opex keynote: industry 4.0 next wave of operational excellence by henrik von scheel

@von_scheel @LEAD @IQPC

The Next wave of Operational Excellence

Henrik von Scheel

Industry 4.0:

@von_scheel

in Energy, Chemicals & Resources

@von_scheel @LEAD @IQPC

Researcher

Pioneering in the field of patternicity research.

Co-chairman of the Institute of Strategy & Competitiveness at Global University Alliance

Author Board Member Cofounder

Impact

3 bestseller, 6 books and +40 articles.

#1 Enterprise Standard provider for 56 Industries.

“One of the most pre-eminent strategists and advisor of his

generation”

Eric Schmidt Chairman of Google parent Alphabet

“The leading authority on national and corporate competitiveness...”

Joy Macknight Financial Time Deputy Editor

Henrik von Scheel

“Father of the digital agenda today and co-founders of the Industry 4.0, that ignited the global digital wave.”

Joy Macknight Financial Time Deputy Editor

www.LEADingPractice.com

@von_scheel @LEAD @IQPC

A “Selfie” of Oil & Gas

9 out of 10 strategies are declared a success*

7 out of 10 IT projects are declared a success*

Perception

•  Strategy and Execution Study, Dec 2016. Institute of Strategy & Competitiveness, Global University Alliance

@von_scheel @LEAD @IQPC

What makes it so difficult?

9 out of 10 strategies are declared a success*

70% 72% of corporate strategy initiatives are never successfully implemented due to

!  Ability to translate it into strategy execution

!  Turning faulty worst practices into and Best Practices!*

7 out of 10 IT projects are declared a success*

Perception

Reality

of all IT projects fail to deliver on time, budget and value*

! 45% run over budget ! 7% behind schedule ! 56% deliver less functionality than predicted ! To achieve at least $15 million in benefits, requires

spending of $59 million

•  Strategy and Execution Study, Dec 2016. Institute of Strategy & Competitiveness, Global University Alliance

@von_scheel @LEAD @IQPC

Four Phases of Industrialization

@von_scheel @LEAD @IQPC

Patterns of Exponential Growth

@von_scheel @LEAD @IQPC

When disruption happens it happens fast

IT Revolutions

@von_scheel @LEAD @IQPC

The convergence of trends fuels the exponential innovation

@von_scheel @LEAD @IQPC

The adoption curve pattern Mastering the 3 strategy dimensions of growth: Invest, Innovate, Perform

Source: LEADing Practice, 2016

@von_scheel @LEAD @IQPC

Oil & Gas Emerging and Disruptive Trends

Digital Security Virtual Personal Assistants

Human Augmentation

Dynamic Allocation & Demand driven production

Software-Defined Security

Machine to Machine Communications

Edge Intelligence

Smart Supply Chain

Smart Warehousing

Advanced Analytics with Self-Service Delivery

Machine Learning Drones

Procurement 4.0

Automation in complex production

eXtended BPMN

Augmented Reality

Autonomous Field Vehicles Real-time visibility to materials at origin

Bioacoustics Sensing

Smart Robots

Internet of Things

Automated Equipment

Integrated Dashboard & Reporting

Brain-controlled Computers

Ecosystem Integrated

Real-time connectivity to enterprise systems

Visibility & alert on resource consumption/waste profile

Neurobusiness

Analyze and Predict Cross-Device Identification

Cross-Device Identification

Human-Machine Collaborative Workforce

Predictive Analytics

Smart Energy

Standards Manufacturing Execution Systems

BPMN 2.0

IT / OT integration Digital out-of-box: Monitor & Notify

Simple Connective IT /OT Security

Remote Monitoring

Digital Data Exchanges: Data-based routing, Demand forecast

Workforce Tracking

Real-Time Analytics

Adaptive Simple Collaborative Robots

Optimized Productions

Event-Triggered Production

Smart control algorithms

Intelligence Process Automation Remote maintaince

Smart Assets

Robotic process automation

Data Management

Platforms

Smart Sensor system

Demand & Data Driven Operations

Smart Manufacturing

Digital production systems

Equipment Integrated with Enterprise Systems

Resources as a Revenue Source

Predictive Analytics

Smart Drilling Engineering

Source: LEADing Practice, 2016

< 10 years 5-10 years 2-5 years >2 years

Human to Machine Communications

Logistics visibility

Integrated Spare parts management

Autonomous & B2C logistics

Prescriptive supply chain analytics

Automated & data-based services

Subsea processing systems Intelligent wells technologies

Integrated Workflow

Integrated Information-flow

Integrated Service-flow

Subsurface Intelligence

Reservoir Driven Production Management RFID Flow Nanotechnology

@von_scheel @LEAD @IQPC

What is at Stake for Oil & Gas companies

@von_scheel @LEAD @IQPC

What is at Stake for Oil & Gas companies

Time

EBITA

5-10%

10-20%

20-30%

Business Models

Operating Model

Workflow Transparency

•  Learning from the Leaders, Oil & Gas Study, June 2016. Institute of Strategy & Competitiveness, Global University Alliance

@von_scheel @LEAD @IQPC

Process Flow Service Flow

Difference between both: process is what you do, service what you deliver Service Model versus Process Model views and concepts

@von_scheel @LEAD @IQPC

Combined view: Service Model versus Process Model Service Model versus Process Model views and concepts

Why work with processes:

Optimize what you do

Why work with services:

Optimize what is being delivered (especially between different parties)

vices

@von_scheel @LEAD @IQPC

What is at Stake for Oil & Gas companies

Time

EBITA

5-10%

10-20%

20-30%

Business Models

Operating Model

Workflow Transparency

•  Learning from the Leaders, Oil & Gas Study, June 2016. Institute of Strategy & Competitiveness, Global University Alliance

@von_scheel @LEAD @IQPC

Pattern recognition: 80 % Non-Core Structured way of thinking to master the next wave of Operational Excellence

@von_scheel @LEAD @IQPC

Paradigm shift: Link Business Strategy with Operational Execution

•  What is complex and simple in their business

•  What to do more

•  What they should do better

•  What to do less off

•  What to stop

@von_scheel @LEAD @IQPC

What is at Stake for Oil & Gas companies

Time

EBITA

5-10%

10-20%

20-30%

Business Models

Operating Model

Workflow Transparency

•  Learning from the Leaders, Oil & Gas Study, June 2016. Institute of Strategy & Competitiveness, Global University Alliance

@von_scheel @LEAD @IQPC

Paradigm shift: Cross Discipline

@von_scheel @LEAD @IQPC

Next wave of Operational Excellence: Strategic Operations

Source: LEADing Practice, 2016

@von_scheel @LEAD @IQPC

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THANK YOU

3 bestseller, 6 books and +40 articles.

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www.von-scheel.com

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Henrik@von-scheel.com