance to the business, an Agenda workshops. The Information Agenda Guide addresses organization’s final Information Agenda roadmap can contain the four key components of an Information Agenda and some or all of these projects. ensures that they work in conjunction with each other. It Figure 2. The Information Agenda Guide for Chemicals and Petroleum: a proven involves key stakeholders across the organization to explore approach for turning an Information On Demand vision and strategy into reality. and address these four key components and ensures that they work together (see Figure 1): Information strategy — recognizing the big picture At its highest level, the Information Agenda Guide for Chemicals • Information Strategy: The vision that guides decisions and Petroleum incorporates best industry practices to assist and helps the organization determine how best to in identification of the primary information-centric business support business goals imperatives that drive virtually every business decision. Based upon working with customers and experiences in chemicals • Information Infrastructure: The technology components and capabilities needed to establish a common information framework • Information Governance: The policies and practices that facilitate the management, usage, improvement and protection of information across lines of business • Roadmap: A phased execution plan for transforming the organization Figure 1. An effective Information Agenda provides a strategic vision and a phased plan that enables energy and utility companies to align the use of information with the organization’s business strategy. As figure 1 indicates, the Information Agenda for Chemicals and Petroleum identifies crucial IT projects that establish the necessary information infrastructure and then leverage that infrastructure to help produce measurable business results identified by the business objective. Depending on 5
  6. 6. Information Governance – enhancing information quality, availability and integrity As a crucial component of the Information Agenda Guide, the information governance portion assists a chemical or petroleum company to establish standards for data quality, management processes and accountability. These help to improve business performance via standard definitions and processes that establish a more disciplined approach to managing data and information across the enterprise. The Information Agenda Guide for Chemicals and Petroleum applies best practices, based upon IBM’s extensive experience in the chemicals and petroleum industry, for creating information governance policies. It leverages existing policies and procedures to create an environment that can more consistently and confidently manage information, thereby and petroleum, the outer ring of the guide above reflects the obtaining maximum value from these assets in support of the industry imperatives that chemicals and petroleum companies strategic imperatives. address to optimize their business. The next ring details the specific business optimization Information infrastructure — creating, managing and delivering objectives associated with individual business imperatives. For trusted information example, improving asset operations and availability has direct All business imperatives and business optimization objectives financial performance impact as well as improving compliance depend upon a common information infrastructure that with health, safety and environmental regulations. enables a chemicals or petroleum company to more effectively create, capture, manage and utilize information The business imperatives and business optimization associated with customers, services, operations, products and objectives are the foundational components used to help market strategy. An effective information infrastructure allows a set the vision and strategy for an organization’s Information Agenda. These foundational components ensure that you have a well-established bridge between IT objectives and overall corporate objectives. They provide both line of business colleagues and IT colleagues with a common language to communicate about all projects and plans moving forward. 6
  7. 7. chemicals or petroleum company to: 1. Manage information over its lifetime — Reducing the costs associated with managing information while controlling access, expanding retention and increasing compliance. 2. Optimize content, process and compliance management — Better tuning system performance and improving decision-making by injecting timely, trusted information into business operations. 3. Establish an accurate, trusted view of information over time — A flexible architecture can leverage existing IT investments to produce accurate and trusted information that is consistent across sources, facilitating better analytics and sound business decisions. can accommodate both short and long term objectives. 4. Plan, understand and optimize business performance Roadmap – bringing it all together with a step-by-step execution — Leveraging trusted information to build plans, plan for creating an Information Agenda understand how business is performing and focus on The roadmap gives information management and integration optimizing performance across the enterprise. efforts direction and cohesion. It spells out the priority, order and timeframe of IT projects necessary to achieve 5. Provide solutions that drive operational efficiency — the organization’s crucial information-enabled business Information infrastructure solutions focus on information optimization objectives. The first step in creating the roadmap compliance, security, availability and retention, providing is identifying and prioritizing the underlying IT projects— an infrastructure environment that is highly scalable, usually combinations of software and services—that can help standards-based, flexible and essential to handling achieve each business imperative. today’s most information intensive business challenges. Figure 3: Addressing Common Key Information Requirements. Figure 4. An example prescriptive roadmap of IT projects to achieve operational excellence. As the journey towards Information On Demand evolves, IT Projects for Operational Excellence guiding principals will be applied to leverage existing Improving asset operations and asset availability, optimizing assets and IT purchase decisions with these key common the supply chain, and reducing capital costs are top concerns information requirements in mind. The journey will include for virtually all chemicals and petroleum companies. Optimizing looking for opportunities to use existing IT assets as common exploration is also critical. components to be utilized for other projects and will provide guidelines that help ensure that new technology investments 7
  8. 8. involved continues to grow. Proof of compliance is sometimes proactive (evidence must be produced for known occasions) and sometimes reactive (i.e., after an incident or a random audit). In either case, proving compliance requires bringing together information that provides proof of compliance as well as the auditing of compliance processes. In some cases the regulatory interaction is a continuous, ongoing activity requiring on-site inspectors. At the core of all regulatory interactions is the ability to provide trusted and verifiable information that may come from many different sources. From a financial perspective it is important that these discovery activities can be accomplished in a cost- effective manner. Figure 5. An example prescriptive roadmap of IT projects to manage regulatory interactions. Supporting operation and maintenance personnel with information they need in order to perform their job function is crucial, including those mobile workers who need information Figure 6. An example prescriptive roadmap of IT projects to manage global relations. out in the field. By having a common, easily accessible repository for all of the information needed to operate assets IT Projects For Managing Global Relations (drawings, procedures, vendor manuals, inspection reports, service bulletins and the like), both planned and unplanned maintenance activities can be improved, resulting in increased availability of assets. By documenting the processes involved it is easier to train new workers and contractors. Effectively managing the supply chain will improve both financial and operational results. Better control and management of capital projects will result in reduced capital expenditures and improve visibility and insight into project execution. IT Projects for Regulatory Interactions Chemicals and petroleum companies are among the most highly regulated companies in the world. Whether it is financial regulation (Sarbanes-Oxley), environmental (emerging greenhouse gas restraints), operational compliance (evolving cyber security regulations) or health or safety regulations, the number of regulations and regulators Managing far-flung operations is challenging. By bringing structured and unstructured data together to create 8
  9. 9. Alternate energy investments isn’t just good PR, it can be a profitable growth option. It requires an Information Agenda to effectively manage alternate energy projects. These initiatives are often a mixture of capital investment and fiscal incentives. The Information Agenda Guide for Energy and Utilities accelerates roadmap creation with best practice templates for specific IT projects. They are pre-configured to accommodate industry-specific business optimization objectives and initiatives, allowing organizations to quickly organize and prioritize IT projects within the framework of their Information Agenda. Figure 7. An example prescriptive roadmap of IT projects to create profitable growth. information, a much more comprehensive view of the The Power of an Information Agenda Approach worldwide enterprise is possible. With an Information Agenda for chemicals and petroleum Managing partnerships is also a global challenge. Being able to collaborate with partners becomes critical to the success of the relationship. Often these partnerships are very dynamic, so using accurate, current and trusted information is critical to the success of partnerships. IT Projects to Create Profitable Growth For chemical and petroleum companies increasing recovery can be a very profitable proposition. Managing the information about producing properties can be an effective way to increase yields. in place, CIOs have many of the tools needed to make the essential transition from simply supporting the business to making a measurable, sustainable contribution to the business’ bottom line. The Information Agenda Guide for 9
  10. 10. Chemicals and Petroleum supplies the integrated vision needed to help achieve the business goals and objectives of a converged business model — and deliver better business outcomes. These outcomes can range from improving the availability of revenue producing assets, reducing maintenance costs and demonstrating compliance, to demonstrating leadership in corporate social responsibility programs. The benefits — competitive advantage through business optimization Using the Information Agenda Guide can help chemicals and petroleum companies: • Provide an integrated view of trusted information The Information Agenda Guide for Chemicals and Petroleum is a practical, accelerated and proven approach developed • Increase asset availability and hence revenues by IBM after years of experience of working with leading • Improve safety of operations global organizations. It is a cross-IBM program composed of a • Increase customer insight and customer satisfaction proven, prescriptive methodology and mature chemicals and • Support new strategic initiatives with an integrated petroleum assets delivered by IBM practitioners with deep information framework industry expertise. • Improve regulatory compliance IBM Information On Demand and Information Infrastructure • Reduce bad debt by better understanding the customer solutions offer end-to-end information infrastructure • Capture and manage information from an aging capabilities for executing your Information Agenda. Information workforce On Demand and Information Infrastructure offerings have • Manage energy and carbon credit trading activities been specifically designed to address virtually every aspect Most important, consistently delivering trusted information to of an organization’s trusted information needs. Based on the right people at the right time gives organizations the ability open standards and reflecting an investment of over US$10 to use that information and the intelligence derived from it in billion in the last three years, Information On Demand and entirely new ways, providing real competitive advantage for a Information Infrastructure offerings are among the industry’s smarter planet. most comprehensive. Why IBM is the Right Transformation Partner IBM’s Business Analytics and Optimization leverages the IBM’s unparalleled combination of pure science, deep industry unique capabilities of IBM Research, which, when combined knowledge and technology expertise makes it uniquely with our world-class software solutions, foundational business qualified to help business discover a new kind of intelligence. intelligence, performance management and advanced Only IBM offers the industry accelerators, enabling analytics, accelerate client time-to-value. Business Analytics technologies and deep expertise with a proven approach and Optimization helps businesses make better decisions necessary to do so. faster while optimizing operations, either by eliminating costs 10
  11. 11. or transforming business processes. Ultimately, Business Analytics and Optimization © Copyright IBM Corporation 2009 helps predict outcomes with greater certainty and uncover opportunities that were once unknown and unattainable. IBM Corporation Route 100 Somers, NY 10589 CIOs and senior IT managers ready to jump-start their organization’s Information U.S.A. Agenda efforts should consider a hosted IBM Information Agenda workshop. This workshop leverages IBM’s expertise to guide CIOs, senior IT managers, and Produced in the United States of America 05-09 line of business stakeholders quickly through the process of building a cohesive All Rights Reserved Information Agenda with an actionable set of projects to execute. A hosted workshop can result in faster execution and quicker realization of return on investment. IBM, the IBM logo,, Smarter Planet and the smarter planet icon and Information Agenda are trademarks or registered trademarks of For more information International Business Machines Corporation To learn more about the Information Agenda Guide for Chemical and Petroleum and in the United States, other countries, or both. If these and other IBM trademarked terms IBM’s Information on Demand solutions, contact your IBM sales representative or visit are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered • or common law trademarks owned by IBM at • the time this information was published. Such trademarks may also be registered or common • law trademarks in other countries. A current list • of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm. com/legal/copytrade.shtml Other company, product, or service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. IMW14203-USEN-02 11