A client and now dear friend of mine told me once “We are not managing data for the sake of data management, we are doing it to support the business.” We connected immediately, and I took this as a sign that she would achieve great things for her company.
Supporting the business is the only reason to justify an IM group in an E&P company. But how does an Information Management connect (and prove the value of) enterprise initiatives that may take years to complete, to business operations that fluctuate with commodity prices?
Let’s look at the typical experience of many companies in the past few years:
When oil prices hovered for a lengthy period at approximately $100 a barrel, most businesses prioritized exploration and production to find new plays as fast as possible. Drill faster, complete faster, produce sooner, and find more. In this “growth” mode data came in, fast and furious. Companies threw in serious money to gather and analyze every data.
However, when oil prices hit $26 a barrel, “survival” mode kicked in. Most companies renegotiated their contracts and loans while trying to maintain base oil or gas production (revenue) at the least cost possible. Meeting or exceeding production targets became existential, not just good for business. Here in this mode, some data gathering slowed significantly, while the focus on producing wells and its facilities heightened.
Two entirely different sets of processes, completely different sets of priorities, could force totally different data management projects. In ‘growth’ mode, the focus was on the speed of processing directional surveys, logs, perforation, costs, and frac data. In ‘survival mode,’ the focus changed to Wells’ and facilities’ performance and integrity.
All technical data is critical to an oil and gas company and should be available, boom or bust. It is also, entirely understandable that, in a world of limited resources, projects with the highest impact to the business are prioritized first. Shifting IM priorities with the change in commodity prices or change of business focus is not simple.
However, a good EIM strategy will support the business in any mode, growth, survival, or any other mode, with ease. The good news is, it is entirely possible to have such an EIM strategy, simply by focusing efforts towards organizational goals through growth and lean times alike. Also, today’s advancements in technology allow for increased agility in organizational response. But you got to have a strategy.
Once a strategy is defined and embraced, every information management project, for both structured and unstructured information, must advance the ball towards the goal, or just be killed. This is not as easy as it sounds, of course. It requires expertise and the dedicated effort. Prioritizing efforts, identifying weaknesses, choosing the right technology, all can help your organization grow faster in growth mode, as well as to swim, rather than tread water in survival mode.
Has your organization defined a strategy yet? Are they working to support the business, or are they just managing data for the sake of data management?
For greater clarity on your position, call or email us to schedule a complimentary strategy appraisal with one of our consultants.