roadmap for digitalization in the mmo...

Roadmap for digitalization in the MMO industry

Brede LærumBjarte Haugland

Linn-Cecilie MoholtThomas SkjævelandOliver Halvorsrød

Truls LienNils-Endre HatlevikKaroline Neumann

January 18, 2018

Executive Summary

As part of the MMO improvement program a joint industry project has been executed with the mandate to createa roadmap for digitalization to improve safety and efficiency. One important part of the work has been to organizea workshop for a mix of experienced and young employees and students to get ideas related to how to utilizedigitalization in the MMO industry. The Roadmap consists of six improvement areas: Disruption and businessmodels, sharing and analysis of data, VR surveys and training, remote experts, safe and efficient operations and 3Dprinting. Each of the improvement areas suggests a number of recommended actions, from strategic high impactdirections to short term actions. Some of these are:

• Establish a Chief Digital Officer (CDO) as part of the executive management team that shall meet in DigitalNorway’s CDO executive forum. Carry out Digital Norway’s digital maturity indicator on your company.

• Choose a partner to organize a collaborative independent data-sharing platform (similar to Germany’s indus-trial data space) and to help establishing common rules on how to share. One example of such a partner isDigital Norway. Sharing of data should be the norm, concealing data should be the deviation for the norm.

• Share experience, data and assets across the MMO industry. All members of the MMO will benefit to sharethe experience from each other’s pilots.

• Use frameworks like establishing sandboxes, starting pilots and engaging in innovative startups etc. to failcheap and fail fast and share experiences with this.

• Use BankID as a common method to facilitate user identification and system access.

• Increase the dialogue and interaction with young talents and academia in Norway, NTNU, SINTEF, Univer-sitetet i Bergen, Høyskolen p̊aVestlandet, Universitet i Stavanger etc. Facilitate for Master and PhD studentsto solve challenges within digitalization as well engage in Norwegian Chamber of Commerce’s recruitment andreputation project and similar.

• Contracts should be evaluated in light of the digital transformation. Terms lik death of the billable hourshows that in a new era, new compensation forms need to be developed to support the digital transformation

• Continue the MMO cooperation within digitalization and seek funding to this work for example throughInnovation Norway by establishing an ”Arena” (hub in early phase), or similar from NRC or Siva.. Establisha new workgroup with mandate to implement the Digitalization roadmap, to give advice to the steeringcommittee and to ensure coordinated dialogue with other initiatives and organizations.

• Map the digital and physical infrastructure with the intent to share, and map disruptive threats and possi-bilities.

• Use Virtual Reality (VR) to do offshore surveys onshore, and to perform training in realistic environment

• Use Augmented Reality (AR) to enable on-site availability of remote experts

• Mix digitalization and LEAN to digital LEAN

• Establish a Joint Venture to establish an 3D print (AM) centre in a central location, e.g. Mongstad base.

Digitalization is mentioned as the fourth industrial revolution, it clearly has a high disruptive potential, and itis essential for the MMO industry to step up the effort to exploit the possibilities and to mitigate the risks.

Contents

1 Introduction 21.1 Ambitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.2 Background, context and digital trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.2.1 Norwegian Government initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.2.2 Other initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.3 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.4 Workshop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2 Disruption and business models 102.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.2 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.3 Business models and the billable hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.4 Mapping of the infrastructure with the intent to share: . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.4.1 Sharing of data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.4.2 Sharing of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.4.3 The need for new business models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.4.4 Digital Asset life cycle management- Asset as a service. . . . . . . . . . . . . . . . . . . . . . 162.4.5 Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162.4.6 Sandbox Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.5 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.7 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.8 Onepager disruption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3 Sharing and analysis of data 193.1 Sharing of data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3.1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193.1.2 The industrial space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.1.3 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.1.4 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.1.5 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.1.6 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3.2 AI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.2.2 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.2.3 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.2.4 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.2.5 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.3 IoT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

i

3.3.2 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.3.3 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233.3.4 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243.3.5 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3.4 Cloud computing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.4.2 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.4.3 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.4.4 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.4.5 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.5 Onepager sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

4 Surveys and training in Virtual Reality (VR) 284.1 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294.2 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294.3 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.4 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.5 Onepager VR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

5 Remote experts with Augmented Reality (AR) 345.1 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355.2 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365.3 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365.4 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365.5 Onepager AR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

6 Safer and more efficient operations 386.1 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396.2 Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396.3 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406.4 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406.5 Onepager safer and more efficient operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

7 3D printing 427.1 Potential use in the MMO industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437.2 Product optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447.3 Production of obsolete parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447.4 Reduced production time/reduced warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457.5 Visualization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457.6 Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457.7 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457.8 Complexity and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457.9 Recommended actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467.10 Onepager 3d printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

8 Recommendations to other JIP groups 488.1 MMO JIP Step up safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488.2 MMO JIP Low carbon future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

9 The way ahead 49

A Kahoot results A1

ii

B Success stories B1B.1 Wood Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1B.2 Aibel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B8B.3 Statoil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B12

C Disruptive map example from banking industry C1

iii

Glossary

AI Artificial Intelligence.AM Additive Manufacturing (3D printing).AR Augmented reality.

CDO Chief Digital Officer.

GCE Global Center of Excellence.

HSSEQ Health Safety Security Environment and Qual-ity.

ICT-LEIT Information and communication leadership inenabling and industrial technologies.

IoT Internet of Things.

JIP Joint Industry Project.

Kahoot Game-based teaching platform for performingquiz on stage while audience participates on mo-bile.

LO Norwegian Association of Trade Unions.

MMO Maintenance Modifications and Operationsl.

NCE Norwegian Center of Excellence.NCS Norwegian Continental Shelf.NRC Norwegian Research Council (Forskningsre.t).

PoC Proof of Concept.

SMB Small and Medium-sized businesses.

TINC Tech Incubator in Silicon Valley.

VR Virtual reality.

XaaS ”X” or anything as a Services.

1

Chapter 1

Introduction

A steering committee consisting of representatives from nine companies was established on Statoils initiative toaddress the five topics low carbon future, step-up for safety, optimal value-chain, strategic collaboration and digi-talization. This document is the product of the joint industry project JIP of the digitalization group led by BredeLærum in Statoil. The participants and their representative companies are mentioned in the list below, in ad-dition to mentioned companies, Worley Parsons, MRC Global and Kværner are also represented in the steeringcommittee. The project was initiated in February 2017 and the digitalization group met for the first time in April.The steering committee asks what digitalization possibilities exist in the maintenance, modification and operations(MMO) business and how digitalization may contribute to increased health, safety, security, environment, quality(HSSEQ) and efficiency. The deliverables are presented in this document and includes background and contextwhich will be presented in Section 1.2, an arranged workshop for brainstorming inviting young professionals fromindustry and academia, and is presented in Section 1.4. Government and other related initiatives are mentioned inSection 1.2.1 and 1.2.2, while digital initiatives in the participating companies are covered in Appendix B. Ideasfrom the workshop have been filtered and rated through the Kahoot, and selected candidates are reviewed andspecific actions recommended under six topics in the roadmap presented in the following chapters with topics aspresented in Figure 7. In addition to actions related to specific technologies, a plan for continuation of the digital-ization work is included in Section 6. Since the digitalization groups work has been proceeding ahead of the othergroups, experiences that may benefit the organization of the other JIP groups, and ideas on overlapping topics areconveyed to the other groups in Section 8.

• Brede Lærum - Statoil

• Oliver Halvorsrød - ABB

• Linn-Cecilie Moholt - Karsten Moholt

• Truls Lien - Aker Solutions

• Thomas Skjæveland - Aibel

• Bjarte Haugland - Apply Sørco

• Nils-Endre Hatlevik - ABB

• Karoline Neumann - Wood

2

Figure 1.1: Recommended improvement areas

1.1 Ambitions

In addition to the goal set from the steering committee of mapping digitalization potential for improved HSSEQand competitiveness, the digitalization group has further specifications and ambitions for the work. We want toboth find short term, specific low hanging fruits with focus on technology, as well as thinking big, looking at trendsand facilitate for the unknown future to come and its framework and preconditions. We aim to establish qualitativeas well as quantitative goals that are specific and measurable. We want to find areas where each company cancontribute and share, and establish a lasting collaboration that together gives us an advantage, and positions usalso internationally. We want the collaboration and coordination of initiatives between the companies to continuealso after the mandate of the digitalization group expires. Finally we agree with the steering committee that youngtalents should be involved in the digitalization work.

1.2 Background, context and digital trends

Industry 4.0 has been established as a recognized term for the digitalization of traditional industries. Its origin isfrom a German government initiative initiated in 2011 called Industrie 4.0. The four stands for the 4th industrialrevolution, and representing typically smart factories in Germany, where the 3rd industrial revolution representedautomation and computerization. There are many attempts to define digitalization, according to the dictionary ofthe IT research company Gartner Digitalization is the use of digital technologies to change a business model andprovide new revenue and value-producing opportunities; it is the process of moving to a digital business”. Digital

3

transformation is often used interchangeably with digitization. However the transformation of physical or analogdata to a digital format of bits and bytes, 0 and 1’s is more correctly referred to as digitization and is also aprerequisite for digital transformation. Digitization is associated with the third industrial revolution - the digitalrevolution, and is a prerequisite for the following digital transformation or digitalization of the industries whichhas a wider meaning. Many of the big companies today are digital-born, such as Facebook and Google, but moretraditional companies need to go through a digital transformation, or media can assure us they will be left behind.

Figure 1.2: Change [21]

Some of the enabling technologies are: more advanced, diverse and cheaper sensors, data transmission rates andwireless reach, cloud storage and computing, data- and collaborative platforms, big data, internet of things (IoT),automation, robots, drones, additive manufacturing (AM) such as 3D printing, virtual reality (VR), augmentedreality (AR), etc. An excess of data leads to smart algorithms enabling artificial intelligence (AI), machine learning,blockchain, neural networks, bayesian updating, pattern (image) recognition and trending/predictions. The useof some of the technologies are so disruptive it leads to new business models such as collaborative platforms andsuper-users establishing trust with consumers and stealing traditional marked-shares for example Uber from taxis,and Airbnb from hotels. A trend is going from product to service based industry, XaaS or anything as a service.Now you pay for a measurable outcome rather than the machine that enables that outcome, such as selling metersof vertical transportation instead of elevators. Several of the mentioned technologies we will come back to, as wellas providing insight on organization and leadership, speed of change, the state of the industry and motivation todigitalize.

1.2.1 Norwegian Government initiatives

Many relevant digital initiatives for the MMO industry are mentioned in Meld St. 21, a report from the Gov-ernment to the Storting in Norway (Industrimeldingen) about the Industry greener smarter and more innovative[17]. The first part of the document make a thorough review of challenges and enablers for the industry. Indus-trial robots, additive manufacturing, IoT, VR, AR, big data and pattern recognition is mentioned under the topictechnology-driven trends. Under the topic possibilities and challenges by these technologies they review the topics:collaborative platforms, new business models, ownership to data, leadership and their will, ability, digital compe-tence, attitudes and priorities, cyber threats and vulnerability as well as standards. There is also a review of howother countries governments have met the digitalization demand, starting with Germanys Industrie 4.0, throughHong Kong’s ”digital21”. The second part of the document deals with politics for the industry. A relevant chapterfor digitalization in MMO is about competence.

An initiative called Digital 21 consists of a steering committee of 13 persons which were ready June 7th 2017

4

and should establish a wide cross industry strategy for digitalization. 3rd July 2017 DigitalNorway (Toppindus-trisenteret) got a position as secretariat for Digital21, after previously getting startup funding from the government.DigitalNorway is a non-profit industrial initiative owned by 15 Norwegian companies aiming to digitalize Norwegiancompanies by connecting, informing and running digital projects. Related to digital competence the governmentmeans to develop their hub policy. Through Innovation Norway, Siva and Norwegian Research Council there arethree types of hub programs which receive funding: arena (hubs in early phase), NCE (Norwegian Centers of Ex-pertise), and GCE (global centers of expertise), one of the NCE clusters are subsea valley. Some of the clusters arepart of Norwegian Innovation Clusters which in addition should give effect outside of the cluster itself, such as NCEsystems engineering Kongsberg. Together with two other NCEs they were pilot for the change-machine project(omstillingsmaskinen), which is fully financed for startup in 2017, and should be an accelerator for digitalization ofsmall and medium sized businesses (SMBs).

Figure 1.3: Government initiatives relevant for the digital transformation of companies in Norway

The Norwegian Research Council (NRC) also has several other initiatives relevant for digitalization in theindustry. A brainstorming (idlab) for Industry 4.0 Norway was arranged in June where 14 million NOK wereprovided for 4 projects. IKT Plus is another project by NRC on IKT and digital innovation and is a 40 millionNOK joint Indian-Norwegian project. Further NRC provide up to 50% funding in their industrial PhD programwhere employees take a doctoral degree on a topic relevant for the company in collaboration with a university.Industrimeldingen also calls for higher Norwegian industry participation in the EU project Horizon2020, a nearly80 billion euro project from 2014-2020 in which Norway is contributing as a full member. The three main categoriesare excellent science, industrial leadership, and societal challenges. Sub-categories include secure clean and efficientenergy, marine and maritime as well as the program information and communication leadership in enabling andindustrial technologies (ICT-LEIT) spanning several other categories, which may all be relevant for digitalization inthe MMO industry. Finally, due to the slow change of established organizations, the government supports start-ups,incubators and accelerators through the katapult program organized by Siva, and Tech Incubator in Silicon Valley(TINC) organized by Innovation Norway.

5

1.2.2 Other initiatives

Konkraft is a collaboration arena between the Norwegian Oil and Gas Association, the Federation of NorwegianIndustries, Norwegian Shipowners Association and the Norwegian Association of Trade Unions (LO) with theunions Norwegian United Federation of Trade Unions (Fellesforbundet) and Industri Energi. Konkraft is workingwith common industry strategies and for the competitiveness of the Norwegian Continental Shelf (NCS). Theyhave initiated a project on competitiveness (Konkurransekraft) where one of the themes is increasing the use ofdigital solutions, automation and the use of robots. There are several companies in the MMO industry workingon collaborative data platforms. Kongsberg launched their platform Kognifai in spring 2017. DNV-GL launchedtheir platform Veracity together with a data quality recommended practice early 2017. Other companies in theMMO industry working with less collaborative data platforms include include SAPs hana vora, and ABBs ability.Big data platforms are commonly built on Hadoop and/or Microsoft Azure, facilitating scaling and security. InGermany in 2014, businesses, political and research communities collaborated to set up the Industrial Data SpaceInitiative which is an industry-wide collaborative data ecosystem.

6

1.3 Motivation

To motivate for change, the first points to be made is that we are not good enough, and to realize we are laggingbehind. Figure 1.4 shows Norway as one of the stall out countries on the 2017 digital evolution index. According tothe report published by Harvard Business review these countries enjoy a high state of digital advancement, but havechallenges with sustaining growth, and need a conscious effort to move past the digital plateau [4]. A collaborationreport between Deloitte and MIT Sloan management review from 2015 finds that oil and gas is in bottom 5 out of18 sectors on digital maturity with a score of 4.68 on a scale of 1-10, where 10 is best (construction and real estateis on the bottom with a score of 4.50), see Figure 1.5 [13].

Figure 1.4: Digital evolution index [4]

On the topic of internet of things, big data and analytics, a McKinsey report refers to an oil rig where only 1%of data out of 30 000 sensors were examined, and states that most sensors are today used for anomaly detectionand control rather than optimization and prediction [16]. A Norwegian study from 2016 performed by Siemensand Federation of Norwegian Industries finds that 7 out of 10 means that digitalization is crucial for the companyscompetitiveness, yet 7 out of 10 also answer that their companies do not have good enough strategies and plans fordigitalization [19]. The second motivation for change is a financial carrot. The mentioned McKinsey report estimatesthat business to business applications (B2B) can create nearly 70% of the potential value of IOT, generating morevalue than the more mature business to consumer (B2C) business [16]. A report by the world economic forum oncollaboration with Accenture on the digital transformation initiative (DTI) on the oil and gas industry was publishedin 2017. They show that in the digital asset lifecycle management category for value at stake for business, operation

7

optimization has alone the potential to unlock approximately $275 billion globally from 2016-2025 by leveragingdata and analytical algorithms, while predictive maintenance is estimated at $150 billion [10]. McKinsey estimatesthat IOT in the worksite setting (which includes oil and gas facilities) globally can have an economic impact between$160 billion and $930 billion in 2025, where the biggest sources of value are improvements in operations (up to $470billion) and improved condition based maintenance (up to $360 billion) [16]. Further they also estimate that IOTtechnologies can reduce accidents, injuries as well as cost of insurance by 10%-20%.

Figure 1.5: Oil and gas is in the bottom 5 on digital maturity [13]

8

1.4 Workshop

A ”opportunity discovery” workshop in digitalization that was arranged in Bergen at Høyskolen Vestlandet 13.06.2017by the working group. over 70 participants from the companies and academia attended. The goal of the workshopwas to identify opportunities that may arise for the MMO industry due to digitalization? How can digitalizationcontribute to improved safety and efficiency? Presentations were held by Prof. Knut Øvsthus on digitalizationand robotization, Geir Ødeg̊ard from Digital Norway, Søren Olsson from Materialize on 3d printing, Sverre OliverHalvorsrød from ABB and by Ove Ryland from EPIM. Between the presentations a design thinking strategy wasused to extract ideas from the participants via 10 tables with different categories and hosts. By the end of the day,4 ideas was chosen from each table, and a Kahoot was performed to vote over the ideas. The result can be seen inAppendix, and was used as a base for the the roadmap categories and recommendations.

Figure 1.6: Workshop. Photo: Brede Lærum, Statoil

9

Chapter 2

Disruption and business models

2.1 Introduction

The time is ripe for digital disruption in the oil and gas industry. Low prices and a volatile market have resulted in atypical responsecut costs (both in terms of headcount and wage freezes), renegotiate supplier agreements and reducecapital expenditure. These actions may be effective in delivering immediate financial performance, but a constantexpectation to do more with less without changing the fundamental way we operate makes managing volatilityharder. Over the long term, these measures can create operating model rigidity and risk hampering performanceand growth. To survive, progressive oil and gas companies must be bold and recognize that digital strategy is muchmore than a merely IT strategy. Digital presents an opportunity to disrupt the industry, not only by driving thenext wave of cost efficiency, but also by securing operational agility to better manage volatility and position forgrowth

Despite these fundamental shifts, many of the digital initiatives to date within Oil and Gas could be seen asconservative and with limited impact on existing operating or business models. Much of the effort so far has beenevolutionary; companies are making incremental performance improvements through the selective use of businessand digital technologies. These include basic proactive maintenance procedures, remote operating assets, reviewsof completed operations and the use of rudimentary data sets for all parts of the Oil and Gas value chain. Atpresent, the traditional approach of selectively adopting a set of technologies and unsystematically implementingdigitalization might not be suitable. Instead, the industry could benefit more by pursuing a revolutionary agendawith digital as a backbone, or a mindset on how we evaluate ourselves against industries that has been livingon tight margins for decades. Digital transformation has the potential to create tremendous value for both theindustry and society as a whole. Such a transformation will require organizations to implement a focused digitalstrategy, sponsored by the chief executive officer and executive teams, and a culture of innovation and technologyadoption. It will also need investment and commitment to revisit and revamp processes, infrastructure and systems;and, a willingness to collaborate and share insights across the ecosystem. All the enablers required for a successfultransformation will have to come into play for the industry to harness digital’s true potential [14]

2.2 Background

A business model is a company’s plan for how it will generate revenues and make a profit. It explains what productsor services the business plans to manufacture and market, and how it plans to do so, including what expenses it willincur and what income to expect. Sharing economy is defined as an economic model based on sharing resources toutilize the spare capacity of the resources for the benefit of both owner of the resource as well as the requester of theresource, in exchange for money or other services in a way that simplifies and lowers transaction costs. Disruptionis defined as innovation that interferes with an existing market by making an existing business model irrelevant andthus setting up established businesses or products on the sidelines.

10

The world’s first digital computer was completed at Iowa State College in 1942. The world’s first conferenceon artificial intelligence was held in 1956 in Dartmouth. The sharing economy has been with us at all times andwe have still been exposed to disasters. Sailboats were disrupted by steamers, horses and carts were disrupted bythe car; candles were disrupted by the electric light bulb, to name a few examples where the old technology wasreplaced by a new over a period of time where they co-existed. In other words disruptions are not new. What thenlies behind the explosive development we now suddenly experience within the area of digitalization?

An important factor is that the world has become more connected via the Internet, and thus much more trans-parent. The price of computing power is another important factor. This has made the computer available to anincreasing number of people globally, which has led to today 3.7 billion PC users in this world connected to theInternet, compared with 25 million in 1994. This in practice means 3.7 billion manufacturers of data connected tothe Internet. In addition, 8.2 billion smart objects like weather stations and industrial plants produce data for ”theInternet of Things”. However, for most of this decade, the industry has not taken advantage of the opportunitiesthat derive from using data and technology in a meaningful way. A single drilling rig at an oilfield, for example,can generate terabytes of data every day, but only a small fraction of it is used for decision-making [10]

Large amounts of data combined with cost-effective data processing are a prerequisite for benefiting from thepotential of artificial intelligence. These conditions are now present and have led to the situation that our existingservice industries, based on todays present industry and business world, are being automated by systems with arti-ficial intelligence. Cognitive robots have already taken on banking, finance, law and insurance, and more industriesare coming after. Today, our existing services comprise 70 percent of GDP and almost 80 percent of full-timeemployees in Norway. Artificial intelligence can thus be of significance importance for future employment, unlesswe develop our business and participate in digital development. Managing new technology is the only way to createnew jobs with it. Physical robots need developers and operators, cognitive robots need algorithms and learning.

Disruption has always benefited consumers and the companies that manage to engage at the right time. Oilcrisis is a good example of a disruption. The technological development of shale oil and shale gas production ledto a massive overproduction in the market. At the end of 2014, commodity prices fell by more than 70 percent,compared to June 2014. This led to a global oil industry becoming disrupted, and quickly had to go through a bru-tal conversion to survive the changes. The consumers of oil have after the disruption had the benefit of a low oil price.

There is probably nobody that wants to go back to a time when horse and cart is the best means of transporta-tion. Since today, 3.7 billion people are connected to each other via the Internet, this means 3.7 billion consumerswho can easily find each other to share assets or services in a simple way. This has led to the divisional economynow having a whole new era. Such a large grouping has great power, and this pushes for easy access to productsand services, without costing intermediaries, which increase transaction costs. The sharing economy also leads tobetter resource utilization and a lower need for assets overall. This is environmentally beneficial. For example, if allcars in the world become driverless and are using full resource utilization in a sharing economics model, the needfor cars in the world will be greatly reduced.

Disruption, however, can hit established companies hard. New technology compels old technology and breaksdown existing business models. Parallel with reduced revenues on existing business model, companies that survivemust take risks and invest in new skills and knowledge. Cultural and structural inertia in established organizations,combined with people’s inherent resistance against change, makes this very often take too long with bankruptcy asa result. In the short run, this means job losses, and it makes digitalization and disruption somewhat intimidating.This, however, is an unfortunate sight because good and important opportunities can be lost. New technology anddigitalization is the solution, not the threat.

11

2.3 Business models and the billable hour

An industrial facility, be it a ship, a drilling rig, a platform or a factory on land, is associated with a total cost ofownership, or Total Cost of Ownership (TCO). TCO is complex and complex, and can be compared to an icebergfloating in the ocean as a good metaphor. A small part of the iceberg (20%) flows over the sea surface and is easyto spot, easy to measure and control. This section is a picture of direct costs related to hours and components.However, the largest part of the iceberg (80%) is well hidden under the sea surface, and is more difficult to identifyand control. This is a picture of the hidden factory, which consists of an overuse of engine hours on the one hand,and casualties and loss of production on the other side. This part of the iceberg can quickly bring along unpleasantsurprises.

It is possible to conquer the hidden factory using new thinking and modern technology and digitalization. Thisrequires a holistic approach across budgets and across the entire value chain. The entire iceberg must be shrunk tosucceed in getting more production with a lower use of resources.

The Norwegian model, where professionals and engineers work together on the best solutions and are allowedto make harmless mistakes, have in the post-war period been an important competitive advantage for Norwegianindustry. Somewhere in the 2000s, the Norwegian model in the oil industry disappeared. Instead, it was replacedby a large control field that was very complicating and expensive. The price for an hour or component is easyto identify, thus easy to measure and control. No special skills are required to perform this task. This led toan ever-increasing one-sided focus and pressure on direct costs, which, in combination with a common ”time andmaterial” contract format, triggered several unfortunate consequences.

Confidence in professional expertise gradually disappeared, and piles of bunker of control forms that effectivelytook professional pride became a reality. Experienced skilled workers no longer saw the point of putting down hardwork to build up a professional experience and expertise, when no one trusted their professional assessments anyway.Lack of trust in combination with an misunderstood use of the risk concept eventually created a constant fear oftaking an independent responsibility for anything. A responsibility-polling control field that was large enough foreveryone to hide behind it, grew on all levels of the industry.

During the same 15-year period as this control regime continued to tighten and the focus on hourly prices andsub-prices became tougher and tougher, the cost picture increased still faster. It finally came out of control, whichin reality means it has worked completely against its purpose. This also reflects the margins in the oil industry inthe same period. Despite record-high investment in the sector, few companies have left behind with good marginson the bottom line. The money has been spent up without creating values. Why has the billable hour caused thiseffect on an entire industry?

1. It misaligns the interests of the customer and the supplier. What the supplier wants more of (hours), thecustomer wants less of.

2. It focuses on efforts, inputs, hours, costs, activities, rather than what customer really buy: outputs and results.

3. It places all the transaction risk on the customer

4. It fosters a production mentality, not an entrepreneurial spirit.

5. It penalizes advances in the supplier’s effectiveness. The faster the supplier can solve a problem, based ondeepening expertise, the less the firm earns.

6. It commoditizes the suppliers talent and intellectual capital into a unit of time, which significantly reducesthe supplier’s ability to differentiate itself from the competition.

7. It places an artificial ceiling on a firms income since there are only so many hours in a day.

12

8. It rewards busyness and utilization instead of effectiveness and accountability.

9. It discourages innovation. With time constantly measured, a supplier’s motivation is to be ”billable,” notinnovative.

10. It provides no useful information about what really matters, such as the quality of the work, the satisfactionof the client, or the effectiveness of the supplier.

11. It incents the wrong allocation of resources. Instead of assigning the talent that can most effectively solve theproblem, firms assign people the customer can ”afford.”

12. It builds silos and produces a disincentive to collaboration. The goal becomes coming in on estimate ratherthan drawing on internal brainpower that can solve client problems. [24]

The time and material contract has been the most standard contract format in the Norwegian oil industry forthe last decay. The way the value chain in the industry has been organized and the format of the business modelsfor the different parts of the value chain, has made the unfavorable effect of the billable hour stronger. This isillustrated in Figure 2.1.

Figure 2.1: Business models in the value chain.

Engineering, procurement and LCI documentation is forming the foundation for the MMO contractors. Sellingnew equipment is the business Modell for the OEM. Service and repair of equipment is a normal business modelfor the industries suppliers.

Engineering and procurement has been a costly factor for large parts of the industry, but it has also been animportant source of income for parts of the same industry. This has created a win-win situation between manu-facturers and OEM that have costed the oil companies a lot of money. The main suppliers have placed studies ofvarious equipment packages to different OEM’s, which naturally have recommended that old equipment be replacedby new ones. This has been profitable for the manufacturers, who then sell new equipment into the projects. At

13

the same time, it has created profitability for the MMO supplier in the form of extensive engineering, procurement,and documentation work. In other words, a lot of billable hours.

Table 2.1: Disruptive indicators in the oil industry.

Repairing equipment that is good enough, instead of replacing it with new equipment that does the same job,can significantly reduce the consumption of engine hours. This is because hours related to engineering, procurementand documentation are not necessary. Repaired equipment fits safely against all existing interfaces, the operatorhas all the necessary skills to operate safely in the same way as before and standardization and redundancy in afacility is maintained. The benefits are many, so why does this happen to a small extent? Because it reduces theamount of the billable hours for the MMO suppliers and eliminates the selling of new equipment for the OEM’s.The business models in the value chain work against the most cost effective solutions for the oil industry andeliminates effective and innovative solutions that minimizes the number of billable hours. There will be no effect ofdigitalization before this issue is solved, and new business models are established. This is because the ecosystemwith its business models of today, will work against the innovative and efficiency gain of digitalization due to thebillable hour. This development will not be good for the competitiveness of the Norwegian Continental shelf over

14

time, as global competitors do manage to benefit from the gains of digitalization. The death of the billable houris necessary, but will at the same time disrupt the MMO suppliers of the industry. It is important for this part ofthe industry to focus on new business models to meet this challenge. Subrscriptions for knowledge services basedon AI are predicted to in large replace the billable hour in the future.

The disruptive indicators in the oil industry are global, and can be seen in Table 2.1.

What can be done to meet these disruptive indicators in the Norwegian Oil Industry.

2.4 Mapping of the infrastructure with the intent to share:

The Oil and Gas industry has spent trillions of dollars in recent decades building large infrastructures includingoffshore projects, land development fields, and complex networks of pipelines and refineries all with a view tomeeting the worlds energy demand. The infrastructure needs to be mapped and categorized into infrastructure thatcan be shared, and infrastructure were competition must remain. Both the physical and the digital infrastructureneed to be mapped.

2.4.1 Sharing of data

Integrated digital platforms can enhance collaboration among participants in the Oil and Gas ecosystem, while alsosupporting accelerated innovation, reducing costs and making operations transparent.

Continuous innovation has always been fundamental to the Oil and Gas industry, but digitalization opens upthe possibility of collaborative innovation. Digital platforms allow Oil and Gas companies to connect better withtheir vendors, customers and wider society. By creating a ”top layer” of information-sharing across the industry,ecosystem participants will be able to collaborate in more advanced ways. For example, ”communities of interest”within the ecosystem can work together to improve designs and innovate faster, from idea generation to productionof mutually beneficial projects. Initiatives of this kind pave the way for secure and transparent operations, enhancedservice partnerships, proactive engagement, optimized real-time supply and demand balancing, as well as reducedcosts.[2] This means that the industry should focus on building up a independent governance body that can servethe industry all together to secure interoperability between the various solutions, create rules of engangement andact as neutral ground for parties involved. . This will ensure standardization, data governance, cyber security, anddata sovereignty for the data owners throughout the industry in the long run, as well as being well suited as aneutral non-profit body.

2.4.2 Sharing of assets

The oil industry has been very application-specific. There are small series of production, and a lot of tailoring.Expensive machinery that is underutilized is standing around in industrial companies all over Norway. This is achallenge for Norwegian industry’s ability to compete globally.

If anyone who needed the equipment got access to equipment that is not in use, it could generate an incomefor the owner, while other companies saved investments. Entrepreneurs can also access equipment they need in acritical start-up phase, when investments can be hard.

Machine sharing is a marketplace that puts excess resources into circulation by matching those who own re-sources with those who need such equipment. Without the use of the traditional intermediaries. Negotiation costsarise when one agrees with the seller about price, delivery and conditions related to the actual trade. The most com-mon way of lowering transaction costs is by having fixed prices and standardized deliveries. Machine sharing helpscreate a sharing economy, to create a service that lowers search, information and negotiation costs in the oil industry.

15

2.4.3 The need for new business models

The business models that exists in the oil industry today needs to change if the industry shall be able to benefitfrom digitalization and sharing economy. The business models that exists today promotes overproduction of billablehours and underutilization of physical assets, and do not promote innovation and new smart ways of working thatwill reduce the number of ours. This lowers to total competitiveness of the continental shelf in a global marked.Utilization of excess capacity of goods, services and other resources for the benefit of both the owner of the capitaand the one in temporary need of such resource, for the benefit of both is the main driver for the sharing economy.So far, transactions between the peers needs to be supported by intermediates to secure financial as well as legaland practical aspects.

The business model of the intermediates today is to take a fixed fee or share of the agreed price in order tofacilitate the transaction between the peers. The service provided by the intermediates are usually the infrastruc-ture for promoting the resources, legal aspects and an element of trust in the form of ratings of the various playersparticipating in the transactions. The concept for sharing of resources, in an even more competitive market is mostlikely going to grow, as more and more types of services, equipment and tools are shared in this manner. However,there are arguments that the whole business as acting as intermediates will be taken over by blockchain technologywhen this becomes a more mature and accepted technology.

The blockchain technology is believed to remove the requirement for the intermediates as we know them today.Functions such as management of agreements between two parties (contracts), trust and transfer of value can bebuilt into the blockchain technology itself. If this happens, transactions between peers will most likely not bedependent on intermediates but the technology itself.

This shift, if/when it happens will open up new business models and collaboration with a higher degree of agility,less overhead cost and more actors in the same project. For example, instead of going through an engineering com-pany to establish a project team to handle a specific issue, blockhain has the potential of removing the need ofthe intermediate EPC and go directly to the engineering resources, tool-owners, product providers and informationowners to establish performance based contracts with minimal administration and overhead.

2.4.4 Digital Asset life cycle management- Asset as a service.

In the future, a different management approach should be considered, that of: taking the entire life cycle of anasset into account, from design to operations; collecting and analyzing data at each step; understanding how itwould affect the next step in the sequence; and capturing lessons to inform future designs. A cradle to grave assetmanagement will eliminate the need for the OEM’s to produce and sell new equipment as their only source ofincome. The OEM will have income on the equipment as long as it is running, instead, when it is sold as a serviceand not an object. This will disrupt the service suppliers in the oil industry, that will need new business models tomeet this development from the OEM’s.

2.4.5 Standardization

The only exception for the billable hours is in research and development projects. Fixed price for an unknownsolution is hard go quote. For this reason the standardization work. Therefore the ongoing standardization work inthe industry is important. Standardization of products means repetitive engineering at fixed prices and robotizationof production.

2.4.6 Sandbox Innovation

Being successful through disruptive times requires a strategic way of creating, validating and maturing ideas withoutnecessarily put the whole current business at risk. Establishing new companies that potentially compete with onescurrent business model (steam-ships vs sail-ships), test in smaller scales, learn and adapt and grow with limited

16

risk exposure for the complete capital base of the mother company has been one way of dealing with this. Withinthe digitalization sphere, testing of new concepts are now a lot less risky, since there are less requirements to fullydevelop machinery/materials or constructions that require rigorous testing before it may be applied.

In the area of digitalization there are also a much richer variety of potential solutions to existing problems. Anexample of this is the large and varied ecosystem of startups related to digitalization around in Norway.

For the MMO JIP constellation, a sandbox concept should be established where challenges and ideas could berapidly tested among the parties.

2.5 Benefit

If all parts of the value chain in the Norwegian oil and gas industry can go together in a new initiative and map thephysical and the digital infrastructure of the Norwegian Continental Shelf, a clear view of the needed new digitalbusiness models, sharing models and future competition can be established. This will allow for the industry tobenefit the advantages of digitalization and modern technology and promote innovation and productivity growth.The business models of today will work against such a development. This is a complex task, but it is possible for anindustry to succeed in such joint initiatives. In Norway, we can look to the banking industry. They have succeededin sharing their infrastructure to collaborate were possible and compete were necessary, and with this gained ahuge global competitive advantage. The bank industry in Norway has the lowest transaction cost pr. financialtransaction in the world.

2.6 Complexity and risks

It is a very broad and complex task to map infrastructure and identify new digital business models that opens forsharing of data and assets with both customers and competitors. There is no quick fix solution. In the short run,it would mean that the existing business models in the industry will be cannibalized and the income reduced forall players except the operators. In the long run success will lead to an increase in the industry, that otherwise willbe lost for the industry. The mandate for the CEO’s and administration of the companies in the industry today isvery clear. They have a duty to maximize profit for the company on the existing business models, and a short-termincome reduction due to cannibalization will compromise their position and put their positions at risk. This willwork against a cooperation in the industry, and if not addressed be a potential source of failure.

2.7 Recommended actions

• It is recommended that the industry do start the work to map the physical and the digital infrastructure,so that new business models can be identified. It is important that the group that get such a mandate, hasthe authority to make decisions about present and future business models without compromising their ownpositions.

• A series of small narrow sandbox initiatives should also be started from the operators, to utilize and developmodern technologies in niche projects as quickly as possible. Failing fast and cheap lowers the risks of theseprojects, keeping cost low. In this way, the large operators can use smaller suppliers as agile organizations,and gain more flexibility and speed of innovation for their large organizations. Success in sandbox projects isanother way to influence the present business models in the industry. If modern technology and new ways ofworking reduces cost and provides better solutions, this is likely to spread and slowly establish new businessmodels in the value chain.

• Identify “who’s my Uber”: Map disruptive threats and possibilities. See example of disruptive map for thebank industry in Appendix C. Carry out Digital Norway’s digital maturity indicator on your company.

17

2.8 Onepager disruption

Figure 2.2: Upper right image from [11]

18

Chapter 3

Sharing and analysis of data

3.1 Sharing of data

3.1.1 Introduction

A data lake is a method of storing data within a system or repository, in its natural format, that facilitates thecollocation of data in various schemata and structural forms, usually object blobs or files. The idea of data lake isto have a single store of all data in the enterprise ranging from raw data (which implies exact copy of source systemdata) to transformed data which is used for various tasks including reporting, visualization, analytics and machinelearning. The data lake includes structured data from relational databases (rows and columns), semi-structureddata (CSV, logs, XML, JSON), unstructured data (emails, documents, PDFs) and even binary data (images, audio,video) thus creating a centralized data store accommodating all forms of data.

Figure 3.1: Datalake [1]

If you think of a datamart as a store of bottled water cleansed and packaged and structured for easy19

consumption the data lake is a large body of water in a more natural state. The contents of the datalake stream in from a source to fill the lake, and various users of the lake can come to examine, dive in,or take samples. - James Dixons Blog. James. Retrieved 7 November 2015.

Data Warehouse Data Data lakeStructured, processed Processing Structured, semi- structured, unstructured, rawSchema on write Storage Schema on readLess agile fixed configuration Agility Highly agile, configure & reconfigure as neededMature Security MaturingBusiness professionals Users Data scientists et. al

Table 3.1: Difference between data warehouse, data and data lake

Vendors: Examples on private vendors of a data lake concept Kognifai Kongsberg gruppen, VeracityDNVGL, ABB Abbllity , Mindsphere Siemens, MicroSoft Azure Microsoft.

3.1.2 The industrial space

The ”Industrial Data Space” is a virtual data space using standards and common governance models to facilitate thesecure exchange and easy linkage of data in business ecosystems.The Industrial Data Space initiative was launchedin Germany at the end of 2014 by representatives from business, politics, and research. Meanwhile, it is an explicitgoal of the initiative to take both the development and use of the platform to a European/global level.

3.1.3 Maturity

• New and immature, no established standard with accepted regulations. Vendor open approach Ex . ABBAbility Data Manifesto.

• No established standard business model.

3.1.4 Benefit

• Easy to exchange data between involved parties on a secure and regulated way.

• Establish new business models and markets.

3.1.5 Complexity and risks

• Immature

• Many stakeholders with different agenda

3.1.6 Recommended actions

• Start a joint pilot of sharing HMS data to get better insight for analysis and trending. Then start sharingfatigue, corrosion and sensor data.

• Invite industry parties and Digital Norway to discuss and explore possibilities for establish a neutral jointindustry datalake.

• Establish a common framework as done in the finance industry at start of BankID project.

• Establish a common rules and regulations for managing the datalake.

20

Figure 3.2: Industrial dataspace [18]

3.2 AI

3.2.1 Introduction

Artificial intelligence is technology that appears to emulate human performance typically by learning,coming to its own conclusions, appearing to understand complex content, engaging in natural dialogswith people, enhancing human cognitive performance (also known as cognitive computing) or replacingpeople on execution of non-routine tasks. Applications include autonomous vehicles, automatic speechrecognition and generation and detecting novel concepts and abstractions (useful for detecting potentialnew risks and aiding humans quickly understand very large bodies of ever changing information).- Gartner IT glossary on artificial intelligence, http://www.gartner.com/it-glossary/artificial-intelligence/

The Partnership on AI intends to conduct research, organize discussions, share insights, provide thought lead-ership, consult with relevant third parties, respond to questions from the public and media, and create educationalmaterial that advance the understanding of AI technologies including machine perception, learning, and automatedreasoning.

21

Figure 3.3: Partnership on AI to benefit people and Society https://www.partnershiponai.org/

3.2.2 Maturity

All the Big Data actors have available solutions. Example of usage in Healthcare in Norway. Used to gather relevantpatient information from several sources and give advised treatment. On average, each patient journal consists ofabout 200 documents.[5]

A research done on 1770 managers in three continents concludes with that Nordic & Norwegian managers givesome remarkable answers: Less than one in ten Nordic leaders fully agree that they will rely on the advice ofintelligent systems when making important decisions in the future. the global average are 26 % [8].

3.2.3 Benefit

• Analyze a lot of information and then take action

• Self learning production robots

• Predictive maintenance that exploits real-time and/or historical data about equipment usage and maintenanceto spot patterns about the performance and reliability of machinery. Ultimately, it creates an optimized,bespoke maintenance program for each type of equipment.

• Increase efficiency in projects execution

• Increase efficiency in logistics


• Needs to be trained by human expert.

• Needs investments in knowledge & systems


• Strengthen knowledge in management teams

• Establish a Chief Digital Officer (CDO) as part of the executive management team.

• Establish a neutral sandbox for piloting.

• Establish a partnership/joint venture to do piloting and exploration.22

Figure 3.4: AI [7]

3.3 IoT

3.3.1 Introduction

The Internet of things (IoT) is the inter-networking of physical devices, vehicles (also referred to as ”connecteddevices” and ”smart devices”), buildings, and other items embedded with electronics, software, sensors, actuators,and network connectivity which enable these objects to collect and exchange data. The IoT allows objects tobe sensed or controlled remotely across existing network infrastructure, creating opportunities for more directintegration of the physical world into computer-based systems, and resulting in improved efficiency, accuracy andeconomic benefit in addition to reduced human intervention.

3.3.2 Maturity

IoT is spreading out in the consumers market, fridges, cars, tv and houses etc, all these are available on salestoday, with a widespread of services accompanied. In the industrial sphere, there is still a way to go, we do havevendors providing sensor information from their products. However, we are still at the starting point of establishinga standard & regulated common platform of sharing this information.

Modern offshore drilling platforms have about 80,000 sensors, which are forecast to generate approximately 15petabytes (or 15 million gigabytes) of data during an assets lifetime [23].

3.3.3 Benefit

Safety Using IoT sensors to mitigate safety and security risks, wearable sensors for health and work in dangerousareas. Use information from several different sensors to predict potential dangerous situations and avoid them.

Supply chain management & Logistics Delivery company DHL and tech giant Cisco estimated in 2015 thatIoT technologies such as asset tracking solutions could have an impact of more than $1.9 trillion in the supply chainand logistics sector [15].

Predictive maintenance Exploits real-time and/or historical data about equipment usage and maintenance tospot patterns about the performance and reliability of machinery. Ultimately, it creates an optimized, bespokemaintenance program for each type of equipment.

23

Figure 3.5: IoT illustration

More efficient operations Remotely monitoring and tracking equipment, as well as automatically adjustingmachinery based on IoT data.


Security IOT security specialists are scarce and security solutions are fragmented and involves multiple vendors.

Laws & Unions There are several aspects that has to be checked due to strict Norwegian laws on Personvern,Datatilsynet. Unions has to take part in establish new work routines and duties. Also how to prevent Surveillanceof humans.

Interoperability - Much of the data collected by these sensors today is used to monitor discrete machines orsystems. Individual equipment manufacturers collect performance data from their own machines and the data canbe used to schedule maintenance. Interoperability would significantly improve performance by combining sensordata from different machines and systems to provide decision makers with an integrated view of performance acrossan entire factory or oil rig. Our research shows that more than half of the potential issues that can be identified bypredictive analysis in such environments require data from multiple IoT systems. Oil and gas experts interviewedfor this research estimate that interoperability could improve the effectiveness of equipment maintenance in theirindustry by 100 to 200 percent.

Despite the forward momentum, a new study conducted by Cisco shows that 60 percent of IoT initiativesstall at the Proof of Concept (PoC) stage and only 26 percent of companies have had an IoT initiativethat they considered a complete success. Even worse: a third of all completed projects were not considereda success. [12]


• Establish a Chief Digital Officer (CDO) as part of the executive management team.24

Figure 3.6: IoT benefit [16]

• Establish a neutral sandbox for piloting.

• Establish a partnership/joint venture to do piloting and exploration.

3.4 Cloud computing

3.4.1 Introduction

Cloud computing is a form of Internet-based computing that provides shared computer processing resources anddata to computers and other devices on demand. It is a model for enabling ubiquitous, on-demand access toa shared pool of configurable computing resources (e.g., computer networks, servers, storage, applications andservices), which can be rapidly provisioned and released with minimal management effort. Cloud computing allowsthe users and enterprises with various capabilities to store and process their data in either privately owned cloud,or on a third-party server in order to make data accessing mechanisms much more easy and reliable.

3.4.2 Maturity

All the big data providers, Microsoft, IBM, Google deliver out of the shelf and robust solutions. There is a widerange of services and apps available and its platform independent.

3.4.3 Benefit

• Always available

• Secure

• Cheap pay pr user fixed cost , low maint. Cost & and operational cost.

• Out of the shelf


• Wide spread of tools

• New user interfaces

• Employees has to adopt to a world where they are always connected.

25

Figure 3.7: Office OneDrive cloud


Perform pilot projects in using and exploring cloud computing tools in project execution in several levels. Man-agement teams, project teams, professional networks. Goal is to remove wastehours, increase project executionefficiency, better communication both internal and with client, and more efficient usage of limited project resources.

26

3.5 Onepager sharing

Figure 3.8: Image from [9]

27

Chapter 4

Surveys and training in Virtual Reality(VR)

In the MMO industry, subcontractors, contractors and operators have traditionally worked at different locations andseparately in areas of expertise. This has contributed to complex and time consuming information sharing betweenthe actors. In addition, access to inspection at process plants has been limited by travel distances, offshore bedcapacity and helicopter departures. Virtual Reality (VR) has been suggested as a tool to reduce these limitations.Virtual Reality is a technology that allows the user to influence and be influenced by an environment that willemulate reality. Most VR environments include both visual and audio impressions and appear on a screen orthrough a VR headset. The purpose is to give the user a physical presence in a virtual or imaginary environment.

Figure 4.1: vr

28

4.1 Maturity

The VR technology has had a significant development and increase in demand and utilization recently. VR tech-nology is now available and ready to be used in a larger scale. For the MMO industry, content needs to be setupand users to be introduced to software and hardware.

VR user devices are available from several different suppliers for costs between 400$ and 800$ (January 2017).

Figure 4.2: VR equipment. HTC Vive VR Headset.

4.2 Benefit

The strengths of VR technology are to simplify the daily operation job tasks in the simulation tools and displayresults in virtual simulated environment to improve the visualize of all parties related in the operation to seethe same picture and to create better collaborative scenario sessions to accomplish the work tasks. The futureopportunity of this technology is to expand the usage beneficial to all functionality of oilfield operation. Exampleof benefits utilizing VR technology in the MMO industry:

• Reduce HSE exposure during design, planning and operation phases.

• Early verification to identify design errors (late changes, rework).

• Reduce operational risk during installation and start-up.

• Improved preparations of key operators to reduce production downtime and less offshore crew.

• Smoother start-up and operation due to enhanced communication with onshore professional support.

• Reduced carbon footprint and cost related to offshore travels.

• Improved access to engineering data/Improved presentation of engineering data.

Introducing VR tool will most likely have consequences for the organization and roles, both onshore and offshore.As operations and information sharing becomes more efficient, resources executing more traditional planning anddesign activities might be released.

29


Use of the VR technology and tools should be adapted to the complexity of the task. Simple inspection tours inVR is easy accessible with a VR headset device and a 3D model. More complex tasks and operations may requiremore sophisticated facilities for optimal results (e.g. Aker Solutions Visioneering Simulation Center in Stavanger).

• In a virtual environment all users, from different professions and work fields, need to collaborate in a realtime process. The users knowledge, experience and skills related to VR and utilization of VR are different,and there is a risk that users are not aligned on a standardized working method.

• Users of VR often reports experience of sea sickness when utilizing VR headset device over a period of time.However, there is ongoing research to reduce this problem.

• Data from several actors is not consistent and well aligned in the VR environment, resulting in mislead orconfused user team


To get the most out of the VR technology it is vital that all contributors along the value chain have access to thesame VR environment based on the latest or most relevant 3D model/information/digital twin. Based on that,and input from JIP Digitalization workshop 13th of June 2017, a short list of recommended utilization of VR ispresented below:

Figure 4.3: Viritual reality in a facility

1. Utilizing VR for training purposes:30

(a) Utilize VR glasses and 3D model to do emergency response training onshore prior to offshore trips. Offervirtual reality tour for all employees planning a trip to an offshore platform or onshore site. Trainingshould be interactive with check points, and optionally simple tests, at designated locations along thetour. An option is to do VR evacuation to closest life boat during an imaginary emergency situation.

(b) Training of personnel before installation and lifting operations. Utilize VR glasses and simulation setupbased on 3D model to train on pre-defined installation and lifting operations. The actual executingpersonnel will be located at their designated location in the virtual reality model, with the view andreal time impressions as they will experience during the actual future operation. Such training has beencarried out for several installation operations already, and advanced training facilities and systems areavailable (e.g. Aker Solutions Visioneering Simulation Center in Stavanger).

2. Utilizing VR for concurrent design and planningVR could be used as an effective tool in concurrent design and planning sessions. Through all phases ofa project there are many interfaces where concurrent collaboration is effective, and information sharing isessential. Sharing of ongoing area design models across projects in a VR environment to optimize design andproject execution involving several sub-contractors, contractors and operator, is another opportunity.

Figure 4.4: Viritual operation subsea

On long term basis, the opportunities mentioned above should also involve the Augmented Reality (AR) tech-nology discussed in Section 5. Further development and utilization of the VR/AR technology in the MMO industryshould involve collaboration with academia and other relevant technology providers. In such collaboration it is alsovital that the actual users are involved - the professionals in the MMO value chain.

• Identify and collaborate with other ongoing VR initiatives in the MMO industry31

• Verify 3D model quality for a selection of platforms/installations

• Select platforms/installations for piloting

• Test/verify sharing of 3D model across relevant locations (data sharing capacity)

• Define pilot scope (VR utilization)

• Upgrade relevant 3D model(s) to sufficient quality level

• Procure VR devices and equipment for pilot

• Training of involved personnel

• Evaluate pilot and define actions for further actions (corrections/implementation)

32

4.5 Onepager VR

33

Chapter 5

Remote experts with AugmentedReality (AR)

Figure 5.1: Illustration of AR capabilities [3]

What is Augmented Reality and Mixed Re-ality?

Augmented Reality (AR) is anenhanced version of reality cre-ated using technology to over-lay digital information on an im-age of something being viewedthrough a device (as a smart-phone camera)- Marriam Webster online dictio-nary.

Mixed reality (MR), on the other hand,takes AR to the next level and is, essentially,what many of us initially expected or hopedfor AR to be. Instead of just a layer on topof the world we see every day, MR refers tothe ability to mix digitally rendered objectsinto our real environment [6].

For the rest of this chapter we will usethe term AR for both AR and MR.

Example of use AR-assisted remote visualization processes can enable field service personnel to more effectivelycommunicate with experts located other places. Leveraging graphical overlays, work instructions, inspection sitesand collaborative solutions can be simultaneously displayed between multiple parties, regardless of their locations.Through technology available on the market today (glasses, helmets and tablets), field personnel can communicatein real time with remote experts anywhere in the world with the push of a button. AR allows consultants to lendtheir expertise to field workers without ever leaving the office. This may reduce the need of flying an expert to aremote offshore location and they can provide counsel and troubleshooting expertise to multiple projects in multipleregions in a single day.

AR glasses allows your on-site technicians to collaborate in real time with experts onshore. The remote expertsees what the field engineer sees, ensuring an accurate diagnosis. Wearing ”hands-free” smart glasses or using asmartphone, the technician then receives precise and easy-to-understand visual guidance from the expert whileworking. The glasses scan and identify objects and equipment and gives the on-site technicians access to the

34

Figure 5.2: AR glasses and collaborative platform [22]

company’s knowledge base in their moment of need, it lets you improve remote resolution rates and reduce thenumber of expensive site visits.

Fieldbit Hero is an interactive collaboration platform for field services, enabling the two-way exchange of livevideo, real-time AR annotations, messaging and voice between experts and technicians in the field. Fieldbit havesuccess stories showing that its possible to have [2]:

• 50% Increase in Remote Resolution Rate

• 30% Improvement in First Time Fix

• 20% Increase in service profitability

• 40% Reduction in on-the-job training times

5.1 Maturity

Even if development of AR technology has come a long way, there are areas that will continue to need improve-ment. Many companies have experimented with AR, but it is difficult to find articles describing advanced ARimplementations beyond pilot projects. These areas will continue to evolve:

• Hands-free light-weight devices with higher resolution, larger field-of-view and elegant and accurate optics

• Lower latency AR needs to respond quickly (in less than 15ms) as the user moves his eyes, head or body.

• Smarter object recognition and depth-sensing technologies

• Eye movement detection and other tracking of human input (gesture, voice-based interaction)

• Emergence of standards for the development of AR applications across devices

35

• High-speed connections allowing AR apps to integrate with the manufacturers back-end systems (Manufac-turing Operations Management, PLM and ERP systems), and other devices.

How to get access to correct and real-time information through standardized open interfaces will also need to beaddressed and agreed on. Without this information, AR will not reach its potential. Sharing and access to data wasone of the most wanted areas during the MMO JIP Workshop. This will be detailed in other part of this roadmapdocument.

5.2 Benefits

• Faster team-assembly to solve a remote challenge

• Improve First Time Fix rate

• Share visualization space and overlay instructions/comments on either parties display device

• Avoid expensive offshore visits and lower the pressure on bed capacity

• Access to information from a global knowledge base or back-end systems. Real-time visualisation of the data


When considering risks associated with AR, most people think of user distraction as the most obvious danger.Projecting too many images into operators field of vision, could have unwanted consequences. Other users havereports experience of sea sickness, but as for VR there are work in progress to reduce this. The equipment relieson WiFi coverage on the installation, there are still older installation where WiFi is not available


• Real time collaboration and problem solving between expert maintenance personnel at the production siteand onsite field representatives on an offshore oil rig

• Real time direction of onsite maintenance personnel with AR equipment, such that remote expert personnelcan fully inspect areas of interest without the need for time-delayed and expensive travels offshore.

36

5.5 Onepager AR

Figure 5.3: Images upper right. Left: Microsoft Hololens. Right: grandedoc — Thickstock

37

Chapter 6

Safer and more efficient operations

In the Industry general, there have been several server accidents due to entering tanks with no oxygen, fallingfrom heights, working on wrong tags and checking equipment under water. Due to new technology or due to thematurity of the technology, these operations will be conducted in a safer, quicker and cheaper way in the future.Sensors helping us in these operations has been used all the way back to the parrot in mines. Now we believe wecan stay on a safe distance and conduct the operations, through use of robots and drones with cameras, and digitalequipment. And use this equipment actively to make work safer and more effective. We also see a huge saving insoftware robots helping us in our daily work in the office doing repetitive operations on the computer helping us bemore organized and have focus on the important tasks. Learning our jobs and doing them for us. Implementationof these new ways of working has to be done in a lean method and we have to involve the whole workforce to makeit in the best possible way.

Figure 6.1: Lean [20]

38

6.1 Maturity

On the marked there is now drones and robots design for EX environment. These are already in use for someoperations on the Norwegian continental shelf. However, they can be used for much more. Operation of drones isgetting simpler every day, longer fly time and more sensor technology the drones will adapted to the demand of thecustomer. Crawler used for cleaning underwater, inspecting pipes, and tanks Pads for documentation on site, anAR glasses to find the right equipment, and help from onshore. But the key is to have system finding documenteasier and faster Robots are getting smarter, and getting cognitive memory, remembering what they did last time.Here also the marked must set the demands on use. Programming has become easier and prices will go down.

Figure 6.2: Atex Drone LE 4-8X Dual from: atexshop.com

6.2 Benefit

The greatest benefit of using this technology is to reduce accidents accruing in these operations, and saving bothmoney and time doing preparations that needs to be conducted to secure a save operation like for instance checkingtanks and flares.

• Reduce use of scaffolding

• Reduce use of climbers.

• Getting live and correct data onshore

• Save time on inspections.

• Reduce people offshore.

• Reduce complicity on operations

• Having eyes on operations that earlier were not possible (in combination with VR glasses)

• Be sure to work on the right place, e-worker(AR glasses with tag, pads with manuals and drawings)

• Software robots, sorting email, finding documents, sorting calendar issues, making our everyday life easy.

39

Figure 6.3: Inuktun Pipe Inspection Vehicle


The complexity of using robots and drones is not huge, but the operators of them needs to be trained for theoperation. The drones and robots should as they are today be used for simple operations, and as use shows to besuccessful be expanded. And in the future be remotely used from shore to do inspections and small operations.Pads for the E-worker has low complexity, is already in use in other part of Industri and should easily be adaptedto MMO (oli&gass) The robot can be our Eyes, nose and ears on the platform. Risk:

• Crashing drones.

• Malfunksjon in operation

• Disruption

• Maturity of organization and operators

• Easy collection of documents


• Invite a drone/robot experts to look at operations concerning inspections and have a workshop to look atpotential tasks that in the future can be performed to make a safer working environment and more efficientoperations.

• Execute pilot projects within use of drones, robots, software robots and e-workers and share experience withthese pilots.

• Introduce digital lean. One example of activity can be to get a software programmer to look at a typical officeworkers day, what can be done much easier and more efficient.

• Training and building competence within onshore and offshore organization.

40

6.5 Onepager safer and more efficient operations

41

Chapter 7

3D printing

During the last few years the 3D printing technology, also called Additive Manufacturing (AM) has had a ravishingdevelopment. The development is still moving fast, but for many cases the technology is mature enough to beingused commercially in our industry. The common denominator is that the material is deposited layer-upon layer 3Dprinting is available in many materials, such as metals, composite, plastic and concrete.

Several industries have already started using AM for the production of components:

• Aerospace & Aeronautics

• Automotive

• Architecture

• Art & fashion

• Defense

• Energy

• Healthcare

• Machinery & equipment

• Oceanic

• Consumer goods

• Eyewear

But the Oil industry in Norway is lagging behind.However, there is an ongoing JIP between Statoil and DNV-GL to facilitate adaptation of Additive manu-

facturing (AM) for structurally critical parts in maritime and oil and gas; by developing processes and materialqualification programs as those are lacking from credible classification and certification societies. Material focus is316 stainless steel, titanium and bronze alloys. This kind of qualification programs have already been developed forthe some of the above mentioned industries, so the road ahead seems feasible. There are several AM technologieswith different characteristics, some typical examples:

• RPDTM - Rapid Plasma Deposition, is used by Norsk Titanium

• FDM Fused Deposition Modeling, filament-based technology where a temperature-controlled head extrudesa thermoplastic material layer-by layer

42

Figure 7.1: Available materials for 3D printing (Image: Materialise)

• SLS Selective Laser Sintering, high powered laser is used to fuse small particles/powder, may be used formetal

• MJM Multi-Jet Modeling, hundreds of small jets to apply layer-by-layer of thermopolymer material

There are at least two serious commercial manufacturers which use AM, where 3D printed parts can be orderedonline, and the components received within 1-2 weeks, Norsk Titanium AS in Hønefoss, Norway, and MaterialiseNV in Belgium Additive Manufacturing may transform the way components are being designed and manufactured,and has a high disruptive potential. The MMO industry is recommended to start exploring the possibilities, andto gain first-hand experience with 3D printing in combination with 3D scanning.

7.1 Potential use in the MMO industry

There are four main lines of potential use that have been identified for the MMO industry elaborated in followingparagraphs

43

Figure 7.2: Image: Norsk Titanium

7.2 Product optimization

3D printing gives a totally new level of freedom to create shapes which are impossible with traditional manufacturingtechniques. By designing components with 3D printing in mind engineers can rethink how optimal products may bedesigned Examples of areas where this may be useful for the MMO industry are: Components with high turbulence,erosion or wear, such as choke valves. In addition components or structures with particular demands with regardsto strength and form can be considered as candidates. Another major potential is to reduce weight. Due to thenew complexity with which the components can be designed, it is possible to keep the same strength with far lessweight, or increase strength with same weight.

7.3 Production of obsolete parts

One major cost driver in the oil industry is replacement of equipment or systems which are no longer supported,and the availability of spare parts approaches zero. In many cases fully operational systems are replaced due tofear of break-down and long time to repair. By using a combination of 3D scanning and 3D printing the challengerelated to obsolete parts can be avoided. Critical parts may be scanned before or after breakdown, 3D modelingtechniques can be used to do a virtual repair if necessary and a new part can be printed. This means that a newmaintenance strategy can be used and life expectancy of equipment can be prolonged significantly, and thus savecost.

44

7.4 Reduced production time/reduced warehouse

Normally delivery time for a new valve is 20-30 weeks, other parts may be as long as 40 weeks. If a valve stopsfunctioning this may affect the production or other vital functions on a platform. Usually it is urgent to obtain thenew part, and most critical components are usually available in the companys warehouse. For old equipment thismay not be so, extensive search may be needed to track down a compatible part, and this can delay the repair. Thecosts related to warehouse is generally high. By utilizing additive manufacturing, and maintaining 3D models forcritical parts this may reduce the need for the large scale warehouses used today, they are transformed to virtualwarehouses. Assuming that the development of AM is moving even further to faster and more accurate 3D printersthe required part may be printed as fast as the delay of finding the part in a real warehouse. In the case where thepart is not in the warehouse, printing will be a much faster method.

7.5 Visualization

3D printing gives the opportunity to print prototypes and see the result within minutes. Advanced and abstractmodels which may be difficult to visualize and understand by electronic means may be printed and observed as ahardware model. This has a high potential to prove that a new component meets the requirements, or to let theengineers see a complex design before the full-scale manufacture is initiated.

7.6 Maturity

3D printing has been utilized in several industries, and especially the aerospace industry has come a long way.Titanium parts are being regularly used in aeroplanes, and required procedures and standards are in place suchthat this now seems a mature technology. For the use for the MMO industry it seems immature, but with the desireto learn from other industries and to start getting first hand experience the road to wide-spread use may be short.

7.7 Benefits

1. Improved functionality

2. Reduced component weight

3. Improved component strength

4. Reduce modifications and replacement projects due to the ability to reproduce obsolete parts

5. Reduced warehouse costs

6. Reduce lead time

7. Reduce transport, with corresponding reduced CO2 footprint

8. Reduce material waste


The complexity of implementing 3D printing for the MMO industry is medium, if existing 3D print centres areused. The complexity increases if a new AM centre is developed for the MMO industry in Norway. Risks:

1. The cost of a 3D printed component is higher than standard components, and thus the implementation maybe delayed

45

2. This is a radically new way of working and a new way to plan maintenance, modifications and operation. Sothe change will meet resistance from the organization

3. The time to produce a component via 3D printing is approximately 2 weeks when ordering externally. De-pending on the AM method some machining and finish is needed. This gives a risk of not reducing warehouseand depending on 3D print to reproduce parts.

4. Risk of not building trust on component strength and quality, if procedures and qualification methods are notproduced and agreed upon

5. Risk of slow implementation if principle of sharing is not followed. 3D printers of high quality are costly andby establishing a joint venture to share costs and to build competence together


1. Immediate action: start exploit the possibilities related to reproduction of obsolete parts, using 3D scannersto obtain 3D models for critical parts

2. Purchase simple 3D printers in order to print components or systems for visualization

3. Establish a Joint Venture to establish an AM centre in a strategic location, eg. Mongstad base, where 3Dprinters can be installed, with the ability to print parts in relevant metal and quality. As a secondary optionmake a strategic alliance with one of the existing AM companies to establish an AM centre in a strategiclocation along the west coast.

4. . Build competence in the engineering departments on AM, ensure that AM is considered in the design of the3D models, start improvement projects to optimize components and to rethink the maintenance strategies

46

7.10 Onepager 3d printing

47

Chapter 8

Recommendations to other JIP groups

8.1 MMO JIP Step up safety

Recommendations to the HSE group, how to use digitalization to reduce risk

• Use of analysis of big data may show patterns that have not been seen before, and artificial intelligence mayfind the root cause more efficiently than old methods, and this can be used to improve HSE

• Use of VR to improve HSE training

• By using AR/mixed reality offshore organization can access the expertise of onshore HSE experts and thussolve a high risk situation quicker than before. Using cameras the onshore team can see the same as theoffshore operator, and more easily give accurate advice

• Drones and robots can be used to avoid work operations with high risk, such as climbing, diving, enteringtanks etc. In addition robots can replace people in operations with bad work environment, e.g. cleaning of aseparator

• Sensors can be used to track vehicles or people, such that in case of an accident the rescue team can findinjured people faster

8.2 MMO JIP Low carbon future

Recommendations to the group concerning low carbon future

• Sharing economy will remove a lot of waste, reduce the number of tools and machines and reduce the CO2footprint. Examples are sharing transport and sharing machines

• 3D printing has a huge potential wrt. CO2 reduction. For starters when components are printed approximately70% less material is used. Secondly by reducing the need for warehouse this gives an effect both on producingless components, less transport and less energy consumed by running large warehouses. By printing partslocally instead of purchasing from low-cost countries less transport will give better CO2 footprint. By changingmaintenance strategy as described above and reduce number of projects which replace whole systems, thiswill reduce disposal of old equipment.

• Advanced analytics may help calculating life-cycle carbon footprint. This way it will be possible to chooseequipment with the best CO2 footprint for the full life-cycle

48

Chapter 9

The way ahead

The work group recommend the following common actions:

1. Establish a Chief Digital Officer function (CDO) as part of the executive management team in each membercompany, where this is not already in place. Carry out Digital Norway’s digital maturity indicator on yourcompany.

2. Follow the principle of fail cheap and fail fast. The development is moving fast, and it is important to getexperience through pilots and test projects. This is in line with LEAN philosophy. Digitalization and LEANare closely connected

3. Share experience, data and assets across the MMO industry. All members of the MMO will benefit to sharethe experience from each others pilots.

4. Use sandbox to culture innovation and new ideas

5. Choose a partner to organize sharing of data and to help establishing common rules on how to share. Oneexample of such a partner is Digital Norway. Sharing of data should be the norm, concealing data should bethe deviation for the norm.

6. Use BankID to facilitate access

7. Increase the dialog and interaction with academia in Norway, NTNU, SINTEF, Universitetet I Bergen,Høyskolen p̊aVestlandet, Universitet i Stavanger etc. Facilitate for Master and PhD students to solve chal-lenges within digitalization.

8. Contracts should be evaluated in light of the digital transformation. Terms like death of the billable hourshows that in a new era, new compensation forms need to be developed to support the digital transformation

9. Continue the MMO cooperation within digitalization, define it as an Arena (hub in early phase), and seekfunding and support from Innovation Norway, NRC or similar. Establish a new workgroup with mandate toimplement the Digitalization roadmap, to give advice to the steering committee and to ensure coordinateddialog with other initiatives and organizations.

49

Bibliography

[1] Digital News Asia. Forget data warehousing, it’s data lakes now. Technical report, EMC2, 2015.

[2] Michael R. Blumberg. Fieldbit delivers a new standard of service to industrial machinery manufacturers.Technical report, fieldservicenews.com, 2017.

[3] Br-automation. Innovative solutions for the maritime industry and offshore applications. https://www.br-automation.com/it-it/industrie/maritime-offshore/. Accessed: 2018-01-18.

[4] Bhaskar Chakravorti, Ajay Bhalla, and Ravi Ahankar Chaturvedi. 60 countries’ digital competitivness, indexed.Technical report, Harvard Business Review, 2017.

[5] Atle Christiansen and Universitetet i Agder. Kunstig intelligens kan hjelpe leger. Technical report, forskning.no,2017.

[6] Adam Dachis. What’s the difference between ar, vr and mr? Technical report, Next reality news, 2017.

[7] Rudy de Waele. Ai, robotics, and the future of jobs. http://thefuturesagency.com/2015/08/26/ai-robotics-and-the-future-of-jobs/, 2015. Accessed: 2018-01-18.

[8] Audun Farbrot and Handelshoyskolen BI. Norske sjefer er skeptiske til kunstig intelligens. Technical report,forskning.no, 2017.

[9] Rashid Feroz. Cloud computing explained in detail. http://hackwhiz.com/2014/08/cloud-computing-explained-in-detail/, 2014. Accessed: 2018-01-18.

[10] World Economic Forum and Accenture. Digital transformation initiative- oil and gas industry. Technicalreport, World Economic Forum, 2017.

[11] Incodema Group. Rapid prototype metal stamping, 3d printing and additive manufacture.http://www.unmannedsystemstechnology.com/company/incodema-group/, 2017. Accessed: 2018-01-18.

[12] Christine Johansen, Ben Culp, and Marilyn Mora. Cisco survey reveals close to three-fourths of iot projectsare failing. Technical report, Cisco, 2017.

[13] Gerald C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron, and Natasha Buckleyi. Strategy, nottechnology, drives digital transformation. Technical report, MIT Sloan Management Review and DeloitteUniversity Press, 2015.

[14] Richard Kho. Digital disruption bold times for the oil and gas industry. Technical report, Accenture, 2015.

[15] James Macaulay, Lauren Buckalew, and Gina Chung. The internet of things in logistics. Technical report,DHL trend research and cisco consulting services, 2015.

[16] James Manyika, Michael Chui, Peter Bisson, Jonathan Woetzel, Richard Dobbs, Jacques Bughin, and DanAharon. The internet of things: mapping the value beyond the hype. Technical report, McKinsey GlobalInstitute, 2015.

50

[17] Nrings og fiskeridepartementet. Melding til stortinget. industrien, grnnere, smartere og mer nyskapende.Technical report, Nrings og fiskeridepartementet, 2017.

[18] Boris Otto, Jan Jrgens, Jochen Schon, Sren Auer, Nadja Menz, Sven Wenzel, and Jan Cirullies. Industrialdata space. Technical report, Frauenhofer, 2016.

[19] Anne Marit Panengstuan and Stein Lier-Hansen. Er norske bedrifter klare for den digitale fremtiden? en studieom norske bedrifters syn p digitalisering. Technical report, Siemens og Norsk Industri, 2016.

[20] Genpact research institute. Putting digital to work the lean digital way. Technical report, Genpact, 2016.

[21] Pauline Siebers. Change? resistance! resistance? good! https://www.businessconjunctions.com/2012/09/21/change-resistance-resistance-good/, 2012. Accessed: 2018-01-18.

[22] stuartoharainformacom. Augmented reality: A technology that will change every aspect of ourlives. https://vrarworld.wordpress.com/2016/08/18/augmented-reality-a-technology-that-will-change-every-aspect-of-our-lives/. Accessed: 2018-01-18.

[23] Andrew Trice. The future of cognitive computing. Technical report, ibm.com, 2015.

[24] Tim Williams. An obituary for the billable hour. Technical report, Ignition Consulting Group, 2016.

51

Appendix A

Kahoot results

0 5 10 15 20 25 30

▲

"Build a common HSE cloud for the industry"

♦

"Training and familiarization using VR"

●

"Develop a bot that uses the cloud accessible via mobileapp"

■

"CR-Bot that announces important alarm messages on PAsystem"

Q4: HSE

0 5 10 15 20 25 30

▲

"Blockchain-Smart contracts frees time to solve tasks"

♦

"Do like the banks- Define common ground for data…

●

"Digitize information flow-Cut levels"

■

"Use sensors, IOT and big data for predictive…

Q5: Maintenance and Operation (Truls)

A2

0 2 4 6 8 10 12 14 16 18 20

▲

"Use 3D print to reduce lead time"

♦

"Use 3D print to avoid change equipment due to…

●

"Use 3D print to improve design"

■

"Reduce transport, CO2 emissions and material waste"

Q1: 3D print and 3D scan (Brede)

0 5 10 15 20 25 30 35

▲

"Real-time field insp. AR glasses to show pressure in…

♦

"VR glasses to do emergency Response training onshore"

●

"AR glasses guide personnel during fire - sensor…

■

"Use AR glasses to bring one expert to 5 sites in one day"

Q2: VR and AR (John D)

0 5 10 15 20 25 30

▲

"Establish industry solution to collect and share sensor…

♦

"Sensors in clothes for safety. Know who is were during…

●

"Develop industry appstore"

■

"Use sensordata and big data for predictive…

Q3: IOT (Thomas)

A3

0 5 10 15 20 25 30

▲

"Standardize equipment as a service"

♦

"Bank-ID solution for the oil industry"

●

"Sharing of data to allow new business models"

■

"Establish common data sharing platform"

Q6: Organization and business model (Marianne)

0 5 10 15 20 25 30

▲

"Robots to clean equipment offshore"

♦

"Drones to inspect offshore as a service"

●

"Digital signature to notice next level in the value chain"

■

"Drones in regular orbit with three axis visual inspection"

Q7: Robot, automation and drones (Bjarte)

A4

0 5 10 15 20 25

▲

"Engineering sharing"

♦

"Machine sharing"

●

"“Amazon/Ailbaba” solution for industry spare part"

■

"“Uber” solution for industry transport"

Q8: Disruption (Stian)

0 5 10 15 20 25 30 35

▲

"Establish common platform-Share industry data,…

♦

"Smart contracts to reduce legal cost/administration"

●

"Operators must lead/promote good value chain…

■

"Platform to share knowledge-expert network"

Q9: Sharing of data, knowledge and infrastructure (Geir)

0 2 4 6 8 10 12 14 16 18 20

▲

"0 damage due to sharing of HSE data with AI analytics"

♦

"Sensors for predictive maintenance"

●

"Competence sharing and building platform needed"

■

"Work with business mutual outcome to find common…

Big data and AI

A5

Appendix B

Success stories

B.1 Wood Group

B1

Success stories

JIP digitalization in MMO

• Digital Solutions

– iNotebook: rugged tablet for inspection purposes + software

– ENVision: real time CO, NOx, SO2, H2S measuring and custom automatic reporting for refinery

• Green energy

– LIDAR lazer measurements to read wind patterns for optimizing individual windmill production real-time instead of tail rudder

– Inspection of windmill blades by drones

• Innovation for growth team

– eWorking: eInspection, ePlantTrack, eBioGuard

Success stories Wood Group

2

• Predictive Maintenance

Predicting failure of subsea

valves using machine learning

saving millions of dollars on

unplanned intervention for

customer. ~18 months notice

before failure. Human + AI

• Production Management

Managing loss reports and

production efficiency with

customized automatic reports

and visualization for operators

(Premier, Centrica, etc). Built on

WG Proevx technology.

Wood Group Data Analytics

3

• Anomaly Detection – Acoustic sand detector triggering false alarms. Establish correlation with wrong trigger events. Identify events using automated time series pattern searching enabling accurate prediction of sand events

• eXpert Connecting onshore experts with offshore personnel with rugged ex device. On or off grid real time audio and visual feeds, mark-up highlighting and capturing. Real time enhanced decision making to fix leak for customer

4

• VR&AR – Training and

Hazard Awareness Induction safety training – Lifting

Operations. Pilot training program

developed for a West Africa remote

worksite – development to include

suite of Life Saving Rules

• eWorkpack Paperless work pack management.

Build, approve, issue and manage

work packs for projects, mods and

repair orders. 2 pilots ~60% time

savings. 2 deployments

5

• US Navy Potensial and current measurements plus digital interpreting of mounted camera for continous corrosion monitoring of coating and corrosion in ballast tanks

• Force Technology Denmark Corrosion monitoring and inspection in windmill foundation using coupons, ultrasonic crawler, cathodic potential measurements, electrical resistance (ER) sensor, external drop cell for potential, contact reference cell stabber on ROV, and a rack of sensors measuring external variables that might affect the corrosion.

Success stories other (corrosion)

6

B.2 Aibel

B8

Punch Out (E-handel)

■ Ingeniøren logger inn i Aibel SAP for å lage en materialrekvisisjon, og gjør «punchout»

■ Ingeniøren blir automatisk pålogget leverandørens e-handelsløsning

■ Søker etter ønskede materialer, se korrekt pris og leveransetider

■ Velger material og sjekker ut

■ Leverandørens eHandelsløsning returnerer nødvendige data til Aibel SAP

■ Muligheter for oppsett mot flere leverandører

EDI Bring OTIF

.

Purchase Order sendt fra Aibel til Bring

Inbound Delivery / Shipping Notification sendt fra Bring til Aibel

SAP Barcode Solution Mongstad

■ Distribuering av apper med tredjepartsfunksjonalitet som

• Biometrisk autentisering

• Skanning av strekkoder

• Lesing av RFID-tags

• NFC

• Implementering av kamera

• GPS-funksjonalitet

• Etc.

■ moderne, raskt og effektivt, og gir helt nye muligheter for SAP på

mobile brukerflater.

B.3 Statoil

B12

Valemon Kontrollrom

• Mai 2017:

• Valemon plattformen er utformet til å kunne bli fjernstyrt fra land

• Det er bygget et kontrollrom på Sandsli som er I siste fase av commissioning

• Plattformen skal være uten bemanning 4 av 6 uker, med ett D&V team som går I

rotasjon med seg selv

5 april 20172 Classification: Internal © Statoil ASA

Inspeksjon av fakkel på OSF med drone

• Mars 2017:

• Leider i fakkeltårnet på OSF er skadet av korrosjon

• For å inspisere tilstanden ble det brukt en drone

• Dette sparte oss for en risikabel klatreoperasjon med fare for fall og fallende

gjenstander


Appendix C

Disruptive map example from bankingindustry

C1

roadmap for digitalization in the mmo...

Documents