Business Analytics Lunch & Learnfor the Oil & Gas Industry
Sponsored by 3coast & BirstOctober 29, 2014
Introduction
• Stephen C. Sweeney– COO of 3coast, BI Practice Leader– MBA, University of Virginia– Started technology career in 1992 as a data
warehouse / business intelligence consultant– Built data warehouses & decision-support systems
domestically and international in a wide range of industries including pharmaceuticals, insurance, credit card processing, and other financial services.
Agenda
• 11:00 – Check-in / Networking• 11:45 – Introductions• 12:00 – Oil & Gas Business Analytics Keynote• 12:45 – Oil & Gas Production Case Study• 1:15 – Analytics on SAP HANA• 1:30 – Q&A • 1:45 - Departure
About 3coast
• Houston-based, Founded in 1980• Business Analytics practice with focuses on Oil & Gas, Energy,
Manufacturing, Distribution, Logistics– Birst Champion partner since 2012
• Data Center systems & services practice– Storage (NetApp, Nimble, Dell)– Virtualization (vmware)– Backup & Replication (Veeam)
• Managed Services practice– Cloud DR, Servers, managed IT support
• IT Staffing division• More information at www.3coast-solutions.com• Follow us on Twitter - @3coast
About Birst
• Pioneers of Cloud / browser-based Business Analytics and Data Discovery
• Ability to integrate any data source in Cloud or on-premise
• Delivers self-service business intelligence, data discovery, dashboards, and reporting
• Leverages existing investments in BI, and can provide an end-to-end BI solution
• Only BI solution today certified on SAP HANA• More information at www.birst.com
“The more things change, the more they stay the same.”
• Oil Prices– Oct 14 … Brent crude fell 16% in Q3 to $88 per
barrel, down from $112.40 at end of June• Capital investment• Production and development• Maintenance• Consolidation Cycle
• Big business impacts– BP loses about $275 million in annual pretax
operating profit when Brent’s price drops $1. Source: WSJ
Current State of Business Analytics
• Big Data• Data Proliferation• Analytics is a top business priority
– “70% of buyers evaluating BI are seeking dashboard and visualization solutions to improve organization reporting capabilities”
• Business leaders are demanding better analytics– “46% express interest in solutions to delivery KPIs”
• Enterprise Business Intelligence adoption remains low• Information-driven decision-making remains an elusive
goal
Source: Software Advice Study 2014
Where are you?
• Is your business …– Analytically Challenged– Analytical Practitioners– Analytic Innovators
• Ask yourself …– Does my organization view data as a core asset?– Is my organization open to new ideas that challenge current
practice?– Is senior management focusing on making the organization more
data-driven?– Is my organization using analytical insights to guide strategy?– Are we willing to let analytics help change the way we do
business? Source: MIT Management Review
You are Not Alone
“Nearly 9 in 10 companies believe that it is important for their organizations to step up their use of analytics to make better decisions. Many are feeling the heat
from senior management to become more data-driven and analytical. In many organizations, analytics is a top-
down mandate from senior management.”
Source: SAS & MIT Management Review
New Understandings
• Data-Driven Culture– “Culture, as measured by behaviors, values, and decision-
making norms in an organization ... Plays a dominant role in enabling organizations to achieve a competitive advantage with analytics.”*
• Enterprise Approach• Increased Accessibility / Availability
– Democratization of BI• Self-Service• Shorter lead-times• Forward-looking / Predictive Analytics
*Source: MIT Management Review
Data-Driven Culture
• Microsoft’s CEO Nadella stressed the importance of a data culture — “one that encourages curiosity, action and experimentation for everyone and every organization.”– Source: Microsoft News
• “Some organizations have achieved an analytic culture that reaches across their various business lines, but for many, it’s a challenge. Leadership means not just the CIO but also the CEO, the lines of business, the COO, and the VP of marketing. Culture and leadership are closely related, and it’s hard to separate one from the other.”– Source: TDWI & Cindy Howson, BI Analyst
Changing Behaviors
• “Companies with mediocre to moderate outcomes use big data and analytics for decision support; successful ROA—Return on Analytics—firms use them to effect and support behavior change. Better data-driven analyses aren’t simply ‘plugged-in’ to existing processes and reviews, they’re used to invent and encourage different kinds of conversations and interactions.”
• “We don’t do the analytics or business intelligence stuff until management identifies the behaviors we want to change or influence,” says one financial services CIO. “Improving compliance and financial reporting is the low-hanging fruit. But that just means we’re using analytics to do what we are already doing better.”
Source: HBR – “Why Your Analytics are Failing You”
The Data Dividend
“Organizations could realize a ‘data dividend’ of roughly $1.6 trillion in additional revenue, lower costs, and improved productivity over the next four years by putting in place a holistic approach to data that spans datasets, analytics and more … a 60% additional return on their data assets.”
“Customers who take a comprehensive approach to their data projects realize a higher data dividend than customers who take a point-by-point approach.”
– Source: IDC
• That’s real money.
Today’s Business Analytics Priorities
• Building a data culture• Building solutions that support changing
behaviors• Baking analytics into business processes and
outcomes• Predictive Analytics
Build an Analytics Capability
Business Analytics has Evolved
• “Traditional BI” does not meet current needs– Architecture constraints– Built for data scientists, not end-users– Long lead-times– Requires specialized, expensive skills
• E.g., DSS Modeling, tool experts
– Struggles to meet all decision support needs• “87% of BI purchasers already have some type of software
system that is not currently meeting their needs.”*
– Negative user experiences– The result: High TCO and Low ROA
*Source: Software Advice Study 2014
Critical Success Factors - Today
• Requires a different project approach– Not like installing an ERP or CRM
“Almost half (46%) of UK organisations (sic) are struggling to extract value from information due to current approaches to IT. 91% of CIOs believed IT could be doing more to support business leaders in their goal of leveraging data to fuel growth.”
– Source: Information Index Study by Vanson Bourne
Critical Success Factors - Today
• Enterprise Approach– “95% of buyers seeking BI solutions preferring an
integrated suite rather than best of breed or multiple best of breed.”
Source: Software Advice Study
– Single source of truth, but with LOB flexibility• Increased focus on Data Discovery• Leverages existing investments• Agile project approach = Shorter Lead Times• Engaging & enabling users
BI Democratization
“Analytics used to be a sole bastion of data scientists, but modern analytics solutions have empowered every employee, since any one of them can be provided with easy access to the BI and interactive data visualizations solutions required to make more informed business decisions quicker. These solutions … make the overall benefits they deliver more accessible to a bigger pool of people.”
– Source: Leon Wright, Microsoft Business Group Leader
What else to look for …• Automated Star Schema Deployment• Connector architectures
– SAP, Salesforce.com, DBMS, XBRL, etc.• Open back-end architecture
– Allows you to run on the DBMS of your choice– SAP Hana, Redshift, etc.
• Leverages the cloud– Cloud hosted scalability– Lower support costs– Broader analytics reach
Software Advice Study: 51% of BI buyers preferred a web-based model.
Gartner: 1 year ago, 33% interest in cloud BI, near 50% this year.
What does this mean for O&G?
• What would it take for an O&G company to be a “data-driven” business?
• What behavioral changes would an O&G company want to see?
• How would an O&G business benefit from arming every employee with better data about their areas / functions?
• What barriers would have to be broken in order to make that happen?
Oil & Gas Production Case Study
• Jason Kuhn – Consulting CIO, Business Analyst• Price Hatfield – Senior Analytics Specialist
Birst & SAP Hana
• Jeff Feinsmith – Director of Product Architecture
Thank You!
• Visit us at:– www.3coast-solutions.com– www.birst.com
• Need info?– Email us at [email protected]– 281.488.7961