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1!
“The Digital Oilfield” : Using IoT to reduce costs in an era of
decreasing oil prices - Powered by SAP S/4 HANA!
We are committed to simplify IoT implementation !
Our goal is to deliver IoT as a business solution vs. as an abstract tec...
Oil & Gas Industry Key Business Challenges!
© CloneSkills, Inc.!
3!
o  Our 50 + customer engagements confirm that the real ...
Oil & Gas Industry Key Business Needs !
o  Our 20 + years of industry experience confirms that the real industry need is no...
Our Solutions - We Make it Simple to Work with DataTM!
IoT!
!
!
Our
Digital
Oilfield!
Platform!
!
!
Business
Process!
Big !...
Our Solutions - Unique Values !
o  Our Digital Oilfield platform is not just another raw technology platform unproven in th...
Business Case !
Now, let us show how IoT is the Ideal
Platform to Implement “The Digital
Oilfield”!
o  Predictive Fault Com...
Content!
Executive Overview !
Digital Oilfield - Redefined !
Digital Oilfield - Proven Business Cases!
Digital Oilfield - Demo...
Executive Overview!
Our
Innovation!
IoT!
Digital
Oilfield!
Your Business!
Transformation!
o  We decided to create this poin...
It is always challenging to believe an unproven concept, idea, product or service. Of course, we do not expect you to
beli...
What is Our Customer Value?!
“….I just love working with Jothi…..”!
!
Procter & Gamble!
CFO’s Office !
Compare our solution...
!
!
o  Petronas !
o  Exxon!
o  Jubilant Energy!
o  Kuwait Oil Company (KOC)!
!
We have been working in the Oil & Gas indus...
•  CNH!
•  PEMEX !
•  PETROTEL !
•  GCA!
•  HALLIBURTON!
•  SCHLUMBERGER!
!
!
•  KOC!
•  KUWAIT ENERGY!
•  TOTAL !
•  HUNT...
14!
!PUBLICATION!
•  Static Model Review and QC!
•  Static Model Building Timeline!
•  Reservoir Model Training !
•  Appli...
Our Industry Credentials - IoT, Big Data and Data Science!
o  Recognized thought leader for Finance, Digital, IoT, Big Dat...
WHAT IS IT? !
!
In our point of view, Digital Oilfield is neither a software nor a hardware component. It is a concept (or ...
DATA INTEGRATION!
o  Digital Oilfield enables Data interoperability across an enterprise regardless of data source, data fo...
Data!
Upstream!
•  People!
•  Process!
•  Technology!
Midstream!
•  People!
•  Process!
•  Technology!
Downstream!
•  Peop...
Capital
Project 1 !
WBS 10!
Cost Element
100!
Actual ! Budget !
Weekly!
Variance !
Capital
Project 1 !
WBS 10!
Cost Elemen...
Sensor!
Upstream!
Unstructured !
Midstream!
Structured !
Downstream!
Digital Oilfield Transforms Business !
Information-Dri...
Business
Readiness &
Awareness !
Business Case !
Technology
Transformation!
Business
Transformation!
How do we Deliver Dig...
“The Digital Oilfield” Implementation!
!Machine Learning!
© CloneSkills, Inc.!
22!
o  BUSINESS NEEDS !
o  Identify Potential Hydrocarbons in undrilled Fault Compartments and
Increase Production Volume !
!
...
Business Case 1 : Predictive Fault Compartments (Cont’d.)!
Business Benefits:!
o  Increased Oil Production and optimized ca...
Business Case 1 : Predictive Fault Compartments (Cont’d.)!
Correlation Between
Capital Spend and
Production!
© CloneSkills...
Business Case 1 : Predictive Fault Compartments (Cont’d.)!
1
2
3
4
5
o  SEISMIC!
o  FAULT NETWORK !
o  JUXTAPOSITION!
o  C...
Business Case 2 : Field Wise Production - Volume Prediction!
o  BUSINESS NEED!
o  Proactively identify uncertainty in field...
Business Case 2 : Field Wise Production - Volume Prediction (Cont’d.) !
Business Benefits:!
o  Enhanced field wise predictio...
Business Case 2 : Field Wise Production - Volume Prediction (Cont’d.)!
© CloneSkills, Inc.!
29!
Field Wise Prediction
Comb...
Business Case 3 : Well Wise Production - Volume Prediction!
o  BUSINESS NEED: !
o  Proactively identify uncertainty in wel...
Business Case 3 : Well Wise Production - Volume Prediction (Cont’d.)!
Business Benefits:!
o  Enhanced well wise prediction ...
Business Case 3 : Well Wise Production - Volume Prediction (Cont’d.)!
© CloneSkills, Inc.!
32!
Well Production
Prediction ...
o  BUSINESS NEED: !
o  Locate wells in favorable structural positions, target better reservoirs to
realize sustained highe...
Business Case 4 : Well Location Analytics for Better Well Placement !
Structure maps with fault blocks,
segments for each ...
Business Case 4 : Well Location Analytics for Better Well Placement !
© CloneSkills, Inc.!
35!
Optimally Locating
Wells by...
“The Digital Oilfield“ Implementation!
!Advanced Analytics !
© CloneSkills, Inc.!
36!
Our Oil & Gas Value Delivered!
o  Financial !
o  Operational!
o  Environmental Health & Safety!
o  Transportation!
o  Rig ...
Supply Chain !
Capital Lifecycle!
Operational!
•  Optimize Supply Chain Process and Increase Revenue!
•  Instant Insights ...
Data and Information Model - Upstream!
Field Data!
Machine Data!
!  FIELD NAME!
!  REGION / COUNTRY!
!  BASIN!
!  AREA!
! ...
Data and Information Model - Midstream!
PIPELINES!
Machine & Sensor
Data!
!  TYPE OF PIPELINE!
!  ROUTE & LENGTH !
!  DIAM...
Data and Information Model - Downstream!
REFINERY CAPACITY
& REFORMING!
Sensor Data!
!  CRUDE DISTILLATION CAPACITY!
!  VA...
42!
© CloneSkills, Inc.!
360o View!
!  Upstream!
!  Midstream!
!  Downstream !
Pre-builtOperationalInsights!
o  Capital Us...
43"
© CloneSkills, Inc.!
Pre-builtSpendAnalytics!
o  Spend Profile!
o  Spend vs. Growth!
o  Spend by Category!
o  Spend Pre...
44"
© CloneSkills, Inc.!
Pre-builtVendorPerformances!
360o View!
!  Upstream!
!  Midstream!
!  Downstream !
o  Score Card ...
o  Device Connectivity and Device Management !
•  Protocol Transformation!
•  Device Computing Framework !
•  Intermittent...
!
Learning Beyond!
!
!
IoT and SAP S/4 HANA!
46"
© CloneSkills, Inc.!
Learning Beyond - IoT!
IoT Defined!
IoT Architecture for Digital Oilfield!
IoT Industry Needs!
Comparison - IoT, Big Data an...
IoT Defined !
Hardware ! Physical
Devise !
Network! Software ! Services! Database!
Industry /
Enterprise ! Public!
Governme...
Big Data !
Storage – Cloud
Infrastructure !
Big Data !
Storage – On premise
Infrastructure !
THINGS ! DATA STORAGE!GATEWAY...
Flow Sensor!
Source of Streaming Data!
o  Wellhead Automation !
o  Storage Tank Level Monitoring !
o  Chemical Injection !...
IoT Devices & Data Production !
IoT Device Management & Data Handling!
(Gateway)!
IoT Device Data Handling & Data Integrat...
Personal Area Network
(PAN)
Wireless PAN Wired PAN
SENSO
R
Access Network Network Core
LWM2M
!  Fiber
!  Cellular
!  Satel...
SENSOR!
LWM2M! Fiber !
Gateways!
OPC | ISN! LAN!
Inter Gateways! Connected IP Network !
ISA 95! WAN!
Enterprise Control Sy...
What Would be the Typical Industry Need for an IoT Solution?!
Event Stream
Processing!
Manufacturing: !
Needs & Challenges...
!
IoT and M2M Industry Usage: !
!
!
o  Automotive !
•  Telematics to capture and report location, engine condition, logist...
What Business Solution Can We Build On The IoT Platform? !
IoT Reports and
Notifications/Alerts !
IoT Business!
Application...
What is the Role of Big Data in IoT?!
Device!
Gateway!
Data!
o  IOT uses Big data platform and technologies to store and p...
What is the Role of Data Science in IoT?!
FLOW SENSOR!
Source of Streaming Data!
Linear
Regression
Algorithm !
Generate a ...
How Do You See IoT, Big Data and Data Science?!
IoT ! Big Data ! Data Science!
IoT!
Big Data!
Data Science!
Data !
Platfor...
Yes, absolutely!!
As we already addressed, if the goal is to bring IoT to mainstream business users then we must use SAP t...
What Value Does SAP S/4 HANA Bring to IoT?!
We would like to answer this question both from a business and a technology pe...
What Value does SAP S/4 HANA Bring To IoT? (Cont’d.)!
Technology Perspective!
!
SAP solutions for IoT provide everything n...
!
Machines of the same type communicate with each other without any human intervention. This
communication takes place in ...
IoT uses M2M but it goes beyond machine to enterprise
systems, data and applications. IoT brings an enterprise
perspective...
Machine ! Machine !
M2M (Machine 2 Machine)!
IoT (Internet of Things)!
Machine ! Machine !
SAP!
Big Data -
Cloud!
Oracle !...
What is the Role of Middleware in IoT?!
Machine !
Machine !
API!
Application! Analytics !
Middleware !
Device!
!
(Physical...
Device !
Gateway!
Service
Provider !
IoT!
Infrastructure !
IoT!
Developer!
Tools!
Network!
IoT
Applications!
Sensor! ATM!
...
#1! Industry Process and Business Functional Expertise !
(Ex: Finance, Supply Chain, etc.) !
Deep Technology, Application ...
Do We Need an Advanced Degree or a PhD to Implement IoT?!
A deep knowledge of industry and business process is a key requi...
Disclaimer !
o  We are sharing this information strictly for learning and research. We have no
liability on this informati...
71!
© CloneSkills, Inc.!
Contact Details:!
!
Dominique Julien !
Chief Marketing Officer !
djulien@cloneskills.com!
!
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“The Digital Oilfield” : Using IoT to reduce costs in an era of decreasing oil prices - Powered by SAP S/4 HANA

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Executive Summary:
oWe decided to create this point-of-view after seeing many abstract presentations and esoteric concepts on Digital Oilfield, IoT, Big Data and Analytics.
oThis is our attempt to bring a practical implementation view to IoT by combining Digital Oilfield and IoT.
oHere, we also envisage sharing our IoT experience and lessons learnt in implementing Digital Oilfield solutions around IoT.
oThe following comprise our fundamental business case for Finance:
oPRODUCTION FORECAST
oFAULT COMPARTMENTS
oWELL LOCATION OPTIMIZATION

Published in: Data & Analytics

“The Digital Oilfield” : Using IoT to reduce costs in an era of decreasing oil prices - Powered by SAP S/4 HANA

  1. 1. 1! “The Digital Oilfield” : Using IoT to reduce costs in an era of decreasing oil prices - Powered by SAP S/4 HANA!
  2. 2. We are committed to simplify IoT implementation ! Our goal is to deliver IoT as a business solution vs. as an abstract technology solution ! IoT & Digital Oilfield Community Contributors ! Jothi Periasamy! ! Author ! Chief Data Scientist! Balaji Chennakrishnan! ! Co-Author ! Industry Expert - Oil & Gas ! Karthikeyan Rajamanickam! ! Platform & Technology Expert - IoT! Chetan Choudhury ! ! Strategy & Advisory! Dominique Julien! ! Chief Marketing Officer ! Durga Prasad! ! Data Science & ! Analytics Expert! 2! © CloneSkills, Inc.!
  3. 3. Oil & Gas Industry Key Business Challenges! © CloneSkills, Inc.! 3! o  Our 50 + customer engagements confirm that the real industry challenge is not technology implementation, data platform development, or data science solutions.! o  The real challenge is connecting business users to data, and making users realize the measurable business values quickly through repeatable processes. ! o  Data and Business Process Integration! •  Project subsurface, operation and economic team not truly integrated causing lower exploration success rate, sub-optimal reservoir management, etc. ! o  Managing Uncertainty During Business Decisions and Planning! •  Uncertainties not optimally captured in FDP means poorer field performance than predicted ! o  Linking Project Economics to Oil Price ! •  Existing solutions lack the ability to bring project cost below the lifting cost! o  Repeatable and Simplified Data Management Practices ! •  Our Industry experience confirms that up to 60% project time has been spent on data preparation activities!
  4. 4. Oil & Gas Industry Key Business Needs ! o  Our 20 + years of industry experience confirms that the real industry need is not setting up HADOOP, developing complex models, algorithms or real-time data provisioning. ! o  The real industry need is for a simple and easy to use platform that empowers business users with data to quickly deliver measurable business value using analytical techniques.! o  Integrated Solution : A platform that seamlessly integrates business process, data and analytics across business functions and processes! •  Optimal analytical solution to quickly realize productive resource utilization! •  Cost effective solution to identify and manage uncertainty before it occurs ! •  Repeatable data management and analytics process to improve data integration and efficiency! o  Integrated Business Planning, Budgeting and Forecasting! •  Optimize Capital Spend ! •  Reduce Cost! •  Increase Productivity! •  Enable Measurable Outcomes! 4" © CloneSkills, Inc.!
  5. 5. Our Solutions - We Make it Simple to Work with DataTM! IoT! ! ! Our Digital Oilfield! Platform! ! ! Business Process! Big ! Data! Data ! Science! Our Digital Lab! o  Our ready-to-go Digital Oilfield platform delivers data and analytics as a processes driven business solution for mainstream business users! o  Our digital lab is empowered with pre-built analytics for every functions of upstream, midstream and downstream - Finance, Supply Chain, Land, Leasing, Pipeline, Transportation, Environmental, Health & Safety and Operations.! o  Our Digital Oilfield solution enables a higher degree of business alignment and business adoption than other solutions! o  Our digital data platform integrates business processes with external and internal data in real-time regardless of data source, data format and data frequency – Sensor, Machine, Unstructured & Structured Data! o  We are a groundbreaking cloud platform for risk free Digital Oilfield implementation - Cost effective subscription model!5" © CloneSkills, Inc.! IoT!
  6. 6. Our Solutions - Unique Values ! o  Our Digital Oilfield platform is not just another raw technology platform unproven in the market or an abstract analytics platform to build models/algorithms ! Busines s Process Data Digital Oilfield Business Users Our Digital Oilfield platform connects mainstream business users with data through business processes, and quickly delivers measurable business value using analytics.! Our Digital Oilfield Platform is Empowered by IoT, SAP S/4 HANA, HADOOP, Oracle BDA and Microsoft BDA.! 6" © CloneSkills, Inc.!
  7. 7. Business Case ! Now, let us show how IoT is the Ideal Platform to Implement “The Digital Oilfield”! o  Predictive Fault Compartments! o  Field Wise Production - Volume Prediction! o  Well Wise Production - Volume Prediction! o  Well Location Analytics For Better Well Placement! Our Proven Use Cases ! 7" © CloneSkills, Inc.!
  8. 8. Content! Executive Overview ! Digital Oilfield - Redefined ! Digital Oilfield - Proven Business Cases! Digital Oilfield - Demo on IoT Platform! IoT - Implementation! IoT - Learning Beyond! © CloneSkills, Inc.! 8!
  9. 9. Executive Overview! Our Innovation! IoT! Digital Oilfield! Your Business! Transformation! o  We decided to create this point-of-view after seeing many abstract presentations and esoteric concepts on Digital Oilfield, IoT, Big Data and Analytics. ! o  This is our attempt to bring a practical implementation view to IoT by combining Digital Oilfield and IoT.! o  Here, we also envisage sharing our IoT experience and lessons learnt in implementing Digital Oilfield solutions around IoT. ! o  The following comprise our fundamental business case for Finance: ! o  PRODUCTION FORECAST ! o  FAULT COMPARTMENTS ! o  WELL LOCATION OPTIMIZATION ! © CloneSkills, Inc.! 9!
  10. 10. It is always challenging to believe an unproven concept, idea, product or service. Of course, we do not expect you to believe us just by a quick read of our material presented here. To articulate the real business value of our conceptual views, we spent almost 6 (six) months to develop our Digital Oilfield solutions. At the least, our idea is to bring a semblance of reality and practicality to our solutions. ! ! Our proven solutions are composed of the following: ! o  Our Digital Oilfield Solutions! o  Our IoT Lab Infrastructure! o  Our Big Data Platform - SAP S/4 HANA and HADOOP! o  Our Client Experiences ! ! Please feel free to compare our work with that of others around the globe to better understand where we stand on our value add to the IoT community. We are neither a consulting company nor a software vendor. We are a community of contributors with dedication, commitment and passion to convert complex concepts & ideas into industry solutions - IoT RESEARCH GROUP.! ! Finally, this is copyrighted educational material. We request you to obtain written approval before using it. ! How Do You Place Faith In Our Solutions?! Jothi Periasamy! Chief Data Scientist! Oil & Gas Industry Leader! (916) 296-0228! © CloneSkills, Inc.! 10"
  11. 11. What is Our Customer Value?! “….I just love working with Jothi…..”! ! Procter & Gamble! CFO’s Office ! Compare our solutions with anyone else in the world to better understand where we stand ! © CloneSkills, Inc.! 11!
  12. 12. ! ! o  Petronas ! o  Exxon! o  Jubilant Energy! o  Kuwait Oil Company (KOC)! ! We have been working in the Oil & Gas industry for more than 20 (twenty) years. Some of our most recent clients are:! © CloneSkills, Inc.! 12! Serving Clients Across the Globe - Recent Engagements !
  13. 13. •  CNH! •  PEMEX ! •  PETROTEL ! •  GCA! •  HALLIBURTON! •  SCHLUMBERGER! ! ! •  KOC! •  KUWAIT ENERGY! •  TOTAL ! •  HUNT OIL ! •  DNO ! •  PEPA - REGULATOR! ! •  ONGC ! •  RELIANCE ! •  CAIRN ENERGY ! •  OIL INDIA ! •  ENI! •  JUBILANT ENERGY ! •  GSPC! •  HARDY OIL ! •  DGH - REGULATOR ! ! •  TOTAL! •  TAP OIL AUSTRALIA! •  CHEVRON INDONESIA! •  BP INDONESIA! •  CONOCO PHILLIPS! •  TRITON CHINA! •  EXXON MALAYSIA! •  SHELL MALAYSIA! •  MALAYSIA! •  PTTEP, THAILAND! •  CNOOC! •  SAMEDAN VIETNAM ! •  EXXON! •  SHT! •  CNPC! •  SINOPEC! •  NILE PETRO! •  ONGC VIDESH! •  EREX ! Serving Clients Across the Globe - Verifiable Engagements! NORTH AMERICA ! MIDDLE EAST ! INDIA ! ASIA PACIFIC! AFRICA! As we stated, we are committed to bring proven business value to the Digital Oilfield and IoT. We have served more than 50 (fifty) clients across the globe. This article is a direct outcome of our industry contribution, leading practices and customer engagements. ! © CloneSkills, Inc.! 13! •  GALP ENERGEIA! •  CEPSA! •  ENQUEST! •  STATOIL ! EUROPE!
  14. 14. 14! !PUBLICATION! •  Static Model Review and QC! •  Static Model Building Timeline! •  Reservoir Model Training ! •  Application of Pore Pressure and Geomechnical studies in overcoming well failures due to borehole Instability towards successful and economical well drilling! !PRESENTATION! •  Overcoming Wellbore Instability on Pore Pressure, Wellbore Stability & Geomechanics! •  Managing Large Databases in Brownfields ! •  Application of 3D Geomechnical Models in Field Development ! •  Multiple Static Model Realisations for Simulation Models! •  Static Model Building – Guidelines for Timeline and review ! !ASSOCIATION! •  AAPG! •  DPA! •  EAGE! •  SPE and APG India! !CONTRIBUTION ! •  Reservoir Modelling and Integrated Reservoir! •  Field Development, ! •  Production Optimisation,! •  Operations and Wellsite Geology! •  FDP! Our Industry Credentials - Energy, Oil & Gas! © CloneSkills, Inc.!
  15. 15. Our Industry Credentials - IoT, Big Data and Data Science! o  Recognized thought leader for Finance, Digital, IoT, Big Data, and Data Science by Forbes, Techcrunch, Mashable, CIOReview, and many Government organizations. ! o  Written numerous article and spoken in many industry events and technology conferences ! o  Advisory board – Government of Malaysia digital transformation and employment & talent creation! Empowered by around 300,000 global learners ! 15" © CloneSkills, Inc.!
  16. 16. WHAT IS IT? ! ! In our point of view, Digital Oilfield is neither a software nor a hardware component. It is a concept (or a Framework) to provide an integrated cross functional view on process, data, application and analytics across upstream, midstream and downstream. Data plays a key role in transforming the Digital Oilfield concept into reality. In fact, data is the number one enabler of any Digital Oilfield project. ! ! WHAT IS NEW?! ! Over the recent past, many technologies have come up – IoT, Big Data, Advanced Analytics, Data Science, Data Visualization, among many more. These technologies have brought abstract concepts like the Digital Oilfield into reality. As such, the concept of Digital Oilfield is already defined. Now…..it’s time to reinvent this concept.! As a concept, the Digital Oilfield has been around for a while. But it is time to redefine this concept and to transform it into a solution to deliver tangible business value. ! The Digital Oilfield – Redefined ! © CloneSkills, Inc.! 16!
  17. 17. DATA INTEGRATION! o  Digital Oilfield enables Data interoperability across an enterprise regardless of data source, data format, data structure and data frequency! •  Example : Integrating the Pipeline and Transportation sensor data with supply chain and procurement data for better planning, forecasting and budgeting! ! PROCESS OPTIMIZATION! o  Digital Oilfield delivers simplified, integrated and unified cross functional processes ! •  Example : Integrating strategic business goals and objectives into measurable operational KPIs ! •  Instantly deduce daily, weekly and monthly budget variances between the allocated budget and the actual spend at various level (e.g., project level, capita level and WEB level)! ! ADVANCED ANALYTICS! o  Digital Oilfield empowers business users with advanced analytics and data science techniques. Along with IoT, the Digital Oilfield brings a completely new perspective to the data & analytics practice. The Digital Oilfield simplifies data analysis and enables self servicing analytics for mainstream business users.! •  Example : (1) Predicting potential hydrocarbons in undrilled fault compartments. (2) Well and Field level production predictive analysis to reduce capital spend and optimize resource allocations. (3) Locating Wells by Multi - Property Multi- iterative Prediction for higher production! What Value Does Digital Oilfield Deliver to Business?! © CloneSkills, Inc.! 17!
  18. 18. Data! Upstream! •  People! •  Process! •  Technology! Midstream! •  People! •  Process! •  Technology! Downstream! •  People! •  Process! •  Technology! Digital Oilfield Redefines Your Business! o  As an IoT Enabled Solution, the Digital Oilfield Connects People, Process and Technology across upstream, midstream and downstream! ! What Value Does Digital Oilfield Deliver to Business? (Cont’d.)! 2! 3! 1! 4! NEW IDEAS AND NEW APPLICATIONS! ANALYTICS INNOVATIONS ! REDEFINED GLOBAL PROCESS! HIDDEN CREATIVITY UNLOCKED ON DATA ! IoTTechnologyPlatform! © CloneSkills, Inc.! 18!
  19. 19. Capital Project 1 ! WBS 10! Cost Element 100! Actual ! Budget ! Weekly! Variance ! Capital Project 1 ! WBS 10! Cost Element 100! Actual ! Budget ! Predicted ! Variance ! 110K! 100K! -10K! 110K! 100K! -10K! 110K! 100K! -10K! o  Create automatic event notification when a budget variance occurs ! o  Daily ! o  Weekly ! o  Monthly ! o  Quarterly ! o  Yearly! o  On Demand ! o  Predict and correct budget challenges at various level such as ! o  Capital! o  Project ! o  WBE! o  Cost Center! o  Cost Element! Weekly Budget Variance! Weekly Budget Prediction! 115K! 100K! -10K! 115K! 100K! -10K! 115K! 100K! -10K! What Value Does Digital Oilfield Deliver to Business? (Cont’d.)! © CloneSkills, Inc.! 19!
  20. 20. Sensor! Upstream! Unstructured ! Midstream! Structured ! Downstream! Digital Oilfield Transforms Business ! Information-Driven Enterprise! Procurement Data ! Leasing Information! Production data! IoT Reinvents Digital Oilfield ! •  IoT converts the concept (Digital Oilfield) into reality ! •  IoT delivers integrated data sets across business functions in real-time regardless of data challenges! ! Example : Integrating Production Data, Leasing Information and Procurement Data for optimized and simplified procurement process ! How do we Deliver Digital Oilfield Solutions?! IoT Technology Transformation! Digital Oilfield Solutions! Business Transformation! 1! 2! 3! •  The concept of Digital Oilfield has been around for a while. Hence, there is no need to educate business about an existing concept. ! •  Instead, as a first step in the Digital Oilfield implementation journey business should be educated about new technological advancements on business transformation such as the following:! © CloneSkills, Inc.! 20!
  21. 21. Business Readiness & Awareness ! Business Case ! Technology Transformation! Business Transformation! How do we Deliver Digital Oilfield Solutions? (Cont’d.)! Stabilization &! Sustainability ! Example: ! Conduct ! Educational Session on IoT, etc.! Example: ! Reimagine Finance for Digital Age! ! Example: ! Implement IoT! ! Example: ! Redefine Business Processes and Operating Model! Example: ! Repeat the Process and Continue the Journey! 1! 2! 3! 4! 5! Business Case: For a successful Digital Oilfield implementation, a critical requirement is to have an impactful business case which will quickly deliver real measurable business value. So, FIRST focus on identifying a critical business case before anything else. ! Success Criteria: The success of this solution will be determined by the mainstream users and their adoption and acceptance. Technology will fail to make any difference if mainstream business users do not see any value in the solution. ! © CloneSkills, Inc.! 21!
  22. 22. “The Digital Oilfield” Implementation! !Machine Learning! © CloneSkills, Inc.! 22!
  23. 23. o  BUSINESS NEEDS ! o  Identify Potential Hydrocarbons in undrilled Fault Compartments and Increase Production Volume ! ! o  BUSINESS CHALLENGES ! o  Process! •  Time Consuming Effort to Arrive an Optimal Outcome! •  Lack of Repeatable Process ! o  Data! •  Manual Data Engineering Approach to Make Data Available for Analytics! •  Complex Data Sets Integrate From Different Data Source. ! o  Analytics! •  Lack of Data Science and Advanced Analytics Techniques! •  Lack of Skilled Professionals! Business Case 1 : Predictive Fault Compartments! Machine Data! •  FAULTS DATA ! •  FAULT SEGMENTS! •  WELL LOGS! •  FACIES DATA ! •  WELL TOPS! •  RESERVOIR THICKNESS ! •  CONTACTS ! •  PRESSURE !! In this use case, we used many data sets. Key Machine Data used to implement this use case:! © CloneSkills, Inc.! 23!
  24. 24. Business Case 1 : Predictive Fault Compartments (Cont’d.)! Business Benefits:! o  Increased Oil Production and optimized capital spending on drilling fault compartments ! o  Identified potential hydrocarbon bearing fault compartment that was overlooked by traditional Analytics! o  Provided deeper insights on fault connectivity and transmissibility! Traditional Workflow! Fault segments / compartments identified based on seismic and well data! Fault seal analysis performed out using SGR, Juxtaposition! Identify reservoir connectivity through Data Science Techniques ! Determined hydrocarbon columns in each compartment through contacts data! Process repeated using Big Data Analytics approach, identified segments/compartments through contacts, pressure, production and production behavior! Data Science! Process Followed ! ! 1! 2! 3! 4!5! Reimagined Workflow! © CloneSkills, Inc.! 24! Seismic! Horizons & Faults! Well Logs! Correlation! Well Picks! GR Curves / Vshale! Survey! X,Y,Z TVD! Initial pressure! Contacts! SGR! Throw! Juxtaposition! Connectivity! Contact Analysis! Connected! Not Connected! Partially! Connected! Data Input! Analysis! Result!
  25. 25. Business Case 1 : Predictive Fault Compartments (Cont’d.)! Correlation Between Capital Spend and Production! © CloneSkills, Inc.! 25!
  26. 26. Business Case 1 : Predictive Fault Compartments (Cont’d.)! 1 2 3 4 5 o  SEISMIC! o  FAULT NETWORK ! o  JUXTAPOSITION! o  CONNECTIVITY! o  CONTACT ANALYSIS ! o  COMPARTMENT ! © CloneSkills, Inc.! 26! Our Data Science Approach !
  27. 27. Business Case 2 : Field Wise Production - Volume Prediction! o  BUSINESS NEED! o  Proactively identify uncertainty in field wise production forecast to reduce cost and spend! ! o  BUSINESS CHALLENGES! o  Process! •  Time consuming effort to arrive an optimal outcome! •  Lack of repeatable process ! o  Data! •  Manual data engineering approach to make data available for analytics! •  Complex data sets to integrate from different data source. ! o  Analytics! •  Lack of data science and advanced analytics techniques! •  Lack of skilled professionals! Machine & ! Sensor Data! Sensor Data! Machine Data! •  Production Data,! •  Pressure data! •  PLT! •  Point Data ! •  Well Logs! •  Static Models! •  Simulation Models! •  DCA! © CloneSkills, Inc.! 27! In this use case, we used many data sets. Key Machine and Sensor Data used to implement this use case:!
  28. 28. Business Case 2 : Field Wise Production - Volume Prediction (Cont’d.) ! Business Benefits:! o  Enhanced field wise prediction of Total Liquids, Oil, Gas and WC ! o  Improved planning and effective field wise work order ! o  Provided deeper insights on well uncertainty for proactive decision making on cost and spend ! © CloneSkills, Inc.! Traditional Approach! A typical probabilistic production forecasting workflow! Performed regression analysis on historical production data! Results from traditional predictive tools like DCA, Simulation models captured! Data uncertainty from these outputs, allocation uncertainty captured! Capture Reservoir & Field wise data and production network , and capacity constraints! Multiple Iterative data analytics carried out constrained by inputs from conventional predictive methods. ! 1! 2! 3! 4!5! Reimagined Workflow!Data Science ! Process Followed ! ! 28!
  29. 29. Business Case 2 : Field Wise Production - Volume Prediction (Cont’d.)! © CloneSkills, Inc.! 29! Field Wise Prediction Combining Forward Plans and Economics!
  30. 30. Business Case 3 : Well Wise Production - Volume Prediction! o  BUSINESS NEED: ! o  Proactively identify uncertainty in well production to reduce cost and spend! o  BUSINESS CHALLENGES: ! o  Process! •  Time consuming effort to arrive an optimal outcome! •  Lack of repeatable process ! o  Data! •  Manual data engineering approach to make data available for analytics! •  Complex data sets to integrate from different data source. ! o  Analytics! •  Lack of data science and advanced analytics techniques! •  Lack of skilled professionals! Machine & ! Sensor Data! In this use case, we used many data sets. Key Machine and Sensor Data used to! implement this use case:! !  Production Data,! !  Pressure Data! Sensor Data! Machine Data! !  Pressure Data! !  Point Data ! !  Well Logs! !  Bubble Maps! !  DCA! © CloneSkills, Inc.! 30!
  31. 31. Business Case 3 : Well Wise Production - Volume Prediction (Cont’d.)! Business Benefits:! o  Enhanced well wise prediction of Total Liquids, Oil, Gas and WC ! o  Improved planning and effective well wise work order ! o  Provided deeper insights on well uncertainty for proactive decision making on cost and spend ! © CloneSkills, Inc.! Forecast from ResNet! Forecast from Profile! Profile can be from MBAL/ DCA / Simulation! Traditional Workflow! Performed regression analysis on historical production data! Results from traditional predictive tools like DCA, ResNet, Bubble Maps captured! Data uncertainty from these outputs, allocation uncertainty captured! Group Well wise, Reservoir wise, Production and other data ! Multiple Iterative data analytics carried out constrained by inputs from conventional predictive methods. ! 1! 2! 3! 4!5! Reimagined Workflow! Data Science ! Process Followed ! ! 31!
  32. 32. Business Case 3 : Well Wise Production - Volume Prediction (Cont’d.)! © CloneSkills, Inc.! 32! Well Production Prediction to Maximize Production and Optimize Capital Spend!
  33. 33. o  BUSINESS NEED: ! o  Locate wells in favorable structural positions, target better reservoirs to realize sustained higher production of Oil & Gas! o  BUSINESS CHALLENGES: ! o  Process! •  Traditional analyses to identify suitable locations to drill does not fully and correctly integrate and multi-iterate various available datasets such as structure maps, thickness maps, contacts, porosity, permeability, saturation, bubble maps, pressure sinks, etc.! •  Targeting multiple reservoirs for better well & field economics is even more challenging with traditional analysis.! •  Time consuming effort to arrive an optimal outcome! •  Lack of repeatable process ! o  Data! •  Manual data engineering approach to make data available for analytics! •  Complex data sets to integrate across different data sources ! o  Analytics! •  Lack of data science and advanced analytics techniques! •  Lack of skilled professionals! Machine Data! In this use case, we used many data sets. Key Machine Data used to implement this use case.! !  Maps! !  Fault Data! !  Zone Data! !  Well Tops! !  Well Logs! !  Thickness! !  Contacts! !  Pressure ! !  Porosity! !  Saturation! !  HCPV! !  Permeability! Business Case 4 : Well Location Analytics for Better Well Placement ! © CloneSkills, Inc.! 33!
  34. 34. Business Case 4 : Well Location Analytics for Better Well Placement ! Structure maps with fault blocks, segments for each reservoir / Zone captured! 1! For each zone/ reservoir captured thickness, contacts, porosity, Permeability, saturation, Pressure sinks, bubble maps, HCPV etc.! 2! Repeated Regression Data Analysis with different combinations of data sets Including pressure and production data ! 3! Zone wise data analytics carried to identify locations of better reservoir properties and optimal structural position! 4! Combined visual overlays of multiple property layers on structure map and optimized locations identified from data analytics. Repeat process on multiple zones to identify better located and targeted future wells! 5! Data Science ! Process Followed ! ! ! ! Business Benefits:! o  Better well placement and improved production and recovery! o  Deeper insights on reservoir and structure for better well location and improved decision making ! o  Increased Oil Production and optimized capital spending on drilling fault compartments! o  Optimized cycle time to conduct Well location analysis and resource utilization ! ! © CloneSkills, Inc.! 34!
  35. 35. Business Case 4 : Well Location Analytics for Better Well Placement ! © CloneSkills, Inc.! 35! Optimally Locating Wells by Multi - Property Multi- iterative Prediction!
  36. 36. “The Digital Oilfield“ Implementation! !Advanced Analytics ! © CloneSkills, Inc.! 36!
  37. 37. Our Oil & Gas Value Delivered! o  Financial ! o  Operational! o  Environmental Health & Safety! o  Transportation! o  Rig Fleet! o  Land Lease! o  Well! o  Pipeline! Our global client engagements have empowered us to pre-build Data Science and Advanced Analytics solutions for mainstream business users. Our solution provides a 360o view on every function of the Oil & Gas industry. Our Data Science values have been fully realized by business users as well as the senior leadership team of our clients.! Data Science ! Delivered! © CloneSkills, Inc.! 37! 360o View !
  38. 38. Supply Chain ! Capital Lifecycle! Operational! •  Optimize Supply Chain Process and Increase Revenue! •  Instant Insights on Frights, Containers, and Shipped Goods! •  Real-time visibility to road conditions and traffic ! •  Maximize Assets Lifecycle and Reduce Cost ! •  Predict Assets Failures ! •  Prevent Assets Measures ! •  Identify Hydrocarbons in undrilled Fault Compartments! •  Increase Oil Production and Reduce Cost! IoT! Analytics! For ! Oil & Gas! Connected Analytics! Powered by SAP S/4 HANA Digital Core ! Supply Chain! Financial ! Operational! Our Oil & Gas Value Delivered (Cont’d.)! © CloneSkills, Inc.! 38!
  39. 39. Data and Information Model - Upstream! Field Data! Machine Data! !  FIELD NAME! !  REGION / COUNTRY! !  BASIN! !  AREA! !  OPERATOR / PARTNERS! !  CO-ORDINATE SYSTEM! Well Data! Machine & Sensor Data! !  WELL NAME! !  API CODE! !  WELL COORDINATES! !  ELEVATION / WATER DEPTH! !  WELL TYPE! !  TOTAL DEPTH! !  WELL STATUS! !  DEVIATION DATA! !  SPUD DATE & COMPLETION DATE! Geological Data! Machine Data! !  CONCEPTUAL DEPOSITIONAL MODELS! !  GEOLOGICAL ZONES! !  RESERVOIR AGE / FORMATION! !  RESERVOIR TYPE ! !  THICKNESS MAPS! !  CROSS SECTION! Petrophysical Data! Machine and Sensor Data! !  WELL LOGS ! !  INTERPRETED DATA! !  RESERVOIR SUMMARY ! !  PRESSURE DATA ( MDT / RFT)! !  CONTACTS (GOC / OWC / FWL)! !  ROCK TYPING! !  SATURATION PARAMETERS! Reservoir Data! Machine & Sensor Data! !  THICKNESS! !  POROSITY! !  INITIAL OIL, GAS, AND WATER SATURATIONS! !  FORMATION VOLUME FACTORS GAS COMPRESSIBILITY! !  TEMPERATURE! !  INITIAL PRESSURE! ! Production Data! Machine & Sensor Data! Core Data! Machine & Sensor Data! !  RCA DATA! !  SCAL DATA! !  POROSITY ! !  PERMEABILITY! !  CAPILLARY PRESSURE! !  INITIAL OIL, GAS, AND WATER SATURATIONS! !  GEOMECHNICAL DATA! Reserves! Machine & Sensor Data! !  IN PLACE (STOIIP / GIIP)! !  NP! !  RF ! !  EUR! !  UPC! !  NPV! !  API GRAVITY OF FLUIDS! !  CRUDE OIL VISCOSITY AND POUR POINT! !  CRUDE OIL SULPHUR CONTENT! !  GAS-OIL RATIO! !  GAS GRAVITY AND HEATING VALUE! !  COMPOSITION OF RESERVOIR OIL /GAS/ WATER! !  RESISTIVITY / SALINITY OF FORMATION WATER! Geophysical Data! Machine & Sensor Data! !  SEISMIC VOLUMES! !  VSP DATA! !  VELOCITY MODELS! !  SEISMIC SURFACES! !  FAULT INTERPRETATION! !  SEISMIC ATTRIBUTES! !  SEISMIC INVERSION! !  GRAVITY & MAGNETIC DATA! Reservoir Fluid Data! Machine & Sensor Data! !  COMPLETION INTERVALS! !  PRODUCING ZONES & INTERVALS! !  INITIAL PRODUCTION RATES! !  INITIAL PRESSURE! !  DAILY PRODUCTION DATA! !  HISTORICAL PRODUCTION ! !  HISTORICAL PRESSURE ! !  PLT DATA ! !  WORKOVER HISTORY! © CloneSkills, Inc.! 39! SampleDigitalOilfieldDataSets!
  40. 40. Data and Information Model - Midstream! PIPELINES! Machine & Sensor Data! !  TYPE OF PIPELINE! !  ROUTE & LENGTH ! !  DIAMETER ! !  CAPACITY! !  TIME PERIOD ! !  LOOPING BY SEGMENT ! !  ENTRY/EXIT NODE CAPACITY & THROUGHPUT ! COMPRESSOR & ! PUMPING STATIONS! Sensor Data! !  TYPE ! !  CAPACITY ! !  HORSEPOWER ! !  INPUT AND OUTPUT PRESSURE! STORAGE FACILITY! Machine & Sensor Data! !  TYPE OF STORAGE! !  STORAGE VOLUME (GAS): ! !  TOTAL VOLUME (LIQUID)! FLOATING PRODUCTION STORAGE & OFFLOADING! Machine & Sensor Data! !  CAPACITY! !  FIELD NAME! !  PORT NAME ! !  CONSTRUCTION TYPE (NEW OR CONVERTED) ! !  MOORING TYPE ! !  DEADWEIGHT TONNAGE ! !  DEPTH ! !  LENGTH! !  OIL PRODUCTION MAXIMUM! !  OIL STORAGE CAPACITY ! !  GAS PROCESSING CAPACITY! !  GAS INJECTION ! COMMON DATA SETS! Machine & Sensor Data! !  PLANT NAME! !  OPERATOR! !  OWNERSHIP STRUCTURE! !  CAPACITY! !  ONLINE DATE ! !  LOCATION COORDINATES! LNG LIQUEFACTION & REGASIFICATION FACILITY! Machine & Sensor Data! !  CAPACITY HOLDERS! !  STORAGE CAPACITY! !  NUMBER OF TANKS! !  TECHNOLOGY! !  CAPITAL COST! POWER PLANT! Machine & Sensor Data! !  PLANT TYPE! !  CAPACITY BY UNIT & TURBINE TYPE! !  PRIMARY/ALTERNATIVE FUEL BY UNIT! © CloneSkills, Inc.! 40! SampleDigitalOilfieldDataSets!
  41. 41. Data and Information Model - Downstream! REFINERY CAPACITY & REFORMING! Sensor Data! !  CRUDE DISTILLATION CAPACITY! !  VACUUM DISTILLATION CAPACITY! !  CYCLIC REFORMING! !  CONTINUOUS REFORMING! !  CATALYTIC REFORMING! !  SEMI REGENERATIVE REFORMING! CRACKING! Sensor Data! !  CATALYTIC FLUID ! !  CATALYTIC RESIDUAL! !  CATALYTIC OTHER! !  HYDROCRACKING VGO ! !  HYDROCRACKING RESIDUAL! !  HYDROCRACKING OTHER! !  THERMAL CRACKING! PROCESS! Sensor Data! !  HYDROTREATING! !  ALKYLATION! !  ISOMERIZATION! !  POLYMERIZATION! !  MTBE! !  ETBE! !  TAME! !  LUBES! FPSO! Machine & Sensor Data! !  CAPACITY! !  FIELD NAME! !  PORT NAME ! !  MOORING TYPE ! !  DEADWEIGHT TONNAGE ! !  DEPTH & LENGTH! !  OIL PRODUCTION MAXIMUM! !  OIL STORAGE CAPACITY ! !  GAS PROCESSING CAPACITY! REFINERY PRODUCTION! CAPACITY! Machine & Sensor Data! !  LPG! !  GASOLINE! !  NAPTHA! !  JET / KEROSENE! !  DIESEL! !  FUEL OIL! !  EHANOL! !  TOTAL LIQUID! !  OTHER! PORTS! Unstructured Data! !  BERTH ! !  TYPE OF SERVICE! !  OPERATING STATUS! !  DEPTH & LENGTH! !  MAX DEAD WEIGHT! !  MAX DRAUGHT! !  TONNAGE! PIPELINES! Unstructured Data! !  LIQUID PIPELINE CONTENT! !  ROUTE & LENGTH! !  DIAMETER! !  CAPACITY! !  TIME PERIOD! !  REPORTED! !  ESTIMATED! !  LOOPING BY SEGMENT! PUMPING & STORAGE! Machine & Sensor Data! !  PUMPING TYPE! !  PUMPING CAPACITY! !  STORAGE! !  TYPE! !  FLUID TYPE! !  LIQUID CAPACITY! !  NO OF TANKS! 41!© CloneSkills, Inc.! SampleDigitalOilfieldDataSets!
  42. 42. 42! © CloneSkills, Inc.! 360o View! !  Upstream! !  Midstream! !  Downstream ! Pre-builtOperationalInsights! o  Capital Usage! o  Capital Acquisition! o  Exploration! o  Production! o  Much more …!
  43. 43. 43" © CloneSkills, Inc.! Pre-builtSpendAnalytics! o  Spend Profile! o  Spend vs. Growth! o  Spend by Category! o  Spend Prediction! o  Much more …! 360o View! !  Upstream! !  Midstream! !  Downstream !
  44. 44. 44" © CloneSkills, Inc.! Pre-builtVendorPerformances! 360o View! !  Upstream! !  Midstream! !  Downstream ! o  Score Card ! o  On time Delivery! o  Quality Trend! o  Spend Prediction! o  Much more …!
  45. 45. o  Device Connectivity and Device Management ! •  Protocol Transformation! •  Device Computing Framework ! •  Intermittent Connectivity ! •  Multi Protocol Connectivity ! ! o  Data Management ! •  Device Data Stream Processing! •  Device Data Aggregation and Summarization! •  Device Data Storage - Hot, Cold & Warm ! •  Device Data Persistence! •  Integrating Device Data With Cloud Data! Lessons Learned ! A lot can be written on this topic but we waned to keep it at a high level to create enough awareness for an IoT implementation team. During our implementation experiences, we encountered various uncertainties in many areas. Some of the key challenges that we tackled are enumerated below. ! In case you want to discuss further on this topic, please feel free to contact us.! TrialandError! Most of us were new to IoT and at various points we tried many things on a trial and error basis – Ultimately, we made it work !! 45" © CloneSkills, Inc.!
  46. 46. ! Learning Beyond! ! ! IoT and SAP S/4 HANA! 46" © CloneSkills, Inc.!
  47. 47. Learning Beyond - IoT! IoT Defined! IoT Architecture for Digital Oilfield! IoT Industry Needs! Comparison - IoT, Big Data and Data Science! Role of SAP S/4 HANA in IoT! IoT Skill Requirement ! © CloneSkills, Inc.! 47!
  48. 48. IoT Defined ! Hardware ! Physical Devise ! Network! Software ! Services! Database! Industry / Enterprise ! Public! Government! Physical! Device ! IoT globally connects Public, Industry, Enterprise and Government through physical devices. IoT uses the following key building blocks to implement solutions.! IoT! ! We have seen many definitions for IoT but we wanted to give a visual definition to keep it simple. ! Connect! Transform! Reimagine! 48! © CloneSkills, Inc.!
  49. 49. Big Data ! Storage – Cloud Infrastructure ! Big Data ! Storage – On premise Infrastructure ! THINGS ! DATA STORAGE!GATEWAY! SENSOR! ATM! ! EMR DEVICE! TELEMA TICS! NETWORK! IoT Key Building Blocks! 1 2 3 4 49! © CloneSkills, Inc.!
  50. 50. Flow Sensor! Source of Streaming Data! o  Wellhead Automation ! o  Storage Tank Level Monitoring ! o  Chemical Injection ! o  Hydraulic and Lubricating Oil Reservoirs! o  Fracturing Truck Monitoring ! o  Drilling Fluid (“Mud”) Tank Monitoring ! o  Tote Level Monitoring ! o  Spark Protection in Diesel Fuel Distribution! What is a Sensor (Device) and a Sensor Event?! Sensor is a physical device to monitor an event or an activity. Events are messages that are generated when something happens in and around a sensor. ! ! Example:! o  Storage Tank Level Monitoring ! o  Temperature measure coming from a sensor in a machine! o  Smart meter reading! Continuous Intelligence! Live Streams! 50" © CloneSkills, Inc.!
  51. 51. IoT Devices & Data Production ! IoT Device Management & Data Handling! (Gateway)! IoT Device Data Handling & Data Integration! (Backend)! Business Process & Application Integration! Analytics and Data Science! I! o! T! ! S! E! C! U! R! I! T! Y! I! o! T! ! D! A! T! A! ! M! A! N! A! G! E! M! E! N! T! ! IoT Process! IoT Resource! IoT Communication! IoT Process! IoT Resource! IoT Communication! IoT Process! IoT Resource! IoT Communication! IoT Architecture Building Blocks ! 1! 2! 3! 4! 5! Big Data Process! Big Data Resource! Self Servicing! Presentation! Models & Algorithms! 51! © CloneSkills, Inc.!
  52. 52. Personal Area Network (PAN) Wireless PAN Wired PAN SENSO R Access Network Network Core LWM2M !  Fiber !  Cellular !  Satellite !  Dedicated Actuators Gateways Enterprise Network LAN OPC | ISN Inter Gateways Connected IP Network Multi Site Enterprise Network WAN ISA 95 Enterprise Control Systems Application, Systems & Storage D M Z SAP HANA Cloud - Warm SAP HANA - Hot H D F S HADOOP SAP Business Applications & BI Tools 52" ! IoTArchitecture-General! ! ©CloneSkills,Inc.!
  53. 53. SENSOR! LWM2M! Fiber ! Gateways! OPC | ISN! LAN! Inter Gateways! Connected IP Network ! ISA 95! WAN! Enterprise Control Systems! Application, Systems & Storage ! D ! M ! Z SAP HANA Cloud - Warm ! SAP HANA - Hot! H! D! F! S! HADOOP! SAP Business Applications & BI Tools! SECURED! Depth-tracking Sensor! Drill-monitor ! Sensor! Gas-detection ! Sensor! Pit-monitor ! Sensor! Flow-tracking ! Sensor! Well Logs! Fluid (Electrical) Logs! 53! ! IoTArchitecture-DigitalOilfield! ! ©CloneSkills,Inc.!
  54. 54. What Would be the Typical Industry Need for an IoT Solution?! Event Stream Processing! Manufacturing: ! Needs & Challenges! Power & Utilities:! Needs & Challenges! Business Benefits ! IoT Solutions! •  Measurable Planning, Forecasting and Budgeting ! •  Spend Reduction! •  Productive Resource Utilization ! •  Increased Production ! •  Optimize Processes! •  Resource Allocation! •  Work Order Processing! •  Proactively Maintain Asset Lifecycle ! •  Automated Operational and Control System Monitoring! •  Demand Response - Transformer Load Balancing! •  Improve Power Quality and Power Factored ! •  Financial Forecast on Billed/ Unbilled Smart Meter Data! •  Continually Collect Sensors and Smart Devices Data! •  Actively Monitor Data Arriving ! •  Collect High-value Business Data Using SAP HANA for IoT ! •  Application! •  Planning ! •  Analytics ! •  Data Science! •  Reports ! •  Alerts ! •  Notifications! •  Data Analysis ! •  Data Visualization! 54! © CloneSkills, Inc.!
  55. 55. ! IoT and M2M Industry Usage: ! ! ! o  Automotive ! •  Telematics to capture and report location, engine condition, logistics tracking, remote driver support services and assistance! o  Retail! •  Electronic payment and stock control that can link to supply chain systems! o  Banking, Finance & Insurance! •  Credit card readers, cash tills (EPOS systems) for electronic payment! o  Health! •  Medical equipment that can monitor patients remotely, patient tracking devices and improved clinical research! o  Manufacturing! •  Asset tracking, remote monitoring, fleet management and environmental measurement! What Would be the Typical Industry Usage of IoT ? ! 55" © CloneSkills, Inc.!
  56. 56. What Business Solution Can We Build On The IoT Platform? ! IoT Reports and Notifications/Alerts ! IoT Business! Applications! IoT Business! Analytics ! IoT Enterprise ! Data Science! •  CRM Application! •  SCM Application! •  Financial Application! •  And Many More …! •  Customer Analytics! •  Marketing Analytics! •  Supply Chain Analytics ! •  Work Order Analytics! o  With the combined power of middleware and big data applications (ex: SAP S/4 HANA), we can design and deliver many enterprise scale business solutions including:! •  Application! •  Analytics! •  Data Science ! •  Reports, Notifications , Alerts, Data Analysis and Data Visualization ! © CloneSkills, Inc.! •  Operational Reporting! •  Management Reporting! •  Failure Notifications! •  Planning, Budgeting and Strategic Reporting ! •  Behavioral Patterns! •  Ex : Customer & Assets ! •  Time Series ! •  Ex: Financial Trend & Forecasting! •  Regression Test ! •  Ex: Predicted Spend! 56"
  57. 57. What is the Role of Big Data in IoT?! Device! Gateway! Data! o  IOT uses Big data platform and technologies to store and process data. In IoT, data could be kept in the form of hot, cold and warm state for subsequent application and analytics usage. The IoT reference architecture supports all type of big data technologies, including! •  HADOOP! •  NOSQL! •  etc. ! o  To realize the TRUE business values of IoT, the IoT reference architecture is powered by Enterprise big data appliances such as! •  SAP S/4 HANA! •  Oracle Big Data Appliances ! •  Microsoft Big Data Appliances! •  IBM Big Data Appliances! •  etc.! … So, IoT uses Big Data platform and technologies to store and process non-business and business data.! Big! Data! IoT! 57" © CloneSkills, Inc.!
  58. 58. What is the Role of Data Science in IoT?! FLOW SENSOR! Source of Streaming Data! Linear Regression Algorithm ! Generate a work order if the result of a specific linear regression algorithm on the last 100 measurements reached or! when set point is reached.! Data streaming instead will provide analytics on high frequency data (milliseconds) ! Real-time ! Data Streaming! Data ! Science ! Business Action! Business Benefits ! o  Actionable Planning - Work Orders! o  Effective Use of Capital Resource ! o  Reduced Cost ! Sensor! Data ! •  Data Science definitely has a role to play in IoT but it depends on what kind of application and/or analytics you are building on the IoT platform.! •  To build an IoT application, you need Data Science.! •  In our business case, we are applying Linear Regression ( for better understanding - Regression Testing) to determine whether the flow of Oil reached a set point on real- time data.! 1! 2! 3! 4! 5! 58! © CloneSkills, Inc.!
  59. 59. How Do You See IoT, Big Data and Data Science?! IoT ! Big Data ! Data Science! IoT! Big Data! Data Science! Data ! Platform Connects Public, Industry and Enterprise Using Physical Devices and Middleware Technologies ! From a business perspective, Data is the common media which connects IoT, Big Data and Data Science to deliver real business value. From a different perspective IoT, Big Data and Data Science could be separate practices. In order to achieve business goals and objectives, we need to make sure IoT, Big Data and Data Science work together with a common business goal. An organization focusing on implementing IoT, Big Data and Data Science solutions should have at least one skilled professional who can connect all these dots - IoT, Big Data and Data Science. ! Platform Collects and Stores Massive Amount of Data and Keeps the Data in Hot, Cold and Warm State for Business! Applies Science on Data To Extract Business Values ! Data Collector! Data Storage ! Data Value Extraction! 59! © CloneSkills, Inc.!
  60. 60. Yes, absolutely!! As we already addressed, if the goal is to bring IoT to mainstream business users then we must use SAP technologies such as SAP S/4 HANA, and other SAP technologies including ! o  SAP HANA Cloud Platform Internet of Things (IoT) Services! o  Internet of Things Services Cockpit! o  Remote Device Management Service API! o  Device Management! o  Message Management! o  Security! o  SAP Event Stream Processor! o  SAP IQ software ! o  Apache Hadoop software library! ! •  SAP S/4HANA on Cloud makes complex IoT applications easier to develop and simplifies the implementation of IoT solutions in the cloud, on premise or in hybrid landscapes with predictable business outcomes at a lower cost.! •  SAP launched SAP HANA® Big Data Intelligence rapid-deployment solution to simplify and accelerate Big Data initiatives.! No matter what IoT technology is implemented, SAP technology is needed to realize true IoT business value and also make IoT as a user-adopted enterprise scale business solution. ! ! ! 60" © CloneSkills, Inc.! Do We Need SAP Technology To Implement IoT Solution?!
  61. 61. What Value Does SAP S/4 HANA Bring to IoT?! We would like to answer this question both from a business and a technology perspective. We view IoT as a mainstream solution, not just a scientific or a technical solution.! ! Business Perspective! ! o  The business value of IoT will be realized by regular business users only when the IoT solution becomes a mainstream solution. To bring IoT to the mainstream, the IoT solution must extract measurable business value of the sensor and machine data. To extract business value of sensor and machine data, such data needs to be connected to business applications such as Financial Operational, Control and Supply Chain Systems. ! o  Most Oil & Gas companies are using SAP as their business application. SAP S/4 HANA brings business application data to IoT solutions in real-time for deeper insights and actionable analytics.! o  SAP S/4 HANA enables IoT as a mainstream business solution for regular business users.! o  Example: Reduced capital spend and optimized resource allocation by combining sensor data such as Production and Pressure with business application data such as Finance.! ! 61" © CloneSkills, Inc.!
  62. 62. What Value does SAP S/4 HANA Bring To IoT? (Cont’d.)! Technology Perspective! ! SAP solutions for IoT provide everything needed to develop business applications and analytics from connected things, people and devices. ! ! SAP HANA Cloud Platform Internet of Things (IoT) Services enables customers and partners to develop, customize and operate IoT business applications in the cloud.! ! •  SAP HANA Cloud Platform Internet of Things (IoT) Services include:! o  Internet of Things Services Cockpit! o  Remote Device Management Service API! o  Device Management! o  Message Management! o  Security! ! 62" © CloneSkills, Inc.!
  63. 63. ! Machines of the same type communicate with each other without any human intervention. This communication takes place in the form of wired or wireless network.! ! M2M Key Components:! ! •  M2M Devices! o  Sensor! o  Telematics! o  Electronic Payment Processing,! o  Medical Equipment! o  etc.! •  M2M Events! o  Temperature! o  Maintenance Clock! o  Air Pressure! o  Blood Pressure! o  etc.! •  M2M Network! o  Wired! o  Wireless! o  etc.! •  M2M Applications! o  Alert ! o  Notifications! o  Report ! o  etc. ! Devices ! Events! Networks! Applications! M2M! 63" © CloneSkills, Inc.! What is M2M (Machine to Machine)? !
  64. 64. IoT uses M2M but it goes beyond machine to enterprise systems, data and applications. IoT brings an enterprise perspective and connects devices to enterprise systems and enterprise applications. So, M2M is a subset of IoT or, in other words IoT encompasses M2M.! ! Example : Automotive Telematics ! ! o  M2M ! o  Captures, records and reports location, engine condition, and driver remote support services and assistance.! o  IoT ! o  Captures, records and reports location, engine condition, and driver remote support services and assistance. Plus, connects with systems such as SAP S/4 HANA for customer, inventory, supply chain, vendor, payment and billing, etc. ! ! M2M! IoT! •  IoT uses M2M ! •  So, M2M is a subset of IoT! 64! © CloneSkills, Inc.! How IoT Differs From M2M?!
  65. 65. Machine ! Machine ! M2M (Machine 2 Machine)! IoT (Internet of Things)! Machine ! Machine ! SAP! Big Data - Cloud! Oracle ! Wired ! Wire less ! Enterprise Systems ! Enterprise ! Data! Enterprise ! Application! Wired ! Wire less ! Communication and Data Movements Takes Place Between Machines ! Communication and Data Movements Take Place Between Machines and Enterprises ! 65! How IoT Differs From M2M (Cont’d.)?! COMPARE! © CloneSkills, Inc.!
  66. 66. What is the Role of Middleware in IoT?! Machine ! Machine ! API! Application! Analytics ! Middleware ! Device! ! (Physical Layer)! Business Logical Layer ! M2M! Desktop! Mobile! User Interface! Adaptors! Big Data! Information Model! Management :Data, Session, Transaction, Business Rules & etc.! Middleware Products ! ! o  SAP NetWeaver! o  Oracle Fusion! o  IBM MQ! o  etc. ! Middleware technology plays a key role in IoT. It connects the physical layer (device / operating system level) to the logical layer (application level). Middleware performs many management activities, including ! o  Session Management! o  Transacting Management! o  Integration Management! o  Security Management! o  Business Event Management! o  Communication Management ! o  …and many more … ! 66" © CloneSkills, Inc.!
  67. 67. Device ! Gateway! Service Provider ! IoT! Infrastructure ! IoT! Developer! Tools! Network! IoT Applications! Sensor! ATM! Health ! Monitor! Telematics ! Stock Keeper! Business Operations! Security Management ! Event! Processing! Integration! Device Management ! User Interface & Security! Big Data! Device Connectivity! Web Service ! Provider ! Web Service ! API!3rd Party API! Developer ! API! Developer Portal! Oil Extraction Control! Cell Phone!Car! Middleware! WebServices! 67! RoleofMiddlewareinIoT! ©CloneSkills,Inc.!
  68. 68. #1! Industry Process and Business Functional Expertise ! (Ex: Finance, Supply Chain, etc.) ! Deep Technology, Application and System Interaction and Interoperability (Ex: Middleware, Event Processing and Message Processing)! Data Engineering and Data Management ! Data Science and Analytics ! #2! #3! #4! Application!#5! What are the Skills Needed to Implement IoT Solutions?! There are different perspective on this. However, we approach IoT skill needs from a business perspective as ultimately, the IoT implementation team should make business users realize the TRUE measurable value of the IoT solution. To achieve business goals and objectives, we believe the following skills are required: ! To become an IoT expert, you don’t have to be either an Advance Degree holder or a PhD. ! 68! © CloneSkills, Inc.!
  69. 69. Do We Need an Advanced Degree or a PhD to Implement IoT?! A deep knowledge of industry and business process is a key requirement for a successful IoT implementation and converting IoT solution as a user-accepted and adopted business solution! ! o  Technology plays a key role in an IoT implementation. IoT needs significant technology integration and implementation skills such as integrating devices, middleware computing, cloud computing and messaging. Obviously, such skills are not easy to obtain just through an Advanced Degree and/or a PhD.! o  Deep technology implementation skills on a complex heterogeneous system landscape are needed to effectively solve real industry IoT problems.! ! 69" © CloneSkills, Inc.!
  70. 70. Disclaimer ! o  We are sharing this information strictly for learning and research. We have no liability on this information under any circumstances. Users should use this information at their own risk. ! o  All software, hardware and other products and trademarks referenced in this material belong to the respective vendors who developed or who own those products.! 70! © CloneSkills, Inc.!
  71. 71. 71! © CloneSkills, Inc.! Contact Details:! ! Dominique Julien ! Chief Marketing Officer ! djulien@cloneskills.com! !

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