Making the Case for Master Data Management

Report
Making the Case for
Master Data Management
Gas & Oil Expo
June 2011
Corvelle Drives Concepts to Completion
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Yogi Schulz
Biography
 Partner in Corvelle Consulting
 Information technology related management
consulting
 Microsoft Canada columnist & CBC Radio host
 PPDM Association board member
 Industry presenter:
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–
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Project World - 4 years
CIPS Informatics - 7 years
PMI - Information Systems SIG - 2 years
Convergence - 4 years
PPDM Association - several years
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Presentation
Outline
 Objectives
 Value of MDM
 MDM Business Benefits
 MDM Program Scoping Themes
 Selling the MDM Program
 Conclusions
 Recommendations
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Master Data Management
Defined
 Master data management (MDM) comprises
a set of processes and tools that consistently
defines and manages the non-transactional
data of an organization
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Problem
 Benefits case for MDM
is not well understood
 MDM is not well sold
Before I make my drilling
decision, show me those
meaningless statistics again
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Presentation
Objectives
 Understand the
business case for MDM
 Learn how to effectively
sell MDM
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Value of MDM
 Enable business intelligence applications
 Assure single source of truth
 Improve data accessibility
 Reduce data
cleaning effort
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MDM Opportunity Evaluation
 Reduce risk:
Revenue
– Pick winners
– Avoid losers
 Evaluate more scenarios:
– producing asset
acquisition
– pool development
– well design
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MDM Operational Effectiveness
 Volumetric accuracy:
– exploitation decisions
 Cost accuracy:
– production optimization
 Agreement accuracy
Costs
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– acquisition and
divestiture decisions
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MDM Business Benefits
Operational
Oil & gas producer
requirement
Increase revenue from
ensuring accuracy and
completeness
Improve operational
efficiency
Increase regulatory
compliance
Corvelle Drives Concepts to Completion
MDM contribution
Volumetrics
Billing of processing fees
Joint venture invoices
Cost data
Business processes
Data quality
Consistent data collection
Reporting data
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MDM Business Benefits
Strategic
Oil & gas producer
requirement
Improve organization
agility
Improve decision making
Accelerate cycle times
Corvelle Drives Concepts to Completion
MDM contribution
Rapid access to impact
analysis data
Data quality
Data integration
Data accessibility
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MDM Technical Benefits
Oil & gas producer
requirement
Reduce the cost of
business processes
Improve information
management efficiency
Corvelle Drives Concepts to Completion
MDM contribution
Data duplication
Data quality
Share and analyze info
Data integration
Redundant data
management activities
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MDM Program
Scoping Themes
 Themes
– Geographic Area Coverage
– Reservoir Type Coverage
– Functionality Features
– Asset Life Cycle Coverage
 Criteria
– Business benefit
– Complexity
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Selling the
MDM Program
 Focus on business benefits
 Project sponsor leads the selling
 Highlight impacts of recent data quality
shortcomings
 Avoid references
to technology
 Don’t over-promise
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Conclusions
 MDM programs offer significant benefits to
oil & gas producers
 MDM programs have been hampered by:
– Poor business cases
– Focus on technical benefits
– Grandiose scope
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Recommendations
 Create a clear business case
 Have the project sponsor
present
 Develop an MDM program of
several releases
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Questions &
Discussion
Please
fill out
evaluation
form
Can you help us
make the case
for MDM?
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Making the Case for
Master Data Management
Yogi Schulz
Partner of Corvelle Consulting
Information technology related
management consulting
Microsoft Canada columnist & CBC
Radio host
Industry presenter
PPDM Association board member
Corvelle Drives Concepts to Completion
Corvelle Consulting
300, 400 - 5 Ave. S. W.
Calgary, Alberta T2P 0L6
Phone: (403) 249-5255
E-mail: [email protected]
Web: www.corvelle.com
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Bibliography

Building a robust business case for high quality master data
–
–

Building the Business Case for Master Data Management
–
–
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ESRI Petroleum User Group – 2010
http://proceedings.esri.com/library/userconf/pug10/papers/samsons_integrated_prospect_to_spud_well_life
cycle_managment_system.pdf
The International Conference on Information Quality (ICIQ)
–

Mark Smith, January 2007
http://www.ventanaresearch.com/uploadedFiles/The%20Business%20Case%20for%20Master%20Data%20Ma
nagement.pdf
E&P Prospect to Spud Life Cycle Solution
–
–

CapGemini, Informatica, May 2011
http://storage.vuzit.com/public/33cv7/Building_the_Business_Case_for_Master_Data_Management__MDM_.
pdf
The business case for master data management
–
–

Andy Haler, February 2010
http://www.manjeetss.com/articles/MDM/InfoDifference_Quality_Master_Data.pdf
http://www.iciq2010.org/
Making the Business Case for Master Data Management
–
–
Amol Patil, August 28, 2008
http://advice.cio.com/infonitive/making_the_business_case_for_master_data_management_mdm
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Bibliography

Master Data Management Benefits, May 21, 2011
– http://www.mdmsource.com/master-data-management-benefits.html

Master Data Management for the Masses of Data
– InfoTech, February 24, 2009

MIT IQ Industry Symposium (IQIS)
– http://www.eriqlab.org/mit/index.html

Monetizing Data Management
– http://erwin.com/uploads/erworld/Monetizing%20Data%20Management_09162010.pdf

P2 Energy Solutions - integrated well lifecycle management tools
– http://www.p2energysolutions.com/well-lifecycle

Positioning Master Data Management for Success
– Yogi Schulz, 27 October 2010
– http://corvelle.com/presentations/ppdm/positioning.html

PPDM master data at heart of Oracle’s Digital Oilfield - February 2008
– http://www.ppdm.org/community/PPDM_data_at_heart.html

Staying Relevant in Today’s Changing Data Management Environment
– http://erwin.com/events/detail/staying_relevant_in_todays_changing_data_management_en
vironment/
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MDM Adoption Reasons
• Reduce time spent in reconciling
data from disparate sources
• Assign accountability for the
quality of information
• Unable to determine which
spreadsheet had correct data
• Respond to rising costs of errors
in data
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• 33 percent
• 17 percent
• 12 percent
• Not specified
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