Woodside
AVEVA NET
Woodside post implementation review
August 2009
Contents
1. Executive summary 2. Background 2.1 The Woodside implementation 3. Methodology 3.1 Method 3.2 Assumptions 4. Cost benefit analysis 4.1 Introduction 4.2 Benefits 4.3 Costs 5. Return on investment 5.1 Key findings 5.2 Internal rate of return 5.3 Payback period 5.4 Costs versus benefits 5.5 ROI sensitivity 5.6 Qualitative and intangible benefits 5.7 Future opportunities 6. Conclusion 7. Appendix 7.1 AVEVA background 7.2 Woodside background 7.3 Cost and benefit breakdown
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1.
Executive summary
Deloitte was commissioned to conduct a post implementation review of AVEVA NET at Woodside Energy Limited (WEL); to identify the return on investment (ROI) achieved to date and forecasted through to 2014. In 2004 Woodside commenced the implementation of the AVEVA NET application as a solution to better manage new and legacy engineering data. AVEVA NET was chosen as Woodside believed that it integrates with industry standard business and engineering applications providing a single access point for 98% of Woodside’s engineering data. As part of the AVEVA NET implementation, significant data validation and integration of legacy data from existing facilities was conducted, which significantly contributed to the benefits realised. Four benefits were evaluated for the purpose of the ROI analysis: • streamlined data handover • more efficient information searching • reduction in training costs • reduction in the number of supported applications. The former two (efficient data searching and data handover) were found to be the most significant by Woodside.
The majority of the benefits included in the 10 year IRR (internal rate of return) have not yet been realised and are based on assumptions provided by Woodside. The realisation of those benefits will be dependent on many factors including the robustness of the assumptions
Woodside post implementation review
August 2009
Contents
1. Executive summary 2. Background 2.1 The Woodside implementation 3. Methodology 3.1 Method 3.2 Assumptions 4. Cost benefit analysis 4.1 Introduction 4.2 Benefits 4.3 Costs 5. Return on investment 5.1 Key findings 5.2 Internal rate of return 5.3 Payback period 5.4 Costs versus benefits 5.5 ROI sensitivity 5.6 Qualitative and intangible benefits 5.7 Future opportunities 6. Conclusion 7. Appendix 7.1 AVEVA background 7.2 Woodside background 7.3 Cost and benefit breakdown
1 3 3 5 5 5 7 7 7 9 10 10 10 10 11 11 12 12 13 15 15 15 16
2
1.
Executive summary
Deloitte was commissioned to conduct a post implementation review of AVEVA NET at Woodside Energy Limited (WEL); to identify the return on investment (ROI) achieved to date and forecasted through to 2014. In 2004 Woodside commenced the implementation of the AVEVA NET application as a solution to better manage new and legacy engineering data. AVEVA NET was chosen as Woodside believed that it integrates with industry standard business and engineering applications providing a single access point for 98% of Woodside’s engineering data. As part of the AVEVA NET implementation, significant data validation and integration of legacy data from existing facilities was conducted, which significantly contributed to the benefits realised. Four benefits were evaluated for the purpose of the ROI analysis: • streamlined data handover • more efficient information searching • reduction in training costs • reduction in the number of supported applications. The former two (efficient data searching and data handover) were found to be the most significant by Woodside.
The majority of the benefits included in the 10 year IRR (internal rate of return) have not yet been realised and are based on assumptions provided by Woodside. The realisation of those benefits will be dependent on many factors including the robustness of the assumptions