Embed Size (px)
Citation preview
Copyright of Shell Exploration & Production Company
EA JOURNEY IN A GLOBAL ORGANIZATION The Upstream Americas Enterprise Architecture Journey
Kathy Long UA Unconventionals Business Process Management Lead
Copyright of Shell Exploration & Production Company
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this presentation, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 11 June 2013. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.
We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
DEFINITIONS AND CAUTIONARY NOTE
Copyright of Shell Exploration & Production Company
Agenda
About Shell...
What is Enterprise Architecture in Shell ?
How did Enterprise Architecture originate in Shell’s tight/shale gas and oil business?
What have we done so far?
What have we learned?
Q&A
3
Copyright of Shell Exploration & Production Company
Profile
+ 70 countries where we operate
Worldwide, we have around 87,000 average number of employees
3.3 million barrels of oil equivalent we produce every day
44,000 Shell service stations worldwide
In 2012 we…
Generated an income of $26.8 billion;
Had net capital investment of $29.8 billion; and
Invested over $1.3 billion in R&D
Royal Dutch Shell plc is listed on the stock exchanges of Amsterdam, London and New York
4
Copyright of Shell Exploration & Production Company 5
Our Businesses
Upstream refers to the ways we find and extract crude oil, natural gas and oil sands. Downstream refers to the ways we transform them into products.
Copyright of Shell Exploration & Production Company
Does this look familiar?
Have we consulted the segment or reference architecture for this process?
We really need to think about Heijunka for this process. Also let’s not forget we must go to GEMBA!
What are they saying?
We need to get our ACDs defined for this process and think about our ‘lines of defence’ after all, we’re following ISO 9001 here...
6
Copyright of Shell Exploration & Production Company 7
What is Enterprise Architecture in Shell?
Copyright of Shell Exploration & Production Company
Principles
Values Strengths
Products
Opportunities
Vision
Strategy
Goals Objectives
Requirements Threats
Constraints
Stakeholders Value Chains
Events
Responsibilities
Triggers Functions
Business Rules
Skills Workflow
Procedures
Jobs
Roles
Information
Legal
Facilities
Knowledge
Financial Assets
Data Tax
Objects Time
Locations Cost
Budget
Hardware Networks
Databases
Applications
Middleware
Systems
Methodologies
Tools
Weaknesses
Mission
Organizations
Models
Use Cases
Services
People Projects Risks
Processes
8
Why Enterprise Architecture?
Copyright of Shell Exploration & Production Company 9
What is the Enterprise Architecture Program (EA4U)?
EA4U (Enterprise Architecture for Unconventionals) is a 5 year plan to improve how we manage and use data in Onshore, with incremental improvements along the way.
Steps to get there:
Define Onshore Business Model
Business Processes fit for Purpose
Integrated Systems Implemented
Data Architecture in place
Sustainability imbedded
EA4U Vision
“The Right Data to the Right people
at the Right time in the Right format”
1 2 3 4
A B C D
Trusted Data Warehouse
Future State
Current State
Apps
Data
1 2 3 4
A B C D
Copyright of Shell Exploration & Production Company 10
Onshore Enterprise Architecture Program (EA4U) Purpose
Long term, ongoing Onshore Business Transformation
Provide toolkit framework for the rest of the Onshore business and Global business
Leverage current systems that manipulate data to get the information we need.
5 year “business” improvement plan
Standardize processes across assets
Underpins staff efficiency essential for profitable growth, 40% staff inefficiency today
Foundation: Aera Data Model and Experience, Process Excellence, LEAN
Defined Business Model
“The right data & Information to the right
people at the right time
in the right format”
Fit for Purpose Processes
Data Architecture
Integrated Systems
Sustainability
Copyright of Shell Exploration & Production Company 11
EA Framework
Business
Data
Application
Technology
The EA team identified the key processes using the Upstream Business Model (UPBM) and assigned Process Architects and Process Managers to each of the key process.
Provide general details about the operation.
Clear lines of responsibilities. Understand relationships between processes.
...you can’t make “it” better if you don’t know what “it “is.
Copyright of Shell Exploration & Production Company 12
How did EA get Started? A Process-Focused, Data-Driven, Problem-Solving Culture
SHELL
NEO
Ukraine start 2009
European
EA4U
Aera Method
Onshore EAP study start 2010
The End of the
Journey
Manufacturing Mindset Process before function Enterprise before unit Emphasis on processes that add value “Go to Gemba” (leaders in the workplace) Standards wherever possible Technology to solve problems, not as an
aspiration
Culture/Leadership Business decisions based on facts, not
emotions Clear accountability, responsibility
through transparency Relentless pursuit of improvement
through waste elimination and defect prevention Leaders as teachers Organizational alignment Simplicity and standards versus complexity Commitment that goes beyond compliance Respect for people
Information Systems The business defines the data needs Enterprise Architecture supports faster,
more cost effective decision making Data Quality processes that focus
knowledge workers on utilizing information Real time information replaces reports
and guess work Build a business, not an IT empire
Copyright of Shell Exploration & Production Company
Data Is a Mess
PRE-2012
Integrated Data: Easily Analyzed &
Reported
2014 - 2015
13
40% time Wasted
2012 Build the System to
Store the Data
Corporate Information Factory
Wel
l Dat
a
Fina
nce
Dat
a
Geo
logy
Dat
a
Oth
er D
ata
2012 - 2013 Simplify &
Standardize the Processes
Wel
l Dat
a
Fina
nce
Dat
a
Geo
logy
Dat
a
Oth
er D
ata
2 3 4 1
Quality Data is Easily Accessible
2013 - 2014
1. Data 2. Data 3. Data 4. Data 5. Data 6. Data
etc..
Corporate Information Factory
What to Expect and When
Copyright of Shell Exploration & Production Company 14
Shell Enterprise Process Model
Copyright of Shell Exploration & Production Company 15
The Route to Value
Increased focus on true end-to-end processes (“value streams/value chains”)
Creating a focus on “continuous improvement” rather than the discipline or methodology
Developing an understanding of different ‘discourses’ around process by bringing BPM, Quality Management, LEAN and IT professionals together in a single network
Focussing on board-level priority processes
Aligning around a common vocabulary and process framework (the Enterprise Process Model)
Pushing for aligned process governance across end-to-end processes
Copyright of Shell Exploration & Production Company 16
Upstream Business Model
Copyright of Shell Exploration & Production Company 17
EA4U Initial Process Scope
Plan Exploration and Appraisal
Abandon Wells
Abandon Facilities
Manage Enterprise Architecture
CORE PROCESSES
GOVERNING PROCESSES
ENABLING PROCESSES
Process Managers
Copyright of Shell Exploration & Production Company 18
What have we done so far?
Copyright of Shell Exploration & Production Company
Item
Work package relationship
Employees & Contractors
Field and Reservoir Information
Geologic Information
Wellbore Information
Facility Monitoring
Equipment & Materials
Surface Placement
Directional Survey Information
Fluid Participation Factors
Parameter Concepts
Many Relationships
Phase 1 Phase 2
Segments of Reservoirs
Facility Information
19
Copyright of Shell Exploration & Production Company 20
What have we learned?
Copyright of Shell Exploration & Production Company
Challenges faced by Regional Architecture Projects
Understanding Business Process Management
Ensuring an Alignment to the Enterprise Process Structure
Following a structured approach to Process Management
Understanding & Increasing the Maturity of Process
Providing Process Governance
21
Copyright of Shell Exploration & Production Company
Enterprise Architecture Challenges
Multiple Process Architectures
Minimal alignment between models
Other groups have their models as well
Organization need to coordinate process change
Understanding the effect of changes made in one part of the world
Inconsistent Program, Process and Project Approaches
Need consistent process to support Business Management System
22
Copyright of Shell Exploration & Production Company
Key Takeaway Messages
EA4U is a complex transformation program
Partnership with Global IT program to develop footprint for deployment in Upstream globally
2013 Focus is primarily foundational data projects for Enterprise Architecture /Corporate Information Factory build
Initiating only process maturation of Demand Management Council and Process Councils (as able)
Key process changes begin very late in 2013
No major IT programs started; move to complete Business Improvement Projects/Quick Wins
23
Copyright of Shell Exploration & Production Company 24
Questions?
Copyright of Shell Exploration & Production Company
