People, Process and Technology
Making IT a strategic capability
Randy Krotowski
CIO, Global Upstream
Chevron Corporation
Copyright 2011
© 2011 Chevron
1
Chevron
A World Class Global Energy Company
60,000 employees
11.3 billion BOE net
proved oil and gas
reserves
2.7 million BOE daily net
production
2.0 million BPD refining
capacity
$26 billion C&E budget
Copyright 2011
© 2011 Chevron
2
My First Lesson:
It’s About What My Business Needs from IT
2-8 years
Exploration
& Appraisal
2-5 years
Delineation &
Development
5 – 100 years
To recover 10-90% of the oil & gas
Reservoir Management & Production
Operations
3
© 2011 Chevron
Building Credibility
Roadmap & Execution Excellence
$1.2B project roadmap
Focus on deployment
With transparent
reporting
Copyright 2011
© 2011 Chevron
4
My Second Lesson:
The Street Rewards Performance
Management Credibility
Clear, consistent strategic focus
Measurable milestones linked to strategy
Deliver on commitments
Transparent reporting
Superior financial performance relative to peers
Consistent, predictable, sustainable results
Earnings growth and return on invested capital
5
© 2011 Chevron
Competing Through Technology
A Point of View About the Future
Differentiating performance through
information and information technology
Our vision is that Upstream is an industry leader
at applying and using information technology to
find, develop and produce oil and gas.
Invest in Our Core
Business
Deliver the Data
Platform
Drive Functional
Excellence
6
© 2011 Chevron
My Third Lesson:
Bet on the Future
Opportunity Queue
EA, SOA & Agile
Quick Return
Solutions
• Production management tools
• Automating routine decisions
• Management by exception
MSV
• Maintenance management
• Plant Surveillance
• AI for optimization
Project
Framework
SSO
DELIVERABLES
SCRUM Pattern
Monthly
Sprint
Planning
SPRINT
BACKLOG
Prioritize,
package &
assign
ownership
Logistics DSC
SCRUM
• Done in past week
• Barriers / Blocks / Decisions
• Do in next week
Execute
Block
Removal
Internal
Execution
External
Execution
Randy Krotowski
Version 0.1
10/29/98
Compression DSC
• Equipment Optimization
• Central decision centers
• Standardization
Seer
“Power
Process
Book
User”
WEST
PC
Business
Objects
Seer
Client
Seer
UI
PC
Internet
RtPM
SQL
Server
Reporting
Services
Data
Access
Seer
Data
Data
Integration
Seer
Reporting
Services
Data
SharePoint
…
Clients
Chevron
Services
Windows
Parts
Apps
&
Visualised “Data Bricks”
Web Parts, Reporting Services,
ASP.NET Controls
Services
Dashboard
Source
Viewer
Service
[ODBC,
“Data Bricks”
KPIs & Metrics exposed
as Analysis Services
Measure Groups
Service
Explorer
Web
RtBaseline
OLE-DB]
Data
Access
Access
Services
[Web
Facade
Business
Rules
SQL Server
Analysis Services
System
Services]
Services
Engine
Notification
Administration
Engine
Warehouse
[PPDM]
SSIS
Seer
Web Service
[PPDM XML]
Source
System
ASP.NET
PI
Server
SQL
Server
Data
Manual
Warehouse
Layer
PHD
Interface
Façade
SQL
SSIS
“Stream”
SSIS
“Stream”
SSIS
“Stream”
SSIS
“Stream”
Server
SSIS
“Stream”
Integration
Entry
D/B
Services
SSIS
“Stream”
(SSIS)
SSIS
“Stream”
(C#)
SQL Server
Integration Services
ODBC, OLE DB,
Oracle Client etc.
Source
System
Façade
MADS
Captain
Copyright 2011
© 2011 Chevron
Systems
Source
System
Façade
PHD
SAP
CUE
Source
System
Façade
PoB
Operating
Platform
Source
System
Façade
Source
System
Façade
BAPP
Track
Site
Safe
Systems
Source
System
Façade
Action
Tracking
Source
System
Façade
Loss
Reporting
Asset Implemented
Platform Systems
Operating
Source
System
Façade
Common
Reference
Data
Service
CPAS
Hierarchy
Store
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Setting the Foundation for
Transforming Upstream Workflows
Reservoir / Production Surveillance and Analysis
• Integrated reservoir
and production
management tools
• Automating routine
decisions
• Management by
exception
Equipment / Facility Optimization Decision Support
• Facilities / Equipment
Optimization
• Centralized decision
centers providing
subject matter
expertise & know how
• Standardization
Scheduling / Activity Management
• Surface & Subsurface
maintenance activity
• Plant Surveillance and
3D video fusion
• Artificial Intelligence for
optimization
Copyright 2011
© 2011 Chevron
8
My Fourth Lesson:
Leadership is a Shared Responsibility
Jointly Leading an IT Transformation
2012
One team
Common data and
technology platform
Fast, effective global
deployment
System-wide reliability
2006
Core processes
enabled by technology
Multiple IT
organizations
Many solutions for the
same process
Multi-year global
deployments
Component reliability
Focused on back-office/
infrastructure
Copyright 2011
© 2011 Chevron
9
And Partnering With My Peers to …
Integrate people, processes, technology and information…
UWT
Vision
… to enable transformation of our key upstream processes and assets.
10
© 2011 Chevron
Transformational Leadership
Tomorrow’s
Opportunity
 Share leadership
 Bet on the future
 Invest in credibility
 Develop your point of view
Today’s Paradigm
Copyright 2011
© 2011 Chevron
11
Q&A
The future is not the result of choices among
alternative paths offered by the present,
but a place that is created
first in mind, next in will, then in activity.
The future is not some place we are going to,
but one we are creating
John Schaar
12
© 2011 Chevron