Document

Business Model Driven Integrated Asset Information Management

Dr. Hakan Sarbanoglu - Chief Solutions Architect, KalidoBill Nyström – Program Manager, BP US Pipelines and Logistics

Copyright © Kalido 20082

Agenda

Business Model driven information management

Business Model driven Data Warehousing and Master Data Management with Kalido

Case Study: BP US Pipelines and Logistics Data Management Initiative

Benefits


Agenda

Business Model driven information managementWhat is a Business ModelWhat do we mean by “Business Model driven …”?Disconnection between Business and IT



Benefits


What is a Business Model?

A Business Model is a view of the objects of interest to the business. It is a model (i.e. conceptual layout) of YourBusiness

Your Business Model is a description of your business:The things you “do” in the business i.e. the business activitiesThe measurements you take about these activitiesThe context (business entities) within which you want to view this information

E.g. customers, products, locations, suppliers etc. This is what gives the information meaning to business people and is usually structured in hierarchies

The business rules binding these things together


A Business Model in is not ….

In this information management contextBusiness Model is NOT

A data model,A systems model

Business Model is NOT:A description of the scope and purpose and the way of doing business (e.g. Franchising or Outsourcing)A view of the activities and processes carried out by a business (e.g. Insurance business activity model)


A simple Business Model:

Business Activity:Each instance of an activity is a business transaction. Each business transaction is an event, which happened at point in time and a number of business entities were involved in that event. We perceive those business entities in some Classes. For each event we measure some quantities and qualities. All these are captured in a transaction record.

A sample procurement order transaction: Three units of Submergible Unloading Pump (FJ70B) for our Midwest Maintenance Department were ordered from Warren Pumps on 12 Feb 2008. They should be delivered to our North Ohio Depot latest by 23 Feb 2008. Unit list price is $ 8,750. Agreed discount is 7%.


Business Context: Reference Data and Associations


Business Model must have’s

A Business Model should:Support and integrate all activities of your business (no exception!)Be able to changeBe time variant: remember the past and support future viewsBe understandable by both the Business and ITSupport iterative development (think big, start small, and evolve)

A Business Model is not a Data Model!It is a model of the real business world


What do we mean by “Business Model driven …”?

Conventional information systems (Data Warehouse, Business Intelligence, Master Data Management) development:

Conceptual Model Logical Data Model Physical Schema ModelPhysical schema is built in a DBMSSubsequent changes are done at the physical database levelConceptual and logical models are disconnected at an early stageBusiness is also disconnected during …

the systems developmentthe operational phase

Business Model driven systems:Defined, built, operated, maintained and changed in business model termsNot disconnected from your business during their full life cycle


Disconnection of Business from Information Management

SalesVolumeAmount

CustomerAddressLocation

CityZIP

LocationCityZIP

ProductGrade

UIP

Brand

Brand Product Family

Conceptual Model

Logical Model

Physical Schema & Data

Manual capture

Manual run of V1.0 DDL

Manual SchemaChanges

BILayer

Sources

Physical Model

Data Modeling Tool

DBMS

ManualFine-tuning

Data Architect

BusinessRepresentative

V1.1 V1.2 V2.0`

BusinessDictionary

DBA / DB Developer

Manual SchemaExtension

Not MaintainedOr only for documentation with reverse engineering

Data Architect no longer involved

Business no longer InvolvedSemantics disconnected

Data Warehouse Life


Prepare

Implement

Operate

Need to Align IT with the Business

IT Cycle

Plan

Run

Evaluate

(Data Warehousing)Business

CycleNew

BusinessRequirements

NewBusiness

Requirements

Report, Plan, Model, Analyze

01020304050607080

1st Qtr

Design

Build

Test

Deploy

Analyze

Information Disconnecttime-delayed,

incomplete and/or inaccurate business reports and analyses

Opportunity CostDue to the inability to meet

businessrequirements

AlignmentThe business and IT models need to stay in alignment


Agenda




Benefits


Kalido is different: it is driven by your Business ModelA

utomated by K

alido

WHS Retailer

V3 Retailer

Group Channel

Channel

V3 Channel Sales Rep

Corporation

WHS Customer

Owner

Sub Family

Marketing ProductPrice Segment

Marketing Product Country

WHS Products

Product GroupBrand Family

Manufacturer

Year

Quarter

Month

Day

Week

Corporation

WHS Customer

Owner

WHS Retailer

V3 Retailer

Group Channel

Channel


Corporation

WHS Customer

Owner

Sub Family



WHS Products


Manufacturer

Corporation

WHS Customer

Owner

Corporation

WHS Customer

Owner

Sub Family



WHS Products


ManufacturerCorporation

WHS Customer

Owner



WHS Products

Business Model

Configuration (DIW)

Physical Schema & Data

Sources

Deployments

BILayer

BusinessRepresentative& Information Architect

System UI

Automated BridgeSystem Automaticall yMaintained

ImplementationSpecialist


How is this possible?

Reporting

Dashboards

Analysis

OLAP

GIS

SourceSystems

3rd Party

Maintenance

Production

Finance

SCM

ERP

ETL

Meta & ReferenceData Repository

LoadingValidation

Warehouse(Reporting Schema)

Data Marts

CreateReporting Schema

CreateReportingSchema

Direct Access

BIBridge

StagingArea

RawData

Corporation

WHS Customer

Owner

Sub Family



WHS Products


Manufacturer

Business Model

MetaData

http://images.google.com/imgres?imgurl=www.itbusiness.ca/images/COGNOS_PPLAY_20026712408.JPG&imgrefurl=http://www.itbusiness.ca/CanadianSourceGuide/Reports/Report.asp%3FIDReport%3D8&h=215&w=250&prev=/images%3Fq%3Dcognos%2Bpowerplay%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN

http://www.fincad.com/excel/images/workbks.gif


Meta and Reference Data Repository

A generic storage design based on ISO-15926 Part-2

Physical data is stored in a Triple Store design and remains the same for any model and data

Changes are defined as incremental meta data (ISO-18876)


EmployeeAlan DavisMichael EnfieldPeter GeorgeDan Summers

DepartmentEastern Sales

Western Sales

EmployeeSamuel HirschMichael EnfieldPeter GeorgeDan Summers

DepartmentEastern Sales

Western Sales

Business Model and Reference DataAs Meta Data

Item

AssociationBetween Classes

AssociationBetween Items

Class

Is aObjectModel

Auto

mated

By K

alido

Physical Schema(Always Stable)

Auto

mated

By K

alido


When the Business Model Changes…

Reporting

Dashboard

Analysis

OLAP

GIS

SourceSystems

3rd Party

Maintenance

Production

Finance

SCM

ERP

ETL


LoadingValidation

Warehouse(Reporting Schema)

Data Marts

CreateReporting Schema

CreateReportingSchema

Direct Access

BIBridge

StagingArea

RawData

Corporation

WHS Customer

Owner

Sub Family



WHS Products


Manufacturer

Business Model V-1

MetaData

WHS Retailer

V3 Retailer

Group Channel

Channel


Corporation

WHS Customer

Owner

Sub Family



WHS Products


Manufacturer

Corporation

WHS Customer

Owner

Version-2

ModelChange


http://www.fincad.com/excel/images/workbks.gif


Data Warehouse

SourceSystems

3rd Party

Maintenance

Production

Finance

SCM

ERP

Kalido Master Data Manager for Harmonized Business Intelligence

• Model• Load• Catalog• Map

• Merge• Version• Secure

Internal OLTP Data

Transaction DataConsistent

Master Data

• Search• Browse• Create• Enrich• Validate• Authorize• Publish• Export• Report

Workflow

BI, Reporting Tools

Portal /Intranet

Kalido MDM API• Integration with other

tools (workflow, etc.)• User exits to external

code

““Golden CopyGolden Copy””Master Data

Master Data Repository

Business Model

““Golden CopyGolden Copy””Master Data

Reference Data

ProfilingCleansing

ETLEAI

WHS Retailer

V3 Retailer

Group Channel

Channel


Corporation

WHS Customer

Owner

Sub Family



WHS Products


Manufacturer

Corporation

WHS Customer

Owner



Agenda



Case Study: BP US Pipelines and Logistics Data Management InitiativeChallengeIntegrated Pipelines Asset Information RepositoryEnabling key processes with Asset Repository and Data WarehouseRegulatory Reporting and Data Governance

Benefits


Case study: BP US Pipelines and Logistics

BP US Pipelines and Logistics:Daily: 2.5 million barrel miles of oil, refined products, natural gas liquids, carbon dioxide and chemicalsOwn / operate 10,000 miles of pipe, 70 light-oil terminals and 500 trucks which deliver 9.5 billion gallons of refined product annuallyVarious joint venture pipelines Core and joint venture operations

span 38 states the offshore Gulf of MexicoPipeline control centers in Oklahoma, Washington and California

Key Activities:Ship volumesDefine asset baseEvaluate and manage asset portfolioPerform inspectionsExecute repairsReport to regulatory agencies


BP US Pipelines & Logistics Data Management Initiative

One version of the Truth!

Business Intelligence

Process Enablement

Data and process governance

Performance management

FUTURE STATE

• Too many applications

across the business

• Inaccurate data• Dependence on

manual activities

• Organizational silos dominate the business

• Reliance on technical and process work-arounds

• Too much IT, not enough business focus

CURRENT STATE Prioritized

and Cleansed Data Sets

Consistent and Flexible

Business Model

Sustainable Data

Governance

• Drives high compliance

activities and costs

Iterative

Phase 3: Business Transformation

Phase 2: Operations Enablement

Phase 1: License to Operate


Attack Plan: Phase-1First: Build a Central Asset Repository

Pipelines Asset Business ModelRetire SpreadsheetsImprove Data QualityDiscover missing assets

Enable and improve key regulatory process activities

In-line InspectionCorrosion Planning & Tracking ActivitiesTank InspectionHSSE Incident TrackingSulfur TrackingRegulatory Reporting

Improve data and process governanceEstablished Process and Data Governance

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Process and Data Governance

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More in Phase-2

Integrated Asset Information Repository

Regulatory Reporting


Pipelines Asset Business Model Integrated Asset Information Repository


Pipeline Asset Business Model


Station Point

Station Point

Location

Asset

Pipelines Business Model (simplified)

Equipment

Facility

StartEnd

SystemFacility Segment

FacilitySite

SystemStart

End

Installed in

SystemMile Post

Ownedby Serves

EPAFacility

DOTOperator

EquipStatus

CathodicalyProtected

CathodicEquip Type

Organization

Team

Department District

Extended Team

Home Office LOS

Product

DOT Product CategoryRegulatory

Category

Commodity

CommodityType

EPA FuelDesignation

Transport CommodityFuel

Commodity

Time

InspectionRun

Decade

Year

Quarter

Month

Day

Financial Account

Account

CostCenter

ProfitCenter

CostType

TankParent

Tank CathodicProtectionEquipment

Valve PipeSegment

Meter Pressure Vessel

HeatExchanger

Pump CompressorFlare

Legal Entity

Legal Entity

ControllingCompany

EPAEntry

Current Share

Owned byOperated by

Managed by


BP US Pipelines and Logistics Asset Repository

All Pipelines Systems, the linear and area facilities and all equipment installed within these facilities have been loaded into Kalido MDM, from many sources

Data harmonizationData Cleansing using a Data Quality Tool (DataFlux)Equipment attributes and classificationsMapping, merging, harmonization and enrichment in Kalido MDM

Owner, operator, controller Legal Entities for each facilityOverseeing, controlling and maintaining person for each facilityLegal Entity organization hierarchy

Approved, authorized and published through workflows


Initial Population of the Integrated Asset Information Repository

MARS(Oracle)

OTAIS(Access)

PASS(Oracle)

CPDM(Fox Pro)

Maximo(Oracle)

SMART(Oracle)

SCADA(Oracle)

Facilities Joint Ventures

Pipeline TanksLogistics Tanks

Master Portfolio In-lineInspection

Asset ReferenceData Sources

Logistics Tanks Pipeline Tanks Vehicle/Illness Injury

Spill and Leaks

Corrosion Plan In-LineInspection

Data WarehouseMaster DataManagement

Transaction Data Sources

Cleansing One timeUpload

One time load ofHistoric Transactions

Decommissioned

95% Decommissioned


Daily Maintenance of the Asset Information Repository

MARS(Oracle)

OTAIS(Access)

PASS(Oracle)

CPDM(Fox Pro)

Maximo(Oracle)

SMART(Oracle)

SCADA(Oracle)

OperationalSystems

In-LineInspection

Data WarehouseMaster DataManagement

TransactionData Source

Cleansing

Daily

CorrosionActivityPlanning

&Tracking

TankInspection

HSSEIncidentTracking

HSSEEnvironmental

ActivityManagement

In LineInspection

Data Governance(incl. Asset

Management)

Ongoing Data Input Processes

Daily

RealTime

Hourly

3:00 am CST Daily Batch Upload

Sulfur Track Data

ReportsRegulatoryReporting

http://businessobjects.com/


Agenda




Benefits


Driving Pipeline Activities

Each activity instance (plan or execution) is entered as Master Data Planned Inspection recordActual Inspection run recordsDig recordsTool run recordsRepair plan record

Master Data Workflows drive the execution of each Preventative Maintenance activity

In Line InspectionsTank InspectionCorrosion Planning and TrackingHSE Incident TrackingSulfur Tracking (new process)

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Modeling Typical Pipeline Activities as Transactions


Modeling Inspections for MDM


Modeling Inspections of any Equipment…

Inspection model can be used for any equipment types, e.g. tanks, pipe segments,Valves etc.


Process Monitoring Reports : In Line Inspections


Sulfur Tracking process

An example of how a new process (introduced in 2006) can be designed based on MDM and Data Warehouse (DW) platform

EPA regulation for:Designating and tracking Low Sulfur DistillatesPhased ban of using 500ppm diesel:

Use of 15ppm diesel gradually on-road off-road off-shore by 2010

Requires detailed reporting of diesel transport and distribution

New process implemented on the MDM platform with detailed reports produced from the Data Warehouse

Operating cost of this process for the BP US Pipelines Business Unit: 5 people x 1h/week + 6h/quarter = ~0.25 man year

Compared to the 4 man year manual process in the BP US LogisticsBusiness Unit


Agenda




Benefits



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Before DMI:Very complex: Different regulatory rules in each State and different demands by multiple Government agencies Time consuming and expensive. Only year-endProne to quality issues: consistency and accuracyNon-transparent, no lineage

After DMIFully automatedProduced on-demand, even daily127 reports accessible from company portalAccurate, consistent, actionable, transparent and flexible


Reporting Portal


Agenda




Benefits


Benefits of Business Model Driven Information Management with Kalido

Communication with business people is eased (no Business-IT gap!)

DW and MDM systems are created iteratively and quickly

Rapidly responds to changing business requirements and conditions

Lower ownership costs due to the speed and ease of change

Automatically preserves history for trend analysis and audit reporting

Aids regulatory compliance by ensuring data traceability. Maintains data in its true historical context, with true referential integrity at all levels

Implements complex business rules

Provides different perspectives - a single version of the truth presented in many different contexts

Enables large companies to define corporate standards, while allowing local business unit autonomy and variation to co-exist


An INTEGRATED Asset RepositoryAccurate, consistent, transparent, flexible, accessibleAlready discovered missing assetsClear view of the asset base and related activities

facilitating more efficient gathering of information related to divestiture activitiesShortening asset marking cycle

Simple and effectiveRetired 9 spreadsheet systemsReduced or simplified interfaces

Significantly improved the complex regulatory reporting (in cost, time, quality, content, availability)

Automated 88 reportsEase of access and traceability of critical compliance data required for annual Federal and State reporting

Benefits realized by BP US Pipelines & Logistics DMI Project


Enabled and improved key preventative maintenance processes (planning, tracking, inspection, …)

Cost savings in the maintenance budget by enabling historical cost trending, planning and results analysis Accuracy in annual budgetary allocations based on inspection history and discovered trendsMore proactive management and selection of vendors through tracking of actual spend, compliance with timelines and performance history Improved selection of inspection dates through cross-functional coordination through creation of coordinated schedulesTracking of the activities status and corresponding spend through reporting on compliance with timelinesAlerts built into reports to demonstrate schedule slippage to ensure proactive management of issuesNew analytical and trending capabilities through expanded capture of conditions and defect informationConsolidated view of the mandated maintenance activities




DMI offers significant savings in Compliance costs and Operational efficiency gains

Reduction for the reviews of asset for technical/legal integrity: 75 man day/yearReduction in regulatory reporting: 55 man day/yearReduction History requests for inspection, planning, leak/spillsdata: 800 man day/yearReduction in acquisition and divestment of assets: dozens of people and at least 8-16 hours per work group

Introduced processes and capabilities for data governance!


Attack Plan: Phase 2

Business IntelligenceOperations Excellence DashboardIntegrity Management DashboardAsset Dashboard

Operations Enablement Hydrotest, Guided Wave InspectionCorrosion Prevention – Performance ManagementStress Corrosion Cracking Tracking

Performance ImprovementAsset Life Cycle Management process improvement roadmapAsset DOT Compliance Matrix Tracking

Data/Information IntegrationIncorporate US Logistic Assets

Thank You!

[email protected] [email protected]

Appendices


Appendices

Asset Information Repository (Kalido MDM) screen shots

Regulatory reporting screen shots


Appendices




Asset Master Data: Some Categories


Asset Master Data: Pipe Segments


Asset Master Data: Search


Asset Master Data: Search Pipe segments owned by Seaway Products


Asset Master Data: Search Results: Pipe segments owned by Seaway Products


Asset Master Data: Details of Pipe Segment SEG_61


Asset Master Data: Drill Down to Activities on Segments


Appendices



















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