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To Fee or not to Fee

To Fee or not to Fee . 101100110101. That is the question for SDO’s. PPDM Association Data Management Conference November 14 th and 15 th 2007. Yogi Schulz. Yogi Schulz Biography. Management Consultants. President of Corvelle Management Consultants

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To Fee or not to Fee

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  1. To Fee ornot to Fee 101100110101 That is the question for SDO’s PPDM AssociationData Management ConferenceNovember 14th and 15th 2007 Yogi Schulz

  2. Yogi SchulzBiography Management Consultants • President of Corvelle Management Consultants • Information technology related management consulting • Project management and systems development • Microsoft Canada columnist & CBC Radio host • PPDM Association board member • Industry presenter: • Project World - 4 years • CIPS Informatics - 7 years • PMI Information Systems SIG - 2 years • Convergence - 4 years • PPDM Association - several years

  3. Community Source vs. Closed Source Study: Wikipedia as accurate as Britannica Wikipedia is about as good a source of accurate information as Britannica, the venerable standard-bearer of facts about the world around us • study published in the journal Nature. • By Daniel Terdiman, December 15, 2005, CNET News.com

  4. Presentation Outline • Presentation Goal • Background & Context • Achieving the PPDM Association mission • Comparing Free SDO to Fee SDO • Conclusions & Recommendations • Questions & Discussion

  5. Presentation Goal Compare the major strategic alternatives for achieving the mission of the PPDM Association Free SDO Fee SDO

  6. Mission & Endsof the PPDM Association Mission • The PPDM Association is a global not-for-profit organization which collaborates with the petroleum industry to develop and promote information standards that enhance profitability Ends • Universal industry adoption of PPDM standards Accelerate Free SDO Fee SDO

  7. Oil & GasWishing for Better Exploration Results

  8. Background & Context Frank assessment: • Only a small fraction of PPDM users are PPDM contributors • Number of PPDM contributors is stagnant in a growing oil & gas industry Increase number of PPDM contributors: • Improve the appeal of contributing • Revise PPDM Association business model? Increase Free SDO Fee SDO

  9. An information technology standard is valuable for Sellers if it: • Increases market acceptance of standards-based products • Enhances the quality of standards-based products • Reduces development and sustainment costs for standards-based products Value Free SDO Fee SDO

  10. I FOUND A CLEVER WAY TO WRITE MYAPPLICATION CODEUSING PPDM

  11. An information technology standard is valuable for Consumers if it: • Reduces licensing and operating costs for the standards-based product • Increases benefits for the business processes that the standards-based product supports Value Free SDO Fee SDO

  12. Industry Standards vs.Vendor Standards • “Without standards, users are locked into tools” • The State Of Model-Driven Development • by Diego Lo Giudice • April 17, 2007 Avoid lock in Free SDO Fee SDO

  13. Comparing Free SDO to Fee SDO in the Short-Term Free SDO Fee SDO

  14. So where’s the problem? • Developing, maintaining and implementing a standard is a long-term commitment • Performing this work takes some minimum resource level • Who works to sustain the standard? • How large does the size of the community have to be to perform this work? Sustainment Free SDO Fee SDO

  15. Longevity ofStandards

  16. Comparing SDO Cost Categories • Standards Development • Documentation • Conferences & Meetings • Management & Administration • Communication & Marketing • Public Relations Funding Free SDO Fee SDO

  17. Comparing SDO sources of revenue Revenue Free SDO Fee SDO

  18. Comparing SDO sources of resources Resources Free SDO Fee SDO

  19. What are the risks under Free SDO? • Development community loses interest • Development community pursues its own agenda; ignoring consumer needs • Management is inexperienced • Excessive focus on technical agenda • Insufficient focus on communication, marketing and administration Outlook for long-term sustainability:Bleak

  20. What are the risks under Fee SDO? • Membership does not achieve critical mass • Membership fees do not cover costs • Management is inexperienced • Insufficient focus on communication, marketing and administration Outlook for long-term sustainability:Achievable

  21. Standards Improve Performance

  22. Open Source Success Stories - LAMP Linux is a freeUnix-typeoperating system • Linux • Apache • MySQL • PHP Apache HTTP server & more MySQL is an open source database PHP is a scripting language especially suited toWeb development Can’t these organizations provide a model for the PPDM Association?

  23. Community Size Comparison LAMP Consumers PPDMConsumers Billions? Millions?

  24. Funding Case Study

  25. Conclusions • SDO progress costs resources • The viability of intriguing new business models is unclear • The PPDM community size may not be sustainable • The short-term appeal of Free SDO is outweighed by long-term sustainability of Fee SDO

  26. Recommendations • Don’t be seduced by thealleged benefits of Free SDO • Implement PPDM • Strengthen your relationshipto the PPDM Association • Sell the PPDM valueproposition within yourorganizations • Avoid vendors whose products don’t align well with PPDM standards

  27. Questions &Discussion Can you help data managers? Please fill out evaluation form

  28. To Fee or not to Fee 1800, 250 - 6th Ave. S.W. Calgary, Alberta Canada T2P 3H7 Telephone: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Management Consultants Information technology related management consulting Project management and systems development Microsoft Canada columnist & CBC Radio host PPDM Association board member

  29. Benefits of thePublic Petroleum Data Model • Controls information technology costs • Improves productivity through improved data accessibility, accuracy and reliability • Increases fraction of available software that can be utilized • Improves consistency of communication among explorationists and IT professionals Profitable, productive wells

  30. Objections to using PPDM • Data management problem isn’t big enough • My software vendor takes care of data management • My data vendor takes care of data management • My data management vendor takes care of data management • Don’t bug me; building a truly smooth exploration workflow is a daunting task • What’s a data model and how can it help me?

  31. Competitive tools to PPDM • General purpose data manipulation • Oil & gas specific data manipulation and ETL • Middleware • DBMS data manipulation and data management • Much easier–to-use and highly product development • Spatial ETL

  32. Funding Case Study

  33. Bibliography - 1 • The Case for New Economic Models to Support Standardization Efforts • by Clifford A. Lynch, Bio • Citizendium • A wiki with experts and real names. • Co-Founder to Launch Edited Version of Wikipedia • Creating and Managing an Open Source Project, • by Michael Nascimento Santos, 28 July 2005 • Cultivating Communities of Practice: • A Guide to Managing Knowledge - Seven Principles for Cultivating Communities of Practice, 25 March 2002 • The Empirical Economics of Standards • DTI Economics Paper No.12 - June 2005

  34. Bibliography - 2 • Energistics • is an international, not-for-profit membership organization. Energistics is uniquely designed to unite industry people, issues and ideas to collaboratively address E&P information challenges and opportunities. • GNU General Public License • Innovation: Managing, Creating, Disrupting & Open Sourcing • October 24, 2007 • Managing communities • Managing Crowdsourced Communities • Managing Information Quality in Virtual Communities of Practice

  35. Bibliography - 3 • Managing Open Source • Managing the Risks of Open Source Software • Michel Ruffin, Alcatel Research Center • Christof Ebert, Director of R&D at Alcatel • MIT Open Source Research Community • The Myth of Free Standards • Giving Away the Farm • Andrew Bank

  36. Bibliography - 4 • Online Communities • Pew Internet & American Life Project • Online Community Toolkit • Open Data Consortium • derive a model policy for distributing governmental geospatial data • Open Standards Consortium for Real Estate - Americas, Inc. • Opensource.org • Open source is a development method for software that harnesses the power of distributed peer review and transparency of process

  37. Bibliography - 5 • The PODS™ Association • brings world-wide pipeline industry experts together in a round table approach to engineer a business driven data model • PPDM and PODS Associations • Houston Standards Conference, Spring 2005 • Real Estate Transaction Standard (RETS) • facilitates data transfer between partners in the real estate industry. Creating and improving RETS is a collaborative effort to simplify moving real estate information from system to system and simplify solution development efforts • RETS Value Proposition • describes the many components of the RETS Value Proposition as these apply to each stakeholder in the real estate industry

  38. Bibliography - 6 • Standards-based knowledge environments for the oil and gas industry • Trudy Curtis, CEO and CIO, Public Petroleum Data Model (PPDM) Association • EAGE first break volume 23, January 2005 • Standards worth £2.5bn to UK business • 20 June 2005 - Standards contribute £2.5bn per annum to the UK economy according to a new study published by the Department of Trade and Industry (DTI) and the British Standards Institution (BSI) • Virtual community - Wikipedia • Will my Wiki Work?

  39. World Oil Production 1997 - Present PPDM is more needed & valuable than ever

  40. “Our standards are very high. We even have high double standards.”

  41. The PPDM Association is a not-for-profit organization that develops and maintains standards for the Resource Industry. With over 100 member companies comprised of petroleum businesses, governments, data vendors, software vendors and service firms, the association provides a roundtable process to bring experts together to build useful, business-driven standards.

  42. ChinaSubverting Standards? • Lab check of Windows source code • Security flaw check or intellectual property theft? • Huawei/Cisco battle over router software • Innovation or intellectual property theft? • Encryption for Wi-Fi communication standard • Security improvement or trade barrier to favor Chinese suppliers? • GALILEO Global Positioning System • Influencing standards to maintain political power position Standards can contribute to economic & political goals

  43. References forChina Subverting Standards? • China lab checks Windows • 26 September 2003, CNET Asia staff • Microsoft is the first commercial software company that has signed an operating system source code browsing agreement with the Chinese government • Huawei admits copying Cisco code • 26 March 2003, Ben Charny, ZD Net UK • Huawei Technologies said in court papers filed this week that it used some of Cisco Systems' source code in its routers • China's Wi-Fi Wrangle • March 15, 2004, Bruce Einhorn, Business Week • A storm is brewing over Beijing's restrictive wireless policy, which foreigners say unfairly favors local players in the name of security • EU and China to collaborate on GALILEO; the European global system of satellite navigation • September 18, 2003, Space Ref • This agreement provides for co-operative activities on satellite navigation and timing in a wide range of sectors, notably science and technology, industrial manufacturing, service and market development, as well as standardization, frequency and certification

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