Listen to how Odfjell Drilling is preparing to take advantage of new opportunities in IT and ERP.

2. Preparing the company for growth – from an IT perspective
Odfjell Drilling
Mr Tor Tjeldnes, CIO Odfjell Drilling
ttje@odfjelldrilling.com

3. Contents
• About Odfjell Drilling
• Key issues for IT in Odfjell Drilling
• Collaboration – Integrated Operations
• Project Global Standard – implementing IFS and standardizing business processes
– Background
– Evaluation process
– Implementation project – strategy and design principles
– Process & Organization
• Way forward
3
10/28/2013
#1233736

4. Odfjell Drilling
With operations worldwide and over 40 years of international drilling
experience, Odfjell Drilling is an established industry leader and
trusted partner for many of the world’s most respected energy
businesses. We are proud to be chosen for our experience and
expertise.

5. This is Odfjell Drilling
• An integrated drilling, well service
and engineering company with strong
international focus and growth
• World-wide operations, engineering
and new build project management
• 40 years' experience
• Turnover of approx. USD 1.1 billion
(2012)
• 5.7 billion USD contract backlog
• Operations in more than 20 countries
• 50 nationalities are represented among
our 3,200 employees
10/28/2013
#1233736
Page 5

6. Business areas
Our four specialist business areas provide segment-leading expertise - giving
customers a unique blend of talented and experienced individuals, alongside
advanced technology and operational excellence.
MOBILE UNITS
•
Deepsea Atlantic
•
Deepsea Bergen
•
Deepsea Stavanger
•
Deepsea Aberdeen
•
Deepsea Metro1
•
Deepsea Metro 2
•
Island Innovator
•
Dalian Developer
10/28/2013
#1233736
Page 6
PLATFORM DRILLING
WELL SERVICES
•
•
•
•
•
•
•
•
Statoil Norway
Wintershall Norway
BP UK
Talisman Energy UK
Taqa UK
Casing Services
Rental Services
Tubulars
DRILLING TECHNOLOGY
•Project Management
•Drilling Upgrades & Modifications
•Engineering
•Marine Operations
•BOP systems
•Maintenance Technology
•SPS and yard stay
•EPCI
•Technology Improvement
•AoC process

7. International presence
Norway
UK
Holland
Romania
Turkmenistan
Saudi Arabia
Brazil
South Korea
The Philippines
Thailand
United Arab Emirates
Tanzania
Angola
USA
10/28/2013
#1233736
7

8. Vision & Mission
Odfjell Drilling – chosen for
experience and expertise
Odfjell Drilling shall be a preferred international ultra deepwater
and harsh environment drilling contractor. And provider
of engineering and project management services for the
offshore drilling industry and high quality and innovative well
services

9. Demand for drilling services
Continued high drilling activity on NCS
Offshore well E&P spending – world wide
USDbn
90
No. wells drilled
250
80
200
70
60
150
50
40
100
30
20
50
10
Exploration wells
10/28/2013
#1233736
Side 9
Source: The Norwegian Petroloeum Directorate, Rystad Energy (as of [ ] June 2013)
Well Service
Drilling Tools and Commodities
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
Development wells
2005
-
0

10. Key issues for IT

11. Some key issues for IT in Odfjell Drilling
Cost effective business support
through
–Standardisation of business processes, systems and technology
–Global sourcing (vendors with global capabilities)
–Collaboration (Integrated Operations – collaboration tools, video, unified
communication…)
–Shared services centre in Manila
(IT support and other shared services)
11
10/28/2013
#1233736

12. Integrated Operations

13. Onshore Operations Model
- Decision based organisation onshore, execution based organisation offshore;
•Secure continuity between shifts – ensure consistency in
operations
•Experience transfer between operations/installations
•Administrative tasks to onshore to release time for increased
and continuous focus on HSE and operations for offshore
management
•Integrated planning activities onshore
(operations and technical maintenance)
•Improve resource utilization by cross training
•Increased focus on bottlenecks & continuous improvements
Benefit: Optimized number of personnel on board - without
compromising safety or efficiency
13
10/28/2013
#1233736

14. Integrated Operations – IT support
• Technological platform achieve effective collaboration
• Collaboration rooms & Operation centers
– Video conference
Realtime data
– FieldView / CCTV / UHF
– Realtime data
Video conference
– Smartboards
• MS Lync fully integrated
– Chat (quick and informal communication)
CCTV
Collaboration rooms
– Presence
Portable videocameras
– Share Data
– Point-to-point video
– Lync-Lync + Lync-Jabber
Cisco Jabber
Web cameras
• Cisco Jabber
Portable cameras
– High end video PC client
–
Jabber-Jabber, Jabber–Cisco endpoints + Jabber-Lync
UHF
MS Lync
#1233736
14
PC basert videokonferanse

15. Project Global Standard
Standard processes
IFS implementation

16. ERP evaluation
• Why?
– Alternative to further development of in-house-developed system for purchasing,
logistics and maintenance
• Scope
– Initially limited to purchasing, logistics and maintenance
– Evaluation extended to covering Finance and HR
after IFS was chosen for purchasing, logistics and maintenance
• Business case
– Process improvement and standardization
– Improved business predictability and control
Why
IFS?
– Industry standard solution
• Best Practices
• Integrated system - ERP
– Support business growth and internationalization
16
10/28/2013
#1233736

17. IFS ASSESSMENT (2012)
August
CW33
October
September
CW34
CW35
CW36
1. Maintenance
CW37
CW38
CW39
CW40
3.Logistics
2.operations
CW41
CW42
CW43
CW44
5.FI/CO + C&T
4.HR
1. Maintenance
scenarios
2.Operations scenarios
3.Logistics scenarios
4.HR scenarios
5.FI/CO scenarios
5.Cross functional
&Technology
•
•Project
•Rotation
•Incidents/Audits(HSE)
•Procurement
•Inventory
Management
•Shipment
•Human Resource planning
•Employee administration
•Time and Attendance
Reporting
•Pay roll processing
•Supplier Invoicing
•Fixed assets
•Cost controlling
•Project cost controlling
•Contract Management
•Document Management
•Replication
•Interfaces
•BI (business intelligence)
•
•
Equipment
Administration
PM planning
Work order
execution
10/28/2013
#1233736
17

18. Project Strategy
OBJECTIVES
INITIATIVES
PEOPLE
•
New way of working is
implemented and accepted in
the organization
•
•
•
PROCESS
•
Integrated, standard and
efficient processes implemented
and fit for global roll-out
•
•
•
SYSTEMS
•
Systems stabile and user
friendly, master data's are
standardized and governance
model implemented
•
•
18
10/28/2013
#1233736
Involve key personnel from all BU’s in the design phase to
ensure high quality, fit-for-purpose solutions
Provide good and timely information
Monitor and follow up change process
Train and support new users
Involve key personnel from all BU’s in the design phase to
ensure high quality, fit-for-purpose solutions
Business Process governance structure to be established in
design phase
All changes outside process and solution standard to be
approved by BPO
All processes to be verified globally and cross business
process area
Involve key personnel from all BU’s in the preparations and
execution of testing
Early decision on master data structure and governance
model
Clean up master data prior to implementation of new system

19. The fundamental design principles for establishing the Global
Standard in Odfjell Drilling are:
Standardization across
locations and operations
Global solution and processes
• Applicable for all locations and
operations
• Well functioning offshore as well as
onshore
• The system shall be intuitive and
easy to use
• Universal definition of roles and
“lingo”
• Process roles independent of
organizational role
• Standard process and solution
within process areas
• System set-up and user interface is
process oriented
• System controlled process steps
• Standardized system setup and
user interface
• Common master data structure
• All exceptions from standard shall
be approved by BPO
19
10/28/2013
#1233736
Safe and efficient solutions
• Information entered once and as
close to the source as possible
(avoid duplication and reduced
quality of information)
• Avoid manual work steps
• Move from handling of transaction
to planning and control
• Total efficiency for Odfjell Drilling
superior to efficiency for back-office
functions (hopefully not in conflict)
• In compliance with regulatory
bodies within our business
• In compliance with requirements
related to segregation of duties

20. Process & Organization

21. High level project plan
INITIATE
MAPPING
SYSTEM SET-UP & PREPARATION
IMPLEMENT
STABILIZE
Roll-out Strategy
Initiate
High Level
mapping
Detailed
mapping
Organization
Transition
preparations
Stabilize
processes
Training
Establish solution
(system set-up & configuration)
IT SYSTEM
Migration
Strategy
Masterdata
definition
Go live
Procedures &
Guidelines
ORGANIZATION & PROCESS
Testing &
Migration
Masterdata set-up & clean-up
Support & Maintenance of existing solutions
t
Q1/13
Q3/13
Q1/14
GLOBAL STANDARD
10/28/2013
#1240221
21
Q3/14
Q4/14

22. Goal
Main goal: Establish a global standard in Odfjell Drilling on how we do
•
•
•
•
•
•
Maintenance and asset management
Procurement
Logistics
Rental
Projects
Finance
This includes:
- Process description of future work processes
-
Establish link between IFS process descriptions and Odfjell Drilling process hierarchy
- Universal role definitions
- Changes in organization
governance model + suggested changes future organization of
support functions
- Establish and/or update procedures and guidelines to support the new standard
- Establish governance organization
- Train and prepare our organization
- Benefit realization
10/28/2013
#1240221
Page 22

23. From functional orientation to process orientation…
HR
Finance
Project
Maint.
Proc.
Logist.
Procurement - Procure to Pay
HR - Hire to Retire
Maintenance - “Acquire to scrap”
Rental – Order to invoicing
Logistics - Order to consumption
Project Control – Prospect to closure/payment
Finance – Budget to Reporting
Income flow – Sales order to payment
10/28/2013
#1240221
Page 23
Master Data Life Cycle
Rental

24. T1: Odfjell Drilling
SCM
SCM
GLOBAL STANDARD
10/28/2013
#1172717
24

25. GOVERNING PROCESSES SCM
PROCESS & SYSTEM
GOVERNANCE
PROCEDURES &
GUIDELINES
FA & CONTRACT
MANAGEMENT
SUPPLIER
MANAGEMENT
GLOBAL SCM
STRATEGY &
PHILOSOFY
PERFORMANCE &
RISK MANAGEMENT
SCM
LOGISTICS
PROCUREMENT
CORE PROCESSES SCM
LONG TERM
PROCUREMENT
PLAN
LONG TERM
LOGISTICS
PLANNING
DEFINE
PROCUREMENT
NEEDS (DAY-TODAY)
TRANSPORTATION
FOLLOW-UP
PROCUREMENT
REQUEST &
SELECT VENDOR
CUSTOMS CL
GOODS RECEIVED
TRANSIT
WAREHOUSING
SUPPORT PROCESSES SCM
MASTER DATA
ADMINISTRATION
MATERIAL
ADMINISTRATION
SYSTEM SET-UP AND
MAINTENANCE
10/28/2013
#1172717
25
VERIFY INVOICE
WAREHOUSING
GOODS & SERVICE
TRANSACTIONS

26. GOVERNING PROCESSES SCM
PROCESS & SYSTEM
GOVERNANCE
Process start-point:
• Need for changes in
process and/or system
• Need for establishment
of process/system
Main Activities:
• Evaluate need for
change
• Conclude on global
solution
• Conclude on local
adjustments
• Update Stream
Process Output:
• Governing principles
for process and/or
system development
• Conclusions on
system/process
changes
• Regulations of process
execution core and
support processes SCM
• Updated Stream
process description
PROCEDURES &
GUIDELINES
Process start-point:
• Need for changes in
procedures or
guidelines
• Need for establishment
of procedures or
guidelines
Main Activities:
• Evaluate need for
change
• Establish procedures or
guidelines
• Update CMS
Process Output:
• Governing principles
for execution of SCM
globally
• Updated procedures in
CMS
SUPPLIER &
CATEGORY
MANAGEMENT
GLOBAL SCM
STRATEGY &
PHILOSOFY
PERFORMANCE &
RISK MANAGEMENT
SCM
Process start-point:
• Need for new contract
or frame agreement
Process start-point:
• Procurement needs and
existing/new suppliers
Process start-point:
• Need for reviewed SCM
strategy
Main Activities:
• Long term planning of
contract and FA
establishment
• Plan and prepare
• Market screening
• Negotiations
• Benefit realization
• Contract follow-up
Main Activities:
• Categorization of
vendors
• Market analyzis
• Identification and
selection of
vendor/category
strategy
• Identify strategic
vendors and build
relations
• Administrate and follow
up procurement
categories
Main Activities:
• SWOT analysis
• Spend analysis
• Supplier and market
analysis
Process start-point:
• SCM Strategy
• Corporate Strategy and
goals
• Process and
transaction information
FA & CONTRACT
MANAGEMENT
Process Output:
• New contracts and FA’s
• Potential savings of
new contracts
Process Output:
• Enhanced procurement
power
• Clarified strategies per
category
• etc
10/28/2013
#1172717
26
Process Output:
• New SCM strategy
Main Activities:
• Assessment of risks
and opportunities
• Establish KPIs
• Measure and monitor
KPIs
• Perform analysis of
spendt, process
performance, etc
Process Output:
• Risk awareness and
mitigating actions
• Performance indicators
• Input to action plans
and

27. CORE PROCESSES SCM - PROCUREMENT
LONG TERM
PROCUREMENT
PLAN
Process start-point:
• New business events
(project, operation,
contract) with
procurement
requirements
• Long term asset plan
• Long term operation
plan
• Recurring event
Main Activities:
• Identify procurement
and investment needs
• Plan procurement and
investment
• Select sourcing and
procurement strategy
• Initiate procurement
activities long lead
items according to
strategy
Process Output:
• Updated long term
procurement plan
• Procurement initiatives
ready for start-up
DEFINE
PROCUREMENT
NEEDS (DAY-TODAY)
FOLLOW-UP
PROCUREMENT
REQUEST &
SELECT VENDOR
Process start-point:
Process start-point:
• Long term procurement • Clarified procurement
scope and
plan
requirements
• Day-to-day
procurement needs
Main Activities:
• Dependent on
Main Activities:
procurement type
• Define and clarify
(single source, FA
procurement scope
regulated, tailor made,
• Identify procurement
other)
type
• Establish requesition
• Identify and select
• Request proposal from
procurement strategy
3+ vendors
•
• Prepare and perform
negotiations
• Evaluate and select
Process Output:
vendor
• Procurement scope
• Establish and send PO
(spesification of
goods/services,
requirements,
category, sourcing
Process Output:
strategy, etc)
• PO to vendor
• Updated procurement
system
10/28/2013
#1172717
27
Process start-point:
• PO to vendor
Main Activities:
• Monitor progress of
delivery from vendor
• Monitor quality of
deliverables from
vendor
• Monitor shipment
status
• Evaluate need for VO
• Establish and send VO
to vendor
• Update status on PO
Process Output:
• Updated PO status
• VO
VERIFY INVOICE
Process start-point:
• Goods received
Main Activities:
• Verification of invoice
according to PO, VO
and goods received
Process Output:
• Approved invoice ready
for payment
• PO/VO closed

28. CORE PROCESSES SCM - LOGISTICS
LONG TERM
LOGISTICS
PLANNING
Process start-point:
• New business events
(project, operation,
contract) with need for
logistics set-ups
• Long term asset plan
• Long term operation
plan (contract status)
• Recurring event
Main Activities:
• Identify logistics needs
• Plan changes and
events in logistics
structure and
organization
Process Output:
• Updated long term
logistics plan
• Logistics initiatives
ready for start-up
TRANSPORTATION &
CUSTOMS CL
GOODS RECEIVED
Process start-point:
• Need for transportation
of goods
Process start-point:
• Goods arrived at
agreed delivery point
(where
Main Activities:
• Define and clarify
transportation scope
• Identify transportation
type
• Identify need for
customs clearance
• Book and perform
transportation
• Perform customs
clearance
• Follow up
transportation and
report progress
TRANSIT
WAREHOUSING
Process start-point:
• Goods received
registered
Main Activities:
• Check goods received
according to PO
• Inspection of delivered
goods
• Register goods
received in IFS
Process Output:
• Goods received and
registered
Process Output:
• Transportation scope
defined
• Goods delivered to
agreed point of
delivery
Process Output:
• Goods in location
• Goods ready for
delivery to warehouse
10/28/2013
#1172717
Main Activities:
• Update warehouse
location
• Perform customs
clearance
• Store goods in
warehouse
• Pick goods from
warehouse according
to
• Update system
• Clarify goods for
transportation to
warehouse
28
WAREHOUSING
Process start-point:
• Goods received
registere
Main Activities:
• Update warehouse
location
• Perform customs
clearance
• Store goods in
warehouse
• Update system
Process Output:
• Goods in location
• Warehouse information
updated in IFS
GOODS & SERVICE
TRANSACTIONS
Process start-point:
• Need for usage of
goods or services
• Return of goods to
warehouse
Main Activities:
• Print pick-list
• Pick up goods from
location
• Update system with
transactions
• Scrapping
• Return to vendor
• Return to basestore
Process Output:
• Goods consumed
• Updated status
inventory

29. CORE PROCESSES SCM - LOGISTICS
MASTER DATA
ADMINISTRATION
Process start-point:
• New items
• Updated datas
• Changes in item
description
• etc
Main Activities:
• Register new items
• Verification of
consistency in master
datas
• Analyse quality and
validity in data
Process Output:
• Updated master data
• QA of master data
SYSTEM SET-UP AND
MAINTENANCE
MATERIAL
ADMINISTRATION
Process start-point:
• New items
• Updated datas
• Changes in item
description
• etc
Process start-point:
• New users
• New functionality
• Agreed changes
(governance)
Main Activities:
• Evaluate urgency
• Evaluate need for
external assistance
• Evaluate need for
traning of new users
• Evaluate need for
establishing a project
• Assign tasks
• Perform tasks
• Inform users about
changes
• Update user manuals
Main Activities:
• Register new items
• Verification of
consistency in master
datas
• Analyse quality and
validity in data
Process Output:
• Updated master data
• QA of master data
Process Output:
• Updated system
10/28/2013
#1172717
29

30. Methodology alignment

31. Bridging methodology
IFS: Business Solution
TIER1 – Business Units
IFS: Key Solution
TIER2 – Value Chain
IFS: Main Process
TIER3 – Process Landscape
IFS: Application Solution
TIER4 – BPMN/Process
=
GLOBAL STANDARD
10/28/2013
#1172717
31

32. Critical path – alignment between IFS and Odfjell Drilling
Develop customizations, integrations
Establish
platform and
application
Establish basic data
Configure application
Train in
application
solution
Verify solution
Establish work instr.
Organize, plan and prepare training
Define support process and organization
Define and plan cut-over
Perform test migration
Define and plan change management
10/28/2013
#1240221
Page 32
Perform
AST

33. Critical path – alignment between IFS and Odfjell Drilling
Develop customizations, integrations
Establish
platform and
application
Establish basic data
Configure application
Design future processes
Define roles
Conclude on changes (process/org)
Train in
application
solution
Define rollout strategy
Def. targets
Est. baseline
Verify solution
Establish work instr.
Perform
AST
Organize, plan and prepare training
Define support process and organization
Define and plan cut-over
Perform test migration
Define and plan change management
Master data
structure
definition
10/28/2013
#1240221
Page 33
Master data cleaning
Master data
structure
definition

34. Way forward

35. The way forward
•
Further business process improvements and standardization,
•
cooperation with IFS and other companies, e.g. Rotation Planning
•
Industry Best Practices
•
Mobile solutions
hand-held devices, usability improvements for travellers
•
•
•
Tuning of IT service processes (ITIL based)
•
And always: Continous cost awareness!
Focus on business and IT architecture
Further development of our shared services centre in Manila
35
10/28/2013
#1233736

36. Thank you for your
attention