Total information integration or how to lubricate your process chain (and produce a higher profit)

m:pro

The refining and petrochemical industries are faced with the growing demand to integrate their manifold operations in order to achieve unit cost reduction and economies of scale. In this respect, “true” information integration has evolved as a truly vital agent for optimum cost/benefit results.

Think global, act global

Today’s oil industry presents itself as a very complex system of companies in many different constellations. Although the wave of corporate mergers in the down-stream oil sector has resulted in fewer players, competition has increased due to the development of proper global markets during the 1990’s. Newer fully integrated oil companies with multiple refinery and petrochemical sites have evolved in Asia. Numerous international joint-venture arrangements between major brands or with 3rd party companies such as supermarket chains constitute yet another challenge in an extremely busy commercial environment, which is characterized by extreme concentration and rising cost pressure.

The best option to meet the requirements of this dynamic market is to employ and exploit the full potential of innovative data management systems. In information technology, the most efficient and future compatible way to optimize the distribution and exploitation of information is to realize “true” integration rather than simply gather and re-distribute isolated pieces of data.

“True” integration beats data bundling

The formerly applied solution to handle the flow of information within complex company structures shows serious deficiencies: The messaging middleware software employed for this purpose merely acts as a repository or, in the best case, as a broker of information, collecting data and transferring them to applications and users. This performance meets but a small aspect of the task given as data distribution equaling only 5 – 10 % of the overall information integration problem.

Today, a single refinery will run between 50 and 150 different applications – a condition that makes a smooth flow of information extremely difficult. While the more simple programs will work perfectly well within their own isolated system, most of the key strategic applications would perform much more efficiently when fully integrated with their connecting data store. Messaging middleware software is simply not laid out for this task, and to solely rely on this tool is to renounce improved business continuity and to risk the loss of essential pieces of information. After all, a lack of data integration can limit and even slow down information access for decision makers by delivering distorted facts,and possibly causing wrong decisions that could put a project’s success at risk.

Information integration, however, is the challenge not only to aggregate, but also to interconnect data of different types, different qualities, and different systems. To fully exploit a company’s overall information potential, the integration platform must be laid out to handle any kind of data even in most complex relationships and sequences whenever and wherever available. Therefore, elaborate information platforms – as appropriate for complex refinery environments – go far beyond simply connecting the existing information systems. They not only proffer efficient technologies such as Information on Demand (IOD), but also establish enterprise-wide solutions aiming at, among other things, the optimization of Supply Chain Management. And, last, but not least, one must ask if these integration platforms visualize the outcome of their performance via an easy-to-use interface which allows for on-screen interactivity with any application involved.

The big challenge

The competitive edge between companies, business units, and joint-venture arrangements working in the oil business is particularly keen. Therefore, even seemingly small advantages can make a big difference in the closely knitted commercial environment.

The challenge for information integration as required by the refining and petrochemical industries involves multiple tasks. Both the quality and the flow of information need to be improved. The collected data must be turned into coherent information immediately and the result must be presented in its entirety in a clear and easy-to-grasp way to decision makers within the entire organization.

In the industry’s complex and competitive scenario, it has, in fact, become essential to monitor and evaluate the total company performance for more profitable planning and more efficient working. Analysis results from any source within the company’s information system have to be available as near to real-time as possible. Furthermore, the information needs to be presented in accurate, well-structured reports which enable the management to capture opportunities and fully meet their clients’ needs.

Many pipelines, one solution

The investment volume required for elaborate IT solutions tailored to the special needs of the refining and petrochemical industries is considerable. But so are the profit opportunities for companies able to respond to market developments and customer requests on the spot and without delay.

For the best possible return on investment, information integration solutions need extremely flexible, versatile and comprehensive structures fit to fulfill a large variety of different tasks: connecting all sorts of data sources and applications, linking ERP software and business systems, coordinating operating data and production planning, relating supply chain management and operations decision support. Equally important for a constant and continuous success, they have to offer a maximum amount of reliability, security, speed and efficiency.
With all components perfectly matched, the system will offer decisive business benefits, create genuine added value and, in the long run, ensure optimum investment protection.

Better conditions for better business

The improvements effected by sophisticated information integration solutions are manifold. The most striking ones will be manifest in four vital constituents of business success in the highly competitive oil and gas industry:

• Data quality: Professional information management combining process, methods, technology and governance in one system is a sure guarantee for the completeness, accuracy and timeliness of data.
• Data integration: Optimized information operations – for example with ERP, CRM, business systems and web-portal solutions – offer a wide range of innovative and performance oriented uses.
• ERP consolidation: Total integration systems connect and reconcile ERP instances and exploit the full potential of resources, supply chains and operations.
• Collaboration: Advanced information integration establishes efficient communication, both in real time and on an ongoing basis, employing special features such as remote visualization and virtualization technologies to enhance collaborative working.

Ingredients that make a difference

The success of cutting-edge information integration originates in future-oriented IT components that are fully compatible with one another and allow for a high degree of flexibility. All components comply with internationally recognized industry standards and are ready to be implemented and integrated into almost any IT environment.

The integration platform is built on layered multi-tier component architecture. Each individual component is designed to fulfill a specific purpose in the overall system and is operated via a clearly defined interface.

Tools, interfaces and applications follow object-oriented design principles such as inheritance, encapsulation, and reusability.

Efficiency to the detail

The tools are generic, reusable cross-industry software components. As their prime objective is the increase in overall productivity, there is no need to “re-invent the wheel” by designing intricate new modules when perfectly suitable ones are available and ready to be employed. All tools combined form the core system platform.

A clear separation into two main segments – user interface and data storage – brings additional and most valuable benefits, for example:

• Information can be displayed in various ways and adapted to the individual focus of interest of different groups of users.
• Information can be presented in thick-, rich- or thin-client, MS Office and various web portal environments.
• Components or layers can be exchanged individually without affecting the other parts of the system.
• The overall maintenance effort is minimized – change once, update everywhere.
• A noticeable reduction of the overall network traffic is accomplished.

The interfaces support a large number of standard interface concepts and protocols. They can be uni- or bi-directional and run manually as well as automatically. Moreover, they build and maintain their own structure and can be connected to an object warehouse. Similar to applications, interfaces typically consist of a client part for the graphical user interface/visualization, and server parts for the interface/application logic and data storage.
The applications consist of highly flexible and easy-to-configure components. They all provide solutions for specific business operations as required by the refining and petrochemical industries. All applications enable and enhance the use of best-in-class software.
Advanced application components are divided into two segments:

• Applications based on tools can be deployed on top of the core system platform. Similar to interfaces, the applications consist of a client part for the graphical user interface/visualization and server parts for the business/application logic and data storage. A key performance indicators (KPI) application for example is able to configure and monitor economical or technical parameters within specified error and warning limits. Its client consists of configuration/administration views and KPI presentation objects. The server consists of classifications and related object structures for KPI calculation logic, data storage and aggregation hierarchies.
• 3rd party applications that follow their own architecture provide data storage and special purpose user interfaces to meet the requirements of specific users. The most popular examples for this kind of application are planning systems such as GRTMPS (designed for planners) or the ORION scheduling system (designed for scheduler).

Tapping new resources

More competition calls for more efficiency at lower costs. Being subject to fast changing cross-industry trends and developments, the refining and petrochemical industry is faced with the necessity to optimize its use of resources.

Surely, the present-day oil business has no shortage of IT systems and security architectures. The complex legacy systems currently applied, however, will not be able to run a “connected oilfield”. An intelligent information network is the integrating element for extensively laid-out environments and a most promising investment in tomorrow’s potential markets.

About Jens Schroeder

Jens Schroeder officiates as managing director of m:pro IT Consult, Wiesbaden, Germany. As founder and president/CEO of m:pro, Schroeder is responsible for the company’s strategic and operational alignment. His special focus is on product & service development and key business expansion for companies in the refining and petrochemicals industry worldwide.