Dutch Holland
What is not happening yet in the digital energy world is an investment in the interface between the business and technology worlds - because the seemingly unsolvable problem still exists - how to get people to communicate from the operational functions to the innovation function and vice versa.
For example, it is not uncommon for asset managers and digital energy research to work at cross-purposes with each other. Too often, R&D is expected to continually develop innovations and then make them available to the asset managers who take the new technology and figure out what to do with it, if anything.
What is missing in this faulty scenario is that a part of operations must be proactive about getting improvements and receptive to innovation and, conversely, a part of the Innovation side must be implementation-oriented.
What companies must do, and what continues to be missing, is to invest in the quality of that intelligent interface.
Implementing digital technology into an oilfield company’s work environment can potentially add substantial value - but technology insertions are repeatedly easier said than done.
IT implementations are even more painful than a root canal in failing to meet management expectations an excruciating eighty percent of the time.
While companies have figured out how to implement new core technology, a lesson learned the hard way is that an intelligent interface – connecting the digital technology innovation with the existing business - is vitally needed.
The issue is not to continue wondering why so many insertions go belly up but how to leverage an intelligent interface and dramatically improve the rate of successful insertions.
The human interface
Essentially, an interface must be a formal function staffed by real and talented people primarily from the business side.
Interfaces are not one-dimensional concepts, but rather concrete connections between innovation and business functions.
These designations refer to people and processes which connect technology and operations.
The intelligent interface must have multi-faceted capabilities that translate business opportunity into technical requirements; innovate, test and evaluate; and seamlessly implement new technology into the business.
A major change is necessary from what is being done today in many parts of the industry that are using a mechanical template-driven interface that “only communicates” between research and development / IT and the business.
Instead, the business side must drive an intelligent interface by coming through with passionate participation and leadership – from initial exploration of possibilities to full implementation and utilisation.
More than lip service is imperative; somebody on the business side must be committed to mining IT’s technological value for their business.
Still, many in business management ranks carry negative baggage from failed insertions at a time when they should actually be mobilizing their “best and brightest” and energising them to extract the most value for the business from each piece of new technology … including digital energy.
In working to improve technology insertions five types of interfaces are in play.
IMAGE: dutch hollland man in suit.jpg
Caption: For many companies, the way to make sure new software integrates well with the business is to bring in a business analyst to come into the company, and ask lots of questions by going through a checklist
The by-the-book business analyst
Generically, a bright young guy in a suit and tie, working on the “innovation” side, is assigned to interview various individuals on the business side.
Using a checklist to ask questions and record answers, his mission is to provide a completed template to document and develop an understanding of what the business needs from technology.
Theoretically, if this approach works, an applications sourcing expert can interact with both the analyst and template data to select and develop appropriate technology and configure it to meet business needs.
The business-experienced analyst”
The idea is that “He comes from the business side so he knows what business wants.”
In all aspects, nobody is looking for him to push the envelope in any way, shape or form. From a positive perspective, he brings a wealth of business experience to the table.
On the negative side, he also drags along decades of biases (both conscious and unconscious). Frequently not an effective or disciplined template developer, he may make decisions about business needs by feel rather than conducting a data-based analysis.
The businessman CIO
Realistically, this is perhaps the most reactionary one of the five. For example, top management comes to the conclusion that communicating with the company’s IT personnel is very difficult if not virtually impossible.
Therefore, they believe that IT is “not under control” and should be commandeered. Management’s mission becomes “We’ll fix them (IT)” by installing someone from the business side as the new CIO or IT head.
Before anyone quickly applauds, however, be advised that this approach is very tough to execute for fairly obvious reasons. Not surprisingly, the level of communication is indeed improved between the CIO and the business side because the latter is where the new CIO came from.
Unfortunately, the new chief knows no more about IT’s nuances than a genuine IT-experienced CIO knows about business-side details.
The IT expert Inside the business
Obvious logic here: Why not place one or more experienced IT/R&D people ”inside the business,” both physically and organizationally?
Once again, if not prompting a “That could work” reaction, it still might strike some as not necessarily a bad idea.
But, hold that thought. Taking an innovator and inserting him into the business side – attending meetings and picking up daily information and observations – only means having someone hearing the business through IT ears and processing it accordingly.
Regardless of good intentions, without figuratively having business in his bones, no real net gain occurs because the IT expert is typically tuned out at business meetings.
The operations-led interface
Here, the actor is the business side committed to exploiting technology - in this case, digital energy.
The interface is comprised of operations/business experts who are not only passionate about exploiting digital energy, but formally commissioned and made accountable by the business side to penetrate the innovation side and make business improvements happen.
Consider the NASA environment to see how an intelligent interface, in the form of an astronaut, examines the flight hardware which will take him into space. These future fliers interact directly with technology providers, which can sometimes be ugly. Usually the ugliest part is when a technology innovator or vendor responds to an astronaut’s operational question with jargon or alphabet soup acronyms.
It takes but a few seconds for the intelligent interface to clarify who the customer is, who defines the needs and who has ultimate control of the dollars – then to insist that the conversation continue without the obfuscation. Most likely, the digital energy equivalent is an experienced business person fully committed to putting new digital technology to work to pay off for the business. For this, there is no substitute.
When trying to connect technology innovation with business, an intelligent interface between the two is required. It must be able to translate business opportunity into technical requirements; innovate, test and evaluate; and seamlessly implement new technology into the business.
We’re always looking for digital oilfield implementation stories, cases (good and bad) and good ideas to feature. Send your input to dutch at hdinc.com Who knows? You may be “in print” (with your permission, of course).
For more than a decade, Dutch Holland has been the pioneer in applying a systems engineering approach to Change Management in the digital oilfield (Engineering Organizational ChangeR patent pending) and Systems Engineering Approach to Business ReadinessR Dutch Holland, PhD, is CEO of Houston, TX-based Holland & Davis LLC.