HOW TO IMPLEMENT

PPDM?
BUILD, BUY OR BOTH?

Tarun Chandrasekhar,
Product Manager, Neuralog Inc.
WHAT IS THE BIGGEST IMPEDIMENT?

Getting
i Started!

Neuralog Inc. 2010

 WHAT DO YOU NEED?

ƒ (Global) Information Vision

ƒ Clear statement of how enhanced information base will
help the business achieve its strategic objectives
ƒ State in business terms with a clear link to the competitive
positioning in the business
ƒ Define / explore the pay off
ƒ Developing a Methodology
ƒ Review existing data flow
ƒ Understanding changes to data and workflow – needed
and desired
ƒ Separate the low hanging fruit from the long term rewards –
you will need both!
ƒ Come up with a Data Governance Proposal / Methodology

Neuralog Inc. 2010

 WHAT DO YOU NEED?

ƒ Build/Choose/Buy
ƒ Data Model – PPDM ;
ƒ Data Loading Tools
ƒ Data Validation (QC/QI)
ƒ Data Browsing / Viewing / Searching Framework

ƒ Data Presentation layer – GIS ;

ƒ Data Integration and Delivery– Middleware, SOAP…..

Neuralog Inc. 2010

 ROAD BEFORE YOU BEGIN
FORK IN THE ROAD,

• BUILD
• Do you build from scratch so have 100% compatibility with
what you need?
• Do you then continue to maintain said systems in-house?
in house?

Or
• BUY
• Are their solutions out there?
• Doo you buy an
a out-of-the-box
ou o e bo 80% PPDM solution
so u o and
a d then
e
spend your money customizing it?
• Do you then continue to maintain the customizations in-
house?

Neuralog Inc. 2010

 COMPANY X

• 5TB of well data including header, tops, deviation,

tests, production, logs, well reports, maps, cross
sections

• Moving from Project

Project-based
based Data (Mis)Management
to Master Data Management

• Should
Sh ld th
they Build
B ild or Should
Sh ld they
th Buy?
B ?

Neuralog Inc. 2010

 BUILD: DB CONSIDERATIONS

• Choose Database technology (Oracle/SQL

Server/PostGres SQL…..)
• Choose PPDM Version (3.7/3.8)
ƒ Implement Schema
ƒ Tables and columns with comments
ƒ Primary and Foreign Keys
ƒ Constraints
ƒ Indexes
ƒ Units of Measure constraints
• Add missing components
• Audit
A dit triggers
• Cascade deletes
• Views and queries
• Security - users, roles

Neuralog Inc. 2010

 BUILD: DATA LOADING TOOLS

• Understand Load of the Rings!

• Build Well Data Loading tools
• IHS Data loader
• ASCII importer
• Build Production Data Loading
• SQL connection to internal production database
• Well
W ll LLog lloading
di
• Build file based Digital log loading tools (LAS, LIS, DLIS)
• Build Depth Registered Raster Loading tools (TGS smart rasters,
MJ Petra LIC and Geographix DRA – some)
MJ,
• Link to Well Files on disk
• Well Reports

Neuralog Inc. 2010

 BUILD: DATA BROWSING AND
PRESENTATION
• User Interface to view and query data
• Easy to use interface
• Simple and advanced queries
• Spatial Presentation
• Spatialize PPDM
• Display data on map
• Spatial queries
• Integrated cross-domain searches on map

Neuralog Inc. 2010

 BUILD: DATA DELIVERY

• Simple data export

• Simple file extract
• ETL tools for delivering data to project data stores
• Petra
• OpenWorks
• Kingdom
Ki d

Neuralog Inc. 2010

 WHAT CAN YOU BUY?
Components Available to Purchase through
multiple vendors
PPDM Database (with audit triggers, cascade deletes,
views, queries, security, reference value management) Out of the box

Well data loading tools Out of the box

Production loading tools Out of the box
Digital log data loading tools Out of the box
Depth registered raster logs loading tools
Out of the box

Unstructured logs and documents loading tools

Out of the box

Data Browsers Out of the box

GIS Integration tools Out of the box
Middleware,
iddl Data
t Delivery
li ttools
l Out off the box
Connections to Daily Production Out of the box
QC/QI/Validation tools Require on-site
configuration\customization
Connections to non-E&P
non E&P Document Management Require on-site
on site
configuration\customization
Integration with in-house Intranet, Web Portals Require on-site
configuration\customization
Neuralog Inc. 2010
LET’S
LET S DO THE NUMBERS: BUILD
Components Development Cost (one Support Cost (annual)
time)
PPDM Database (with audit triggers,
cascade deletes, views, queries,
To be filled interactively
security, reference value
management)
Well data loading tools
Production loading tools
Digital log data loading tools
Depth registered raster logs loading
tools
Unstructured logs and documents
loading tools
QC/QI/Validation tools
Data Browsers
GIS Integration tools
Middleware, Data Delivery tools
Connections to Daily Production
Connections to non-E&P Document
Management
Integration with in-house Intranet, Neuralog Inc. 2010
Web Portals
SURVEY SAYS: BUILD COSTS ARE

Components Development Cost Support Cost

PPDM Database (with audit triggers,

cascade deletes, views, queries, security) $ 62,500.00 $ 31,250.00
Well data loading tools $ 250,000.00 $ 125,000.00
P d ti
Production loading
l di ttools
l $ 250
250,000.00
000 00 $ 125
125,000.00
000 00
Digital log data loading tools $ 250,000.00 $ 125,000.00
Depth registered raster logs loading tools $ 250,000.00 $ 125,000.00
Unstructured logs and documents loading
tools $ 250
250,000.00
000 00 $ 125
125,000.00
000 00
QC/QI/Validation tools $ 375,000.00 $ 250,000.00
Data Browsers $ 500,000.00 $ 125,000.00
GIS Integration tools $ 250
250,000.00
000 00 $ 125
125,000.00
000 00
Middleware, Data Delivery tools $ 750,000.00 $ 250,000.00
Connections to Daily Production $ 62,500.00 $ 62,500.00
Connections to non-E&P Document
Management $ 125,000.00 $ 125,000.00
Integration with in-house Intranet, Web
Portals $ 125,000.00 $ 125,000.00
Total $ 3,500,000.00 $1,718,750.00
Neuralog Inc. 2010
 BUY NUMBERS FOR COMPANY X

Available to Purchase
Components
C t Cost
C t Support
S t
through multiple vendors

PPDM Database (with audit triggers, cascade

deletes, views, queries, security, reference value Out of the box
management)
Well data loading tools Out of the box
Production loading tools Out of the box
Digital log data loading tools Out of the box
Depth registered raster logs loading tools Out of the box $ 850,000.00 $ 170,000.00

Unstructured logs and documents loading tools Out of the box

Data Browsers Out of the box

GIS Integration tools Out of the box
Middleware, Data Delivery tools Out of the box
Connections to Daily Production Out of the box
Require on-site
QC/QI/V lid ti
QC/QI/Validation ttools
l configuration\customizat
fi ti \ t i t
ion
Require on-site
Connections to non-E&P Document
configuration\customizat $ 480,500.00 $ 96,100.00
Management
ion
Require on-site
Integration with in-house
in house Intranet
Intranet, Web Portals configuration\customizat
ion

Neuralog Inc. 2010

 BENEFITS OF MASTER DM
p
Time Spent g
Data Gathering Time Spent in Data Quality Control
120 60
Man Months

Effort in Man Months
100 50
80 40
60 Project-based 30 Project‐based Data 
Effort in M

40 D t Gathering
Data G th i 20
QC

20 NeuraDB based 10 NeuraDB based Data 

Data Gathering QC
0 0
Yr-1 Yr-2 Yr-3 Yr-4 Yr-5 Yr‐1  Yr‐2  Yr‐3  Yr‐4  Yr‐5 

Implementation Year Implementation Year

Implementation Year

Time Spent in Data Loading Time Spent in Quality Improvement
80
80
nths
70
EEffort in Man Montths

70
Effort in Man Mon 60
60
50
50
40 Project‐based  
40 Project‐based  Data 
30 Quality Improvement
30 Loading
20 NeuraDB based 
20 NeuraDB based Data  10 Quality Improvement
10 Loading 0
0
Yr‐1  Yr‐2  Yr‐3  Yr‐4  Yr‐5 
Yr‐1  Yr‐2  Yr‐3  Yr‐4  Yr‐5 
Implementation Year
Implementation Year
Neuralog Inc. 2010
 BENEFITS OF MASTER DM

Time Spent in Data Access and 
Time Spent in Data Access and Time Spent in Data Analysis and 
Time Spent in Data Analysis and
Delivery Presentation
60 80
Effort in Man Months

Effort in Man Months
50
60
40 Project‐based  
30 Project‐based  Data  40 Analysis and 
20 Acess Presentation
20
10 NeuraDB based Data  NeuraDB based 
0 Access and Delivery 0 Analysis and 
Yr‐1  Yr‐2  Yr‐3  Yr‐4  Yr‐5  Yr‐1  Yr‐2  Yr‐3  Yr‐4  Yr‐5  Presentation

Implementation Year Implementation Year

Neuralog Inc. 2010

 ROI WHEN BUILDING FROM SCRATCH

Annual $ Savings on annual operating Annual Investment when implementing

costs when using PPDM over Project- PPDM (HW/SW/customization/ NPV of Total NPV of Total
Year based Data Management maintenance/administration costs) Savings @6% Cashflow @6% ROI
1 $ (62,500.00) $ 3,500,000.00 ($58,962.26) $3,301,886.79 -2%
2 $ 755,000.00 $ 1,718,750.00 $612,985.05 $4,831,568.17 13%
3 $ 755,000.00 $ 1,718,750.00 $1,246,897.61 $6,274,663.82 20%
4 $ 755,000.00 $ 1,718,750.00 $1,844,928.32 $7,636,074.80 24%
5 $ 755,000.00 $ 1,718,750.00 $ 2,409,108.24 $ 8,920,424.78 27%

Change in ROI
40%
35%
ent

30% 27%
Retturn on Investme

25%
20%
15%
10%
5%
0%
-5% 1 2 3 4 5 6 7 8 9 10
Year
Neuralog Inc. 2010
 ROI WITH BUY AND CUSTOMIZE

Annual Investment when

Annual $ Savings on annual
implementing PPDM
operating costs when using NPV of Total Cash
Year (HW/SW/customization/ NPV of Total Savings @6% ROI
NeuraDB over Project-based flow @6%
maintenance/administration
Data Management
costs)

1 $ (62,500.00) $ 1,330,500.00 ($58,962.26) $1,255,188.68 -5%

2 $ 755,000.00 $ 169,490.00 $612,985.05 $1,406,034.18 44%
3 $ 755,000.00 $ 169,490.00 $1,246,897.61 $1,548,341.25 81%
4 $ 755,000.00 $ 169,490.00 $1,844,928.32 $1,682,593.20 110%

5 $ 755,000.00
755 000 00 $ 169,490.00
169 490 00 $2 409 108 24
$2,409,108.24 $1 809 245 99
$1,809,245.99 133%

ROI over time

250%

200%
Returrn on Investmentt

133%
150%

100%

50%

0%
1 2 3 4 5 6 7 8 9 10
-50%
Year
Neuralog Inc. 2010
ROI DIFFERENCE IN BUILD VS. BUY FOR
COMPANY X
ROI when Building PPDM from
Scratch
40%
Return on Investment

27%
30%
20%
10%
0%
-10% 1 2 3 4 5 6 7 8 9 10
Year

ROI when Buying PPDM based products

250%

200%
Returrn on Investmentt

133%
150%

100%

50%

0%
1 2 3 4 5 6 7 8 9 10
-50% Neuralog Inc. 2010
Year
 CONCLUSIONS?

• Implementing a master data management system

is better than not doing so (duh!)

• ROI can range from 25-130% depending on what

you build and what you buy

Neuralog Inc. 2010

THANK YOU!

For more information, contact

tarun@neuralog.com

Neuralog Inc. 2010