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Value Map for Oil & Gas

Challenges and Opportunities Approach


Pipeline Integrity Management & Analytics Sales & Account Management Oil Field Service
Purpose:
Drive Shareholder Key Strategic
Value Enablers Strategy Implementation Bring together a business case of the value that Hitachi Solutions could create at the company based

Capabilities KPis Benefits References Capabilities KPis Benefits References Capabilities KPis Benefits References on information obtained from the company

- Better cost control and capital planning


Business Priorities Asset life cycle
management
- Monitoring capital projects including costs, timelines and
overall asset lifecycles - Drilling rig utilization percentage - 12% lower transportation spend
- Sales and operations planning - Average # of accounts per account - Increased ability to cross sell and
- Data collection and validation
- Data surveillance and notication - % of oil & gas waste recycled - Integrate and validate real-time Prepare Blueprint build implement stabilize
- Measure asset performance - Transportation requirements - Steam-oil ratio (%of revenue) when transportation - Mean duration to fulll service data for real gains
planning is aligned with supply - Inventory and service-level manager up sell to the existing customer - Data governance - Real-time visibility and faster re
1. Improve Protability management - Water-oil ratio base - Resource Scheduling Crew and order
- Identify the pain points - Find solution enablers to - Present intermediate
chain network planning optimization - Average # of contacts per account sponse rates - Identify business - Document all results in
- Manage dangerous goods, emissions and compliance - Freight planning and optimization - Average drilling well costs - Improved organizational Equipment Scheduling - Facility maintenance response time resolve identied pain
- Streamline high-volume transpor - Customer contract management - Product knowledge - Optimize data visibility and - Conrm scope, ensure the process/system results to the company the chosen format
2. Reduce Operational EHS and Risk - Manage incidents and resulting corrective action - Freight Tendering - Condensate/gas ratio eciencies due to streamlined - Daily tour sheet single point of - Speed to velocity of cash ow points
tation requirements management - Account management - Sell-through % integrity business and project integration gaps and, in executive managers - Submit and present
Management - Inventory and share lessons learned - Carrier booking - Gas-oil ratio - Consistency of process, (missing bill
Risk Reduce cost and improve customer - Contact management % of repeat business business processes entry - Better Metrics Problem data teams are aligned, and conjunction with business - Rene expected benets - Explain major results
- Freight order forwarding and - Abandonment costs of well or - Improving performance and prot - Multi-resource tracking, availability ing, completeness of information) - Cost estimation
service turnover/revenue capture at the point of service fed creating strategies and domain experts from the assumptions and gather
settlement production facility ability across the enterprise scheduling - % of purchases made/decisions - Summarize results in a
3. Regulatory and - Automated Freight tendering im - % of satised customers back to manufacturing plans for organizing the customer organization feedback
- Managing the production forecast - Total transport cost as % of - Optimizing inventory and service - HTML5 online/oine mobile deferred detailed value proposition
environmental proves operational performance - Cycle time for expense - Inventory Accuracy Inconsistent project team to meet - Interview the company - Re-work the value
Upstream - Improve transportation, procurement, inventory delivered sales levels to free working capital and supported platforms - Deliver working solutions
- Integrating carrier booking and reimbursement ordering systems across regions objectives executive managers and proposition
Compliance Operations and warehouse management - Freight cost per unit shipped minimize lost sales - Work order management to the business users, and
communication - Actual vs budgeted costs - Station Inspection Performance - Evaluate benet levers & process owners
- Commodity management - Transit time
- Integrated freight and forwarding - Better execution of overall - Mobile technician management Capturing meter readings like benet range - Rene and verify project prepare environments
4. Improve margins - On time delivery and pick up (Load, customer relationship and people for the nal
with uctuating
People and Talent
- Attract and retain the top talent in the industry
- Manage performance and compensation
Applications stop and shipment)
- Outbound transportation
settlement
Applications - management through access to
accurate and complete customer
compressor hours and triggering
preventative maintenance
- Summarize results scope
- Validate pain points project phase,
commodity pricing implementation
management - Career development and retention strategies costs/kilogram
- % of shipment visibility/traceability
information Applications - Billing Eciency Better accuracy
from the Field Automated
identied previously
- Request detailed process
5. Ecient processes capturing all changes cost information
- SAP Analytics - SAP Sales and Operations Planning
management of - SAP Enterprise Inventory and - Single point of entry from the
- Strategic sourcing and supplier management - SAP Mobile Solutions
large capital projects Service-Level Optimization - Mobile Solutions eld oine/online
Supply Chain - Procurement processes and practices - Microsoft Business Analytics
- Attract and retain the top talent in the industry - SAP HANA - FSA - Business productivity through
management - SAP BOBJ - Microsoft Dynamics AX better resource utilization
- Manage performance and compensation - Mobile Solutions
- Career development and retention strategies - Analytics Solutions

Strategy Hitachi Solutions for Oil & Gas at Glance


Revenue Accounting (Joint Venture) Total Value Potential Environmental Health & Safety
Key enablers Key Areas of Reporting
Integrated Field Service Stakeholder Relationship Management

Opportunity Pain Points Resolved Capabilities KPis Benefits References Financial Reporting for Regulatory Purposes Corporate Intranets for Self-Service

Capabilities KPis Benefits References Exploration & Transportation Refining Distribution Retail Supply Chain Management Dashboard and Business Intelligence

1. Exploration and Improve Supply Chain


- Poor supplier performance
- Fragmented approach to strategic sourcing
- Comply with local and global
production Process - Chemical Compliance
- Product and REACH Compliance
- Number of repeat ndings in self- - Help ensure marketability and
avoid supply chain disruption
- Inecient demand and supply planning - Collaboration of documents - Average time to respond to assessments, audits, and
production management regulations - Dangerous Good Management - Safeguard product marketability
- Excessive stock levels between two dierent companies business partner requests inspections
improvements - Contract Management (DOI) - Average revenue per business - Support multiple locations, Land Management Retail Back Oce - Safety Data Sheet Management - % of waste cycled and protect revenue streams
- Partner Management partner/sales channel currency and languages Production Management & Scheduling Point of Sale - Global Label Management - Reportable accidents (including - Safe, compliant transportation of
- Maintenance reactive and corrective
2. Asset optimization - Cost registration - Frequency of business partner sales - Exchange rate adjustments Oil Field Maintenance Store Operations - Recycling Administration fatalities) per hours worked dangerous goods
Improve Asset - Inecient use of technical and eld resources
- Cost distribution (joint venture update - Document Management - Average overtime hours per person - Secure product marketability with
Eciency - Complex processes for managing assets
- Management of Change (MOC) automated compliance
3. Manage enterprise - Cost management discipline splits) - Number of concept programs, - Lost time due to accidents (including
- Joint venture billing (partner billing) alliances fatalities) per hours worked - Global compliant labels protect
and corporate revenue and brand value
- Poor scheduling of resources and delivery o materials - Cost reversal - % of sales revenue via partner - % of employees wearing prescribed
performance - Authorization for expenditure (AFE) channel Maintenance PPE - Integrate recycling with the core
Improve Oil Field - Inability to capture eld data and integrated with ERPs
- Health and safety prevention costs processes of the business
Operations - Fragmented planning across the functions of the enterprise Contracts Commodity Management
4. Talent and People per FTE
management Sales & Account Management
- Ineective capital planning and performance analysis Applications Supply Chain
Capital Spend
Eectiveness
- Diculty managing capital project portfolios
- Measuring capital eectiveness
Environmental Health & Safety Applications
- JV Solution
- Microsoft Oce 365 - Microsoft SharePoint
- Linking organizational goals to departmental metrics
Corporate performance - Inaccurate and inecient budgeting and planning process
- Microsoft SharePoint Finance Revenue & Joint Venture Accounting
Production Contracts Sales & Retail Back Point of
management - Managing and measuring enterprise performance Human Resources Land
Management Management &
Oil Field
Maintenance Commodity Account
Supply
EH&S Store
Maintenance Chain Oce Sale Operations
Performance Management Scheduling Management Management

Do You Know?
How does your company compare against average and
best in class Oil & Gas companies? Deliverable
Performance Management Store Operations Employee Portal
60%
1. Situation 2. Value 3. Economics 4. Implementation
Hundreds

50%
Capabilities KPis Benefits References Capabilities KPis Benefits References Capabilities KPis Benefits References
- Business Strategy, - Mapping of - Costs of - High-level project
- Electronic handover of engineering - Pricebook - Improved reliability - Document Management - Workplace eciency and time savings
- Asset Information Management - Actual vs. Budgeted costs
data and OEM collaboration - Central Order Processing (COPS)
- Inventory turns
- Improved/streamlined processes for cat - Management of Change (MOC)
- Time-to-market of changes to
- Increase in communication and visibility recent performance companys business implementation plan for the
- Enterprise project connection - Forecast accuracy of budget - Sell-through % existing products/services
40% - Asset portfolio management - Deviation of planned budget - Providing the right information at - Product Change Request (PCR) - Average sales per customer or
egory managers and category specialists
- Centralized place for Enterprise - Average number of training hours
with decrease in duplication of documents
strategies to Hitachi implementation
- Improved/more exible store hierarchy due to management of MOC process from
the right time and place - Radiant Select controlled documents
- Capital projects management
- Resource management
- % of repeat
businessturnover/revenue - Optimizing enterprise asset - Associate Reporting (RDS/iRDB)
transaction
- Gross Margin as a % of selling price
management
- Improved pricing capabilities/removed - Search function
per employee
- Data accuracy
one central location
- Solution can be used as a template for - Competitive opportunity areas - ROI calculation
30% - Delay in production of nancial portfolio decisions and processes - New Infrastructure - Sales per selling hour price zone restrictions
- Improved/new promotional capabilities
- Human Resources Portal - Average frequency of updates of other business units
- Adoption of a single location for the man
environment - Value realization plan
Best-in-class reports - Optimizing capital project - Merchandising - Average number of employees per - Training & Education documents
- Cycle time to perform periodic close protability - Category Management store
post go-live
- Improved reporting and analytics for
- Compliance & regulatory aairs - % of documents not stored in
agement of all Quality Management and
Health Safety and Environment (HSE)
- Cash-ow model and key success
All Others % of nancial reports issued on time - Eective resource management to - Markdown goods % Associates document management system controlled documents - Performance relative factors
help ensure successful projects - Store conversion rate - Improved capability to support Dealer and - % of time sheets in need of - Single process for all document revisions
20% Membership card, and future rollout
correction/validation - Collaboration tools provide visibility to all to peer group
- Dramatic cost savings to attain better in stakeholders regarding revisions requests
sight into their data to identify potential and status
issues earlier - Aggregation of all stakeholders to a single

10% Applications - Improved visibility into store metrics by


senior management which allows for
team site for the initiation and facilitation
of document change requests

- SAP HANA
Applications ecient stang consistency, superior
customer service and better
management/evaluation of individual
Applications - Increased engagement for end users on
the intranet
- More opportunity for integration with
stores other business systems such as SAP and
0% - Cloud Solutions
Microsoft Oce
Improve forecasting of Increase availability of Invest in mobile tools to Develop real-time Implement
- Analytics Solutions - Microsoft Dynamics AX - Microsoft SharePoint
and planning for future services knowledge in provide technicians with visibility into eld assets predictive/prescriptive - More capable disaster recovery model
service demand order to diagnose and better access to (i.e., people, parts, analystics to enable - Mobile Solutions - Microsoft BizTalk Server using a site recovery manager
resolve service issues information in the eld vehicles) proactive service vs.
- Microsoft Business Intelligence - Windows Internet Explorer - Improved backup/restore processes and
more quickly reactive break/x service
- SAP BPC procedures