Challenges BP Faces Today - How Technology can help
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Transcript of Challenges BP Faces Today - How Technology can help
Future Challenges Facing BPHow technology can help.
Vijay P Rao15 June, 2007
Agenda
• Business environment
• Challenges along the Value Chain
• Challenges at the Corporate Level
• Harnessing Innovative Technology for BP
• Concluding Thoughts
BP’s Business Characteristics
Capital Intensive Business
Cyclical Business
Maturing Reserves
Drive to maximizeAsset Efficiency
Volatile Prices
Inelastic Demand
Streamline Processes
Build Scalable Systems
BP’s Growth Trajectory
Source : Trajectories of Industry Change, Anita M. McGahan, Harvard Business Review, 2004
BP would fall into this quadrant. Core Assets constantly undergo redefinition
Agenda
• Business environment
• Challenges along the Value Chain
• Challenges at the Corporate Level
• Harnessing Innovative Technology for BP
• Concluding Thoughts
Challenges Upstream
• Re-packaging assets– Oil Rigs Digital Oil Platforms
– Manage key areas of platforms remotely– Enhance Employee Safety– Achieve Cost Reductions– Avoid total closure during natural calamities
– Oil Recovery Optimized Oil Recovery & Refining
– 3D4D Seismic exploration– Horizontal Drilling– ‘X’ Technology– De-carbonized Fossil Fuels
Challenges Midstream & Downstream• Managing Data Assets
– Data Explosion• New technologies upstream and downstream
• Data explosion in terms of amount and data-type
• Data needs to be catalogued, stored, backed-up and at the same time easily accessible
• Safety, Security and Disaster Recovery
Remote Logistics Management & Convenience Retailing
Linking Upstream Energy Controlling IT systems with Downstream Data
Management Systems
Corporate Website & Service Hosting for other sites
Oil Refining, Transportation, Safety, Drilling
Workflow softwareWebmethods
Content and Portal Management Systems like
Plumtree
EAI Applications like SeeBeyond ICAN, TibcoERP systems like SAP
Technology Aids
Agenda
• Business environment
• Challenges along the Value Chain
• Challenges at the Corporate Level
• Harnessing Innovative Technology for BP
• Concluding Thoughts
Supplier SystemsEx : SAP, Proprietory
Software
Internal Departmental SystemsEx : Mainframe, Legacy Systems, Oracle,
MS Access, CRM, ERP
Customer SystemsEx : EDI, Proprietary
Software
End to End IntegrationSewing up islands of automation across the value-chain
S1
S2
SnC1
C2Cn
ID1
ID2
IDn
Global Integration Factory
EAI Tools Enabled : SeeBeyond ICAN, Tibco
S1 S2 Sn C1 C2 CnID1 ID2 IDn
DataAdapters
Data
AdaptersDataAdapters
Network Security Protocol (SSL 3.0 and TLS 1.0)
GlobalDatabase
Top Management Reports
Value Chain Optimization
Global Data Integrity
Global Coordination
Disaster Recovery
GlobalDatabase
End to End IntegrationSewing up islands of automation across the value-chain
BPM
Admin
HR
Operation
Finance
Agenda
• Business environment
• Challenges along the Value Chain
• Challenges at the Corporate Level
• Harnessing Innovative Technology for BP
• Concluding Thoughts
VOTE
Most Popular
Most Recent
Most Relevant
E-Collaboration – Ingraining Web 2.0 Ideas
• BP - 5 different brands operating as individual firms
• More than 115,000 employees – Everyone has ideas
• Deploying Employee driven Intra-company Idea Aggregator WebTool.
Internal Market
…a new technology
…an efficiency improvement
…a new business area
…an alternative energy focusPROPOSE
PatternRecognition
Technologies
Harness Ideas
CrowdsourcingTapping onto the collective intelligence of the Net
• Procter & Gamble casting its R&D problems onto the net for netizens to solve
• Amazon’s Mechanical Turk program
Push requirements onto the Net
Provide the right incentives
Each member of the crowd puts forth an insignificant contribution to the total outcome, but the grand total of these
contributions amounts to a considerable difference.
• Innovative Ideas can be explored at low cost• Easily Retractable• Highly flexible workforce• Heterogeneous ideas to solve problems
• Getting netizens to scout for potential alternative energy sites around their locality
• Getting netizens to identify rural energy requirements in emerging economies and how alternative energy know-how of BP can help
Semantic Web and RDF/XML Data
• Next Generation Web Search• Vision of Web that computers can read• Whole questions can be addressed by computers• Entire Datasets to be defined in Resource Description
Framework and XML
Can I place an electronic order for BP products so that I get it from the nearest BP retail shop located within 50 mile radius and that can be delivered within 72 hours to my store between 2pm and 5pm on weekdays?
Agenda
• Business environment
• Challenges along the Value Chain
• Challenges at the Corporate Level
• Harnessing Innovative Technology for BP
• Concluding Thoughts
How technology stacks up for BP
Foundation TechnologiesFoundation Technologies
DifferentiatingDifferentiatingTechnologiesTechnologies
Table StakesTable StakesTechnologiesTechnologies
CommodityCommodityTechnologiesTechnologies
Differentiating Differentiating TechnologiesTechnologies
UPSTREAM & FIRMWIDE
• Crowdsourcing
• Semantic Web
• Digital Oil Field
• Simulation / Modeling
Table Stakes Table Stakes TechnologiesTechnologies
MIDSTREAM & DOWNSTREAM
• Data Management
• E-Procurement
• Global Integration Factory
Commodity Commodity TechnologiesTechnologies
MIDSTREAM & FIRMWIDE
• Electronic Collaboration
• Electronic Commerce
Foundation TechnologiesFoundation Technologies
FIRMWIDE
• Basic Desktop Services
• Networks
• Servers
Questions ?
Appendix
BP Today…
• One of the world’s largest integrated oil groups• Competitors : ExxonMobil, Royal Dutch Shell, Chevron and Total
• Global Energy Group : Finding, producing and marketing natural energy resources
• 3 segments : 1 Resource Oriented and 2 Customer Oriented– Resource Segment :
• Exploration & Production (E&P)
– Customer Segments : • Refining & Marketing (R&M)• Gas, Power & Renewables (GP&R)
• More than 100,000 employees in over 100 countries• Main Brands : BP, Aral, Castro, ARCO and am/pm
Technology Assisted Sectors in an Energy Firm
Operator
ERP
Production
Strategic Decisions
The IT Infrastructure
• IT infrastructure must provide– End-to-end security– Interaction with data in the right time– Integration with other data and systems– Solutions for presentation and evaluation – Capability for collaboration
• IT infrastructure implementation must be reliable and repeatable