Delivering Real-Time Business Value for Oil and Gas

Delivering Real-Time Business Value
for Oil and Gas
SAP Business Suite Powered by SAP HANA
July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2Public
Prudent and cost-effective development of all
available energy resources requires coordinated
planning, development, and operation of complex,
capital-intensive programs. To be effective, energy
enterprises must adapt quickly to changing market
and regulatory dynamics:
 Maximize production without compromising safety
 Invest the right resources in the right projects
 Deliver greater value while consistently reducing the cost
The real-time opportunity

The prudent energy supplier
Ensure safe, efficient, and responsive operations
Maximize
production without
compromising
safety or
compliance
 Optimize asset performance through streamlined and
integrated processes.
 Enhance visibility into asset performance to improve
maintenance efficiency and proactively manage risk
and safety.
Invest the right
resources in the
right projects
 Initiate new projects with reliable analytics and
integrated processes to support quality work on time
and within budget.
 Gain insights to support fact-based investment
decisions.
Deliver greater
value while
consistently
reducing the cost
 Streamline all financial functions with minimal error
rates and self-service reporting for business users.
 Work with efficient and effective planning and
budgeting, detailed reporting of costs and profitability,
and quick and easy scenario analysis.

SAP Business Suite powered by SAP HANA
The next-generation business platform
Real-time business
In-memory
Business
transactions
Digital
connections
Collaborative
business
CloudSocial
Big DataMobile
One platform bringing it all together
Advanced
analytics

Industry value map for oil and gas
IT Management
Operational Integrity
Risk Analysis and Governance
Operational Risk Management
Asset Integrity
Capital and
Spend Effectiveness
Strategy Management
Planning, Building, and
Commissioning Assets
Supplier Discovery and
Lifecycle Management
Analyzing, Sourcing, and
Contracting
Integrated Digital Oilfield
Operations
Field Data Capture and Surveillance
Integrated Planning and
Performance Analysis
Field Execution
Hydrocarbon Accounting
Hydrocarbon Supply Chain
Commodity Management
Refining and Plant Management
Hydrocarbon Supply and Distribution
People and
Talent
Core Human Resources and
Payroll
Talent Management
Time and
Attendance Management
Workforce Planning and
Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and
Financial Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and
Project Management
IT Service Management IT Strategy and Governance
Procurement and
Order Collaboration
Commercial Sales and Retailing Environmental Stewardship
Training and Certification
Technology
Solutions
3-D Business
Visualization
Consumer ExperienceAnalytics Enterprise Mobility
SAP HANA Platform
Application Develop-
ment and Integration
Data
Management

IT Management
Operational Integrity
Risk Analysis and Governance
Operational Risk Management
Asset Integrity
Capital and
Spend Effectiveness
Strategy Management
Planning, Building, and
Commissioning Assets
Supplier Discovery and
Lifecycle Management
Analyzing, Sourcing, and
Contracting
Integrated Digital Oilfield
Operations
Field Data Capture and Surveillance
Integrated Planning and
Performance Analysis
Field Execution
Hydrocarbon Accounting
Hydrocarbon Supply Chain
Commodity Management
Refining and Plant Management
Hydrocarbon Supply and Distribution
People and
Talent
Core Human Resources and
Payroll
Talent Management
Time and
Attendance Management
Workforce Planning and
Analytics
Finance
Financial Performance
Management
Accounting and
Financial Close
Treasury and
Financial Risk Management
Collaborative Finance
Operations
Enterprise Risk and
Compliance Management
Application Lifecycle
Management
IT Infrastructure
Management
IT Portfolio and
Project Management
IT Service Management IT Strategy and Governance
Procurement and
Order Collaboration
Commercial Sales and Retailing Environmental Stewardship
Training and Certification
Technology
Solutions
3-D Business
Visualization
Consumer ExperienceAnalytics Enterprise Mobility
SAP HANA Platform
Application Develop-
ment and Integration
Data
Management
1
2 3
45
6
7
Industry value map for oil and gas
Highest real-time
business value
for oil and gas

Today
KPI improvements are high-level estimates and will have to be validated for each customer situation.
Asset integrity (1/3)
Real-time maintenance plan scheduling
 Manual and error-prone process of
preselecting maintenance plans
 Potential lack of objects necessary
for automatic generation of
maintenance orders
 Schedule all maintenance plans
within a specific timeframe
 Plan several times a day (instead of
once a week) for up-to-date
scheduling information in
maintenance operations
Improve
quality of preventive
maintenance
program
Reduce
time for maintenance
plan scheduling
 Maintenance plan scheduling that
consumes a great deal of time
 High number of maintenance plans
that need to be scheduled frequently
 Accelerate mass transactions
 Preselect plans due to speed the
process significantly
Easier and more flexible scheduling of maintenance plans that leads to real-
time adjustments based on asset usage and therefore to better uptime,
fewer failures, and mitigation of production losses.
With SAP Business Suite
on SAP HANA

Today
Real-time spare parts planning
 Decisions often based on periodic
material requirements planning
(MRP) runs and outdated
information; process done in batch
 Faster replanning to allow more
frequent MRP runs in shorter cycles
 Instant reaction to demand changes
and updates to the supplier
 Demand information propagated
through the supply chain more
quickly
Reduce
out of stocks
Decrease
inventory and
safety stocks
 Inability to replan quickly if conditions
change due to long run times
 Difficult prediction of inventory
coverage for critical parts
More frequent MRP runs:
 Allow reduction in inventory and
safety stock levels
 Accelerate information flow to
suppliers to enable them to react to
changed planning conditions more
quickly
Faster replanning to allow more frequent MRP runs in shorter cycles.
on SAP HANA

Today
Warehouse management
 No up-to-date view of the inventory
situation
 Need for accurate display of actual
stock to react to stock shortfalls
quickly
 Time-consuming reporting on
inventory management
 Real-time access to complex
inventory management data
 Real-time stock insight and inventory
monitoring
 High-performance inventory
management with large volumes of
documents
 Higher process efficiency in adjacent
procurement processes
Reduce
inventory levels by
2%–5%
Improve
Optimize
SLA with real-time
product allocation
working capital
on SAP HANA

Today
Planning, building, and commissioning assets (1/2)
Project management
 Project members experience long
waiting times when starting the
project and task dashboards. This
situation reduces user productivity
when working on several projects
and tasks across projects.
 Updates on multiple tasks are
inefficient and time-consuming
because project team members
confirm tasks one by one to reduce
waiting times.
 Searching for documents across
projects takes a very long time for a
large portfolio of projects.
 The process of finding projects,
tasks, and phases by those
responsible is slow.
 Faster access to my tasks and my
projects
 Accelerated access to project, task,
and checklist items dashboards
 Ability of project team members to
confirm times, status, and dates and
to attach documents for several tasks
at once
 Increased user productivity
 Accelerated search for documents
 Accelerated ability to find projects or
tasks by responsible project member
Increase
user productivity
Reduce
Improve
time for task
confirmation
search for
documents and
project elements
on SAP HANA

Today
Planning, building, and commissioning assets (2/2)
Project management (PS)
 Long wait and locking times along
business processes hinder project
execution and the flexibility needed to
react to deviations.
 User acceptance is reduced due to
affected usability in handling large
amounts of project data.
 Reduced waiting and locking times of
critical transactions along the end-to-
end process result in higher process
efficiency and improved employee
productivity.
Increase
user productivity
and end-to-end
process efficiency
Improve
transparency and
decision support to
take appropriate
corrective measures
in time
 Real-time analysis of high volumes of
data for complex, long-lasting
projects or cross-project monitoring is
challenging due to high data
volumes.
 Due to missing 360 degree real-time
transparency across applications
deviations in costs, time, resources,
or quality are seen too late in the
process.
 Acceleration of project information
system reporting and new project line
item reporting deliver faster insights.
 Early insight in deviations and risks
enable timely corrective measures by
highlighting deviations in real time.
 Planned: Project execution cockpit
enables project managers and
employees to analyze the status and
progress of one or more projects in
execution from an end-to-end
perspective at maximum speed with
real-time data and to derive and
execute actions wherever applicable.
on SAP HANA

Today
Refining and plant management
Global plant performance management
 Inability to gather and visualize data
from production in real time to
improve the status of manufacturing
performance within and across
multiple sites
 Inability to understand where
machine maintenance issues and
bottlenecks exist in production
 Need to capture the root causes for
downtime, efficiency loss, and poor
quality
 Unplanned downtime, suboptimal
performance, and poor product
quality all contribute to decreased
asset utilization, poor product yields,
increased costs, and reduced
customer responsiveness
 Combines quantitative performance
measures with qualitative context and
reasons for performance issues
 Combines plant performance with
business context
 Facilitates corrective action at the
plant level and across plants
 Enables broader supply chain,
sustainability, financial, and
enterprise performance
improvements
 Allows enterprise-level overall
equipment effectiveness (OEE) to roll
up plant-level OEE for enterprise
analytics and comparing assets and
performance across multiple sites
Improved
return on assets,
costs of goods
sold, and product
quality
Increased
Reduced
resource utilization
and asset uptime
unplanned downtime,
changeover, and
waste by
5%–10%
on SAP HANA

Today
Accounting and financial close
Entity close
 Long-running processes
 Time-intensive reconciliations
 Limited time for analysis
 Inefficiencies due to manual
processes and low automation
 Missing financial excellence
results in higher cost of equity
on the capital markets
 Difficulties in supporting parallel
financial reporting standards on a
global basis and in simulation of
scenarios
 More time for analysis, less overtime,
or earlier publishing of financial
results through faster period-end
processes and better reconciliation
 Increased efficiency through smarter
reconciliation and reporting, reducing
operating costs and improving
stakeholder satisfaction
 Real-time analytics down to the
lowest level of detail – delivering
quality at source, transparency, and
process efficiencies
Minimize
time to close the
entities’ books by
50%
Reduce
Enhance
cost of financial
reporting by
40%
compliance and
accuracy by
50%
on SAP HANA

Today
Financial performance management
Planning, budgeting, and forecasting
 Planning performance limited to
OLAP; staged cubes for transactional
and master data
 Data-load performance driven by the
amount of data extracted from SAP
Business Suite
 Reporting, loading, and retraction
performance that limit planning
iterations
 Drilldown within OLAP cube and drill-
through to data in SAP Business
Suite and OLTP data within standard
times
 Smooth replication of master and
transactional data from SAP
Business Suite
 Availability of more granular data to
support planning
 Negation of Big Data challenge to
allow for faster extract and activation
times for days sales outstanding
(DSO)
 Iterative planning and real-time
simulation supported through improved
performance
 Improved performance for drill-down
(expand) and consolidation (collapse)
 Fast drill-through and live view of
transactional data in SAP Business
Suite
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
on SAP HANA

Today
Profitability and cost analysis
 Data latencies and process delays
affect the ability to react to issues
and opportunities
 Lack of data depth and user self-
service affect internal decision-
making
 Long-running processes
 Time-intensive data queries
 Primarily manual data analysis
 Substantial amount of effort (time
spent) not directly adding value
 Suboptimal resource efficiency and
effectiveness
 Timely execution of critical business
processes that supports decision
making and increases the ability to
act swiftly (insight to action) in
dynamic market environments
 Critical transactions and calculations
that run quickly
 Instant response times on queries
 Prebuilt analytics that automate the
data analysis process
 Leaner processes from data capture
through data analysis
 Increased productivity through
process-optimized analytics and
mobile support
on SAP HANA
Improve
service level
performance
Reduce
Minimize
cycle times and
manual effort by
40%
operating costs

Today
Financial and managerial reporting
 Risk of noncompliance due to
unfulfilled (overruns in) audits
 A lot of data; decision-relevant
information not readily available
 Data analysis not supported or
automated
 Long-running batch jobs and reports
 Time-intensive data analysis
 Large number of time-consuming,
and non-value-added processes
required to provide (access)
accurate, up-to-date information
 Timely execution of compliance-
relevant validation tasks
 Increased end-user satisfaction
(accurate, detailed, visualized, timely,
and actionable information)
 Accelerated key, critical-path
processes and reports
 Instant response time on most data
analysis queries
 Elimination of workarounds and data
latencies
 End-user data analysis through self-
service means (with SAP
BusinessObjects business
intelligence solutions)
on SAP HANA
Improve
service-level
performance
Reduce
Minimize
cycle times and
manual effort
operating costs
by
10%

Today
Commercial sales and retailing
LoB Sales
 Missed market opportunities due to
lack of visibility and inefficient
processes
 Data explosion, driven by new level
of connectivity of consumers through
mobile devices and social networks
 Data in disparate sources, preventing
a true 360-degree view of the
customer
 Agile marketing to respond faster to
changing market dynamics and
opportunities
 New analytical data-mining
capabilities on Big Data (social media
and predictive)
 Near-real-time monitoring and
reporting on marketing performance
 One central place for collecting all
customer data, leading to a 360-
degree view of customers in real time
 Precision marketing to personalize
every interaction with the customer
Improve
profitability by
0.5%
Optimize
Increase
return on marketing
investments by
15%
customer
satisfaction by
40%
on SAP HANA

Today
LoB Marketing
 Difficulty in distinguishing profitable
customers in the customer pool
 Inability to identify gaps in the sales
pipeline, leading to missed targets
 Extraction of actionable information
from enterprise-wide customer data to
maximize the chance of a sale
 Minimal insight into buying
preferences of customers in social-
data context
 Easy identification of profitable
customers with account intelligence
analytics
 Faster transaction search functions
 Complete transparency into sales
pipeline based on real-time
information with unlimited drill-down
functions
 Real-time analysis of Big Data to
understand buying patterns better
 Real-time access and assembly of all
data including social and sales data
Increase
profitability by
0.5%
Increase
Improve
percentage of
sales reps
achieving quota by
17%
offer win rate
on SAP HANA

Today
Contact management with interaction center
 To successfully resolve customer
issues, companies need to be able to
locate the right experts or resources
within the organization quickly,
whether they reside inside the
contact center or elsewhere.
 Managers and supervisors lack
actionable reporting and visibility into
the workload of their teams.
 A high volume of customer records
and interactions result in increased
search times and greater difficulty in
locating specific customer records.
 With the new agent inbox based on
SAP HANA, users can more easily
search for relevant experts – in their
own team or elsewhere in the
organization – to dispatch or escalate
issues to the best-suited employee
roles
 A new interactive work distribution
dashboard provides supervisors with
actionable insights into the workload
of their teams and employees
 Searches in the interaction center are
significantly faster including account
searches, interaction history, and the
customer fact sheet
Decrease
average handling
time (AHT) by
50%
Improve
Reduce
SLA compliance
service cost by
20%
on SAP HANA

Today
Procurement and order collaboration
Operational procurement
 Missing real-time insight into
operational procurement reporting
 Lack of functions to create
operational procurement–related
reporting dynamically in a modern
user interface
 Slow and costly paper-based
processes
 High transaction costs
 Long-running transactions while
posting documents with a high
number of line items
 Frequent errors yield to maverick
spend
 New configuration options for
procurement analysis
 Modern and easier-to-consume user-
interface
 Complete visibility into end-to-end
procurement activities
 Real-time insight and easier-to-
manipulate information
 Accelerated long-lasting processing
of purchasing documents
Increase
transparency
Lower
Increase
procurement
operations cost by
20%
process
effectiveness

Customer cases
Indian paint
manufacturer
 Support sales decision making and
corrective actions
 Improve effectiveness of trade promotion
spend
 Proactively track and manage customer
service level
European
petrochemical firm
 Financial Performance Management:
Accelerated financial reporting measured by
increased employee productivity
Leading U.S.
chemical
manufacturer
 One BW on HANA reporting for SCM real-
time planning analytics: Ability to modify
customer SLA based on profitability to
reduce inventory
Annual benefit
US$ 10.7
million
Annual benefit
$2.4 million
Annual benefit
$15 million

Next step
Business scenario recommendation and value discovery workshop
 SAP offers a proven methodology and approach to
discover the customer-specific business
improvement areas and quantify value potential.
 We suggest such a workshop with your
line-of-business and IT experts.
 As starting point, we recommend a performance
and usage analysis of your current system.

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Thank you

© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Appendix
Detailed customer cases

Feasibility
Businessvalue
Legend
LowHigh
Low High
Payroll on
SAP HANA
($5 million)
Annual revenue: US$100 billion
SAP HANA platform: Customer -specific
SAP HANA, applications: SAP NetWeaver BW on SAP HANA
and high-performance applications
SAP Business Suite on SAP HANA: Available today or planned
SAP HANA:
Use case
Accelerated
financial reporting
($4 million)
Well work-over
planning
($12 million)
SAP ERP on
SAP HANA
($4.5 million)
Gas
transmission
integrity
($34 million)
Real-time
procurement
planning
($45 million)
Reduction
production loss
($49 million)
Transportation
balancing
($98 million)Real-time
drilling failure
prediction
($2 million)
1
1
1
2
2
2
3
3
3
Reference $100 billion oil-and-gas company
Summary validated scenarios
Legend
SAP Business
Suite on
SAP HANA
SAP HANA,
applications
SAP HANA
Platform
1 Short term
FIN: Accelerated reporting: Slow data-mining process
makes reporting a burden of resources, putting
company at risk of mistakes in publicly available
reporting
HCM: Payroll: Centralized payroll processing for 400,000
employees within 5 days based on SAP HANA –
faster and with fewer calculating resources)
BPC: ERP: Huge volume of data coming from over 200
legal entities – very time-and labor-consuming
process
2 Medium term
SRM: Real time procurement planning: Reduced lead
time for new on-shore or off-shore oil rig plans to
procure material to start construction for
competitive advantage
SCM: Reduction production loss: Gas production and
transmission system diagnostics and monitoring to
prevent loss and fraud. There is currently no
analysis of real time transmission data in real time.
SCM: Transportation balancing : Complex time- and
labor-consuming process of balancing gas volume
transmitted over the system based on sheer
number of data points
Note: Included in business case
Phase – deployment road map
SAP HANA use cases mapped to
industry value map end-to-end solutions

Reference $100 billion oil-and-gas company
SAP HANA as a real-time data platform
13 13 13
95
130
98
112
0
50
100
150
200
250
300
2013 Phase 1 Phase 2 Phase 3
Costs SoH Applications Platform
$
Annual benefits, SAP HANA
Platform: $112 million
Annual benefits, applications
powered by SAP HANA: $130 million
Annual benefits, SAP Business
Suite on SAP HANA: $13 million
Estimated deployment costs
Total transition cost: TBD
In millions of USD
More information: Value engineering
Annual revenue: $100 billion
Based on actual SAP
customer engagements
SAP HANA Platform: Anything built on the platform that is customer-specific – new business processes and business models
SAP HANA, products: SAP NetWeaver BW powered by SAP HANA, high-performance apps (HPAs), and applications – mapped
to inventory value map (IVM) end-to-end (E2E) solutions
Currently available functionality (SP0, 1, and 2) – 23 scenarios mapped to IVM End-to-End Solutions and planned functionality
(all the End-to-End Solutions on the IVM are in scope)
SoH = SAP Business Suite on SAP HANA
SAP HANA Platform
SAP HANA products
SAP Business Suite
on SAP HANA

Note: Use cases in the global use case repository are captured directly from customers and internal innovation sessions
and may not be completely validated.
Oil refining and marketing: SAP NetWeaver on SAP HANA for
downstream financial reporting
Oil and gas
Business context and goals
 Improved cash and liquidity management
Business challenges
 Predict cash flows to manage collections, risk, and short-term borrowing in real time
Process innovations
 Interactive analysis of both inbound and outbound operating and capital cash-flow data in several
dimensions
 Access to payment history at customer, partner, product, asset, and geographic level
Contribution of SAP HANA
Increased flexibility for use:
 Drastic improvement of the response time of the system
 Sharp reduction in the risk of delays in the availability of daily report
 Ability to ensure the availability of large volumes of data reduction of operating costs
Value drivers and key performance indicators
 DSO, DPO, FTE IT efficiency, and FTE business efficiency
Innovation scope
SAP HANA, products (HPAs and apps)
End-to-end (E2E) solution
Oil and gas – financial performance
management
Value potential 3
Feasibility 2
Low High
1 5
Low High
1 5

Global energy company – payroll on SAP HANA
Oil and gas
 Centralized payroll processing for 400,000 employees
Business challenges
 Current payroll regulation requires this process to be finalized within first 5 days of the month.
Doing so for 400,000 employees within 5 days requires huge calculating capacity and lots
of work.
Process innovations
 Centralized payroll processing for 400,000 employees within 5 days based on technology of SAP
HANA – faster and requires fewer calculation resources
 Requirements for performance and large volume of data
Productivity increase for HR and finance:
 Improved compliance with regulations on payroll processing
 Improved employee satisfaction because of erroneous payroll reduction
Innovation scope
SAP Business Suite on SAP HANA (now and
in the future)
Oil and gas – core HR and payroll
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5

Global energy company – SAP ERP on SAP HANA
Oil and gas
 Accelerated financial processes to speed up financial closing and improve performance
Business challenges
 Intense labor needs to process a huge volume of data coming from over 200 legal entities
 Desire to improve accuracy and timeliness significantly
Process innovations
 Centralized data collection and processing can simplify and speed up financial processes
significantly
 Data volume and requirement to processing speed
 Increased productivity of finance function
 Selling, general, and administrative expenses reduction
Innovation scope
in the future)
Oil and gas – financial performance management
Value potential 3
Feasibility 4
Low High
1 5
Low High
1 5

Global energy company – gas transmission system integrity
Oil and gas
 Real-time analysis of equipment diagnostics data to forecast equipment reliability and plan
maintenance based on the state of the equipment
Business challenges
 Despite multiple real-time measurement of equipment parameters, this data is not analyzed in
real time. Maintenance is conducted according to a fixed schedule or based on the results of
periodic diagnostics. As a result, opportunities to optimize maintenance costs or increase
equipment availability are lost
Process innovations
 Real-time analytics of huge data volume and predictive analytics to analyze the state of
equipment, make conclusions about its state, and plan maintenance accordingly
 Analysis of huge volume of data in real time
Maintenance cost reduction:
 Equipment and asset availability increase
 Risks of equipment breakdown reduction
 Personnel efficiency increase
Innovation scope
Oil and gas – asset integrity
Value potential 3
Feasibility 3
Low High
1 5
Low High
1 5

Global energy company – instant balancing of gas transported
Oil and gas
 Accelerating the process of balancing gas volume transmitted through the system to prevent delays in
customer billing, reduce multiple discrepancies and a lack of clarity in the invoices, and costs for
reconciliation; accelerate customer payments; and increase customer satisfaction
Business challenges
 Complex time- and labor-consuming process of balancing gas volume transmitted through the system
based on the sheer number of data points
 Delays in customer billing, multiple discrepancies and a lack of clarity in the invoices, high costs for
reconciliation, late customer payments, and low customer satisfaction
 Political tension around gas trading
 Critical for the core business, COO area, supply chain execution, and finance; some instances require
involvement of the government for resolution
Process innovations
 SAP HANA is uniquely positioned to help customer simplify and accelerate transmitted gas balancing,
speed up invoicing, and bring clarity to the process
 Solution is based on SAP HANA and involves significant CDP. The solutions, including process mapping,
data collection, processing algorithms, and results interpretation should be developed from scratch, which
drives the complexity and costs of the project. Risks include delays or failure of the project, but the risks will
not affect customer’s core business negatively.
 Analysis of huge volume of data
 Sales volume increase, improved customer satisfaction, improved visibility and transparency, and
increased market capitalization
 Decreased DSO
Innovation scope
SAP HANA Platform (customer-specific)
Oil and gas – hydrocarbon supply and
distribution
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5

Global energy company –transportation and production loss
Oil and gas
 Real-time analysis of gas transmission system diagnostics and monitoring to prevent loss and
fraud
Business challenges
 The data about the transmission system is collected hourly, but there is no way to analyze it in
real time currently. As a result, huge opportunities in preventing losses and fraud are lost.
Process innovations
 Given the performance and capacity to work with real-time data of SAP HANA, the company can
now analyze network diagnostics data instantly, assess potential losses, and make relevant
decisions on abnormal situations in the system
 Analysis of a huge volume of data real time
Production losses decrease:
 Improved risk management
 Increased asset utilization
 Improved employee effectiveness
Innovation scope
Oil and gas – operational risk management
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5

Oil and gas – sustain the competitive advantage of the
trading business
Oil and gas
 Need for better-informed trading decisions
Business challenges
 Delay in getting data to analyze trading performance
Process innovations
 Reduced time to get trading actual data
 Accelerated Big Data analysis in trading process
 Reduction in lost revenue due to lack of visibility and what-if analysis to limit exposure and
improve trading efficiencies
Innovation scope
Oil and gas – SAP HANA Platform
Value potential 4
Feasibility 4
Low High
1 5
Low High
1 5

Oil and gas customer – real-time prediction of drilling failures
Oil and gas
 It is estimated that the stuck drill problem alone costs the oil industry in the hundreds of millions of dollars every
year. Even when all precautions are taken, a stuck pipe may occur. For example, to free a differentially stuck drill
string, the driller must overcome the restraining force of the drilling fluid, which pushes the drill string against a
permeable formation. The drill string (drill pipe or collars) will soon become imbedded in the filter cake opposite
the permeable zone if corrective action is not taken as soon as the sticking situation is noticed.
Business challenges
 Predicting a stuck pipe is a very technical exercise: Data is being collected on many channels at the site of the
drilling operations and historic data is also available Today, the process is not analytical, with a prediction based
on the drilling crew’s experience and skill. Decisions based on data involve measurements of torque, drag,
weight on bit, mud flow, equivalent circulating density, weather, and the like. Te size of the rock fragments in the
drilling mud, vibration, and other visual and sensory input also play an important role in the decisions.
Process innovations
 Respond rapidly to changing drilling conditions: Implementation of an analytical control system that alerts the
drilling crew to stuck-drill events. Enable truly real-time prediction by sensing and responding to failure with low
latency. Improve automation and execution speed and the efficiency of drilling operations and reduce drilling
cost. Avoid lost revenue due to down-time of a drill rig during the remediation process.
 SAP HANA will enable customers to detect and predict upcoming events and potential failures in real time and at
unprecedented speed to enable corrective action. Data from multiple sources including the drill string, earth
model, historical data, and so on are aggregated into SAP HANA and predictive analytic models. Pattern re-
cognition, simulation, and event processing can be defined flexibly to works on real-time and historical well data.
 Drilling efficiency improvement
Innovation scope
Oil and gas – field execution
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5

Oil and gas customer – well work-over plan optimization
Oil and gas
 Upstream companies face constant challenges (equipment failure, well under-performance, and
other well-servicing requirements) to maintain the hydrocarbon production from wells according
to plan. When liquid loading occurs in wells in a producing field, the operator needs to find an
optimum schedule for performing a work-over service (like swabbing) that optimizes the revenue
loss and work-over cost against the potential production gains subsequent to the work-over
operation.
Business challenges
 Limited ability to apply the knowledge from historical work-overs and arrive at optimal work-over
plan. Limited ability to react fast and communicate with service providers for changes to work-
over schedule.
Process innovations
 Analyze historical data on previous work-overs using statistical techniques and use this
knowledge to predict behavior of planned work-overs. Arrive at the optimal work-over plan for
servicing multiple wells in the field and communicate with service providers.
 Analyze historical data on previous work-overs using statistical techniques and use this
knowledge to predict behavior of planned work-overs. Arrive at the optimal work-over plan for
servicing multiple wells in the field and communicate with service providers.
 Reduce work-over operations cost as a percentage of revenue
Innovation scope
Oil and gas – field execution
Value potential 5
Feasibility 3
Low High
1 5
Low High
1 5

Oil and gas production – real-time planning to procurement
Oil and Gas
 Reduce lead time from new on-shore or off-shore oil rig plan to procure material to start
construction or maintenance
Business challenges
 Long lead time from planning and maintaining an asset to material procurement and supplier
engagement could bring a competitive disadvantage
Process innovations
 Evaluate new asset or strong maintenance operations during the planning phase based on time
to procure material and possible costs
 Real-time data analysis and streamlined process
 Increase effectiveness in project realization and reduce time to market for new oil and gas
discoveries
 Increase asset utilization
 Increase strategic supplier relationships
Innovation scope
Oil and gas – planning, building, and
commissioning assets
Value potential 3
Feasibility 3
Low High
1 5
Low High
1 5

Service spend analytics for upstream oil and gas
Oil and gas
 This company currently uses a workflow tool for entering service vendor invoices and processing
them. The system is inefficient, since nearly 10% of the invoices fail the check and manual
checks are required, resulting in errors and inefficiencies, redundant effort, and increased spend
volumes.
Business challenges
 Large volumes of data are collected during this process and are not being used for any analysis
or improvement. The scale of the problem is huge, since nearly $7 billion of spend is tracked
using the system, and a 10% manual intervention translates to opportunities for cost saving and
improved efficiency.
 Productivity loss because the entire audits is manual and time-consuming.
 SAP HANA can help analyze service contracts in real time and conduct root cause analysis of
noncompliance. SAP HANA could also help optimize workflow by assigning the tasks to
contractors more efficiently.
 Reduced billing in accuracies and premium service contract payments
 Advanced drill-down functions to identify the root cause of the problem
 Better reporting and auditing
Innovation scope
Oil and gas – strategic sourcing and
contracting
Value potential 4
Feasibility 3
Low High
1 5
Low High
1 5

Oil and gas – inventory availability
Oil and gas
 All of the company’s departments and managers need to obtain up-to-date information and
analyze available supplies and materials on a day-to-day basis. Some 700 employees analyze
inventory and make decisions daily.
Business challenges
 With up to 75,000 articles in circulation and requiring distribution, analysis is a major challenge.
Decisions had to be made based on inaccurate inventory data, which affected operations and
inventory levels.
Process innovations
 Sped up inventory availability reporting allowed real-time material inventory analysis.
 Analysis of huge volumes of inventory data
 Inventory turnover
Innovation scope
in the future)
Oil and gas – strategic sourcing and
contracting
Value potential 4
Feasibility 4
Low High
1 5
Low High
1 5

Oil and gas producer – accelerated financial reporting
Oil and gas
 Company has allocated massive resources to create financial reports company-wide
Business challenges
 Slow data-mining process makes reporting a burden of resources, putting the company at risk of
mistakes in publicly available reporting.
Process innovations
 Accelerate data mining, analysis, and financial reporting for a better financial decisions
 SAP NetWeaver BW on SAP HANA for fast data access
 Employee productivity
Innovation scope
Oil and gas – Financial Performance
Management
Value potential 2
Feasibility 5
Low High
1 5
Low High
1 5

Delivering Real-Time Business Value for Oil and Gas

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Delivering Real-Time Business Value for Oil and Gas