Trading Operations in O&G Business on-the-fly · 87,000 (2013) Oil & Gas Example ... STUDIO BO Universe Spotfire Server BO Reports Excel Spotfire ... (SAP and others, e.g. TIBCO Spotfire)

Adolf Pleyer

Development Manager – Strategic Customer Engagement

Trading Operations in O&G Business –

on-the-fly

SAP HANA COUNCIL 31 октября 2014 г., Москва

INTRODUCTION

ENGAGING THE CUSTOMER

DESIGN THINKING

PROOF OF CONCENPT

CASE STUDIES

PEOPLE

BUSINESS TECHNOLOGY

Multidisciplinary Team

Dynamic Approach

Divergence & Convergence

Creative Environment

STRATEGIC CUSTOMER ENGAGEMENT TEAM

”Customer Co-innovation at SAP”

WHAT are we solving


INTRODUCTION


DESIGN THINKING

PROOF OF CONCEPT

CASE STUDIES

Business Technology

Provide real-time insights and advanced

customer profile

Create unique digital shopping experience

for customers

Revenue loss due to the inability to sell the

product to larger customers

Inability to identify the source of exposure

variances

Fragmented data from multiple sources with

multiple gateways and firewalls

Massive data volume

Real time performance on multiple BI analytical

tools (SAP and others)

Migrating traditional ABAP processes to HANA

with vast performance improvement

INTRODUCTION


DESIGN THINKING

PROOF of CONCEPT

CASE STUDIES


Execution

Plan

Data

Conversion /

Load

Sprint

Planning /

Review

Hana

Modeling

Testing

UI

Development

Data

Services

Sprints of 1-2

weeks


8-12 Weeks

total POC

INTRODUCTION


DESIGN THINKING

PROOF of CONCEPT

CASE STUDIES

POC Solutions

Burberry Real-time customer

360 View

Kingfisher Consolidated and

real-time access

across multiple

systems in multiple

regions



8 weeks implementation

Data Access Near real-time with longer sales history available for forecast model

Increased Capability for better trading strategy and more transparency for risk management

Business Challenges

Rapid growth in oil trading volume generating massive data volume and complexity

Customers Oil Data Warehouse (ODW) can no longer support the needs of expected business growth

Support burden and delivery time high for new reports (months) due to the performance trade-offs and tuning required

Technical Challenges

With additional businesses and expected data growth, current architecture is unsustainable

Massive data volume from specialized oil & gas system

Real time performance on multiple BI analytical tools (SAP and others, e.g. TIBCO Spotfire)

Business Value

New capability to analyze and simulate trading scenarios (from 2 days to over 80 days)

Increased transparency for risk management

Reduced architecture complexity and lower IT costs

Company Oil & Gas exploration, production, refining, distribution & trading Headquarters Europe Industry Oil & Gas Products Petroleum, natural gas, and other petrochemicals Employees 87,000 (2013)

Oil & Gas Example - Real-time Trading Platform

Adolf Pleyer

Development Manager – Strategic Customer Engagement

Trading Operations in O&G Business –

on-the-fly

SAP HANA COUNCIL 31 октября 2014 г., Москва

© SAP AG или аффилированная компания SAP, 2014 г. Все права защищены. 9

Analytics and Big data in O&G Trading

Keys to success O&G trading

Ability to manage risk and exposure

Ability to simulate and forecast changing market condition

Insight into past (history) and future (what-if)

Calculate bonus and traders profitability

Better and faster information better trading decisions

Growth and agility requirements

Additional businesses

More transactions

Data volume is increasing

Data load and reporting times are increasing

Delivery time for new reports is critical, e.g. to adapt trading strategies


Customer’s Pain Points – Business POV

Rapid growth of data due to

Addition of international crude - geographical expansion

Addition of product businesses - gasoline, jet fuel, …

Growth of business - selling more

Volume expansion due to financial contracts

Hitting the wall

Existing reports run too long

making quick reaction to market events difficult

Reports run even longer with growing data volume

No growth potential

Adding new businesses adds data and reporting requirements

Adding new reports takes long because of necessary optimizations

0

20

40

60

80

100

120

140

2011 2012 2013 2014 2015 2016 2017

DataVolumeinTB

Total

HotData


Architecture before PoC

ODW

STG1

ODW ODS

BO Universe BO

Reports

MVWs

ODW

DW

Excel / VB

Saved

Reports

1 2 3

Trading Platform Operational Data Warehouse

Multiple Source Systems,

Significant Proprietary

Tranformations Move (0.75 hrs) Move, Some

Transform (2.5 hrs)

Move, Transform to

Star Schema (2.5 hrs)

Refresh

Move, Flatten (2 Hours)

4 6

5

Data transported to and processed in ODW contains all relevant trading data:

trading parties, trading contracts, deals, commitments, profiles, fees, …


ODW Current Challenges in Detail

Nightly load processing times – frequently not meeting window

High volumes of transactional and simulation every day

Too many layers to move the data, including DW layer and two reporting refresh layers

Forced persistence of transactional data to support “time sensitive” transactions & simulations

Use of a Star Schema in ODW for majority of ODW reporting (operational)

Performance of Excel-Based Operational Reporting

Memory Crashes (Too Much Data for Some Portfolios)

Length of Time to Pull Data into Excel Pivots


Architecture Transformation (ODW)

ODW

STG1

ODW ODS

BO Universe BO

Reports

MVWs

ODW

DW

Excel / VB

Saved

Reports

1 2 3

Trading Platform Operational Data Warehouse



Tranformations Move (0.75 hrs) Move, Some

Transform (2.5 hrs)

Move, Transform to

Star Schema (2.5 hrs)

Refresh

Move, Flatten (2 Hours)

HANA DB

(Includes all

Base tables

from Trading

Platform)

Operational Data Warehouse Trading Platform



Tranformations

Attribute Views

Analytical Views

Calculation Views

Analytical Models

HANA

STUDIO

BO

Universe

Spotfire

Server

BO

Reports

Excel

Spotfire

Reports Operational Reporting

SAP HANA Reporting

ETL

4 6

5

Data Services


PoC Details

PoC Deliverables:

View 6 days of data which is not possible today in Futures & Forwards Crude business unit

Prove HANA’s ability to provide pivot & drill down capability

Conduct PoC at SAP location

PoC Success Criteria:

Reporting performance ( < 10 mins, currently takes 2 hrs)

Reporting experience – reproduce current functionality

Provide end-user with Profit & Loss report for FF Crude business unit –

for 1 day, 2 days, 6 days (6 days = 18M rows, not possible today)

Demonstrate “step change” capability

– Industry standard drill-down response time speed

(7 sec or less for less than 20 days)

– Ability to aggregate and compare across 6 days in one query result

– Aggregate and compare 20 days of data

Data in PoC Scope:

82 days of PNL tables

(all data since Go-Live)

20 tables

2.3 billion records

1 TB data

* Above lists are not complete


8 weeks implementation

Data Access Near real-time with longer sales history available for forecast model

Increased Capability for better trading strategy and more transparency for risk management

Business Challenges

Rapid growth in oil trading volume generating massive data volume and complexity

Customers Oil Data Warehouse (ODW) can no longer support the needs of expected business growth

Support burden and delivery time high for new reports (months) due to the performance trade-offs and tuning required

Technical Challenges

With additional businesses and expected data growth, current architecture is unsustainable

Massive data volume from specialized oil & gas system

Real time performance on multiple BI analytical tools (SAP and others, e.g. TIBCO Spotfire)

Business Value

New capability to analyze and simulate trading scenarios (from 2 days to over 80 days)

Increased transparency for risk management

Reduced architecture complexity and lower IT costs

Company Oil & Gas exploration, production, refining, distribution & trading Headquarters Europe Industry Oil & Gas Products Petroleum, natural gas, and other petrochemicals Employees 87,000 (2013)

Oil & Gas Example - Real-time Trading Platform

POC Solutions Across Industries

Burberry Real-time customer

360 View

Kingfisher Consolidated and

real-time access

across multiple

systems in multiple

regions


Your

Company Your Competitive

Innovative Use

Case

Спасибо за внимание!


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права защищены.

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Documents

Trading Operations in O&G Business on-the-fly · 87,000 (2013) Oil & Gas Example ... STUDIO BO Universe Spotfire Server BO Reports Excel Spotfire ... (SAP and others, e.g. TIBCO Spotfire)