BI for exploration seismologists. GEOTECH Holding bolsters management efficiency with QlikView
GEOTECH Holding’s development strategy seeks to strengthen and entrench the company's leading position on the market of high-tech seismic services and, by so doing, to maximize shareholder value. The expansion of the company as a whole and that of the number of field projects has led to the need to improve operational supervision over production activities and finances.
"Our holding employs many specialists who make decisions based on the analysis of arrays of data - says Ilona Petrova, GEOTECH Holding CFO. In this case, it is crucial to do something to minimize the loss of time in performing routine, non-creative tasks in favor of direct analytical and supervision procedures. The business intelligence system shall help us solve this problem. However, we would like as well to quickly produce results without waiting for the standard ‘upward’ implementation, so the requirements to BI- system included shortened implementation time and system design "to grow into," with subsequent connection of the subsidiaries at a more detailed analysis level.
" The holding’s experts analyzed five business intelligence systems. The choice was made in favor of the QlikView Business Discovery platform as a tool with high-level data visualization and the best investment value/ implementation term ratio.
"I have always wanted executives not to commence their day with reading a huge number of reports to evaluate the current situation, Ms. Ilona Petrova says. I have dreamed of a "traffic lights" system, which immediately would show us which indicators are normal, and which need our attention if something is wrong with them. QlikView has turned out to be precisely such a system that has made my dreams come true, and, moreover, very quickly. "
Pathway to Dream
Our implementation partner, Optima Consulting, has implemented at GEOTECH Holding a pilot project combining production and economic data. Based on the results of this pilot project, a joint project team has generated 10 dashboards, which form the basis of an application for estimation of the current economy based on approved budgets and a daily project’s summary.
The application was developed very quickly, just in three weeks, and it has allowed us to carry out analysis of operational work, including entering every single business process to estimate the resources, performance, deviations, and the value impact. Moreover, the application has provided functionality for simulating the business process. With a special "cursor" one can set certain parameters and predict how the project situation can change, if, for example, downtime due to adverse weather conditions is five days, whether margin changes, what item provided in the budget has been fulfilled and so on. Furthermore, the functionality allows to check whether, for example, an increase in productivity can improve the situation.
Before introducing QlikView, we had used an Excel huge file with daily production summaries. In order to obtain the required information, we had to first sel ect a season, then the expedition, then the project, then a specific business process, and only then, scrolling to the right of the project commencement date (each season lasts for about 100-150 days), could we see the plan fulfillment and other useful information,” Ilona Petrova says. - But there's more to come. The economists had a card for each project (a project budget), which had about 50 sheets with justification for each type of cost. Therefore, the analytical work was very complicated, as the requirements to analytics are quite stringent because the Holding Board considers the results weekly. QlikView has significantly simplified the work and improved efficiency: information on work progress is posted in the evening, and in the morning actualized economics and all the other data are available in the BI-system."
Two steps ahead
BI will go on an expedition
The success of the first application has led to the development of the project, but GEOTECH Holding has also been working on applications on the QlikView platform with self-handedly, to which end the project team and key users have completed "System Design" training, and one employee has been trained in "System Development."
Another success was the second application for the annual meeting with the directors of the major business units to analyze the results of the whole expedition rather than a single project. The meeting required not so much the operational costs as the actual ones, as well as an opportunity to compare the expeditions in terms of such costs. Within five years, presentations in PowerPoint had been generated for such meetings. After having analyzed all the presentations generated during this time, 200 standard principles for producing slides and analytics were selected - these data are now the basis for the application. So, within just two weeks, an application for the annual analysis of key performance indicators, cost analysis by elements, and evaluating the impact of non-financial cost drivers on the achieved results has been developed. QlikView standard properties allowed us to implement in the application a coherent logic of analysis with transition fr om one form to another, the necessary specification, with the generation of reporting according to selected criteria. "Earlier at the meeting we had to report in turns about every expedition” says Ms. Ilona Petrova. “Now, by analyzing one of the expeditions, we can delve into some problem and compare it with similar indicators of other expeditions. This is very convenient and important to evaluate the performance of various expeditions and the entire Holding.
" The next application was used by the financial service to assess the strength, feasibility and efficiency of an investment program. Its development took about a month and a half.
"In creating this application, the challenge was to generate the idea itself,” - says Ms. Ilona Petrova. “We needed to determine what we want to see in the application, what functionality we need. As a result, we had to improve the application after we had already tested it - it turned out that we could improve it."
The Holding economists have calculated for the application all the actual values of the fixed assets, showing how much capital expenditures each expedition consumed annually and in which projects they were invested. The data on the project economics and returns were added. Now, when choosing the projects for next year’s investments, the application can be used to view the financing of a particular party, which financial outcome it has yielded, whether it makes sense to invest in such a party in future at the given rate of return on investment. The result of the analysis is a drops diagram, which the XY scale displays all businesses depending on the amount of investment and ROI. The application also allows you to "delve" into any project or business process, view its economics and understand at what account it is being formed - whether it is a margin, low investment costs or something else. In the assessment of the experts of the Holding, the use of the application has streamlined the company's investment budget.
GEOTECH Holding is planning to further develop the BI-system. So, a project to consolidate data for use in the business intelligence system has been launched. Furthermore, it is planned to ensure the integration of QlikView with Oracle Hyperion, "1С Consolidation" and "1С NSI". In the spring of 2014, after the field season, the company will discuss the possibility and feasibility of connecting the business units to QlikView. This will require the purchase of more than 100 licenses. Training is planned to enable the field managers to more efficiently use the BI-system.
"We are very pleased with QlikView. Moreover, we have got used so much to such a convenient and intuitive visualization that its unavailability in other systems seems wrong to us. QlikView has become for us a crucial tool. We still have difficulties in assessing the results of the implementation of the BI-system in terms of finances, but I'm sure of one thing: the time of executive managers is precious, as well as efficiency in decision-making, - in this regard QlikView contributes material economic benefit",– Ms. Ilona Petrova, GEOTECH Holding Chief Financial Officer.
Oil, gas & chemistry
Russia and CIS Responsibilities
• Providing the holding’s top managers with actual operational analytics in a the best visualized form with the ability of detailed elaboration
• Enhanced efficiency in management decision-making
• Investment efficiency assessment
• Global analysis of the fulfillment of the annual business plan Solution GEOTECH Holding has introduced the QlikView Business Discovery sytem, which allows one to accelerate management decision-making, speed up and deepen analytics, and optimizes the investment portfolio.
• Reduced implementation time
• Quick first results
• Ample opportunities for data visualization with the ability of detailed elaboration
• Minimal time in generation of analytical reports Data sources
• MS Excel
• Microsoft Dynamics AX (Axapta)
• 1C:UPP 8 Partner Optima Consulting