© 2017 Cognizant

© 2017 Cognizant

23rd March 2017

Digitising the Oil & Gas Industry – The Cognizant ViewHelen Ratcliffe – Assistant Vice President, Cognizant Business Consulting

© 2017 Cognizant

Contents

q Introduction to Cognizantq Re-shaping the world – Digital Technologyq Casesq Getting started (or refocused) (3 slides)q Questions

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Cognizant at a Glance

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100+ Global Delivery Centers

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322Strategic Clients

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Revenue$12.42B in 2015 (21% YoY)$3.45B in Q3 2016

Market Capitalization~$35B

Revenue MixNA: 78.5%, Europe:15.6%, RoW: 6.0%

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Fortune’sMost Admired Companies

Years in a Row

8Financial Times

Global 500

281ForbesFast Tech 25

18Newsweek’s

2016 World Green Rankings

101Fortune

500

230ForbesGlobal 2000

529

~255,800Employees

(as of Sep 30, 2016)

© 2017 Cognizant

Working with leading organizations across industries

INSURANCEBANKING & FINANCIAL

SERVICESRETAIL, TRAVEL &

HOSPITALITY TECHNOLOGY

HEALTHCARE LIFE SCIENCES COMMUNICATIONSINFO., MEDIA &

ENTERTAINMENT

CONSUMER GOODS

MFG., LOGISTICS, ENERGY & UTILITIES

4

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Cognizant’s Oil & Gas Practice

2600+ Associates & 300+Consultants

Newest Technologies to bring Business into

the Digital Era

Domain Competence

Key Clients

Key Technologies

Social

Mobility

Analytics

Cloud

Edge OfferingsBusiness Offerings

IT Services Business Consulting

Program Management Consulting

Engineering and Manufacturing

Solutions

MIDSTREAM

DOWNSTREAM

UPSTREAM

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Digital Technology is reshaping the world

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Wearable Devices(Smart

Consumer)

Omni-channel Engagement

(Coherent Experience)

Smart Machines,

Automation & Sensors(Digitized

Operations)

Workforce Enablement

(Digital Talent)

7

Digital is re-shaping the world we live inDigital technologies are having a dramatic impact on how organizations create value and drive efficiency; CxOs are faced with an immediate need to manage the digital explosion and design strategies to harness its power

‘This proliferation of devices is part of a “virtuous circle of smart things,” where falling costs inspire increased connectivity, leading to greater functionality, growing diversity’ –Gartner on emerging digital trends

“The second machine age will have a greater impact than the first industrial revolution” –Andrew McAfee & Erik Brynjolfsson – MIT Center for Digital Business

“Today, digital disruption is seen by many board members as one of the biggest sources of threat to their status quo” – MIT Center for Information Systems Research on Digital Disruption

Analytics and Content

Customization(Insights &

Understanding)

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DDigital technologies are re-shaping our oil and gas world&P Asset – Industry Benchmarks

Explore Appraise Drilling Production Abandonment

Tech

nolo

gy

Advanced analytics, Big Data, Cloud, Mobile Connectivity, Virtual/Augmented reality, Sensors, Collaborative Platforms

Real-Time Tracking & Decision Making

Robotics & Automation, 3D Scanning & printing

Cyber Security

Big data & Advanced analytics 3D

Scanning & Printing

Real Time tracking & Decision Making

Autonomous vehicles;

land, air, sea

Social Collaborative

platforms

CloudDigital TwinsMobile

connectivity

Sensors & IoT

Cyber security

Robotics & automation

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Case

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Cognizant Digital Oilfield Journey

Concept

Strategy

Thought Leadership

Deployment

Operation

Optimisation

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DEFINING AND DELIVERING THE INDUSTRY DIGITAL BUILDING BLOCKS:The Cognizant Team have over two decades of experience implementing IO/DOF globally

Commissioned by Energy Majors to form a JIP to

explore building blocks of DOF

Defined the Energy major specific Strategies and

Roadmaps for DOF Pacesetters

Exploring digital transformation and developing smart

solutions

Sustained design and implementation of ground-

breaking DOF/IO capabilities

2020

VIS

ION

IAM for Brownfield DOF for Brownfield DOF for Greenfield Integrated Operations Remote Operations

Systems Integration Service Orientated Architecture Cloud Computing

Surveillance Analysis Collaboration Optimisation Big Data

Standardisation Rationalisation Mobility Automation

Technology Innovation Technology Enabled Change Digital Transformation

Product Adoption Functional Solutions Cross-Functional Capabilities

LOGOS REMOVED

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Two Decades of Integrated Operations

The Cognizant team at the table have over 15 years Integrated Operations and Digital Oilfield Experience:

Cognizant Capability Examples:• Thought Leadership• Strategy definition• Oil & Gas Domain • Programme Management• Solution Design• Change Management• Shaping and Optimisation• Value and Benefits Realisation• Continuous Improvement

Client Solution Examples:• Collaboration• Visualisation• Workforce Engagement• Production Optimisation• Machinery Support Centres• Industrial Mobility + RFID• Materials Management• Digital Asset Management• Integrated Operations• Digital Ready MCPs

2000 Strategy

2004 Design

Delivery 2008

Optimise 2012

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Managing Transformation:• Define success factors early• Set manageable transformation goals• Encompass value capture in the

solution• Actively monitor, capture and measure

success• Recognise and reward value

contributors

12

IOC = Operational Transformation

01Integrated Operations Centre

08Operational Modules

24Full-time Workstations

25Integrated Workflows

02Event Resolution Areas

14Fully Operational in 2014

O N E T E A M | O N E V I S I O N | O N E C L I C K

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Hazard Prevention model for common modes of catastrophic failure..

• 40 Shale drilling rigs over 500 sq miles.• Correlative model between Mud-motor failure, Stick slip

with Mission profile • Characterizing H-M-E instability from doghouse.• Assessing Historian ( Beacon) and telemetry sampling

rates.

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Algorithm and prediction model development.

• High Data latency did not allow in time intervention from Houston Operations center

• Worked with Drilling operations, and Petrophysics to develop and prove model

• Assessment and re-engineering of sampling rates, aperture sizes and historian rate

• Solution was still not good enough for remote preventive modes

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Central Operations view• Algorithm refinement• Fleet monitoring• Profile upload into rigs

Doghouse view• Dynamic boundaries• Minimal operator retraining• Incentives based on

compliance, not hours.

Decision making is moved to the right location.Hazard Prevention model for common modes of catastrophic failure..

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Getting started (or refocused)

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We design Digital systems – Humans first.

EngineeredSystemsandAssetsareconfiguredtostreamandingesthighdefinition,real-timeinformation,whichallowgreatercontexttoeventsandconditions.

Equipment&

Assets

• EnterpriseProcessesandSystemsofrecordaredesignedforagileoperations,reduceddecisionmakingtime,andaddressnewbusinessopportunity.

Process

TheStakeholderExperienceallowsfunctionincontext,inreal-time,andbyaugmentingdataperceptionacrossthebusinesslifecycle.

TheWorker

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COLLABORATORY DIGITALENGINE DIGITALFACTORY

• EngageLeadershipandSubjectExperts

• ExploreWithinandOutside• ConvergeonVision• PrioritizeMoonshots• DefineCapabilityModel• WriteoutExperiments

• Design• Prototype• Validate• Iterate

• Design,Process&Infrastructurescalability

• Technologytransformation• MultiVariatelaunches• DevOps• Continuousintegration

StartSmall&FailFast ScaleQuickly

Prioritize. Ideate+Prototype. Pilot+Scale

How do we get started

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Some Reflection

Barriers to adoption

• Resistance to change and lack of top level commitment to address resistance

• ‘Apprenticeship’ nature of the Industry

• Technology ‘baubles’ looking for a problem to solve

• Transferability of solutions and unclear ownership of IP

• Poor data foundation – lots of data but different systems

• Try to solve complex problems first

• Too long developing our visions and lost momentum

The Opportunity and imperative

• Technology enables innovation and innovation drives excitement

• Digitally native workforce coming through

• We need a revolution – move at pace and learn while doing

• Never too late to get started or to restart

• Start smaller and learn. Then grow

• Technology has moved on rapidly since we all got started 15 years ago

• Need for low cost operation in current price regime creates an undeniable imperative for change

© 2017 Cognizant

Questions?