WIXLIB

Control of Work software vendorsin the Oil and Gas industryA market studyMarch 2018

Control of Work software vendors in the oil and gas industry A market study2

Control of Work software vendors in the oil and gas industry A market studyContentsIntroduction04Executive summary05What is Control of Work?06How might broader industry trends impactControl of Work software?07Our approach09The selected vendors10What are typical Control of Work systemfunctional capabilities?12Review of functional capabilities13Review of technology capabilities15Review of operational capabilities18Review of strategic dimensions20Findings223

Control of Work software vendors in the oil and gas industry A market studyIntroductionThe market for vendors that specialise in Control of Worksoftware for the Oil and Gas industry is maturing.The Oil and Gas industry, like many in theEnergy and Resources sector, has a strongfocus on Environment, Health and Safety(EHS) as a means of driving operationalexcellence and ensuring employees have asafe place to work. Companies who operatein the industry link many of their corevalues to ensuring that employees are safeand that their operations limit the impacton the natural environment. There is muchat stake, with failures in the managementof EHS being responsible in the past fordevastating environmental disasters andloss of life.Stringent regulation and an industrymantra of ‘safety first’ has driven therole of EHS deep into the core fabric oforganisational culture and is interwoveninto all aspects of management andoperations across the industry. Likewisesoftware systems which support themanagement of EHS are an integral partof operations and organisational riskmanagement.Like many asset intensive industries,companies in the Oil and Gas industryare underpinned by numerous enterprisegrade Information Technology (IT) andOperational Technology (OT) solutions,typically from large global softwarevendors. Large Enterprise ResourcePlanning (ERP) solutions dominate thecore operational and back-office functionsof most large Oil and Gas companies,surrounded by an ecosystem of industry orcapability specific solutions for specific ITand OT requirements.4Many of the large ERP solutions incorporateEHS either as an additional module orincluded within the core packages. Often,these solutions will fit a large number ofuse cases across varied industries.Typically, the EHS solutions included withERP packages are broad in functionalscope but have a smaller focus internallyfor the large ERP vendors. The demand fortailored, industry specific solutions opensthe door for an ecosystem of industryspecialist and capability-focused softwarevendors to enter the market and providecustomers with specific solutions to meettheir requirements.Likewise, within the EHS domain thereare numerous sub-domains of capabilityand even more specialist solutions andvendors available. For example, there is amarket for Control of Work (CoW) solutions,specific to the Oil and Gas industry,encompassing people, process and assetsafety management capabilities thatsupport operational risk management andwork-flow control of potentially hazardousactivities.This publication looks at a cross-section ofsmaller, mid-sized and larger sized vendorswho provide CoW software solutions to theOil and Gas industry with the aim of sharingsome insight into the types of vendors thatoperate in this market segment.“This publication looks ata cross-section of smaller,mid-sized and larger sizedvendors who provide CoWsoftware solutions to theOil and Gas industry.”

Control of Work software vendors in the oil and gas industry A market studyExecutive summaryThe study highlights that the mid-sized vendors offera compelling proposition that should be considered bypotential customers.All vendors included in the study haveindicated via questionnaire and throughpublicly available information that theyoffer the range of in scope CoW functionalcapabilities, at least to some extent.The study found that each vendor hasapproached their product developmentbased largely on their company heritage.Vendors with a heritage in assetmanagement demonstrate a strong assetmanagement focus in their products.Vendors who have a heritage in operationalrisk management have a strong focus inthis domain, and so on.Given the wide array of focus acrossthe vendor landscape, customers needto have a good understanding of theirown functional and non-functionalrequirements, to ensure there is a fit withany prospective vendor or solution.When looking at the vendors’ operationaland strategic dimensions, we see that thesmaller vendors have a smaller operationalscale, which reflects their overall deliveryand support capability. The mid-sizedvendors are pursuing growth strategiesand have more robust delivery and supportcapabilities and the larger vendors arethe most broad and deep in terms ofoperational scale, but also focus the leaston the specific CoW domain, compared tothe smaller and mid-sized vendors.This study shows that there is a market forCoW solutions specific to the Oil and Gasindustry.In Deloitte’s opinion, mid-sized vendorsoffer the most compelling balance betweenoperational scale and focus on the coreCoW functional capabilities, as well asstrong delivery and support capabilities.Thus, mid-sized vendors should beconsidered by prospective customersas they have specialist focus on the CoWdomain, but sufficient scale to be able toserve all types of customers.“The mid-sized vendorsoffer the most compellingbalance betweenoperational scale andfocus on the core CoWfunctional capabilities”The two mid-sized vendors includedin the study are at different stages oftheir business cycle. Petrotechnicsis going through a challenging phasedriven by significantly reduced revenueafter a number of years of prior growth;while eVision is going through anexpansionary phase driven by successin both cross-industry expansion anddelivering enterprise-level global-scaleimplementations.While their challenges may be different,there is a common willingness toinvest in product innovation, pursuegrowth strategies, deliver global-scaleimplementations and still focus on the coreCoW product capabilities, which makes themid-sized arena arguably the most excitingpart of the market to watch.Deloitte previously identified eVision as oneof the Deloitte Technology Fast 50 growingcompanies in The Netherlands in 2016. Itis with great anticipation we continue towatch them and this segment of the CoWmarket into the future.5

Control of Work software vendors in the oil and gas industry A market studyWhat is Control of Work?Control of Work is a formal approach to manage workrisks and proper execution with a procedural form ofcontrol, using processes and systems to regulate activity.Imagine for a moment you are amaintenance supervisor at a gas refinery.A small leak has been identified in asteel pipe which transports liquid wasteproducts from one part of the plant toanother. Under certain conditions thesewaste products can be highly combustible.As a safety precaution, this section of theplant has been shut down temporarily toallow for maintenance.Every hour this part of the plant is closedis costing money and the repairs must becompleted quickly and efficiently. This isonly one of the many smaller maintenancework orders that have been raised todaythat must be planned, scheduled andexecuted as soon and as safely as possible.As the supervisor, you also need to makesure that this work does not interfere withother maintenance work in the surroundingarea and vice-versa. You can tell alreadythat today is going to be a busy day.Assesshazards andcontrolsPlanwork scopeWorkorderPermitmanagementThe pipe will need to be isolated andcleared of potentially combustible materialprior to repairs. The maintenance workerswill need suitable accreditations and workpermits to undertake the work, and thereneeds to be procedures in place in case ofany safety related incidents. In the past,you would have managed and coordinatedall of the multiple complex jobs being doneat one time by paper, based on your ownexperience. These days you use a softwaresystem to manage this for you.At required stages of the job, themaintenance workers use mobile devicesto verify permits and confirm approvalsare in place. This provides you with realtime information on your managementdashboards and gives you good visibilityover the multiple active jobs that are inprogress at the same time along withaggregate risks across the plant. As eachjob is completed, changes made in theconfiguration of equipment are logged forfuture reference and troubleshooting.The work scope is planned and a draftelectronic permit is raised. To ensurethe potential risks associated with therepairs are understood and mitigatedappropriately, a risk assessment isundertaken and an isolation plan is drafted.An approval work-flow for the permits, riskassessment and isolation plan is followedand the work is executed according to planby appropriately skilled workers, identifiedfor their specific accreditations.This is a relatively simple example and yetit already involves a number of movingparts to ensure the plant can return tonormal operation quickly and safely. This isthe essence of CoW. The ability to managecomplex work-flows and approvals andprovide aggregated information to supportrisk management and decision making. Thebelow diagram represents a simple permit,risk and isolation management process asan example of a common CoW iseIssuedPre-jobdiscussionExecute andsuperviseVerify jobcompletionand cemanagement6Review lateMobilesolutionsIncidentmanagementManagementof change