UNEXPECTED INSIGHTS FROM A MASTER DATA MANAGEMENT FAILURE REDEFINING SUCCESS AND THE CRITICAL ROLE OF CHANGE MANAGEMENT
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Frac your data TM Produce insight. Data Silos: Seal Source Data Land Drilling Production Accounting HSE
Failure rate in MDM Projects 75%? 30%? 50%? 90%?
Failure rate in MDM Projects 75%? 30%? Through 2016, only 33 percent of organizations that initiate an MDM program will succeed in demonstrating the value of information governance. Gartner Master Data Management Symposium, 2012 50%? 90%?
Figures often beguile me, particularly when I have the arranging of them myself; in which case the remark attributed to [the Israeli Prime Minister] would often apply with justice and force: 'There are three kinds of lies: lies, damned lies, and statistics. -Mark Twain Chapters from My Autobiography
Solution Delivery: Success or Failure? Scope delivered? Solution works? Solution in production? Solution used? Solution used as intended? Business goals accomplished?
2014 LinkedIn Poll: Primary Source of MDM Failure Wrong REPORTED REASON Integrator/Implementer 29% Wrong Technology 14% People 57%
2014 LinkedIn Poll: From the comments: Failure mainly due to lack of management commitment time and budget constraints, analysis [is] under-exposed little involvement of users in the design of the solution. [MDM] must have a business sponsor.
How does this line up with other studies?
Case Study: Complex Shale Lease Compliance Operations Legal Land IT Eagle Ford under active development Other shale plays in portfolio VP Ops is sponsor Active A&D Land Administration responsibility High degree of variability in lease portfolio Many complicated leases Multiple system vendors New management
Solution Delivery Process: 6 Steps 1. Lease Review Enumerate Critical Provisions Define Input Parameters (Key Dates, Key Quantities) 2. Data Mapping Locate Systems of Record Map to Destination Systems 3. Data Cleansing Correct inconsistencies in existing data set 4. Integration 5. Lease Provision Tracking 6. Alert Configuration Link Disparate Systems Synchronize copies to master Capture initial lease provision inventory Establish go-forward workflow to maintain provision inventory Assign business owners Define sensitivity cases
Attributes Needing Mastering Production Drilling Land Other Production Volumes Spud Dates Casing Dates Standard Lease Provisions Marketing: Sales Price Well Status Perforation Dates Rig Release Dates ERP: DOI, Sales, LOE Well Status Reason Fracture Dates P&A Dates Custom Lease Provisions DrillingInfo.com: Offset Well Locations
Lease Compliance Solution Drilling Lease Provisions Capture Key Source Data Entrance Solution Production Reports Land Sync Lease Compliance Management Send Alerts Other Configure Enterprise Lease Compliance Solution
Lease Compliance: Success or Failure? Scope delivered? Solution works? Solution in production? Solution used? Solution used as intended? Business goals accomplished?
Success Limitations Project Structure Scope conceived by non-technical consulting vendor Three projects in one (LPT, Status, Master) Scope creep Lack of stakeholder consensus IT Background Source system flux Stakeholder turnover Ownership disagreement between IT & LoB Business Background Major A&D Key Stakeholder Deaths (x2)
Insights Gained MDM Initiatives are not just projects Optimal success requires a commitment to transformative change Employees must be willing to change the way they work with information Technology neither makes nor breaks MDM Projects People: Primary Drivers of Success (or lack thereof) Value of Commitment over Consensus Maintaining Stakeholder Engagement Top down vs. Bottom up Turnover (even death!) Data: Quality and Management Belong Together Source system flux Design it in Smaller operator, higher growth = more likely Good Deployment Processes Minimized downtime despite undocumented shadow IT
Outlook: Room for Improvement in Energy 2011: 2014 and beyond?
The Bottom Line MDM is NOT Short term quick win A type of project A technology solution IT resume fodder MDM is A commitment to change A different way to think about information An evergreen program that requires ongoing committed resources
What makes Entrance different? Energy Focus Not Just a VAR Not Staffing Proven Teams Lowest Risk Trusted Experience Houston HQ Oil & gas specialists vs. technology platform generalists We work for the client with a right tool, right job mentality We focus on solutions + results, not skillsets + resumes Repeated, demonstrable, reference-worthy energy experience spanning two decades High tenure + low turnover = customer success Average industry experience per consultant 8+ years You will deal with top management, not a branch office
Questions? Learn more at www.entrancesoftware.com
(Re)sources LinkedIn Polls TDWI - Marketing IT In-House: Don t Let BI Failure Statistics Stop You http://tdwi.org/articles/2014/02/18/bi-failure-statistics.aspx Gartner - Gartner Says Master Data Management Is Critical to Achieving Effective Information Governance http://www.gartner.com/newsroom/id/1898914 PWC Buried Treasure: Global Report on MDM http://www.pwc.de/de_de/de/prozessoptimierung/assets/stu die_mdm_englisch.pdf Profisee The Human Factor of MDM http://marketing.profisee.com/acton/attachment/2329/f- 0161/1/-/-/-/-/file.pdf