http://fiatech.org/images/stories/events/techconference/2008/Sarbanoglu-Wednesday-EmergingTech by FIATECH

Business Model Driven Integrated Asset Information Management Dr. Hakan Sarbanoglu - Chief Solutions Architect, Kalido Bill NystrĂśm â&#x20AC;&#x201C; Program Manager, BP US Pipelines and Logistics

Agenda Business Model driven information management Business Model driven Data Warehousing and Master Data Management with Kalido Case Study: BP US Pipelines and Logistics Data Management Initiative Benefits

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Business Model driven Data Warehousing and Master Data Management with Kalido Case Study: BP US Pipelines and Logistics Data Management Initiative Benefits

What is a Business Model? A Business Model is a view of the objects of interest to the business. It is a model (i.e. conceptual layout) of Your Business Your Business Model is a description of your business: The things you “do” in the business i.e. the business activities The measurements you take about these activities The context (business entities) within which you want to view this information E.g. customers, products, locations, suppliers etc. This is what gives the information meaning to business people and is usually structured in hierarchies

The business rules binding these things together

A Business Model in is not …. In this information management context Business Model is NOT A data model, A systems model

Business Model is NOT: A description of the scope and purpose and the way of doing business (e.g. Franchising or Outsourcing) A view of the activities and processes carried out by a business (e.g. Insurance business activity model)

A simple Business Model:

Business Activity: Each instance of an activity is a business transaction. Each business transaction is an event, which happened at point in time and a number of business entities were involved in that event. We perceive those business entities in some Classes. For each event we measure some quantities and qualities. All these are captured in a transaction record.

A sample procurement order transaction: Three units of Submergible Unloading Pump (FJ70B) for our Midwest Maintenance Department were ordered from Warren Pumps on 12 Feb 2008. They should be delivered to our North Ohio Depot latest by 23 Feb 2008. Unit list price is $ 8,750. Agreed discount is 7%. 6

Business Context: Reference Data and Associations

Business Model must have’s A Business Model should: Support and integrate all activities of your business (no exception!) Be able to change Be time variant: remember the past and support future views Be understandable by both the Business and IT Support iterative development (think big, start small, and evolve)

A Business Model is not a Data Model! It is a model of the real business world

What do we mean by “Business Model driven …”? Conventional information systems (Data Warehouse, Business Intelligence, Master Data Management) development: Conceptual Model Æ Logical Data Model Æ Physical Schema Model Physical schema is built in a DBMS Subsequent changes are done at the physical database level Conceptual and logical models are disconnected at an early stage Business is also disconnected during … the systems development the operational phase

Business Model driven systems: Defined, built, operated, maintained and changed in business model terms Not disconnected from your business during their full life cycle

Disconnection of Business from Information Management Data Warehouse Life

Conceptual Model

Product Grade UIP

Business Representative

Brand

Business no longer Involved Semantics disconnected

Customer Address Location City ZIP

Brand Sales Volume Amount Product Family

Location City ZIP

Business Dictionary

Manual capture

Data Modeling Tool

Logical Model

Data Architect

Not Maintained Or only for documentation with reverse engineering Data Architect no longer involved

Physical Model

Manual run of V1.0 DDL

DBMS

Physical Schema & Data

Sources V1.1

V1.2 Manual Schema Changes

Manual Fine-tuning

V2.0`

10 Copyright ÂŠ Kalido 2008 DBA / DB Developer

Manual Schema Extension

BI Layer

Need to Align IT with the Business Business Cycle

New New Business Business Requirements Requirements

IT Cycle (Data Warehousing) Analyze

Evaluate

Operate

Plan

Design

Prepare

Information Disconnect Alignment Opportunity Cost The business and ITtomodels Due to time-delayed, the inability meet incomplete and/or inaccurate need to business stay in alignment businessrequirements reports and analyses

Run

Build Test

Implement

70 60 50 40 30 20 10 0 1st Qtr

Report, Plan, Model, Analyze

11 Copyright ÂŠ Kalido 2008

Deploy

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Business Model driven Data Warehousing and Master Data Management with Kalido Case Study: BP US Pipelines and Logistics Data Management Initiative Benefits

Kalido is different: it is driven by your Business Model Business Representative & Information Architect

Business Model Owner

Corporation

WHS Customer

Manufacturer Brand Family

Owner Product Group

Corporation

WHS Customer

Manufacturer Brand Family

System UI Owner

Product Group

Sub Family

Price Segment Marketing Product

Marketing Product Country

WHS Products

Corporation

WHS Customer

Manufacturer

Owner

Brand Family

Product Group

Owner

Corporation

WHS Customer

Price Segment Marketing Product Marketing Product Country

Owner

Corporation

WHS Customer

WHS Products Group Channel Channel V3 Channel

Sales Rep

V3 Retailer

Year Quarter Week

Month Day

WHS Retailer

Group Channel Channel V3 Channel

Sales Rep

V3 Retailer WHS Retailer

Deployments

Configuration (DIW) Sources

BI Layer

Automated Bridge System Automaticall y Maintained

13 Copyright ÂŠ Kalido 2008

Physical Schema & Data

Automated by Kalido

Implementation Specialist

Corporation

WHS Customer

Sub Family

How is this possible? Business Model Manufacturer Brand Family

Owner

Corporation

WHS Customer

Product Group

Sub Family Price Segment Marketing Product Marketing Product Country WHS Products

Meta Data

ETL

Source Systems ERP

Meta & Reference Data Repository

SCM Finance

Reporting

Production Maintenance

Create Create

Staging Raw Loading Area Data Validation

3rd Party

Reporting Schema Reporting

Schema

Dashboards Data Marts

BI Bridge

Warehouse

Analysis

(Reporting Schema)

OLAP

Direct Access

14 Copyright ÂŠ Kalido 2008

GIS

Meta and Reference Data Repository Department Eastern Sales Employee Alan Davis Samuel Hirsch Michael Enfield Peter George Dan Summers Western Sales

Association Between Classes

Physical data is stored in a Triple Store design and remains the same for any model and data

Object Model

Is a Item

A generic storage design based on ISO15926 Part-2

Automated By Kalido

Class

Business Model and Reference Data As Meta Data

Automated By Kalido

Association Between Items

Changes are defined as incremental meta data (ISO-18876)

Physical Schema (Always Stable)

Meta & Reference Data Repository

When the Business Model Changes… Business Model V-1 Manufacturer Brand Family

Owner Product Group

Version-2

Corporation

Manufacturer

WHS Customer

Brand Family

Owner Product Group

Sub Family

Price Segment Marketing Product

Price SegmentMarketing Product

Marketing Product Country

WHS Products

Corporation

WHS Customer

Owner

Corporation

WHS Customer

Group Channel Channel V3 Channel

Sales Rep

V3 Retailer WHS Retailer

Model Meta Change Data

ETL

Source Systems ERP

Meta & Reference Data Repository

SCM Finance

Reporting

Production Maintenance

Create Create

Staging Raw Loading Area Data Validation

3rd Party

Reporting Schema Reporting

Schema

Dashboard Data Marts

BI Bridge

Warehouse

Analysis

(Reporting Schema)

OLAP

Direct Access

GIS

Kalido Master Data Manager for Harmonized Business Intelligence

Source Systems ERP

BI, Reporting Tools

Data Warehouse

Transaction Data

Consistent Master Data

SCM

Portal / Intranet

Internal OLTP Data Finance Business Model Production

Maintenance

Manufacturer Brand Family

Owner

Corporation

WHS Customer

Product Group

Sub Family Owner

Price Segment Marketing Product

Corporation

WHS Customer

Marketing Product Country WHS Products

Group Channel

Profiling Cleansing ETL EAI

Channel V3 Channel Sales Rep V3 Retailer WHS Retailer

3rd Party

Master Data Repository

Reference Data “Golden Copy” Copy” Master Data

“Golden Copy” Copy” Master Data

• • • •

Model Load Catalog Map

• Merge • Version • Secure

Workflow

Kalido MDM API • Integration with other tools (workflow, etc.) • User exits to external code

• • • • • • • • •

Search Browse Create Enrich Validate Authorize Publish Export Report

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Business Model driven Data Warehousing and Master Data Management with Kalido Case Study: BP US Pipelines and Logistics Data Management Initiative Challenge Integrated Pipelines Asset Information Repository Enabling key processes with Asset Repository and Data Warehouse Regulatory Reporting and Data Governance

Case study: BP US Pipelines and Logistics BP US Pipelines and Logistics: Daily: 2.5 million barrel miles of oil, refined products, natural gas liquids, carbon dioxide and chemicals Own / operate 10,000 miles of pipe, 70 light-oil terminals and 500 trucks which deliver 9.5 billion gallons of refined product annually Various joint venture pipelines Core and joint venture operations span 38 states the offshore Gulf of Mexico Pipeline control centers in Oklahoma, Washington and California

Key Activities:

Ship volumes Define asset base Evaluate and manage asset portfolio Perform inspections Execute repairs Report to regulatory agencies

BP US Pipelines & Logistics Data Management Initiative

FUTURE STATE Iterative CURRENT STATE ications • Too many appl ss across the busine

One

pliance • Drives high com s activities and cost

• Organizati onal silos dominate th e business • Dependence on manual activities

Business

Prioritized and Cleansed Data Sets

• Too much IT, not enou gh business focus

version of the Truth! Intelligence

Process

Enablement

Data

and process governance

Consistent and Flexible Business Model

• Relianc e on tech nical and process work-aro unds

Performance

management

Sustainable Data Governance

• Inaccurate data

Phase 1:

Phase 2:

Phase 3:

License to Operate

Operations Enablement

Business Transformation

Attack Plan: Phase-1

Process and Data Governance Regulatory Reporting

Sulfur Tracking

HSSE Incident Tracking

Tank Inspection

Corrosion Planning & Tracking

In Line Inspection

Integrated Asset Information Repository

First: Build a Central Asset Repository

More in Phase-2

Pipelines Asset Business Model Retire Spreadsheets Improve Data Quality Discover missing assets

Enable and improve key regulatory process activities

In-line Inspection Corrosion Planning & Tracking Activities Tank Inspection HSSE Incident Tracking Sulfur Tracking Regulatory Reporting

Improve data and process governance Established Process and Data Governance

Pipelines Asset Business Model

22 Copyright ÂŠ Kalido 2008

Integrated Asset Information Repository

Pipeline Asset Business Model

23 Copyright ÂŠ Kalido 2008

Pipelines Business Model (simplified) Station Point

Legal Entity Controlling Company

Location

Organization

EPA Entry

Home Office

Legal Entity

Station Point

LOS

Department

District

Current Share Start

Asset

EPA Facility

Cathodic Equip Type

DOT Operator

Start

Facility Site

System Owned by

End

Serves

System Facility

Owned by Operated by

Extended Team

Managed by

System Mile Post

Facility

Equip Status

Tank Parent

Team End

Financial Account Cost Type

Segment

Cathodicaly

Protected

Account

Installed in

Cost Center

Equipment Tank

Cathodic Protection Equipment

Valve

Meter

Pump

Flare

Pressure Vessel

Heat Exchanger

Pipe Segment

Compressor

Profit Center

Product DOT Product Category

EPA Fuel Designation

Regulatory Category

Time

Decade

Commodity

Year Quarter Month Day

24 Copyright ÂŠ Kalido 2008

Inspection Run

Commodity Type

Transport Commodity Fuel Commodity

BP US Pipelines and Logistics Asset Repository All Pipelines Systems, the linear and area facilities and all equipment installed within these facilities have been loaded into Kalido MDM, from many sources Data harmonization Data Cleansing using a Data Quality Tool (DataFlux) Equipment attributes and classifications Mapping, merging, harmonization and enrichment in Kalido MDM Owner, operator, controller Legal Entities for each facility Overseeing, controlling and maintaining person for each facility Legal Entity organization hierarchy

Approved, authorized and published through workflows

Initial Population of the Integrated Asset Information Repository Transaction Data Sources

Asset Reference Data Sources

Logistics Tanks Pipeline Tanks

Vehicle/ Illness Injury

Spill and Leaks

Master Portfolio In-line Inspection

Logistics Tanks Pipeline Tanks

Facilities

Cleansing

One time Upload

Master Data Management

MARS (Oracle) SMART (Oracle)

Maximo (Oracle)

CPDM (Fox Pro)

PASS (Oracle)

SCADA (Oracle)

Decommissioned

95% Decommissioned

26 Copyright ÂŠ Kalido 2008

In-Line Inspection One time load of Historic Transactions

Joint Ventures

OTAIS (Access)

Corrosion Plan

Data Warehouse

Daily Maintenance of the Asset Information Repository Operational Systems

Corrosion Activity Planning &Tracking

HSSE Environmental Activity Management

Tank Inspection

In Line Inspection

PASS (Oracle) Maximo (Oracle)

CPDM (Fox Pro) Daily

SMART (Oracle)

MARS (Oracle)

SCADA (Oracle)

In-Line Inspection

Data Governance (incl. Asset Management)

Master Data Management

Hourly

Sulfur Track Data 3:00 am CST Daily Batch Upload

Regulatory Reporting

27 Copyright ÂŠ Kalido 2008

HSSE Incident Tracking

Daily

Real Time

Cleansing

OTAIS (Access)

Transaction Data Source

Ongoing Data Input Processes

Reports

Data Warehouse

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Driving Pipeline Activities Each activity instance (plan or execution) is entered as Master Data Planned Inspection record Actual Inspection run records Dig records Tool run records Repair plan record

Master Data Workflows drive the execution of each Preventative Process and Data Maintenance activity Governance

In Line Inspections

Sulfur Tracking

HSSE Incident Tracking

Sulfur Tracking (new process)

Tank Inspection

HSE Incident Tracking

Corrosion Planning & Tracking

Corrosion Planning and Tracking

In Line Inspection

Tank Inspection

Regulatory Reporting

Integrated Asset Information Repository

Modeling Typical Pipeline Activities as Transactions

30 Copyright ÂŠ Kalido 2008

Modeling Inspections for MDM

31 Copyright ÂŠ Kalido 2008

Modeling Inspections of any Equipment…

Inspection model can be used for any equipment types, e.g. tanks, pipe segments, Valves etc.

Process Monitoring Reports : In Line Inspections

33 Copyright ÂŠ Kalido 2008

Sulfur Tracking process An example of how a new process (introduced in 2006) can be designed based on MDM and Data Warehouse (DW) platform EPA regulation for: Designating and tracking Low Sulfur Distillates Phased ban of using 500ppm diesel: Use of 15ppm diesel gradually on-road Æ off-road Æoff-shore by 2010

Requires detailed reporting of diesel transport and distribution New process implemented on the MDM platform with detailed reports produced from the Data Warehouse Operating cost of this process for the BP US Pipelines Business Unit: 5 people x 1h/week + 6h/quarter = ~0.25 man year

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Regulatory Reporting

Prone to quality issues: consistency and accuracy

Sulfur Tracking

HSSE Incident Tracking

Integrated Asset Information Repository

Non-transparent, no lineage

After DMI Fully automated Produced on-demand, even daily 127 reports accessible from company portal Accurate, consistent, actionable, transparent and flexible

Tank Inspection

Time consuming and expensive. Only year-end

Corrosion Planning & Tracking

Very complex: Different regulatory rules in each State and different demands by multiple Government agencies

Regulatory Reporting In Line Inspection

Before DMI:

Process and Data Governance

Reporting Portal

37 Copyright ÂŠ Kalido 2008

Agenda Business Model driven information management What is a Business Model What do we mean by “Business Model driven …”? Disconnection between Business and IT

Benefits

Benefits of Business Model Driven Information Management with Kalido Communication with business people is eased (no Business-IT gap!) DW and MDM systems are created iteratively and quickly Rapidly responds to changing business requirements and conditions Lower ownership costs due to the speed and ease of change Automatically preserves history for trend analysis and audit reporting Aids regulatory compliance by ensuring data traceability. Maintains data in its true historical context, with true referential integrity at all levels Implements complex business rules Provides different perspectives - a single version of the truth presented in many different contexts Enables large companies to define corporate standards, while allowing local business unit autonomy and variation to co-exist

Benefits realized by BP US Pipelines & Logistics DMI Project An INTEGRATED Asset Repository Accurate, consistent, transparent, flexible, accessible Already discovered missing assets Clear view of the asset base and related activities facilitating more efficient gathering of information related to divestiture activities Shortening asset marking cycle

Simple and effective Retired 9 spreadsheet systems Reduced or simplified interfaces

Significantly improved the complex regulatory reporting (in cost, time, quality, content, availability) Automated 88 reports Ease of access and traceability of critical compliance data required for annual Federal and State reporting

Benefits realized by BP US Pipelines & Logistics DMI Project

Enabled and improved key preventative maintenance processes (planning, tracking, inspection, …) Cost savings in the maintenance budget by enabling historical cost trending, planning and results analysis Accuracy in annual budgetary allocations based on inspection history and discovered trends More proactive management and selection of vendors through tracking of actual spend, compliance with timelines and performance history Improved selection of inspection dates through cross-functional coordination through creation of coordinated schedules Tracking of the activities status and corresponding spend through reporting on compliance with timelines Alerts built into reports to demonstrate schedule slippage to ensure proactive management of issues New analytical and trending capabilities through expanded capture of conditions and defect information Consolidated view of the mandated maintenance activities 41 Copyright © Kalido 2008

Benefits realized by BP US Pipelines & Logistics DMI Project

DMI offers significant savings in Compliance costs and Operational efficiency gains Reduction for the reviews of asset for technical/legal integrity: 75 man day/year Reduction in regulatory reporting: 55 man day/year Reduction History requests for inspection, planning, leak/spills data: 800 man day/year Reduction in acquisition and divestment of assets: dozens of people and at least 8-16 hours per work group

Introduced processes and capabilities for data governance!

Attack Plan: Phase 2 Business Intelligence Operations Excellence Dashboard Integrity Management Dashboard Asset Dashboard

Operations Enablement Hydrotest, Guided Wave Inspection Corrosion Prevention – Performance Management Stress Corrosion Cracking Tracking

Performance Improvement Asset Life Cycle Management process improvement roadmap Asset DOT Compliance Matrix Tracking

Thank You!

Hakan.Sarbanoglu@Kalido.com William.Nystrom@BP.com

Appendices

Appendices Asset Information Repository (Kalido MDM) screen shots Regulatory reporting screen shots

Asset Master Data: Some Categories

48 Copyright ÂŠ Kalido 2008

Asset Master Data: Pipe Segments

49 Copyright ÂŠ Kalido 2008

Asset Master Data: Search

50 Copyright ÂŠ Kalido 2008

Asset Master Data: Search Pipe segments owned by Seaway Products

51 Copyright ÂŠ Kalido 2008

Asset Master Data: Search Results: Pipe segments owned by Seaway Products

52 Copyright ÂŠ Kalido 2008

Asset Master Data: Details of Pipe Segment SEG_61

53 Copyright ÂŠ Kalido 2008

Asset Master Data: Drill Down to Activities on Segments

54 Copyright ÂŠ Kalido 2008

Appendices Asset Information Repository (Kalido MDM) screen shots Regulatory reporting screen shots

Regulatory Reporting

56 Copyright ÂŠ Kalido 2008

Regulatory Reporting

57 Copyright ÂŠ Kalido 2008

Regulatory Reporting

58 Copyright ÂŠ Kalido 2008

Regulatory Reporting

59 Copyright ÂŠ Kalido 2008

Regulatory Reporting

60 Copyright ÂŠ Kalido 2008

Regulatory Reporting

61 Copyright ÂŠ Kalido 2008

Regulatory Reporting

62 Copyright ÂŠ Kalido 2008

Regulatory Reporting