advisian.com
Digital Transformation
Return on Innovation: The New ROI
Michael Dreiling
Chief Information Officer
Worley
Executive Speaker Series – Houston Petroleum Club
How many of you are pursuing digital transformation?
2
87% are thinking about
it, planning it, or are
currently underway
- FC Business Intelligence Ltd
The promise of digital transformation
3
• Risk mitigation
• Reduced OpEx and downtime
• Reduced cost of drilling and completions
• Quicker production
- FC Business Intelligence Ltd
However……..Expectations are not being met
4
54% of leaders admit they
don’t have a clear vision
for transformation.
– Gartner
• Delivered and sustained
• Owned by organization
• Achieved by organizationResultsTechnology
Technology Yields Results….Right?
Advisian / 5
But if you’re not getting the desired results…….
Often we just add additional technology…………
Bigger Hammer Syndrome
• Fact based dialogue
• Team based vs. individual
• Embedded & ingrained
Technology
(systems, processes)
• Fact based dialogue
• Team based vs. individual
• Embedded & ingrained
Behaviors
• Delivered and sustained
• Owned by organization
• Achieved by organization
Results
Developing results within a performance culture requires
the partnership of technology and behaviors
Advisian / 6
Performance culture
But something gets in the way of all this amazing technology
It’s those carbon based life forms…
who will have to adopt the technology
Digital
Natives
Digital
Immigrants
Advisian / 7© Advisian
Digitization can change the way we work – but you must trust it
Behavior and culture are still blocking the effective utilization of technology.
Conditional probability of failure
The random failure zone
Most organizations use predictive
analytics to warn of failure and take
appropriate actions
The wear-out zone
But if the telemetry predicts no
failures, most organizations still go
ahead with planned maintenance
Do You Trust it here?
AND Trust it here
8
Why do digital journeys often restart?
Photo licensed under CC BY-NC-ND
Inability to execute
Neglecting key stakeholders
Technology adoption issues
Underestimating the challenge
- FC Business Intelligence Ltd
Digitization highlights these operational challenges
9
• Inconsistent approach to critical equipment set-point thresholds
• Integration of control rooms and predictive surveillance analytics
• Limitations of debottlenecking initiatives
• Effectiveness of the remote operations management system
• Fear and lack of trust
Oversight on critical action points is lost in the data
Advisian / 10
• Unclear communication of digital strategy or intent of digitization
• Poorly defined Roles and Responsibilities between functional areas
• Lack of prioritization masks the truly critical alarms
Initially, all data points were highly
prioritized without understanding their
relative value – result was alarm overload
As data points expand, reactive behaviors make the situation worse
Advisian / 11
• Inconsistent approach to Threshold Setpoints
• Concern on technology impacting jobs
• Conflicting priorities on use of resources
(Business as Usual)
Converting alarms to
notifications overtaken by
additional critical alarms,
random changing of setpoints
& thresholds
Client quotes:
12
• “Getting involved in digitization is a dead-end for our careers”
• “We are just looked as Alarm-bitches with no authority”
Frustration and panic descends:
Alarm rationalization initiative implemented to eliminate excess data points
Advisian / 13
• Clear communication &
sustained leadership
support
• Early adopter change
management
• Capturing and
sharing best
practices
Implementation of a management system
around digital remote operations that:
• Integration of data - single dashboard
• Defined valid alarms
• Standardized setpoints
• Established roles & responsibilities
Brought stakeholders together – Corp.
Engineering, Field Operations, IT,
Client quotes:
14
• “The new alarm system now helps us to prioritize our work and still get
to all our maintenance jobs”
• “We’re now able to handle the alarms and manage our wells, and even
add more production, without having to hire new people”
After behaviors and culture change management is implemented:
15Photo licensed under CC BY-NC-ND
When Implemented Successfully –
Digital Transformation Cost Savings are Impressive
Reduced Capex Project Cycle Times
Higher return on capital
Prioritized Maintenance & Optimization
Increased uptime, fewer labor hours
Reduced Controllable Lifting Costs
Chemicals, spare parts, interventions
Coordinated Surveillance & Debottlenecking
Production, maintenance and reliability
33%
50%
50%
50%
Savings/
Improvements
Real digital solutions require trust, buy-in and leadership support
Advisian / 16
• Engineers and Platform Control Room Operators
working together to eliminate nuisance alarms
• Selection process with clear criteria for
well monitoring and control
• Create a pace to maintain
flow of work with risk-based
priorities in mind
• Quickly define who owns
what within Field and
Platform Control Rooms
• Aligned and managed
threshold, setpoint and alarm
management strategy
• Build a simple execution
control system, & focus
on completing the right
work at the right time.
The promise of digital transformation………….realized
17

Digital Transformation

  • 1.
    advisian.com Digital Transformation Return onInnovation: The New ROI Michael Dreiling Chief Information Officer Worley Executive Speaker Series – Houston Petroleum Club
  • 2.
    How many ofyou are pursuing digital transformation? 2 87% are thinking about it, planning it, or are currently underway - FC Business Intelligence Ltd
  • 3.
    The promise ofdigital transformation 3 • Risk mitigation • Reduced OpEx and downtime • Reduced cost of drilling and completions • Quicker production - FC Business Intelligence Ltd
  • 4.
    However……..Expectations are notbeing met 4 54% of leaders admit they don’t have a clear vision for transformation. – Gartner
  • 5.
    • Delivered andsustained • Owned by organization • Achieved by organizationResultsTechnology Technology Yields Results….Right? Advisian / 5 But if you’re not getting the desired results……. Often we just add additional technology………… Bigger Hammer Syndrome
  • 6.
    • Fact baseddialogue • Team based vs. individual • Embedded & ingrained Technology (systems, processes) • Fact based dialogue • Team based vs. individual • Embedded & ingrained Behaviors • Delivered and sustained • Owned by organization • Achieved by organization Results Developing results within a performance culture requires the partnership of technology and behaviors Advisian / 6 Performance culture But something gets in the way of all this amazing technology It’s those carbon based life forms… who will have to adopt the technology Digital Natives Digital Immigrants
  • 7.
    Advisian / 7©Advisian Digitization can change the way we work – but you must trust it Behavior and culture are still blocking the effective utilization of technology. Conditional probability of failure The random failure zone Most organizations use predictive analytics to warn of failure and take appropriate actions The wear-out zone But if the telemetry predicts no failures, most organizations still go ahead with planned maintenance Do You Trust it here? AND Trust it here
  • 8.
    8 Why do digitaljourneys often restart? Photo licensed under CC BY-NC-ND Inability to execute Neglecting key stakeholders Technology adoption issues Underestimating the challenge - FC Business Intelligence Ltd
  • 9.
    Digitization highlights theseoperational challenges 9 • Inconsistent approach to critical equipment set-point thresholds • Integration of control rooms and predictive surveillance analytics • Limitations of debottlenecking initiatives • Effectiveness of the remote operations management system • Fear and lack of trust
  • 10.
    Oversight on criticalaction points is lost in the data Advisian / 10 • Unclear communication of digital strategy or intent of digitization • Poorly defined Roles and Responsibilities between functional areas • Lack of prioritization masks the truly critical alarms Initially, all data points were highly prioritized without understanding their relative value – result was alarm overload
  • 11.
    As data pointsexpand, reactive behaviors make the situation worse Advisian / 11 • Inconsistent approach to Threshold Setpoints • Concern on technology impacting jobs • Conflicting priorities on use of resources (Business as Usual) Converting alarms to notifications overtaken by additional critical alarms, random changing of setpoints & thresholds
  • 12.
    Client quotes: 12 • “Gettinginvolved in digitization is a dead-end for our careers” • “We are just looked as Alarm-bitches with no authority” Frustration and panic descends:
  • 13.
    Alarm rationalization initiativeimplemented to eliminate excess data points Advisian / 13 • Clear communication & sustained leadership support • Early adopter change management • Capturing and sharing best practices Implementation of a management system around digital remote operations that: • Integration of data - single dashboard • Defined valid alarms • Standardized setpoints • Established roles & responsibilities Brought stakeholders together – Corp. Engineering, Field Operations, IT,
  • 14.
    Client quotes: 14 • “Thenew alarm system now helps us to prioritize our work and still get to all our maintenance jobs” • “We’re now able to handle the alarms and manage our wells, and even add more production, without having to hire new people” After behaviors and culture change management is implemented:
  • 15.
    15Photo licensed underCC BY-NC-ND When Implemented Successfully – Digital Transformation Cost Savings are Impressive Reduced Capex Project Cycle Times Higher return on capital Prioritized Maintenance & Optimization Increased uptime, fewer labor hours Reduced Controllable Lifting Costs Chemicals, spare parts, interventions Coordinated Surveillance & Debottlenecking Production, maintenance and reliability 33% 50% 50% 50% Savings/ Improvements
  • 16.
    Real digital solutionsrequire trust, buy-in and leadership support Advisian / 16 • Engineers and Platform Control Room Operators working together to eliminate nuisance alarms • Selection process with clear criteria for well monitoring and control • Create a pace to maintain flow of work with risk-based priorities in mind • Quickly define who owns what within Field and Platform Control Rooms • Aligned and managed threshold, setpoint and alarm management strategy • Build a simple execution control system, & focus on completing the right work at the right time.
  • 17.
    The promise ofdigital transformation………….realized 17