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Founding Sponsors
This Presentation Courtesy of the
International SOA Symposium
October 7-8, 2008 Amsterdam Arena
www.soasymposium.com
info@soasymposium.com
Gold Sponsors
Platinum Sponsors
Silver Sponsors
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Linking SOA and Process Standardisation at Shell
Doug Groves – VP Finance Process Integration

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Theory
Should SOA fall short of expectations, it
will be for the same reasons ERP and
CRM have fallen short of expectations.
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Theory
Should SOA fall short of expectations, it will be
for the same reasons ERP and CRM have fallen
short of expectations:
Insufficient Enterprise and Process
Maturity

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Royal Dutch Shell PLC
• GLOBAL ENERGY COMPANY
– World’s 2nd largest private energy & petrochemicals
company by market cap
– Operating in more than 110 countries
– Serving millions of retail customers every day
– 104,000 staff
– A leader in clean natural gas and technology
– Leading on alternative energies
• 2007 HIGHLIGHTS
– Income ~ $31 billion
– Revenue ~ $356 billion
– Net capital spending ~ $24 billion
– Production ~ 3.3 mln barrels of oil equivalent per day

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Overview of Shell Finance
• Significant migration of jobs to shared service
locations – from 2,750 today to 5,000 in 2010.
• Process improvement and standardisation activities
in progress in 17 process areas
• Significant rationalisation of IT also in progress
• Over 12,000 staff operating in
over 110 countries
• Six captive shared service
centre sites – Glasgow,
Krakow, Chennai, Kuala
Lumpur, Manila and
Guatemala City
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Requisition
to Pay
Shell Finance Process Hierarchy
Group Finance
A: Management
of Financial
Activities
B:
Manage Equity
and Finance
Manage
Intra-Group
Funding
C:
Record &
Execute
Transactions
Liquidity
& FX Risk
Mgt
Local
Statutory
Reporting
Cash
Management
Manage
Direct
Taxes
Payroll &
Benefits
Manage
Close
Group
Reporting
Manage
Indirect
Taxes
Controls
Assessment
Assurance
Travel &
Entertaining
Expense
Claims
Budgeting,
Planning &
Internal Rep
Offer to
Cash
Manage
Hydrocarbon
Inventory
Capital &
Assets
D:
Manage
Reporting &
Analysis
E:
Specialist/Other
F:
Reserves
Commodity
Trading
Support
Acquisitions
&
Divestments
Parent
Companies
Capital
Manage
supporting
records
IT Controls
End user
computing
Static data
management
Manage
Insurance
Pensions
accounting &
support
Support JVs
& PSCs
Hydrocarbon
Allocation
Reserves
Reporting
Intra Group
Services,
Fees &
Billing
In scope for standard
global process
design
Not in scope for
standard global process
design
KEY

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Linking SOA with Process Standardisation
Deploying services drives process standardisation,
which requires:
– Process governance and leadership
– Process design and integration
– Organisation design
– Skills, tools and methodologies
– Data management
– Change management
Process
SOA
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Evolution of Services in Shell Finance
(simplified model) As-Is Level 1 Level 2 Level 3
Business model
and
organization
Organization and
process specific per
business.
Single organization,
business process
variants.
Single organization,
standardized
process.
Single organization,
standardized
process.
IT model IT support specific
per business.
IT support specific
per business.
IT support specific
per business,
implementations are
alike.
Standard services
run on a shared IT
system.
Example Accounts Payable in
the UK
Finance operations
in 2008
Finance operations
after process
harmonization
Treasury, Group
Reporting,
Business process
IT support
Organization
Target levels and development roadmaps of the business and IT models must be aligned

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Applying SOA Concepts in the Application Architecture
Moving Beyond Traditional ERP
• Core finance processes require loose
coupling to non-financial processes.
• Integrated finance processes are tightly
coupled with other processes.
• Working with SAP to explore new
approaches to decouple logistics from
financials
Finance Applications
Business ERP
Business DW
Business ERP
Business DW
Business ERP
Business DW
Finance Services
Finance Finance Finance
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External ServicesFinance Functions Applications
Business Finance Applications
Finance Operations Applications
Group Reporting
Local Statutory
reporting
Group Planning
Tax Compliance
Group Services
Business Process
Management
JV & PSC
Business
Performance
Analysis
Finance Process
Performance
Analysis
Payment handling
Credit Rating
Finance Master
Data Management
Accounts
Receivable
Accounts PayableManage Close
Dispute
management
Invoicing
Business Finance
Reporting
Audit Defense
Provide Routine MI
Controls,
Assurance &
Assessment
Cash Allocation
Indirect Tax
Calculation
Pension
Decision
Support
Equity and
Financing
Management
Cash Management
Master Data
distribution
Asset Accounting
Financial Reporting
Support
Manage Finance
Data Warehouse
Manage
Hydrocarbon
Inventory
Business
Planning
Manage Insurance
Liquidity &
FX Risk
Management
Tax Provisioning
Financial Market
Rates
Investor Relations
Hydrocarbon
Allocation
Credit
Management
Internal Audit
Budgeting
Project Accounting
Intra Group
Funding
Tax Planning
Forecasting
Direct Tax
Calculation
Performance
Analysis
Document
Management
Travel&
Entertaining
Expenses Claims
Financial Market
Dealing
Transaction
Banking
Cash Management
Capital Planning
Banking
Infrastructure
B2B
Communication
General Ledger
Management
Accounting
Forecasting
KEY
Target Competency
Level of coupling with
Business ERP
Base
Core
Differentiated
Decoupled
Partially
decoupled
Coupled
High Level Services in the Target Finance IT Architecture

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Get the Governance Right
LocalGlobal
StrategicOperational
Process
Executive
Process
Manager
Process
Performer
PP – Operate processes
PE – Define process improvement
strategy; lead improvement
activities; authority for design
and changes
PO – Drive design and
improvement activities; plan
and support implementation;
monitor and assess
performancePM – Manage process operations
in accordance with standards;
drive implementation within
own organisation; support
continuous improvement;
participate on PAC
Process
Owner
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Get the Data Right
 Governance defined
for key processes
 Measuring data
accuracy
 Measuring process
performance
 Initial system
investment
 Undefined governance
 Poor data quality
 Fragmented processes
 Perceived as a systems
problem
 Governance effective
across the business
 Effective continuous
improvement applied
to data accuracy &
process performance.
 Introduced use of
state of the art tools
 Data managed as a
business critical asset
 First quartile process
cost performance and
data quality
 Effective use of state
of the art tools
Operationally
Efficient
BESTPRACTICE
TIME
Commercially
Capable
Fragmented
World Class

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Data Quality - Meeting Defined Standards for Good Business Reasons; Not
About Being Perfect
Data
Quality
Standards
Cost/Benefit
How much is it worth spending on
data?
Relevance
Are we maintaining data we do not
need?
Security/Accessibility
Do we need to restrict access to the
data?
Timeliness
Is the data up to date?
Is it available when required?
Completeness
Do we have all data to the right level
of detail?
Clarity/Uniqueness
Can we clearly select the right data?
Consistency
Is there more than one version of the
data?
Accuracy/Precision
Is the data accurate within tolerance?
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Process and Enterprise Maturity Model
Process Design
Process Metrics
Process
Ownership
Process
Performers
Process
Infrastructure
Enterprise
Leadership
Enterprise
Governance
Enterprise Culture
Enterprise
Expertise
P – Ad-hoc, Designed, Integrated to Extended
E – From Process Tolerant to Process Centric
A way to evaluate the primary elements required to manage and
execute processes
Five
Maturity
Levels

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Enterprise Maturity Extract - Leadership
Requisite Indicators Requisite Indicators
Leadership Awareness The enterprise's senior
executive team recognizes the
need to improve operational
performance but has only a
limited understanding of the
power of business processes.
Operational improvement is a
frequent discussion topic at
executive meetings.
Executives attend seminars or
perform site visits regarding
performance improvement
techniques. Process
terminology is often used but not
always precisely.
At least one senior executive
deeply understands the
business process concept, how
the enterprise can use it to
improve performance, and what
is involved in implementing it.
A member of the seniormost
executive group relates
enterprise performance
problems to specific
fragmentation and design flaws
in particular processes.
Alignment The leadership of the process
program lies in the middle
management ranks.
A mid-level manager has
developed a passion for process
and is lobbying with executives
to adopt the process approach.
A senior executive has taken
leadership of, and responsibility
for, the process program
A senior executive had made a
personal commitment of time
and resources to process
transformation, and is visibly
promoting the process concept.
Behavior A senor executive endorses and
invests in operational improvement.
Budget has been allocated for
process improvement training
and initiatives, and improvement
projects have been mandated.
A senior executive has publicly
set stretch performance goals in
customer terms and is prepared
to commit resources, make
deep changes, and remove
roadblocks in order to achieve
those goals.
Resources (financial and
human) have been assigned to
a process transformation
program in pursuit of explicit
stretch goals; managers who
attempt to impede the program
are appropriately disciplined.
Style The senior executive team has
started shifting from a top-down,
hierarchical style to an open,
collaborative style.
Senior managers actively solicit
ideas from lower levels of the
organization; some diagonal
task forces are in operation and
executives are following some of
their recommendations.
The senior executive team
leading the process program is
passionate about the need to
change and about process as
the key tool for change.
The senior executive leading the
process program spends
significant personal time
communicating and promoting
the program, and weaves
process concepts and goals into
all business discussions.
E-1 E-2
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Process Maturity Model – Process Infrastructure
Information Systems
P1 P2 P3 P4
Fragmented legacy
support the
An IT system
from functional
supports the
An integrated IT
designed with the
mind and adhering
enterprise
the process.
An IT system with
architecture that
industry standards
enterprise
supports the

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PEMM Use in Shell
• Assess maturity before new
deployment and adjust plans
as appropriate
• Define annual maturity
improvement plans by process
and organisation
• Tool for understanding keys to
success
• Annual survey to assess
progress
Methodology
& Tools
Leadership
& Goals
Execution &
Governance
Training &
Communications
Measurement
People
& Culture
Technology
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Questions?

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Process Re-engineering in Practice?
How the Process Owner
explained it
How the Process Designers
understood it
What the consultants
suggested …
How Onshore IT
designed it
How Offshore IT built it
How it was documented What the Deployment Team
did
How it Worked
at Go-live
How IT supports it What the Business really
needed …
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Analysis of “loose” coupling in processes
Process decomposition to identify rough
boundaries
Approach to Define the Business Services
L1
L2
L3
L3
Process centric governance structure
Process driven data ownership
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The Business Services definition is iterative with Application Services definition

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Applying SOA Concepts to Organisation Design
• Financial (sub)-processes are
delivered through global delivery
centres.
• The delivery centres expose a
limited number of services to other
departments. These are stable for
a longer period of time.
• Business process improvement is
focused in the delivery centres
(tactical cycle) and across the
delivery centres and organization
(strategic cycle).
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Shell Enterprise Process Model