Using Business Intelligence Maturity to survive change in oil and gas Exploration and Production it. Delivering technology painlessly to support E&P IT has both an emotional and practical side. Business success depends on keeping geoscientists and engineers working effectively.
Using Business Intelligence Maturity to survive change in oil and gas Exploration and Production it. Delivering technology painlessly to support E&P IT has both an emotional and practical side. Business success depends on keeping geoscientists and engineers working effectively.
Using Business Intelligence Maturity to survive change in oil and gas Exploration and Production it. Delivering technology painlessly to support E&P IT has both an emotional and practical side. Business success depends on keeping geoscientists and engineers working effectively.
Using Business Intelligence Maturity to survive change in oil and gas Exploration and Production it. Delivering technology painlessly to support E&P IT has both an emotional and practical side. Business success depends on keeping geoscientists and engineers working effectively.
BIM5 Westheimer Energy - New Digital Business Feb 2014
Using Business Intelligence Maturity to Survive Change
Jess B. Kozman Data Management Practitioner, Mua!ala Petroleum " #estheimer $nergy Consultants Intro!uction y $! $vans, Senior Consultant an! C$%, &e' Digital Business, an! Jess Kozman Pre(rint o) ac*groun! in)ormation )or 'or*sho( +,o' to survive change in $-P I./ at SMi0s 12th annual $-P In)ormation an! Data Management Con)erence, 13th 4eruary to 15th 4eruary 3617, 8on!on, Unite! King!om htt(9""'''.smi:online.co.u*"energy"u*"e(:in)ormation:!ata:management INTRODUCTION Projects in the area of business intelligence for oil and gas Exploration and Production (E&P) IT have long been the target of efforts to reduce risk and measure performance. Various metrics have been proposed over the years, from positive indicators of user take-up to negative measures of user complaints. In an environment where every project or initiative involving geotechnical data has to do two things simultaneously; namely deliver business value and integrate painlessly into existing workflows, it can often be the way the message of change is delivered which makes the difference between a successful outcome and back to the drawing board. When organisations fail to share and align goals with workflows, business culture and capability for change (Haue et al! 2004), the result can be the failure of an otherwise promising technology for transforming data into business intelligence. Today's data management practitioners acknowledge that delivering technology painlessly to support E&P IT has both an emotional and a practical side to it. Perceived success requires that people feel that a good job has been done and business success depends on keeping geoscientists and engineers (Petro-Technical Professionals, or PTP) working effectively. Since business intelligence projects inevitably include a technology component, analysing and quantifying a team's tolerance for technology change and tailoring implementations is one way to both minimise disruption and find and leverage internal champions who can reduce the friction of change. Understanding where an organisation resides and where it is moving on a technology maturity matrix is a first step toward quantifying tolerance for, and benefits of change. This paper presents metrics adopted from technology capability maturity models ("r#sby! 1$%$) and expands on early work in E&P that applied the measurements specifically to the area of petrotechnical data management (D&'ngel# an( )r#y! 2000). The principles of the Business Intelligence Management Maturity Metrics Matrix Model (BIM 5 ) * SM have now been used in diverse projects on a global scale to determine the best strategies for surviving the changes required by business intelligence projects. No matter how well designed or how much of an improvement a technical solution may be, technical end users will have to change something about the way they work in order to realize benefits. Measurable improvements in individual workflows need to be communicated, in the language of the business. Impacts on everything from IT users with command-line interfaces to the CIOs continuous view of an SAP implementation need to be considered, along with how the business depends on the technical environment. Without constant attention both the value and effectiveness of the technical environment and information on which it runs degrades over time. The impact of this data entropy (Fli*hy an( +#,ell! 2011) in the absence of managed change can also be measured with a suitable application of the described model.
BIM5 Westheimer Energy - New Digital Business Feb 2014
Change Management is a science in itself and has spawned a metaphor menagerie visible in any airport bookstore business section, from rivers and puddles (-#gers#n! 2011) to puzzles (M*"#urt! 1$$%) . There are reams of papers, books, even cheese shops and melting icebergs dedicated to understand and explaining change to the reluctant and how to implement change to the management team. This is very useful material and can be applied in many areas of Oil and Gas. However, practitioners have found much of it to be targeted at scales and facets of maturity change that may not be effective for technical business intelligence E&P. One key to success is knowing what kind of change you are managing and which parts of this body of knowledge will have the most impact, based on the capability and complexity of your organisation and team. The wrong mix of well-intended change management process can be as damaging as mixing your cheese with your icebergs. This paper provides some insight, examples and areas for discussion leading to an improved understanding of how to survive and thrive in change in E&P IT and how to improve your chances of success in any initiative, based on successful implementations in real-world case studies of a proven method for measuring capability and complexity metrics. It leverages first-hand knowledge based on what one client described as "an ability to manage effectively in an environment of deliberate uncertainty". HISTORY The pressures from incursion of large data volumes on geotechnical professions have been recognized since the early 1970s (W##(lan( et. al.! 1$%/), and have been the subject of continuous discussion and debate since then. This has spawned a continuing litany of often revisited, but seldom resolved, challenges at industry meetings and conventions, with a growing need to quantify just how much effectively managing data adds to the bottom line of extractive resource industries. Describing the volume of data involved in this debate has in turn created a cottage industry of metaphor mangling and acronym abuse, from the seismic tsunami of the early 2000s (0alinin*he,! 2000) to the digital explosion (Farr! 2012) of today, from Create-Read-Update-Delete (CRUD) (H#llan( an( Nash! 2001! Harris#n! 200%), Knowledge-Information-Data (KID) (1un et al.! 2004), and onto the ubiquitous presence today of Big Data (Farris! 2012). Even discussions of staffing requirements and shortages in exploration and production (E&P) now regularly refer to an employee cohort by its relationship to the onset of digital data (-yan! 2012), and the design of many query-based user interfaces for business intelligence reflects the influence of the Millennial workforce which is comfortable with and expects nearly instantaneous and unfettered access to mind-bogglingly large volumes of data and information. As large volumes of digital data began to attract the attention of Information Technology (IT) professionals in the oil and gas industry, technology vendors developed tools and services designed to manage the flood of petro-technical data, leveraging technologies such as relational database management systems (RDMS) and hierarchical storage management (HSM). But some early deployments of what could have otherwise been effective information management technologies experienced failures, in part because target organizations failed to share and align data management capability maturity goals with workflows, business culture and capability for change (Haue et al! 2004). In parallel, the nascent IT discipline was developing management methodologies for technology resource activities which recognized that organizations were best served by projects and strategies that proceeded in stages over time (N#lan! 1$%/). This resulted in the concepts behind Capability Maturity Models (CMM) and some of their early applications to quality control ("r#sby! 1$%$). The need to carefully match data management technologies in oil and gas organisations to the capability levels of petro-technical end users was recognized as soon as digital volumes began to dominate high end petroleum exploration workflows (M*0en2ie! 1$$5). At the same time studies were also acknowledging the lack of high level visibility for data management personnel and budgets (Feineman!1$$2), and the difficulty of quantifying the value of data management as compared to higher profile interpretation activities (+#we! 1$$5). To this day, measuring
BIM5 Westheimer Energy - New Digital Business Feb 2014
and justifying the value of data and information management remains a popular but elusive goal for most large petroleum organizations. In this paper we trace the history and development of a robust tool for evaluating, measuring and tracking the impact of business intelligence management strategies on the bottom line of oil and gas exploration and production. The tool has a documented history of usage, widespread application to various data types and geographic locations and plays, and a scientific and statistical basis that makes it essential for data management practitioners in todays business driven climate for data management. It also provides an unprecedented opportunity to quantify and predict the relationship between appropriate data management strategies and the bottom line of exploration and production, by providing a measure of financial impact for specific facets of business intelligence capability. It is a defining characteristic of oil and gas exploration that the adoption of industry standard methodologies can lag by years (Wallis! 2011) behind other similarly data-driven industries, such as medical, telecommunications and aerospace. Thus the introduction of maturity models as a way of measuring and quantifying the evolution of data management capabilities in the petroleum industry dates back only slightly more than a decade (D&'ngel# an( )r#y! 2000), despite the introduction of the concept in other technology intensive processes, especially software development, more than a decade earlier (Hum3hrey! 1$4%).
4igure 1. $arly version o) the Data Management Maturity Mo!el ;)rom DAngelo and Troy, 2000 < The earliest Data Management Maturity (DMM or DM 2 ) models were often adopted and adapted from other industries and were inherently one-dimensional linear scales, describing a progression of stages. They tended to be used mostly as a descriptive tool (1we(en! 200$). But even the earliest versions for the Exploration and Production (E&P) data streams in oil and gas acknowledged the complexity of petro-technical data, including multiple facets to be considered when establishing the levels (although technology remained the dominant one) and pointing out that the higher levels may be commercially unachievable in the petroleum industry.
BIM5 Westheimer Energy - New Digital Business Feb 2014
When correlations could be established and published between capability maturity and standard measures of productivity (H#llan( an( Da,is! 1$$%), maturity levels took on the new significance of being associated with financial metrics and the emphasis shifted from maturity, which carried connotations of a scorecard with positive and negative values, to capability, which implies more of a continuum of improvement. This allowed for comparisons with other applied continua in oil and gas data management such as master data management strategies. The refinement of the models has continued with the addition of additional capability facets and customization of the models for specific geotechnical data types (D#ugherty et. al.! 2010), and incorporation of observational characteristics, levels and facets from other industries (Fin5elstein! 1$$26 M75el7!et al! 200$6 8(h# an( 8r(! 200$). There has also been discussion of how to use maturity levels as a predictor of value extraction from systems and technology, specifically in reference to seismic volumes (15ar5e an( 1he99er! 2004).
4igure 39 $=am(le o) a maturity mo!el !evelo(e! )or a s(eci)ic (etroleum !ata stream ;)rom Dougherty et. al., 3616< In 2008 it was recognized that maturity alone was not a good predictor of financial performance, and that capability levels needed to be matched to the complexity and organisational goals of specific operators. An early matrix was created by comparing capability levels with complexity metrics. The first complexity metrics were calculated by analyzing the number of unique or redundant steps in data management processes for specific data types (Hawtin an( Fumey-Humbert! 200:). These metrics used oil and gas specific variations of standard Six-Sigma SIPOC (Supplier, Input, Process, Output, and Consumer) models that had been previously applied in production optimization (Barber et. al.! 200%). The patterns from these mappings were compared with other scale-independent allometric laws (1ait#! Watanabe! Iwamura! 200%) and a main sequence was recognized and described that tracked the development of data management capability as it evolves with organisational complexity (0#2man an( Hawtin! 2004). This moved the existing DM 3 (Data Management Maturity Model) to a DM 4
methodology (Data Management Maturity Matrix Model). The importance of power-law effects in evaluating organisational dynamics has since been validated by other research ('n(riani an( M*0el,ey! 200$).The current methodology has been refined with the addition of more facets to compute, weight and rank the complexity metric, and the expansion to include not only data management but the impact of information, knowledge, and business intelligence ()h#mas! 200$). The current methodology is formally identified and recognized as a Business Intelligence Management Maturity Metric and Matrix Model (BIM 5 ), and recognizes maturity as a combined metric plotted by comparing capability and complexity on a two-dimensional matrix. This also allows each axis to be deconstructed into multiple facets, or for additional analysis dimensions to be considered, such
BIM5 Westheimer Energy - New Digital Business Feb 2014
as geographic locations, data stream types, or functions within the organisation. It also allows for tracking changes over time as a fourth dimension, in an interesting parallel with geophysical data cubes of a similar nature.
4igure 59 4irst (resentation o) an oil an! gas in!ustry !ata management maturity matri= 'ith a com(le=ity metric ;)rom Kozman an! ,a'tin, 366><, use! as a gui!e to +?uic*:'in/ im(lementations. The BIM 5 analysis takes into account the fact that less complex organisations can take flexible approaches that would result in chaos in more complex groups. Conversely, more complex organisations can invest in defining more precise practices whose imposition would paralyse less complex ones. These differences mean that understanding the most effective strategies for moving between current and desired levels of capability for a given organisation requires a focus on resulting performance metrics as well as on individual implementation details. Laws of allometrics show that the best performers will cluster around a single curve, the main sequence and around islands of stability on that curve. But all these organisations have underlying dynamics that allow comparison across different sizes ("D'! 2011). Calculation of the complexity metric serves as a useful comparator with perceived and statistical peer groups as most of the dimensions can be obtained from public domain sources such as industry rankings and annual reports, even when a complete data management assessment has not been performed. However, a thorough, rigorous and industry standard site assessment methodology remains the most accurate way of determining and validating an organisations capability and complexity levels.
DIMENSIONS AND FACETS OF THE MODEL On the BIM 5 matrix, capability is plotted along the horizontal axis, with increasing capability to the right. The vertical axis is plotted increasing upward using a metric based on selected, weighted and ranked values reflecting complexity of assets (Willigers an( Ma;#u! 2010), size of product output (<latts! 2010), resource base ()#u*h! 2012), geographic spread (1ass#n an( Bl#mgren! 2011), technology adoption rate and strategy (Daneshy an( 1h##5! 2004), Petro-Technical Professional (PTP) Intensity (1*hlumberger Business "#nsulting! 2012), or data entropy (Fli*hy an( +#,ell! 2011) of the organisation. PTP Intensity is an especially interesting and useful metric as it has already been shown to have a broad positive correlation to production growth rates, but the addition of BI capability as a dimension allows us to identify observational characteristics that further discriminate between high and low growth companies .
BIM5 Westheimer Energy - New Digital Business Feb 2014
The combination of a weighted and ranked position on both axes yields a matrix location that can be used to compare between members of a peer group, business units involved in different types of plays, or geographic locations. Changes in the position on the matrix can also be used to track the evolution of data management metrics over time, the trajectory of change, and the level of change management that is required to support projects designed to implement those changes. A main sequence is derived by defining the cluster of best performers based on financial performance metrics such as Return on Invested Capital (ROIC) or other industry metrics such as internal rate of return, reserves replacement rate, or finding and development costs (Ernst an( =#ung! 2011). The performance metrics are deliberately selected to be scalable across organisation size, and so reflect a true independent variable from the matrix. The selection and weighting of these facets can be tuned based on an organisational self- determination of facet focus or a fully implemented site assessment.
4igure 79 Pre!icte! relationshi( et'een (osition on the maturity matri= an! )inancial (er)ormance, ase! on allometric e=am(les )rom organizational stu!ies. Impetus to correlate position on the matrix with financial performance metrics came in part as a result of studies showing that maturity models for project management were being used reactively, were more qualitative than quantitative, and were not accurate predictors of project success (Br##5es an( "lar5! 200$). Since the positioning of an organisation on the matrix is a snapshot at any given point in time, the change management requirements (0#tter! 1$$:6 "am3bell an( H#llan(! 200%) and trajectory (M*>ahan! 2004) between present and future positions can be used to differentiate between tactical and strategic implementations. The matrix can also be devolved into individual facets along each access, or aggregated into views that compare across locations, disciplines, or data streams. Quick win tactical and strategic projects can be identified and developed to move the organisation closer to the main sequence and to previously identified islands of stability. The anticipated initiatives are then matched against the appropriate and required level of change management to design communication strategies and increase the probability of defining business success through measurable improvements (Eggert et. al.! 2011). Since the capability metrics and complexity metrics are
BIM5 Westheimer Energy - New Digital Business Feb 2014
correlated with changes in an organisations core activities and assets, respectively, the degree of change along each axis helps to define the change trajectory and can be used to select a change management methodology and level best suited to the project or program designed to implement the change. The current version of the standardised assessment methodology is supported by several BIM5 assessment tools. This technique recognises maturity as a combined metric plotted by comparing capability and complexity on a two-dimensional matrix. Data management capability reflects the way in which oil and gas asset teams use the facets of Process, Resources, Organisation, Metrics and Technology (PROMT) to improve their data management performance, although for comparison across multiple organisational types, some configurations use a revised set of facets of Standards, Technology, Organisation, Resources and Metrics (STORM). These facets can be mapped to international standards such as the DAta Management Association (DAMA International) DM-BOK2 (Data Management Body of Knowledge) (which describes functional areas and organisational context. They also correlate to industry surveys such as those conducted by Common Data Access (CDA) and Schlumberger in the U.K. for North Sea Operators, or broader international benchmarks such as the one recently referenced by Halliburton in its Landmark Smart Vision methodology (2013 17th PNEC Conference with Berry Petroleum). Unlike linear and one-dimensional capability models, in the BIM5 methodology, capabilty is one dimension of overall maturity, and is plotted on a horizontal axis from a Base level of I to a Critical Level of V (Note that to accommodate the findings from some asset teams and companies, a capability level of Regressive had to be added below the Base level, organisations at this level actively discourage progress in the use of data management). Capability is generally measured by identifying observable characteristics that place the organisation along the continuum of Levels, or by surveying end users of data about their perceptions of how the organisation's approach to data management can be described. The vertical axis of Complexity is a quantitative measure of the challenges for data management that increase with an exploration and production organisation's size and reach, that is they are dependent variables that scale with size. In the BIM5 model the same 5 facets are measured to provide a meaningful matrix for correlation. Many measures for complexity facets can be gleaned from public domain sources, such as size of reserves and volume of production, operating budget, staffing levels, and number of operating assets or geomarkets. The number and overlap of applications and steps on industry standard Supplier-Input-Process- Output-Consumer (SIPOC) workflows and the volume of the data itself also contribute to the Complexity Metric. While some traditional descriptions of "big data" have identified volume, velocity and variety as facets of complexity, the BIM5 model develops quantitative measurements, where the required metadata statistics can be obtained, of data propagation, proliferation, pervasiveness, and persistence. Capability can be measured by performing an assessment at client offices and interviewing members of staff in order to gain an overall consensus as to the state of the companys data management operation. Complexity can be assessed by examining such characteristics as staff numbers, Supplier-Input-Process-Output- Consumer (SIPOC) process steps as defined by Six Sigma methodologies, data volumes, and technology redundancy and overlap. The complexity metric can also be weighted by the number and diversity of operating areas covered in the assessment. Past analysis of a number of other oil and gas organisations reveals that results on the matrix tend to cluster on a curve where capability and complexity are optimally balanced. This curve has been termed the main sequence by analogy with allometric laws such as those from organisational dynamics and productivity optimisation. As a company matures, it can be expected to progress along this main sequence as it develops both in terms of complexity and capability. The BIM5 methodology differs from other maturity models in that it provides a correlation with financial performance metrics that are scale-independent. Neither data management maturity nor data management complexity can be correlated with better financial performance or
BIM5 Westheimer Energy - New Digital Business Feb 2014
more effective or efficient oil finding, but an organisation's position relative to the main sequence on the BIM5 matrix does provide such a correlation. An assessment can determine the current position of an organisation on the matrix relative to both perceived and identified peer groups, and can help select quick win projects to move to a position correlated with optimum financial performance. In this way, after decades of struggling with the business value case for data management, organisations that benchmark themselves against the BIM 5 model can show quantitative correlation with corporate performance metrics such as production replacement rates and reserves acquisition cost. Recent application of the model shows that movement toward positions on the main sequence can also be correlated with improvement in scale-independent financial performance metrics such as finding costs, return on investment, and PetroTechnical Professional Efficiency (1*hlumberger Business "#nsulting! 2012). APPLICATIONS OF THE MODEL A recent application of this methodology to a set of mergers and acquisitions (M&A) compared across two data intensive resource plays ()h#m3s#n! 2012), showed that M&A between organisations with more disparity in position on the BIM 5 model require a larger investment in change management in order to produce the same gain in financial performance when large amounts of data need to be assimilated. This is an aspect of M&A due diligence that is frequently overlooked in the oil and gas business but can be mitigated by the use of clean teams, groups of third party service providers working under legal protocols and confidentiality agreements that can access and review competitive petro-technical data, information technology, and business intelligence systems and processes that would otherwise be off-limits after the announcement of M&A activity. This avoids surprises in issues of data storage, accessibility, technology interoperability, access or formatting that can derail a quick merger or acquisition after regulatory approval (-#use an( Frame! 200$).
@ master !ata management maturity mo!el 'ith )acets an! (resent an! )uture state in!icators ;)rom @mal)i, 366A< Recent and historical work has also included and focused on applying capability maturity models to metadata (?ha#! 2005) and to the broader area of scientific data across disciplines ("r#wst#n an( @in! 2010). Assessing an organisation on a capability model is now accepted as part of the process for building a business case for a data management implementation ('mal9i! 200$), and an increasing gap in maturity as organisations evolve has already been noted. A 2011 Gartner group survey of 321 organisations in a mix of industries across North
BIM5 Westheimer Energy - New Digital Business Feb 2014
America, Europe and Asia Pacific highlighted the adoption and use of data integration tools. The survey asked a set of questions about tool usage and functionality, level of satisfaction, and relationships with the technology providers. In describing the increasing gap between leading versus lagging organisations in data management capability ()h##! Frie(man an( Beyer! 2012), the study noted that those organisations treating data management as a strategic competency, and those approaching it in a reactive, tactical fashion, were growing further apart. Those that were focused solely on running and growing their business with a focus on implementing data integration architectures as cheaply as possible and optimized for narrow and obvious needs were seen to be lagging on capability competency measures, and they can be identified on the BIM 5 model as falling either above (complexity leveraged), or below (capability leveraged) the main sequence. They generally rank in the third or fourth quartile of financial performance metrics. On the other hand, those organisations that had observational characteristics that showed a focus on effective data integration capabilities as a way to transform the business and deliver entrepreneurial impact were consistently placed closer to the main sequence and islands of stability, with financial metrics in the top two quartiles. The best performers of these organisations in a BIM 5 analysis cluster around the island of stability that represents proactive capability, sustainable complexity, and top quartile financial performance, supporting the correlations demonstrated by the model.
Clustering o) )inancial (er)ormance metrics on the BIM B mo!el, constructe! )rom an organisational (eer grou( in a !ata intensive resource (lay, sho'ing the main se?uence an! islan! o) staility
BIM5 Westheimer Energy - New Digital Business Feb 2014
SCIENTIFIC BASIS OF THE MODEL
.ren!s o) some allometric relationshi(s use! to (re!ict the original ehavior o) organisations on the BIM B mo!el While the early speculation was that the financial performance metrics of organisations would increase monotonically along a main sequence, the clustering provided by analysis of peer groups in similar geologic plays showed a more complex behavior. The clustering indicates that increasing either capability or complexity exclusively, and without consideration of the change trajectory, is correlated with a decrease in financial performance. Thus an organisation can lose operational efficiency by attempting to implement programs that emphasize disproportionate gains in technology capability without supporting complexity of resource allocation, for example. Likewise, organisations that implement statistically more complex processes without increasing the capability of their internal standards are also more likely to move downward in performance metrics. The analysis also shows that there is more tolerance for a range of complexity levels at an optimum level of capability; the main sequence envelope for top quartile financial performance has its largest vertical dimension on the BIM5 model at capability Level IV. The linear trend of the highest value performance envelope, like its allometric analogs, also has a positive slope of less than 1, meaning that rapid changes in complexity can be more financially risky than similar changes in capability because they are more likely to move the organisation outside the top performance envelope, or further from the main sequence. The goal of the BIM 5 modeling and analysis should always be to fit the required change trajectory and change management methodology to the requirements of the organisations present and desired future position on the model. The most recent implementations of the model allow fairly prescriptive choices of strategies based on best practices and lessons learned from the model, validating its predictive value. The final recognizable allometric trends on the BIM 5 matrix are most closely related visually and statistically to those in complex product development, robustness in social and organisational networks, and productivity curves for innovation ('n(riani an( M*0el,ey! 200$).
BIM5 Westheimer Energy - New Digital Business Feb 2014
@llometric relationshi(s et'een resource (o(ulation size an! (ro!uctivity out(ut in organisational net'or*s ;)rom Chen an! Jiang, 366A < sho'ing similar statistical tren!s to )inancial (er)ormance grou(s on the BIM B mo!el The utility of the BIM 5 methodology is validated by the expanded usage of capability models in other areas of petroleum operations. Similar models are now part of the offshore technology safety culture promulgated by the UK Health and Safety Executive (Fleming! 2000). The financial industry has been refining its version of a data management maturity model with the same goals of improving risk management and operational efficiency (0ent#uris! 2011). Some of their defined facets have been incorporated into the oil and gas model to improve correlations with financial performance indicators based on applications to oil and gas financial accounting systems. If the history of this initiative is duplicated in the petroleum industry, a data management maturity model could become the basis for regulatory reporting requirements (An(erw##(! 2012).
@ !ra)t sa)ety culture maturity mo!el )rom the UK o))shore (etroleum in!ustry ;)rom Fleming, 2000< DAMA International, the worldwide organisation for data professionals, uses a maturity model as a basis for assessments of data management effectiveness and monetization ('i5en! 2011). Recently the DAMA data management education framework has been taken up by the Public Petroleum Data Management (PPDM) organisations Petroleum Education Task Force (PETF), and a capability model was presented in Australia as part of an initiative to determine the requirements for developing data management as a recognized discipline and profession in the petroleum industry ("urtis! 2012). The capability levels for a profession are adapted from work done in the medical field (A. 0. <arliament! 2000). The Project Management Institute (PMI) also uses an Organisational Project Management Maturity Model (OPM3) to translate project management strategies into successful project outcomes. The organisational standard uses interlocking elements of knowledge,
BIM5 Westheimer Energy - New Digital Business Feb 2014
assessment and improvement to complete a set of deliverables under the Project Management Body of Knowledge (PM-BOK) that address organisations, people and projects (<r#;e*t Management Institute! 2005).
@ re(resentation o) an organisationCs maturity y !omain an! (rocess im(rovement stage ;)rom ProDect Management Institute, 366B< on an %rganisational ProDect Management Maturity Mo!el ;%PM5<
Descri(tion )rom the Pulic Petroleum Data Management organisation o) the alignment et'een ca(aility levels )or a !iscli(line or (ro)ession an! those on a Data Management Maturity Mo!el ;)rom Curtis, 2012, use! y (ermission< Other projects have focused on data governance using a maturity model as a metric for improvement (IBM Data >#,ernan*e "#un*il! 200%). These analyses identify multiple categories for classifying capability, as well as transition layers between maturity levels. These layers are compared with the outcomes, enablers, core and supporting disciplines of data governance domains to identify measurable milestones that track an organisations advancement on a capability model.
BIM5 Westheimer Energy - New Digital Business Feb 2014
Some o) the categories ;)acets< inclu!e! in the IBM Data Eovernance Maturity Mo!el ;)rom IBM Data Eovernance Council, 366F<. BENEFITS OF USING THE MODEL The benefits of being able to measure the value of various data governance best practices with a quantifiable Key Performance Indicator (KPI) such as the position on the BIM 5 model has been recently validated with a survey of over 50 organisations. Over half of the respondents indicated that lack of stakeholder buy in was a challenge to implementing a data governance program, and that determining key metrics to measure success was either challenging or very challenging. That same survey found that the statistical strength of the correlation between adopting various best practices and a reduction in the challenges was almost 75% higher for establishing KPI metrics than for the next ranked best practices (0##3man! 2012).
Statistical correlation o) the im(act o) KPI metrics on !ata governance ;)rom Koo(man, 3613< There are other useful methodologies for tying capability models to the selection of strategies for implementation of technology programs, including some designed specifically for digital oilfield initiatives (B#bst an( H#llan(! 2004). There have also been statistical studies showing that data quality as measured by Six-Sigma methodologies improves with data management capability levels (-yu! <ar5 an( <ar5! 200:).
BIM5 Westheimer Energy - New Digital Business Feb 2014
@ !ata ?uality management maturity mo!el ;)rom Ryu, et al., 2006< G&%.$9 BIM B is a Service Mar* o) #estheimer $nergy Consultants, 8t!.
BIM5 Westheimer Energy - New Digital Business Feb 2014
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