Measurable value from adopting the OSDU® data platform

In this article we share the value patterns we're observing across OSDU® DP adopters, the roles in expressing & capturing value, and sample use cases with value statements.

Like a diamond, Value has many facets 

The Open Subsurface Data Universe Data Platform (OSDU® DP) enables digital transformation on a massive scale and as such impacts many processes, technologies and roles. This means there's a lot of value to be capture but it can also make it hard to know where to start.

Given the time, cost and risk associated with business, digital or data transformation it's important to have a rock solid understanding of exactly what will be better, when benefits will be realized and how to know you're achieving the expected return on investment (ROI.)

Across organizations we're seeing two primary approaches to value, with both present at larger operators or operators further along in their understanding of the OSDU® DP.

• The first is IT simplification and retiring of technical debt. This approach focuses mainly on consolidating many existing data sources, replacing point-to-point connections with OSDU® DP APIs and parallel data quality initiatives. It is attractive because results are easier to measure and don't rely on substantial changes in existing business workflows.
• The second is providing new business capabilities and enhancing petro-technical workflows. This approach focuses on enhancing existing workflows with additional data, analysis capabilities or eliminating non-value add tasks. It is attractive because the anticipated value is significantly higher than IT simplification. However, the overall complexity and number of stakeholders involved is also higher. Access to richer integrated data should produce better analysis and ultimately better decisions on where, when and how to explore and produce.

Use cases MUST capture measurable value

Regardless of the path to value you explore first, there is common information you'll need to effectively define and value the effort. This is accomplished through use cases.

Use cases can contain all types of information organized in different ways. At minimum consider these four dimensions to give you reasonable segmentation and keep it simple. These dimensions will be used directly in the creation of the use cases and ultimately to prioritize the Roadmap and inform the workstream definitions.

• Business function - Describe what will be improved. Improvements come in all types - richer higher quality data for analysis, AI/ML based insights to assist experts in decision making, standardized application integration using APIs.
• Impacted Role - Focus on the individual(s) and organization who will actually recognize the benefits. This ensures users are involved in process re-engineering and make value realization easier to confirm. Sample roles that provide the use cases are provided in the following section.
• Value - Describe the value of the change as specifically as you can. This is the most important part of the use case but it may be the hardest as well so don't get frustrated. It's helpful to think about big buckets such as value creation (or new value), cost reduction, cost avoidance and intangible benefits. It takes effort to convert what is easily understood as "higher data quality" into something specific. We often start with known problems then work backwards to figure out the value of resolving. You can also start with key business metrics, which often have implied if not explicit value tied to improvement.
• Data - Data should be first described in terms of inputs and outputs to the Business Function. Then the specific level of quality needed for the given use case. As of October 2023, currently supported OSDU® DP data domains are seismic, wellbore, reservoir and rock & fluid samples.

After the portfolio of use cases are defined you'll be able to create a value tree exposing all the types of value. Assigning a dollar value to each use case comes later during the financial analysis.

What is a value tree and why should I create one?

A Value Tree helps us organize & present the benefit sources in an easy to consume visual format and also assists in identifying the metrics and key performance indicators (KPIs) to drive the financial portion of the business case. Once the value tree is agreed upon, the project team remains focused on end-results by referring to the tree.

A value tree is comprised of 3 basic layers - (value) Categories, Benefit Drivers and Improved Metrics

• Value categories - A few broad categories of value to ensure consistency across use cases and projects.  Some common categories are value creation (or new value), cost reduction, cost avoidance and intangible benefits.
• Benefit drivers - Describes what will be A. enabled, improved or B avoided, eliminated in the future state. Enabled / improved examples include seismic data processing, well placement, more effective completion design. Avoided / eliminated examples include unplanned drilling events and trusted sources
• Improved Metrics - Describe how the improvement will be measured. 

Enabled / improved

- Seismic data processing = total elapsed time to process seismic job, seismic jobs processed per period

- well placement = fewer wells drilled,

- more effective completion design =  increased EUR.

Avoided / eliminated

- unplanned drilling events = reduced non-productive time (NPT),

- Trusted data sources = fewer workover jobs need validation.

Below is a sample value tree. Later we will create a specific value tree using one of our example use cases.

Who creates the business case?

With a general understanding of what needs to captured lets consider the process and participants. 

The process for defining value is highly iterative. Depending on the available solutions significant education may be needed before someone is able to understand what is possible and how to describe the improvement.

(Simplified) Business Case Process

• Definition of overarching challenge or transformation initiative
• Stakeholders describe specific challenge or opportunity and ideal state, aka the use case
• Alternatives with risks and high level implementation approach for each
• Financial analysis of value and costs for each alternative
• Revise preferred implementation approach
• Estimated value and costs for selected path

To describe how the participants interact during the creation of the business case we'll use the RACI (Responsible, Accountable, Consulted, Informed) model. For more on the roles see the series, OSDU® Adoption & Value (link in comments.)

• Accountable - The E&P Executive is Accountable for a thorough and realistic business case needed to support a multi-million dollar transformation. She commissions, reviews and signs-off on the business case.
• Responsible - The Program Manager is Responsible for creating the business case. There is significant effort involved in identifying, interviewing and aligning stakeholders. It is common for a Financial Analyst to support the Program Manger on complex business cases.

• Consulted - The remaining roles are all Consulted during the creation of the business case. They provide the use cases against which value will be realized. When developing the business case, remember that most people have never actually created a business case and may not be used to putting value into words and metrics.

Capturing and categorizing value from stakeholders

Well formed and complete use cases make the job of distilling value from the initiative a lot easier. Let's look at some sample use cases and the one of the resulting value trees. Note that both use cases are "front office" focused vs the needs of IT and Data Managers. This is because most efforts at improving data accessibility and usability tie back to a front office activity.

Recall that at minimum, we must capture the business activity to be improved, impacted role, value and data. When first capturing the use case information allow stakeholders to be as verbose as they like then trim it down. People need time to think through the details before being able to give crisp statements about business needs and value.

Use case example #1 - Sidetrack planning

• Business function -  I'd like to improve sidetracking planning by incorporating accurate and complete internal and external information sources. We execute hundreds of sidetracks each year with rates increasing. To achieve this improvement I need consistent API information down to the sidetrack (API position 11 and 12), accurate historical well information and integrated wellbore and production data. My main data related challenges are multiple systems of record (SoRs) all with different work processes, data naming conventions & data quality, missing historical sidetrack data including basics such as original well, well status & well type, and important data is homeless or stored locally preventing a complete view of the well.
• Impacted Role - The Petro-tech (geologist, geophysicist, drilling engineer) will benefit most from addressing this business need.
• Value - Addressing work process and data issues will provide the following benefits:

- Improved production allocation against correct reservoir/zone

- Reduced drilling rig cost per sidetrack

- Reduced NPT of Petro-tech researching the actual status of the well

- Reduced IT costs for data reconciliation and movement between SoRs

- Reduced sidetrack location changes

- Improved anti-collision report accuracy

• Data - When planning a sidetrack I use the following data from multiple sources (examples, not exhaustive):

- Well / Wellbore - Casing data, perforation data, wellbore integrity (e.g. casing integrity test), pressure test, completion data, directional surveys, log/core data (cased hole and open hole),  historical data

- Production - Production history

Use case example #2 - Workover planning

• Business function - I'd like to complete more workovers in less time with accessible and accurate well history data. To achieve this I need the ability to identify potential workover wells by well type (e.g. casing type or condition), accurate information about the wellbore itself (e.g. 7" recorded vs 7 5/8" actual) and known casing damage. My main data related challenges are multiple systems of record (SoRs) all with different work processes, data naming conventions & data quality and important data is not captured at all or stored locally preventing a complete view of the well.
• Impacted Role - The Petro-tech (drilling engineer) will benefit most from addressing this business need.
• Value - Addressing work process and data issues will provide the following benefits:

- Accurate reserve bookings

- Optimized workover program and rig schedule

- Reduction in total workover rig / tool cost (NPT, plan optimization, smaller pumps, etc.)

- Reduce NPT for Petro-tech roles to validate data

- Avoid unnecessary casing integrity tests

• Data - When planning a workover I use the following data from multiple sources (examples, not exhaustive):

- Well / Wellbore - current wellbore diagram, casing size, depth & condition, well logs, core data, pressure data, completion data

- Production - Production data

Let's convert the value statements in use case #1, Workover Planning, into a value tree.

1. We start with our four broad value Categories for all projects.
2. Then we summarize the change (or Benefit Driver) that will result in value. In the business write up the users told us some of their key challenges e.g. too many places to look, missing well history. These are great candidates for Benefit Drivers.
3. Finally we identify one or more specific metrics to track the impact. Existing business & IT metrics are easiest because the evidence is likely already captured and reported. If you are considering a new metric, be sure to know how evidence of the change will be collected.

Conclusion

The OSDU® DP delivers value for both business and IT roles but, because the OSDU® DP is a complex implementation, identifying and consolidating specific opportunities for value must be done intentionally.

The business case is sponsored by the E&P Executive and created by the Program Manager. Many others contribute to the business case through use cases relevant to their role.

Use cases should include at minimum Business function, Impacted Role, Value, Data.

Value can be summarized and visually communicated to stakeholders using a value tree.

Please take the opportunity to seek out and review the business case for your companies OSDU® DP adoption. Did you or members of your department participate in the creation of the business case? Do you see improvements related to your role included?

You can expand the conversation by sharing good example use cases that include the expected value!

Stay tuned for more!

Scott & Co.

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