Open Up and Transform · Challenge our MINDSET 5 04/06/2019 Biases • Industry uniqueness • Dunning Kruger (innovation, technical and technology) • Defomation Professionnelle

Open Up and Transform !

Oil & Gas Industry on the UKCS has demonstrated outstanding innovation and development for the last 50 years

But …..

We as an industry need to RADICALLY transform the way we think about business and innovation on the UKCS

Why …..?

2Oil & Gas UK Industry Conference

Catalyst44 Ltd © 201904/06/2019

MER – A Unique Opportunity

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Catalyst44 Ltd © 2019

WHY….. ?

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Basin Maturity Changing Asset Ownership Economics

Technology

Sources: Oil & Gas UK, Catalyst44

Oil & Gas UK Industry ConferenceCatalyst44 Ltd © 2019

Challenge our MINDSET

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Biases

• Industry uniqueness• Dunning Kruger (innovation, technical

and technology)• Defomation Professionnelle• Information Bias• Contracting ‘zero sum game’

Mindset

• Engineering Rational / Logical / Show me

• Conservatism / Risk Management

• Technical Innovation Leadership

• Technology Disruption• Collaborate (my rules)• Framing / Frame of

Reference (Bounded Rationality)

‘Givens’

• Commodity price fluctuation

• Criticality of HSE• Climate Change• Outside perceptions (Big

Oil)• ….


Mindset Shifts …… HOW?

604/06/2019

Challenge Status Quo Thinking

Example: Australian Coal Seam Gas

Development

Focus: Asset Owners and Budget

Holders

Business Model Fundamentals

Example: ‘Dock-less’ Bike Sharing

Focus: Supply Chain

Start-ups

Open Source Data and Open Source Solutions

Example: Crowdsourcing and Open

Solutions

Focus: Ecosystem

Government


Challenge Status Quo ThinkingCoal Seam Gas Development

704/06/2019

$3.8m -> $1.6m

New Ways of Thinking- Justify In- Business Models - Jetstar- Development Options- Contracting / Procurement Models

Technology / Process Change- Role play (Clear run)- Factory Metaphor / analogy

Communicate -> Behaviour -> Culture- Absolute cost focus- Freedom to act- Leadership, capabilities and culture

1.6


Business Model Fundamentals ‘Dock-less’ Bike Share

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What business am I in?What problem is being solved? Required Infrastructure…


’ChinaBike’ Business Model Challenges

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ProposedBusinessModel

Challengesto BusinessModel

Revenue Growth

RequiredCapabilities

ConstraintsIssues

What is theBusiness?

Do the Economics Work?


Open Source Data and Open Source Solutions

10

Open Data Open OrganisationOpen Innovation


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Open Data -> Value Adding Analytics

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Great start ….. ….. but need more granularity

Value AddingData Analytics


Crowdsourcing - Goldcorp Challenge

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• Over 1000 submissions• Identified 110 deposit sites• Fifty percent of them were locations that

the company did not know • 80% of the new amount actually had a

substantial amount of gold. • Dug six billion worth of gold

Goldcorp grew from a $100m to a $9 billion company

• Reducing transaction costs of organisations• Finding new business opportunities• Building appropriate teams by finding the right external people• Re-using previous work• Building user defined products and services

• Solving difficult problemsOil & Gas UK Industry Conference


Emerging Open Solutions……



‘Open Source’ Challenges and Issues

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Open Source is a mindset and behaviour

• Existing business models• Competitive advantage• Intellectual Property• Data Ownership• Security

• Stewardship and management• Control• Fad, no longevity• Only about driving down costs• Investment in existing

infrastructure and capabilities


Open Source Oil & Gas Company

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My Proposed Definition:

The Open Source Oil & Gas company is a catalyst to maximise the economic recovery of hydrocarbons through ....

.... a Virtualised set of capabilities and resources.....

.... leveraging new technologies and business models....

.... to provide the next generation technical and economic architecture / infrastructure...

.... for the benefit of all stakeholders.


Mindset Change ‘Checklist’

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Business Model Fundamentals

• What business problem is being solved?

• What business am I in?• Will clients pay for the solution?• What are critical requirements for

success …?• Capabilities• Infrastructure• Ecosystem and stakeholder

management• Is Technology driving or

facilitating the business solution?

Challenge Status Quo Think

• Start with Why? – Goal Clarity• Ensure clarity

• Communication• Process• Ownership

• Create the story, use metaphor and analogy

• Think ‘Jetstar’

Open Source Solutions and Open Data

• Where are the value adding data / analytics?

• How ‘easy’ is it to share / open source the data…?• Technical, cultural,

behavioural issues• Can the ‘extended’ ecosystem

support?• Crowdsourcing

Understand and look out for biases


Open Up and Transform !



Documents

Open Up and Transform · Challenge our MINDSET 5 04/06/2019 Biases • Industry uniqueness • Dunning Kruger (innovation, technical and technology) • Defomation Professionnelle