SM Energy and Akili Discuss How to Accelerate Your New Asset Assimilation

#BPOG

A collaboration between:

David Allen – Akili, Inc.

Gayle Richardson – SM Energy

Accelerate Your New Asset Assimilation

#BPOG

Speaker Introductions

#BPOG | Best Practices for Oil & Gas 2016 | 2

Gayle Richardson

SAP Systems Supervisor

SM ENERGY

David Allen

S/4 HANA – Practice Director

Akili Inc.

Gayle is a results-driven

professional with strong

communication skills and a

proven track record of

identifying business process

deficiencies and

implementing improvements

with multi-million $ bottom-

line results. Her strong Oil &

Gas background includes

both the E&P and Midstream

sectors.

David is highly successful at

optimizing financial, operational,

and technical business processes

that leverage innovative solutions.

He provides strong management

expertise pertaining to both

domestic and international teams

and improving the functionality of

public and private companies.

He is excellent at maintaining

focus on customer needs while

developing, planning, and

executing projects that address

company strategic initiatives.

#BPOG

#BPOG

Are You Prepared For The Data Challenge?


GoLive with NO business disruption Poor quality master data unable to support core business processes

Data Cannot Delay GoLive Inability to track and manage the project can cause ‘surprises’ late in the

project

No Surprises Surprises early in a project can be managed – surprises late in a

project are a huge problem

User Adoption Lack of quality data can make new system unusable

Return on investment is at risk if implementation is delayed

Data is far from easy – It is crucial to identify the right partner with the right solution and

expertise for your data migration project.

#BPOG

Issues with Data Management are Costly


80% of organizations… will underestimate the costs related to the data

acquisition tasks by an average of 50 percent”Gartner

High

Low

More than 80% of data migration projects run over time and/or over budget. Cost overruns average 30%. Time overruns average 41%.Bloor, 2007

Lower

“50% to 70% of ERP implementations are reported as ‘challenged’ in part to data integrity and/or data accuracy problems.”

#BPOG

ECC 6.0 w/ Original PRA

Roadmap Year 1

Roadmap Year 2

• Data Model Simplification in PRA

ERP Suite on HANA

S/4 HANA

• Data Model Simplification in Core SAP Solution

Simplifying the Data Structures in SAP


#BPOG

IoT is connecting information, people, and things


Internet of

contentInternet of

people

Internet of

things

#BPOG

Internet of Things – adoption curve


Maturity

Connect

Transform

Reimagine

Value-add for

Company

tap into the network of connected

things

automate your business to achieve

operational excellence

empower new business

models, value-added products

and services

#BPOG

#BPOG

• Headquarters: Denver, CO

• Products & Services: Oil & Natural Gas exploration and production

• Major Areas of Operations: Eagle Ford, Bakken/Three Forks, and Permian Basin

• Enterprise Value*: ~$5.8 billion

• Employees: ~680

• Solution: SAP ERP w/ IS Oil (FICO, FA, PRA, JVA, & PS) &

SAP Data Services

*As of September 6, 2016

Overview

Best Practices for Oil & Gas 2015| 10

#BPOG

SM Energy Announces Permian Basin Acquisition


Question:

• How do we leverage our

investment in our systems to

generate long term value with

this acquisition?

Answer:

• Manage the data.

• Continue to improve the

processes.

• Communicate to our people.

#BPOG

#BPOG

• The traditional approach

to work streams during realization.

• Iterative approach to an integrated work plan

for realization

Iterative Cycles Drive Value Quicker in Realization


Realization

Functional Activity

TestTechnical Activity

Data Activity

Release 1

Functional

Activity

TestTechnical

Activity

Data

Activity

Release N

Functional

Activity

TestTechnical

Activity

Data

Activity

#BPOG

• Issue: Upstream Oil & Gas is different from many industries in that key processes such as Revenue

and JIB are run in monthly batch cycles. As a result it is very difficult to fix issues with data on a

transaction by transaction level in the normal business cycle. Accurate master data is critical!

• Resolution: Testing is only valid on business processes in which the business test is being completed

on converted data from the source systems.

Data Management in Oil & Gas


#BPOG

Assess Acquisition Data by Asset Type

Gather Data Requirements by Asset Type

Complete Gap Analysis of Acquiring Data

Prepare necessary Data Transformation

Validate Data

Data Assessment for an Acquisition


#BPOG

Iterative Approach to Data Conversion


Release 1 –Baseline

• Baseline the process

• Process a small set of data

• Core Conversions only

• Validating the environment & core process

• No data validation

Release 2 –Assess the Data

• Assess the Data Quality

• Complete all high priority conversions

• Assess Data Quality

• Confirm conversion mapping and rules

Release 3 –Test 1

• Full data load –Ready for System Testing

• All Conversions Complete

• Validate load plan

• Identify data issues

Release 4 –Test n

• Final validation

• No new conversions

• Final data cleanup

• Repeat cycle until target data quality achieved

Cutover

• Cutover controls in place

• All data validations in place

#BPOG

SAP Data Services

One Runtime Architecture & Services

Unified Metadata

SAP Data Services

ETL

Data Quality

Profiling

Text Analytics

One Administration Environment

(Scheduling, Security, User Management)

One consistent UISAP Business

Suite

SAP BW

Databases

Oracle apps

Files /

Unstructured text

documents

SAP HANA

batch / real

time

Web Services,

JMS, XML

batch / real

time

SAP Business

Suite

SAP BW

Databases

Oracle apps

Files

SAP HANA

Web Services,

JMS, XML

Sources Profiling / Integration /

Data Quality / Entity Extraction

Targets

SAP Replication

Server

Data Integration, Data Quality, Data Profiling and Text Analytics

#BPOG

Our Approach Combines Technology & Best Practices


Reusable Tools for

Ongoing Data Management

Akili Data Management Solution gives You what You need: A Solution You can Trust

Easy to use data solution to reduce project risks and speed implementation

AKILI DATA MANAGEMENT

1

ANALYSIS

2

EXTRACT CLEAN

5

LOAD

6

RECONCILEVALIDATE

Governance and Visualization

43

Consulting

Services

Pre-defined

content and rules

#BPOG

Accelerate the legacy data conversion, data cleanup, and data integration processes with defined Data

Services structures for SAP ERP and PRA

Over 70 pre built SAP Data Objects are delivered in our defined solution

• Well Data

• Delivery Networks

• Division Order

• Business Associates

• Joint Operating Agreements

• WBS Elements

• And more… all critical data necessary to support rapid implementation of our solution

Initial data assessment completed within 60 days on being engaged!

Akili’s Upstream Data Management Solution


What Akili Does

Enterprise Resource Planning

Office of the CFO

Information Management

Enterprise Data Warehouse

Business Process Management

#BPOG

Questions?

#BPOGBest Practices for Oil & Gas 2016 | 24

Gayle Richardson, SM EnergyEmail: [email protected]

David Allen, Akili Inc.Email: [email protected]

How to Contact Us

Data & Analytics

SM Energy and Akili Discuss How to Accelerate Your New Asset Assimilation