Solutions for 3D Asset Integrity Management Augmenting Business Performance with Asset Virtualization

Issue 1

In this issue

Introduction 2

Product Highlights 3

Research for Gartner: Predicts 2016: Upstream Oil and Gas 6

Intelligent 3D Models 16

About Us 18

2

One of the biggest challenges faced by companies operating in hazardous environments such as refining, oil and

gas, and other industrial settings is the administration of aging assets and related infrastructure. Moreover, the

lack of awareness among organizations about the status, deployment, and utilization of the same assets is a

major hurdle to an organization. Effective Asset Management and Asset Integrity Management systems will help

augment the value of assets, improve reliability, decrease wrench time, and reduce down time.

INOVX’s value proposition includes higher asset productivity, reduced maintenance costs, and increased visibility

of the operations and asset performance – all of which lead to enhanced situational awareness and certainty

regarding all information about assets.

Introduction

3

Product Highlights

INOVX provides a platform and solutions for 3D Asset

Integrity Management to companies in the process

industry worldwide. INOVX accomplishes this through

its latest game-changing software platform V-Suite®.

V-Suite is the 3D Asset Integrity Management platform

that is unique in its ability to integrate operational

management of both Inspection and Maintenance

processes with accurate and complete active 3D

models of enterprise assets. V-Suite is an active 3D

platform that allows users to navigate their entire

operational facility and interoperate with supporting

data from multiple enterprise systems. The V-Suite

search engine allows users to navigate to, and view

in detail any asset and automatically associate

data that can provide intelligence with regard to

asset performance, location and access points,

interconnected dependencies, realtime isometric

preparation, integrated P&ID, shut down & start up

procedures, asset performance history, work orders,

inventory etc.

V-Suite is designed to interoperate with all of the

major business applications that add value to

inspection and maintenance business execution,

represented through an active 3D operational model

of the entire plant. The active 3D model answers

fundamental questions: What is the Asset?, Where

is the Asset?, How is the Asset performing?, What

needs to be done to maintain optimum performance?

The solution then allows users to engage with assets

in the manner they choose, whether at their desk in

the engineering office, as a field inspector utilizing

a notebook or tablet, or as a maintenance engineer

using a combination of media from paper, to android

or mobile device of choice.

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Mobile device access is the next wave of doing

business and INOVX is at the forefront of providing

its clients with immediate access to data. With the

release of V-Suite in July 2016, INOVX moved that

functionality into the cloud and onto the mobile

device of choice. Rather than print out an Inspection

routine with 2D isometrics, asset history, shut down

procedures etc. onto hundreds of pages of paper,

users can use V-Suite Knowledge Books which are

created for online access via a browser, or mobile

devices, or packaged onto a portable file to a mobile

device for offline use where there is no network

connectivity.

The web-based solution includes V-Suite Core,

V-Inspection, V-Maintenance, and V-Engineer. The

V-Suite Core is at the center of V-Suite and its object

oriented database is interoperable, customizable,

and extensible. The intuitive 3D interface allows

end users to access plant information for decision

support, work planning, execution, and analysis with

exceptional reliability and efficiency. V-Inspection is

the end user application that brings the power of a 3D

Plant model into the hands of the Inspection Engineer.

V-Maintenance brings planned maintenance, exception

maintenance and emergency maintenance together in

one application. Using the Engineer’s mobile device

of choice, maintenance routines can be optimized

to continually survey asset points close to point of

operation. Additionally, the V-Engineer brings the value

of Artificial Intelligence to the Asset Integrity team.

V-Suite’s web-based and mobile device deployment

proves to add significant additional value by

presenting asset information and specific end-user

application in support of organizational needs in ways

not otherwise possible. This is further enhanced by

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integration with existing EAM systems already in place

within the enterprise. In preparation of inspection

routines alone, companies measured 40% productivity

gains, greater accuracy of observation uploads, and

seamless data uploads and interoperativity.

The use of a 3D model in the operation of an

industrial plant is growing exponentially. The majority

of 3D tools currently available have been created for

the exclusive use of design engineers, and as such

were designed to be passive in their nature and end-

user viewing only. The first days after a plant handover

or the plant goes live, changes made to the plant

rendering a passive 3D model will be immediately

out of date and quite possibly a danger to the user.

INOVX has always built an active 3D Model specifically

designed for the end-user operator. The model

Management of Change (MoC) provides the tools for

the operator to reflect change requests within the

model itself and allow integrated workflow to route

any change request for approval. This can rapidly

improve the status of the model to always be current.

Changes within an active 3D model can take minutes,

and without users be forced offline while changes are

made. And so V-Suite delivers a 24/7 active model,

always current, and interoperating realtime with all

associated data sources.

3D has been the domain of the Design Engineer

for over 20 years now, and despite operational

management seeing use in applying the technology

into plant operations, 3D has largely been passive and

Design Engineer focused. The advent of the INOVX

active 3D Model with its V-Suite platform is based on

relational database technology, designed specifically

for plant operation management, rich in end user

functionality, and now with full mobility creates the

first enterprise wide deployable solution of active 3D

for plant operations.

Source: INOVX Solutions

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Low market prices are keeping the pressure on oil and

gas executives to improve business performance via

digital technologies and data-driven optimization. In

the coming years, business operations will continue to

transform, altering the business expectations of CIOs.

Key Findings

■ New digital technologies such as 3D asset

visualization are creating new value from old

assets in legacy oil fields.

■ Advanced digital technologies such as algorithmic

drilling and completion are giving oil and gas

companies new capabilities to improve operations

and reduce the cost structure of new assets.

■ IT leaders are being challenged to resolve

traditional barriers to data-driven optimization,

such as information management.

■ As IT becomes more engaged with the

digitalization of operations, CIOs are turning to

bimodal IT as a means to enable agile and creative

innovation, while maintaining efficient and reliable

IT services.

■ CIOs are adopting agile and adaptable planning

methods to create IT plans capable of addressing

the uncertain and volatile environment present in

upstream companies.

Research From Gartner

Predicts 2016: Upstream Oil and Gas

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Recommendations

Oil and gas CIOs should:

■ Promote adoption of new technologies such as 3D

asset visualization, and algorithmic drilling and

completion to improve business performance and

reduce operational risk.

■ Take accountability for reducing the barriers to digital

innovation, particularly, the problem of information

incompatibility across organizational silos.

■ Adopt new IT management practices such as

bimodal IT and scenario planning to foster creative

innovation and maintain business relevance as

volatile market conditions shift business priorities.

Strategic Planning Assumptions

■ By 2020, 40% of field assets will be monitored and

managed by interactions with virtual 3D models.

■ By 2020, more than 50% of wellbore drilling

activities on electric rigs will be controlled primarily

by algorithm and secondarily by human expertise.

■ By 2020, 50% of upstream oil and gas CIOs

will be accountable for integrating information

management across IT, operational technology

(OT) and upstream-modeling domains.

■ By 2018, more than half of upstream oil and gas

companies will expect digital innovation from IT,

forcing CIOs to create bimodal IT organizations.

■ By 2020, 30% of upstream CIOs will adopt

scenario planning methodology to guide digital

innovation and future-proof their companies

against market volatility.

Analysis

What You Need to Know

Nearly all upstream companies have already seen the

impact of digitalization in reducing their operating costs,

increasing ultimate recovery rates, accelerating the pace

of their business and improving safety performance. Use

of data to drive optimization of business performance

will continue to grow in scope and sophistication. As

competition intensifies in global oil and gas markets,

driving forces such as expansion of digital oil field

scope, increased advanced analytic capabilities, broader

integration of planning and operations, and digitalization

of work streams are transforming operating practices in

upstream companies.

The role of the CIO and the IT organization will

increasingly be to initiate change, foster relationships

and change the culture of the organization. As more

companies elevate data-driven optimization to a top

business priority, the skills of IT talent will have to

expand to increase their influence and leadership

effectiveness. At the same time, upstream CIOs

remain under pressure to deliver basic IT services

more efficiently. However, the need to reduce overall

IT costs now must be balanced with the need to

advance digitalization priorities. Upstream CIOs will

need to take a stronger leadership role in introducing

new technologies such as 3D asset visualization, and

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algorithmic drilling and completions. In addition, they

must take greater accountability for overcoming the

barriers to digital business transformation, such as

weak and fragmented information management. And,

at the same time, they must refresh IT management

practices by introducing new capabilities such as

bimodal innovation and scenario planning.

Strategic Planning Assumptions

Strategic Planning Assumption: By 2020, 40%

of field assets will be monitored and managed by

interactions with virtual 3D models.

Analysis by: Leif Eriksen, Morgan Eldred

Key Findings:

■ The technology necessary to create virtual 3D models

of physical assets and infrastructure, and connect the

models to related data is rapidly maturing.

■ During the past five years, the cost to create

intelligent 3D models of infrastructure has

dropped by more than 50%, lowering the financial

barriers to adoption.

■ 3D models are becoming “digital twins” of

physical assets and delivering multiple benefits,

including better and more cost-effective training,

improved equipment reliability, and reduced

operational risks.

■ The challenges organizations face in adopting

and realizing the value of using virtual 3D models

include the costs of deployment (lower, but still

high), lack of quality data about assets and

infrastructure, and change management.

Market Implications:

3D virtualization technology is on the cusp of

transforming how upstream oil and gas companies

visualize and interact with their physical assets, such

as pipelines, compressors and rigs. Creating and using

intelligent 3D virtual models of facilities – sometimes

referred to as digital twins – is already a reality and is

having an impact on other industries such as refining,

petrochemicals and utilities. It is changing the way

decisions are made, how personnel are trained and

the degree to which field personnel are exposed

to unnecessary risks. It will eventually lead to an

immersive approach to data visualization, training and

decision making.

The upstream oil and gas industry stands to benefit at

least as much, if not more, from the use of intelligent

3D models than other asset-centric industries. A

high level of personnel turnover puts an emphasis on

effective training and a highly visual way of interacting

with data. In addition, the risks that personnel face

when they are in the field can be substantial and favors

virtual, as opposed to direct, interaction with assets.

Use of intelligent 3D models by the upstream oil and

gas sector stands to mitigate these risks, reduce

unplanned downtime and improve safety performance.

There are still significant barriers to adoption of

intelligent 3D models, and these barriers could stand

in the way of rapid adoption. The most significant

barrier may end up being persistently low oil prices,

which could put a damper on technology investments

by the industry. Another key challenge is the lack

of data and/or poor quality data. Older assets are

lightly instrumented, and the costs to retrofit them

(including deploying the necessary communications

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infrastructure) could limit the value of any investments

made in 3D technology. And, as with the adoption

of any transformational technology, there could

be resistance from segments of the workforce

uncomfortable with change.

Working in favor of more rapid adoption are the

ongoing and rapid technological innovations in both

the core 3D modeling technology and supporting

technologies such as cloud and the Internet of Things

(IoT). For instance, during the past five years, the cost

to create intelligent 3D models of infrastructure has

dropped by more than 50%, lowering the financial

barriers to adoption. In addition, IoT-driven advances

in sensor technology are opening the door to more and

better data on the status and condition of assets. And

in the next five years, better field connectivity, more

powerful mobile form factors and cloud technology will

lead to increasing use of 3D models as the primary

mechanism for viewing asset data anywhere, anytime.

Recommendations:

■ Invest in the technology necessary to create

intelligent 3D models of their existing physical

assets and infrastructure.

■ Develop plans to expand adoption of related

technologies such as the IoT and mobile to

increase edge awareness and to enable better data

capture and visualization.

Strategic Planning Assumption: By 2020, more than

50% of wellbore drilling activities on electric rigs will

be controlled primarily by algorithm and secondarily

by human expertise.

Analysis by: Rich McAvey

Key Findings:

■ Operational automation in other industries has

well-established the benefit of using algorithms to

control and optimize operational activities.

■ Drilling rigs and completion equipment in

the oil and gas industry have become heavily

instrumented, enabling very accurate modeling

and simulation.

■ Most motors, pumps and field equipment are

already digitally controlled. These control systems

are being integrated, enabling effective real-time

control of rigs.

Market Implications:

Data from heavily instrumented drilling rigs and

completion equipment, in combination with asset,

transactional, financial and engineering data,

is enabling the oil and gas companies to build

very accurate models that reliably predict future

performance. In addition, digital controllers are

increasingly controlling all the motors, pumps and

other operating elements of the rig. This control has

improved reliability of the components, but is also

enabling oil and gas companies to optimize every

rig’s performance in near real time. Consequently,

as in other industries, these capabilities are

combining together to enable algorithmic drilling and

completions.1

The new capabilities that algorithmic drilling and

completions enable will unlock substantial business

and engineering performance improvements, such as

optimized rates of penetration, consistent hole quality,

lower cost of completions and reduced operating risk.

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Benefits also go further than completing an individual

well. Algorithmic drilling and completions will

provide oil and gas companies with a wider and more

diverse portfolio of engineering options for exploiting

reservoirs during their entire life cycle. This means

higher production rates, greater ultimate recover

factors and superior economic performance from new

and existing oil fields.

Algorithmic drilling will continue to expand in scope

and scale until rigs are primarily controlled by

optimization algorithms. In this regard, drilling and

completion automation is following in the footsteps

of other industries, such as aviation (autopilot),

automotive (self-driving cars), power generation

(automated power dispatching) and space exploration

(Mars rover). In all these cases, algorithmic

optimization of operations has resulted in higher

levels of performance. Algorithmic control allows for

repetition to occur without suffering from boredom or

lapses in attention that its human counterparts are

capable of doing. Oil and gas executives are looking to

replicate the technological success of other industries

by making drill bits (and completion equipment)

more intelligent and able to respond instantly to any

conditions they may encounter.

More than optimized business performance is at

stake. With the help of autonomous computer-

controlled drilling operations, oil and gas operators

are developing new ways of mitigating risk and

improving safety performance. Drilling and completion

work mixes rig teams with heavy machinery operating

in tight spaces and often under extreme weather

conditions, which means it is inherently risky. Oil and

gas executives rightly ask, “Why not let machines do

the hazardous work?”

As algorithmic drilling and completions become

more mainstream, the industry will see significant

transformations. The value of drilling/completion

expertise will shift from humans to algorithms. Joint

ventures will seek partners with proven analytic

superiority, resulting in higher growth rates for

companies that can successfully create superior

algorithmic drilling and completions. In turn,

operating companies will want to have stronger control

over the information generated from rigs, as well as

real-time control over their operations (at least within

safety guardrails). Traditional drilling and completion

contractors will be forced to disaggregate drilling and

completion services that are heavily bundled today.

Recommendations:

■ Anticipate a shift of real-time control of drilling

and completion activities from oil field service

companies to company-provided algorithms,

and assess the implications for IT systems and

infrastructure.

■ Begin establishing appropriate governance and

technical architecture to manage algorithm design

and development, as well as operational risks.

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Strategic Planning Assumption: By 2020, 50% of

upstream oil and gas CIOs will be accountable for

integrating information management across IT, OT and

upstream-modeling domains.

Analysis by: Morgan Eldred

Key Findings:

■ Upstream oil and gas firms are increasingly

looking to integrate subsurface and surface data

across domains to enable better business and

asset planning.

■ Most upstream oil and gas companies have

multiple teams responsible for information

management and have a need for more integrated

information governance.

Market Implications:

Overall, upstream oil companies have yet to find

much common ground on how to best manage the

wide range of data types and sources needed to

deliver on the promise of data-driven optimization.

Most have numerous functional teams that focus on a

compartmentalized area of the value chain, such as

subsurface data management, drilling and day-to-day

production operations, with each team choosing the

required applications and managing the associated

data. The end result is siloed information stores and

an inability to optimize asset operations.

CIOs in some leading firms have stepped up and taken

responsibility for information management across

the entire upstream value chain. These firms have

higher capability toward business intelligence, big

data analytics, upstream modelling and production

management. Alternatively, some firms have created

separate teams outside of IT solely responsible for

integration and data management. However, this

is the minority, and many of these firms are still

challenged, as IT is still required to contribute toward

the architecture and system management. Where

firms have taken these actions, the expectation is

to pass the overall responsibility of integration and

information management to IT in the longer term.

Challenges will exist initially when CIOs take on this

initiative, as the payback will take a long time to

materialize, and the change management will be

difficult. And while low oil prices are putting pressure

on IT budgets, they also create an opportunity for

system rationalization and a more integrated approach

to information management. CIOs willing to take the

lead will likely find some resistance, but ultimately, will

be positioned to deliver on the promise of data-driven

optimization of business performance and the digital

oil field.

Recommendations:

■ Broaden the CIO role to include OT data

management and establish information governance

across the entire enterprise, with a focus on

enabling business value creation from digital oil

field data management and analysis.

■ Create an enterprise information architecture

that incorporates all data, inclusive of all OT

data, including production, geoscience and

engineering data.

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Strategic Planning Assumption: By 2018, more than

half of upstream oil and gas companies will expect

digital innovation from IT, forcing CIOs to create

bimodal IT organizations.

Analysis by: Rich McAvey

Key Findings:

■ Low and volatile oil prices have led many oil and

gas companies to make data-driven optimization

a top priority to drive business efficiency,

productivity and agility.

■ Traditional IT management practices, which excel

at creating stable, reliable and efficient services

and systems, have proved to also be inhibiters to

emergent innovation processes (for example, IT as

the department of “no”).

■ IT organizations that operate in only one traditional

mode of IT are ill-equipped to support data-driven

optimization. Consequently, CIOs are adopting a

bimodal approach: One mode is focused on reliable

and efficient delivery of traditional IT services (Mode

1), and the other on innovation, agility and business

transformation (Mode 2).

Market Implications:

At many (but not all) oil and gas companies, the

traditional view of IT has been as an essential,

but commodity, function that supports core

business activities (such as exploration, drilling and

production), but does not contribute directly to them.

In recent years, the impact of digital technologies and

data-driven optimization has been well-documented

as they have brought substantial volumes of new oil

supplies to the market at low cost. Consequently,

many oil and gas companies have changed their view

of IT, and now expect IT to be stronger contributors

in using digital technologies to increase business

performance through innovation.

To contribute to digital innovation, IT will need

different talent. Traditional IT leaders have careers,

experience sets and capabilities oriented around

reliable delivery of IT functional workflows (application

development, infrastructure, requirements definition,

waterfall project management, vendor performance

management and functional budgeting, for example).

As oil and gas CIOs began taking on greater

responsibilities for data-driven optimization, it has

become clear that IT leaders with new experience sets

and capabilities are required. IT now needs talent

that understands current business operations and

the potential impacts of digital technologies, and can

identify and develop transformational initiatives that

elevate business performance.

In addition, IT management and operating practices

will need to change to support digital innovation.

Traditional IT processes have been developed to

deliver two things: stable and efficient IT services

(such as provisioning a laptop or maintaining a third-

party application) and on-time/on-budget delivery

of predefined IT projects (such as standing up a new

application or providing infrastructure to a new field

office). However, creative innovation work follows

processes that are agile, emergent and ad hoc, which

are characteristics that traditional IT processes

are designed to stamp out. CIOs must augment IT

processes with new ones that enable collaborative and

emergent development of creative solutions by fluid

teams of talent from multiple entities.

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To support innovation, IT will also need to consider

new technology architectures. The traditional approach

to technology architecture in oil and gas companies,

particularly, the larger ones, has been to organize

them in multiple portfolios associated with business

assets/regions (such as Gulf of Mexico versus

North Sea versus corporate functions), engineering

functions (such as reliability, drilling or production

operations) or by major capital project (such as a

multibillion dollar gas project in Northwest Australia).

This has produced a fragmented and siloed technical

architecture that greatly inhibits digital innovation.

Companies seeking to be more agile and adaptable

are migrating to enterprise architectures based on

the pace-layering model. This model reorganizes

technology portfolios into three groups – systems

of record, systems of differentiation and systems of

innovation – enabling each to be optimized for their

desired business outcomes.

Oil and gas CIOs who want their departments to be

agile, to handle uncertainty and to be more flexible,

while maintaining their capacity to handle day-to-day

service delivery and system management pressures

are turning to a bimodal approach for IT. Bimodal IT

overcomes the inertia of the status quo and helps

organizations develop speed and agility to meet digital

challenges. Bimodal IT is the practice of managing

two separate, coherent modes of IT: One is focused

on stability, predictability and efficiency (Mode 1),

and the other focused on transformation, innovation

and agility (Mode 2). Each mode has all the people,

resources, partners, structure, culture, methodologies,

governance, metrics and attitudes toward value and

risk that its operation requires.

Recommendations:

■ Establish a small, but diverse, IT team to organize

and drive digital innovation.

■ Create a strategy for bimodal IT, including

a vision, an organizational change plan and

a communications plan. Ensure that the

communications plan explains how bimodal IT

will lead to data-driven optimization of business

performance.

■ Sponsor agile digital innovation projects, but

do not mix modes within the same IT team.

Keep Mode 1 teams focused and accountable

for delivering stable, predictable and reliable IT

services. Keep Mode 2 teams focused on digital

business transformation, innovation and agility.

Strategic Planning Assumption: By 2020, 30%

of upstream CIOs will adopt scenario planning

methodology to guide digital innovation and future-

proof their companies against market volatility.

Analysis by: Rich McAvey

Key Findings:

■ IT planning in the oil and gas industry is typically

based on annual, rigid, single-point forecasting

methodologies, and produces plans that can

quickly become irrelevant.

■ Volatile hydrocarbon markets have introduced

substantial volatility among business priorities and

timing for IT projects.

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Market Implications:

In the fourth quarter of 2014, as crude oil prices began

a rapid decline of roughly 50%, the IT plans of most

upstream companies were disrupted by changes in

market conditions. Why? Because IT planning in the

oil and gas industry is typically based on annual, rigid,

single-point forecasting methodologies, and produces

service roadmaps and project plans that can quickly

become inappropriate when conditions change. It is

important to note that in 2014, IT plans did not adapt

or adjust; for the most part, they simply failed as oil

prices slipped below $80 per barrel. The events of 2014

revealed the fragility of traditional IT planning methods.

Oil market volatility makes the future business

environment for oil and gas companies uncertain,

which, in turn, makes IT planning difficult. Oil markets

are impacted by unpredictable forces such as short-

term supply/demand imbalances, access to quality

reserves for future investment, the cost of capital,

shifting global politics (which often is generated

directly by trade balances due to oil and gas),

development of new petroleum technologies (such as

fracking, which has made the North American shales

economically viable) and alternative energy sources

(such as the penetration rate for electric cars). While

some business priorities (such as safety, economic

performance and risk management) remain stable,

most business priorities shift when market conditions

change.

Dynamic oil and gas markets are not the only source

of volatility that upstream oil and gas CIOs must

contend with. During the last several years, the

number of innovative oil and gas companies has

been growing. These companies have realized the

substantial business impact that digital technologies

are having on field productivity and business

performance among a wide variety of oil and gas

companies. The situation became very transparent in

late 2014. There was wide industry expectation that

the U.S. shale oil producers would be choked out if

oil prices dropped below $75 per barrel. Prices did

go lower than that, into the $50 and $40 range, and

yet, shale operations remained strong. This was a very

public testament to the efficacy of digital technologies

and data-driven optimization to reduce the break-

even cost of operations in oil and gas companies.

In retrospect, it became clear that digital innovators

had achieved this progress by prioritizing investments

in field sensors, analytics, integrated planning/

operations and digitally connected workers.

Volatility is making it hard to move forward. Business

and IT executives in the oil and gas industry are

struggling to formulate plans that are sufficiently

agile and adaptable for a future as uncertain as the

current environment. Plans should empower and align

leaders when there are choices by helping them focus

on appropriate business objectives and priorities. At

the same time, plans should also empower individuals

to make the right decision as business conditions

change. This is possible only if the plan is relevant,

easy to understand and easy to communicate.

Scenario planning is a strategic planning method

noted for its ability to make agile and adaptable long-

term plans, especially for complex military, social

and business environments. It can help business

executives and IT planners anticipate and prepare for

longer-term, uncertain future market conditions and

their implications. Within the oil and gas industry,

scenario-based planning was developed at Royal Dutch

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Shell in the 1970s, and gained popularity due to its

anticipation of the significant drop in oil prices in

1986. Scenario planning initiatives create multiple

scenarios to describe potential future environments.

These scenarios are important constructs of the

scenario planning process as they bring focus

to the implications of critical uncertainties, and

make it possible to derive logical and coherent

implications that, in turn, enable leaders to assess the

consequences of future business decisions. However,

the decision-making processes that follow scenario

development are just as important as development

of the scenarios. Typically, scenario planners spend

as much time on the decision-making process as on

creating the scenarios themselves.

Recommendations:

■ Define the dimensions of uncertainty that can alter

IT plans due to changes in hydrocarbon markets,

digital technologies and business conditions. Focus

on dimensions that are directly relevant to IT such

as oil-market outlook (which affects the scale of

IT investment) and innovation philosophy (which

affects IT priorities and resources).

■ Shift to a more agile and adaptable planning

methodology, such as scenario planning, to

develop IT plans that can anticipate, accommodate

and adjust to changes in priorities and timing.

A Look Back

This topic area is too new to have on-target or missed

predictions.

Source: Gartner Research Note G00279658, Rich McAvey, Leif Eriksen, Morgan Eldred, 19 November 2015

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Analysis By: Morgan Eldred

Definition: Intelligent 3D models are virtual

3D models that allow projects, operations and

maintenance personnel to visualize assets and

associated data for the purposes of engineering

collaboration, inspections, maintenance,

troubleshooting and training. They can be built on

existing 3D models (originally created during the

design/build process) or created from scratch using

laser imaging technology.

Position and Adoption Speed Justification: Until

recently, the technology to effectively and efficiently

create and manage 3D models of existing physical

infrastructure and assets has been limited. In

addition, the technology for linking data from other

systems – including enterprise asset management

(EAM) systems and equipment databases – to the

3D models has been challenging to put in place and

maintain. But today, 3D laser scanning technology

can deliver accurate as-is models of critical

infrastructure within weeks. The tools for linking the

models to other data sources have become easier to

use and maintain.

The past five years have seen significant progress;

however, there is still a good deal of hype from the

vendors, and legacy technology investments can

still be a barrier to progress. The next 10 years will

see even more progress in using 3D models for

managing operational assets, including an

Intelligent 3D Models

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expansion in vendor options, a reduction in the cost of

deploying and maintaining the models, and the use of

the models on mobile devices. These models also can

be used to converge the handover of information from

projects to operations.

User Advice: CIOs and IT leaders should work with

the business to create and maintain as-is 3D models

of critical infrastructure. They should support the

process of making the 3D models intelligent by

linking to data from back-end systems, including

maintenance systems and various sources of

condition and operating data. 3D models alone can be

useful for training and troubleshooting purposes, but

the greater value comes from making the 3D models

intelligent. Linking the 3D models to information about

the underlying components or objects allows users to

drill down and find information such as engineering

information, inspection history, maintenance history

and even part numbers. The 3D model in this

scenario becomes the primary tool for accessing

asset information, making decisions and managing

operational risk.

If you already have 3D models of your infrastructure

and assets, start your investigation there. However, be

wary of using legacy technology that might complicate

and increase the cost of keeping the model current,

creating the links to other systems, and maintaining

the resulting system. There are more examples of

failed projects in this area than successful ones. Once

the foundation is in place, consider extending the use

of the 3D models to the field. This should start with

pilot projects to make the 3D models and associated

data accessible on mobile devices – tablets will be the

most feasible approach. Some vendors are beginning

to support this capability, but it will be a few years

before it is considered a core part of the product’s

functionality.

Business Impact: Asset-intensive organizations are

under immense pressure to improve reliability and

reduce operational risk. The use of 3D models for

engineering, managing and maintaining operational

assets helps reduce costs and mitigate risk,

particularly as it relates to remote or inaccessible

assets. The use of 3D models will also become a

cornerstone of digital worker enablement. Information

will be as readily available in the field as it is in the

home office, and it will be tied to virtual views of the

physical assets.

Benefit Rating: High

Market Penetration: 1% to 5% of target audience

Maturity: Emerging

Sample Vendors: Autodesk; Aveva; Bentley Systems;

Dassault Systèmes; Intergraph; INOVX; Siemens

Recommended Reading: “Top 10 Trends That Affect Oil

and Gas CIOs in 2016”

“Cool Vendors in Oil and Gas, 2016”

Source: INOVX Solutions

Solutions for 3D Asset Integrity Management is published by Inovx Solutions. Editorial content supplied by Inovx Solutions is independent of Gartner analysis. All Gartner research is used with Gartner’s permission, and was originally published as part of Gartner’s syndicated research service available to all entitled Gartner clients. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The use of Gartner research in this publication does not indicate Gartner’s endorsement of Inovx Solutions’s products and/or strategies. Reproduction or distribution of this publication in any form without Gartner’s prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity” on its website.

Contact us

For more information contact us at:

www.INOVX.com

Founded in 1999, INOVX provides a platform and

solutions for 3D Asset Integrity Management to

companies in the process industries worldwide. INOVX’s

V-Suite of products enable the creation, management

and access to high fidelity three dimensional views

of plant assets. These views are used in daily work

practices to better communicate and navigate all

asset information. INOVX’s solutions support many

plant functions such as reliability, safety, operations,

maintenance, inspection, and engineering. INOVX

is a pioneer and thought leader in the creation and

deployment of 3D Models in support of Operations and

Maintenance activities in existing facilities worldwide.

INOVX is headquartered in Irvine, California.

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