Www.pennenergyresearch.com Melissa Roberts Digital Specialist, PennEnergy Stacey Schmidt Publisher,...

www.pennenergyresearch.com

Melissa RobertsDigital Specialist, PennEnergy

Stacey SchmidtPublisher, Energy MarketsPennEnergy

Economic Value Proposition as it Relates to the Energy Industry

February 25, 2014


About PennWell:

• Established in 1910• Corporate HQ in Tulsa, OK• Publishers of 50+ B to B magazines• Organizers of 70+ conferences & exhibitions (on 6 continents)• Operate 80+ website properties and industry portals• Extensive offering of books, maps, directories and databases

• Industries served:

Power Generation Power T&D Renewable Energy Oil & Gas Water & Waste Water

Fire Dental Semi-conductor Manufacturing Military & Aerospace NanoTechnology Data Storage Optoelectronics & Photonics And many, many more…..

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20 energy publications, plus data, research, books, mapping

30 energy conferences & exhibitions worldwide across 6 continents

The world’s largest, most prestigious power generation conferences & exhibitions

Collective attendance of over 80,000 annually and 3,200 exhibiting companies across our energy events

PennEnergy was created to serve as a single-source for petroleum and power news, industry jobs, research and insight.

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• Original and sourced news• Extensive research tools, white papers, and webcasts• Comprehensive financial content• Product, equipment, and service information• Job postings from top industry employers• Career Development Resources• Custom research options including custom surveys and benchmarking

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About PennEnergy:

www.pennenergyresearch.com 5

• Complete coverage of the energy industry• 6,000 products, including

– Databases– Directories– Reports– Statistics– Surveys

• Custom Research– Surveys– Reports– Databases– Directories


• This webinar is recorded. All registrants will receive a link to the recording

• The slide deck is available upon request• There will be a Q & A at the end of the presentation• Discount code will be available for all this product at the

end of the webinar

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Webinar


• Career in Upstream Energy Services and use of IT• COO of small public energy services company• Former member of Halliburton Energy Services Leadership Team• Former Oracle Executive• Early in DOF

• Technology Sales to Petroleum Industry• 30 + Years• More than $1 Billion in Revenue Generated

• Member; PennEnergy Research Advisory Board• Critical Issues Forum• State of SEMS• Integrity Management

• New Book: IMPLEMENTING A CULTURE of SAFETY: A ROADMAP FOR PERFORMANCE BASED COMPLIANCE

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Scott M. Shemwell, D.B.A


The Rapid Response Institute enables our clients to posture themselves in their market segments so that they can thrive in volatile markets and capitalize on uncertainty, not suffer because of it.

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The Rapid Response Institute

www.theRRinstitute.com


• Getting Your Message Through• Management is always busy• New/disruptive technology is

“by definition” not well understood

• A good “demo” may have helped this rep!• The inventor of the machine

gun needs the inventor of bullets and,

• The right “qualified” customer

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The Sales Problem


• Feature -- Benefit• Product focuses• “This coffee cup is made of

ceramic and holds heat better than plastic”

• Does NOT truly Differentiate

• Value Proposition• “My solution will increase

your net income by 75%”• Often

• Overstated• Not Demonstrable• Not Defendable

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Traditional Methods of Explaining Value


• These are taken from a recent presentation

• Mid size software firm• Established

company• Business Process

Management space

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Actual Benefit Statements

Has He or She Garnered Your Trust?Would You Buy from this Sales Representative?What is the Credibility of the Firm Represented?

• “Decreased human errors by 100%”• “Reduced losses from 8% per month to

less than 1% per month through sales order process automation”

• “Gained ability to monitor inventory process in real time”

• “Improved control over XXX delivery process and reduced manual work by more than 70%”

• “50% increase in the daily processing of orders”

• “Enhanced credit control system for partners through increased information visibility”


The Economic Value Proposition Matrix® Model

Translate Technology to theLanguage of Business

Buying Influences

•Economic•Technical•User•Coach

Source: Miller Heiman


• Developed Over a Decade• Extensive CAPEX Assessment with

Super Major circa 2000• Early DOFF Valuation

• Vetted by over 50 Major Clients• Oil & Gas Operator• Major IT Firms• Major Industrial Products Firms

• Addresses the Real Concerns of Clients• Measureable Value• Directly Addresses Intangibles

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Brief History


• Problem Identification and Assessment• With Client• “Straw man” Proposal

• Components of Value Determined and Measured• Tangible• Intangible

• Financial Model14

EVPM Process


Components of ValueCategory Definition Example

Cost Takeout Completely eliminating a specific activity or process

Redeploying a resource from a non value-added activity to a value-added activity

Cost Avoidance Identifying and correcting an error that was not budgeted for correction but would have caused an expense had it not been corrected

Correcting an engineering design flaw before the flaw goes into production.

Productivity & Efficiency Gains

Increase in productivity that improves existing resource utilization.

Removal of a bottleneck that is causing capacity restraint

Correcting a process to allow more productive time by shifting from wait time to production time

One-time Cash Flow Impact Decreasing and or eliminating one-time cash flow impact

Elimination of redundant information/data stores

Monetize Capital

Intangible Benefits that improve operations of the business and /or are necessary to control, protect and enhance company assets, but are not quantifiable due to the nature of the area being improved

Improvement of communications between different operational units/supply chain

Reduced small equipment shrinkage


• CAPEX IV&V• Global IT Infrastructure Assessment• Engineered Equipment Sales Initiative• Investment Initiative by Unconventional Oil Co.• Business Plan Presentation to Venture

Capitalists• Multiple CAPEX Project Assessments

• Global $300 Million Infrastructure• Oil & Gas• Information Technology

• Solutions for Multiple Sales & Marketing Initiatives• Security in North Africa

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Actual Customer Solutions

• DOF Collaboration with Oil and Gas Client

• Equipment for Offshore E&P

• Large Scale IT

Proven Method for Assessing the Value of a Digital Oilfield Investment


• Standard Version• Up to 20 Input Variables• Post Completed Model to your website at no

additional charge• Great for Product Line Managers and Sales

Representatives• Fully Documented and Training provided• Up to 3 hours of online consultation with Dr.

Shemwell; provided over GoToMeeting so invite your whole team

• Single Solution/User License

• Enterprise Version• Unlimited Use• Contact us for a proposal

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Purchase EVPM

• Standard Version to be released on March 2014

• Special Pre-release Discount available.

Additional Libraries Available

•Detailed Upstream Processes

•KPIs


Thank you!

Jessica ThompsonOil & Gas JournalPennEnergy Research

Please contact me with any further questions.Jessica [email protected]

Link to Purchase

http://ogjresearch.stores.yahoo.net/economic-value-proposition-model.html

Premiering March 2014!

Www.pennenergyresearch.com Melissa Roberts Digital Specialist, PennEnergy Stacey Schmidt Publisher,...

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