Technology improvements without complementary changes in work process and human factors have a long history of failure. Two examples can be found in Enterprise Resource Planning (ERP) systems and the implementation of the many versions of oilfield automation. From the wave of ERP implementations around the turn of the millennium, the difference between expected and actual benefits of corporate ERP systems ranges from large to very large in almost every company. In many cases, core work processes remained unchanged and did not fully integrate with the powerful new ERP tools. Similarly, most engineers have been associated with oilfield automation projects that did not yield expected results.

For both of these examples, a core reason for lower than anticipated results was limited consideration of human factors and full recognition of workflow changes required. The gap in actual compared to expected benefits of technology-focused change requires a re-examination of the relationship between technology, people, and process. When the slow uptake of the Intelligent Oil Field (IOF) is assessed, one probable root cause is an imbalance of these three components.


People and process


Part One of this series proposed a framework for a complete IOF approach. The lower three components — Data Gathering & Control, Data Management & Infrastructure, and Integrated Systems and Applications — are the technology aspects of the IOF. They will be described in more detail in Part Three of this series. The upper two components — Workflow Optimization and People & Collaboration — are the focus of this article.


The people aspect is considered inclusive of all issues and opportunities related to users of new technology and work systems. During the implementation of technology — information-related or otherwise — some people-specific projects such as skills development and Knowledge Management (KM) can help the user become more adept at leveraging the technology. These two and others stand on their own merits and are not required only when supporting technology. But in all situations, change management (CM) — the activities that help users more readily adopt and accept a change in the work place — is the essential ingredient to ensure that the users take up the new technology for its intended benefits. More often than not, CM is an afterthought or a minimal internal marketing effort by the project managers, and change managers are rarely found within human resources or information technology departments.


For example, a major operating company wanted to develop a central monitoring and support facility for its many offshore platforms as a part of an IOF deployment. The intention was to provide real-time, full-time data, used in best-practice workflows, to help determine longer-term trends and give collaborative support on technical decisions. A monitoring room was designed and implemented, data feeds were working, and positions were filled. But the results — on both hard measures (e.g., equipment downtime, increased production) and soft measures (e.g., employee satisfaction, collaboration quality) — were far less than expected. Over time, the project leaders realized that the key stakeholders had never been involved in many of the design and development decisions, had no real understanding of the new way of working and didn’t always have all of the skills required. In essence, it was a lack of good CM that led the project to languish. The company is now re-evaluating the CM approach to reinvigorate the project and attain expected benefits. Valuable time and money were expended because the People component was not understood or addressed.


Changing work and work habits


A key to the IOF is enabling a collaborative environment across business units. The collaborative environment is a network of people, connected in real time, with access to complete information sets, integrated tools and expert advice. In its most basic form, IOF is about creating a “new way of working.” These centers have the ability to become the place from which key decisions and improved actions emanate. It is this new way of working that has the most impact on the People component yet is the most difficult to achieve. It also has the potential to provide the greatest return on investment.


Today’s exploration and production global workforce is increasingly more diverse, made up of many different cultures and backgrounds. Growing oil and gas demand and the looming “Great Crew Change” have made collaboration a business requirement. Conference calls and long-distance travel can no longer be the main means of working together. Stretched human resources will need high-quality collaboration as a tool in their toolkit and will no longer be able to afford the time to travel long distances or rely on monthly or quarterly conference calls.


Workflows or processes are related to the detailed activities and their sequence that are completed in order to accomplish a given output. Workflows are the substance that can be captured on a process flow chart or diagram and improved through analysis tools like business process re-engineering and business process improvement. In essence, it is what we do and how it gets done. Improved work processes are the ones that improve the way that work is accomplished and the outcomes to validate it. This could be in the form of shorter cycle time through automation, higher decision quality through more rigorous analysis or reduced costs via lower manpower requirements. In the end, the substance of the work — what we do — changes.


Improved, standardized work processes, based on relevant internal and external best practices, will also be essential in these collaboration centers. Picture the collaboration centers with a staff of multidisciplinary teams across physical boundaries. In the absence of standardized work processes, these teams will be required to learn every version of every relevant work process in support of the various geographies and business units. It is a daunting task for even the most skilled and a poor use of the professionals’ time.


Additionally, standardization of all routine processes to address key events should be defined, documented and hard-wired into work processes through tools like a computerized maintenance management system. A single point of accountability, or champion, should exist in the organization to own, develop and improve the standardization of processes and provide training and updates. Ironically, it is the standardization of processes based on best practices that will accelerate continuous improvement efforts.


In summary, the IOF will facilitate, enable and drive enhanced performance and capacity of the assets and their caretakers. It will allow for the proper policies, procedures and workflows to be available, understood and followed. It will keep people and the environment out of harms way, permitting more quality time for innovation, creativity and continuous improvement. It should be considered an evolution — not a revolution — over time. The most differentiating factor in any IOF implementation is often the degree to which the users (People) acclimate and leverage the latest tools and technologies (Process).


The final part of this three-part series on the IOF will examine how to collect valuable data; how to move, manage and apply IOF data; and how to “connect the dots” with the right technologies to reap the benefits.