Challenges BP Faces Today - How Technology can help
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Challenges facing British Petroleum (BP) today and how technology can help address these challenges
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Challenges BP Faces Today - How Technology can help
- 1. Future Challenges Facing BP How technology can help. Vijay P Rao 15 June, 2007
- 3. BP’s Business Characteristics Capital Intensive Business Cyclical Business Maturing Reserves Drive to maximize Asset Efficiency Volatile Prices Inelastic Demand Streamline Processes Build Scalable Systems
- 4. BP’s Growth Trajectory Source : Trajectories of Industry Change, Anita M. McGahan, Harvard Business Review, 2004 BP would fall into this quadrant. Core Assets constantly undergo redefinition
- 11. End to End Integration Sewing up islands of automation across the value-chain Supplier Systems Ex : SAP, Proprietory Software Internal Departmental Systems Ex : Mainframe, Legacy Systems, Oracle, MS Access, CRM, ERP Customer Systems Ex : EDI, Proprietary Software S1 S2 Sn C1 C2 Cn ID1 ID2 IDn
- 12. End to End Integration Sewing up islands of automation across the value-chain Global Integration Factory EAI Tools Enabled : SeeBeyond ICAN , Tibco S1 S2 Sn C1 C2 Cn ID1 ID2 IDn Data Adapters Data Adapters Data Adapters Network Security Protocol (SSL 3.0 and TLS 1.0 ) Global Database Top Management Reports Value Chain Optimization Global Data Integrity Global Coordination Disaster Recovery Global Database BPM Admin HR Operation Finance
- 19. Questions ?
- 20. Appendix
- 25. Technology Assisted Sectors in an Energy Firm Operator ERP Production Strategic Decisions
Notas del editor
- THE TRADITIONAL IT MODEL The growth over the past few decades in technologies such as 3D and 4D seismic imaging technology, horizontal drilling, and deepwater production proves that companies in the capital-intensive energy industry will spare no expense investing in tools that will find and extract hydrocarbons more quickly and efficiently. But this willingness to invest in exploration and production technology traditionally has not extended to back-office IT. Oil and gas companies tend to view capital expenditures as a zero-sum game: any money spent on IT is money that isn't spent on getting resources out of the ground. "Now is the time for energy companies to consider investing in an area that may have been overlooked for some time: their IT environments." This aversion to investment in non-core technology is compounded by the cyclical nature of the business. During lean times, when cash is scarce, IT expenditures move even further down the list of priorities. Conversely, when commodity prices are high, the thirst for one more drop of oil can become unquenchable. Thus IT is frequently considered a 'necessary evil' rather than a powerful tool that can turn information into knowledge, knowledge that can help companies mitigate risk while being more efficient and effective in their operations.