ON A JOURNEY
DIGITAL TRANSFORMATION TO
P R O J E C T PA R T N E R S :
INSIDE THE DIGITAL JOURNEY OF PLAINS MIDSTREAM CANADA Plains Midstream Canada (PMC) has an extensive network of pipeline transportation, terminals, storage and gathering assets strategically located in key crude oil and NGL producing basins, transportation corridors, and at major market hubs in Canada and the United States. PMC has embarked on a digital transformation roadmap to help them prioritise new business capabilities and achieve operational excellence
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ormed in 2001 with just 130
strategy team can look at the
employees, Plains Mid-
business holistically instead of
stream Canada (PMC) has
just focusing on a singular aspect,
grown to over 1,400 employees and
such as implementing new tech
provides oil and gas transport and
solutions. “Rather than having
storage solutions across Canada
that quite narrow tactical discus-
and the United States. The compa-
sion with the business around
ny’s network of pipelines along with
software for instance, we engage
a fleet of truck trailers and railcars
them in business terms, better
provide oil and gas producers with
understanding their needs and
flexibility for transporting crude oil
desired outcomes before analys-
and natural gas liquids products link-
ing how to positively affect a
ing petroleum producers with
change to support them. In effect
refiners and other customers.
we’re acting as that internal tech-
The organisation is currently in the
nology broker, working with the
midst of a five-year digital transfor-
business to address their prob-
mation plan to drive improvements
lems by creating new business
to business processes, improving
capabilities. Sometimes our aim
the use of its existing technology or
is merely digitally enabling what
introducing new digital technologies.
we have, but we are absolutely
To design and enact this, the com-
planning for digital optimisation
pany brought in Chris Leonard, a
and transformation.”
Senior Business Strategist who is
“Not everything on our road-
now their Director of Strategy and
map is about introducing
Digital Transformation. In his words,
technology,” Leonard continues.
he and his team “plan the right work
“Often we’ve discovered that a
at the right time.”
review and improvement of exist-
The roadmap to digitisation is underpinned by a triad of people, process and technology improvements which means the digital
ing business process is just as valuable.” However, he adds that they are looking at planning initiatives to
BIO
Chris Leonard immigrated to Canada with his family in 2012 after a very successful 20 year career as a commissioned Officer in the British Army. His aim was to join Corporate Calgary where he hoped to employ his previous strategic planning and operations experience. A brief spell working at the main Syncrude site in Alberta’s oil sands was a prelude to working for Brion Energy back in Calgary. Leonard subsequently joined Plains Midstream Canada in the Summer of 2015 to lead the Strategy and Digital Transformation team within IS, working directly with the CIO. Over the past three years he and a growing team have helped establish a comprehensive Digital Transformation Roadmap which will lead Plains Midstream Canada into the Digital era. As he openly admits, he is not a technologist by background, but is finding the challenge of matching new technologies to business problems and a fascinating area of long-term interest.
“We partnered with leading industry experts from Sapient, Microsoft and IBM and to look at how best to plan our work, to realize our strategic goals and focus on business needs” — Chris Leonard, Director of Strategy and Digital Transformation add new digital assets to the business in the long term. For instance, they are looking at combining technologies such as digital twins, augmented and mixed reality, and the internet of things (IoT). “Being responsible for both OT and IT enables us to look at the whole picture, applying an IoT lens to the SCADA world for instance,” says Leonard. Leonard has also created a strong governance structure that uses analytics to support these strategic goals, which has led to a significant rise in capital investment for Information Services (IS) led programs. “It’s great having that long-term vision and roadmap, but unless you’ve got that governance to really help you prioritise what work you’re capable of doing first, it’s very difficult to see the wood for the trees,” Leonard says. “There’s always more work than there are w w w. p l a i n s m i d s t r e a m . c o m
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means to complete it. We’ve got to ensure
consumption data at PMC facili-
we’re prioritising the right work at the right
ties and pump stations which will
time, and that’s inextricably linked to our digi-
reduce overall consumption and
tal transformation roadmap.”
improve utilities management –
He envisions that PMC’s digital transforma-
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we’re really quite excited about
tion and partnerships with strategic vendors
that.” Through the work they have
will result in significant cost savings. “We part-
done with Sapient to introduce a
nered with leading industry experts from
comprehensive Energy Trading
Sapient, IBM and Microsoft to leverage global
and Risk Management capability,
expertise and capitalise on other industry
they also expect to pay significant
applicable use cases with a view to help
dividends. “Working with part-
accelerate the realisation of our IS strategic
ners such as Sapient allows us to
goals to drive enduring business value. Our
leverage different industry exper-
Power Utilization adviser for instance, which
tise and apply it to our unique
we’re co-developing with IBM Watson, will
circumstances. It really does
provide assessments and analysis on power
become a partnership where
strategic vendors help us to
environment in the communities where PMC
address focused business
operates, digitising safety plays a key role.
needs.”
Another key initial development with the IBM
It is also going to be beneficial
Watson program is the production of a Safe
for training staff on the systems
Work advisor. PMC is now using data analyt-
the company already uses. “Pro-
ics to assess and leverage as a tool for their
cess efficiencies go
safety teams to expand upon and help
hand-in-hand with introducing
improve safety performance. PMC will be able
new digital technologies,” says
to move from descriptive analysis to predictive
Leonard.
analytics to better prevent potential incidents. The company is also looking at future wear-
DIGITISING SAFETY
able technologies and how they could be
Safety is a core value at PMC,
used. Live information feeds could help on-
and as the organisation strives for
site workers by helping manage potential
protection, security and safety of
hazards through real time information sharing
employees, the public and the
without having to communicate via a radio.
1,400+ Approximate number of employees
w w w. p l a i n s m i d s t r e a m . c o m
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“Advanced analytics might be able to provide greater business intelligence but existing business models and how people do business also need to change” — Chris Leonard, Director of Strategy and Digital Transformation 08
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w w w. p l a i n s m i d s t r e a m . c o m
2001
Year founded
COMMODITIES At Sapient Consulting, we combine our business and digital transformation expertise with a deep understanding of how industries operate to drive innovative solutions for your business.
ISSUES LED. RESULTS DRIVEN.
DIGITAL TRANSFORMATION CONSUMER ENGAGEMENT REGULATORY REPORTING COMPLIANCE DATA MANAGEMENT ANALYTICS & VISUALIZATION
Across oil & gas, utilities & energy, retail, agriculture & processed foods, we help your business refine its strategies, from optimizing trading and risk management to innovating digital customer engagement. LEARN HOW SAPIENT CAN HELP, VISIT: www.sapientconsulting.com
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Leonard explains further: “We’re looking to
PMC is now working on a capa-
exploit existing technologies that can read the
bility called “Unified Stakeholder
environment an employee is in, whether they
Management” to pass crucial
have maybe been exposed to a particular
time-sensitive safety information
chemical, or whether an individual is showing
onto all stakeholders.
signs or symptoms related to abnormal stress by measuring heart rate or even if that individ-
ROADMAP TO THE FUTURE
ual is still upright or on the ground, which
Looking ahead, one of the main
might indicate a slip, trip or fall. The technol-
challenges for the industry will be
ogy is creating better situational awareness
adapting to change. “Nobody
without encumbering the individual to manu-
really likes change,” Leonard
ally provide regular updates and reports.”
says. “Advanced analytics might
PMC is also focused on stakeholders and is
be able to provide greater busi-
committed to maintaining strong relationships.
ness intelligence but existing
With operations that span across Canada and
business models and how people
the United States, the effective management,
do business also needs to
tracking and dissemination of information to
change in order to properly real-
their many stakeholders is vitally important.
ise the untapped value w w w. p l a i n s m i d s t r e a m . c o m
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“It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0” — Chris Leonard, Director of Strategy and Digital Transformation 12
technology can provide. Just throwing smarter technology at problems does not in itself create digital transformation.” Another challenge is the scarcity of skillsets, with a shortage of data scientists and digital security specialists in particular. However, Leonard believes this presents an opportunity for organisations to work more closely with academic institutions, helping them to tailor their programs to meet the emerging needs of businesses through the next industrial revolution. The major disruption is yet to happen, as Leonard explains: “The big digital disruption in oil and gas will come when someone figures out how to monetise assets without actually owning them, in the same way Uber monetises the cab without owning it.” He sees PMC as planning to take advantage of digital opportunities in the next decade. “I think our holistic digital transformation roadmap will ensure we’ve invested optimally in the right technology to effectively solve the right business problems and create new business capabilities. I also think we’ll be sufficiently mature in our digital strategy and planning to take advantage of future opportunities created by digital disruption in the midstream segment.” On the whole it’s an exciting era for Plains Midstream Canada. “It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0. These opportunities don’t come around on a frequent basis.” w w w. p l a i n s m i d s t r e a m . c o m
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Suite 1400, 607 – 8th Avenue S.W., Calgary, Alberta, T2P 0A7 email: media@plainsmidstream.com www.plainsmidstream.com