In today’s North America shale revolution, oil and gas companies are buying assets to expand their footprint in certain plays. For continuity of operations during the transition phase, companies typically find it least disruptive to adopt the current software and processes from these acquisitions. This inevitably leads to downstream operational issues with companies supporting multiple platforms, multiple software solutions and multiple agendas.
Take, for instance, a scenario where the acquired company uses Peloton WellView for capturing their Drilling and Completions data while the acquiring company uses P2 Energy Services Wellcore. The typical Band-Aid approach to this scenario is to retain both solutions and kludge together enterprise reporting. As time goes by, however, this reporting “solution” usually becomes harder to manage, to the point where the company inevitably is forced to make a choice.
Selection Criteria
As a consultant at an oil and gas consulting firm, I am frequently involved in helping a client evaluate, compare, and select software solutions. And keeping with the D&C data scenario above, I’d like to share a standard set of selection criteria I use in client engagements.
- Fit for Company Business Processes – Does the solution’s functionality adapt to current business processes or perhaps even substantively improve workflow for users and management?
- Required Functionality – Does the solution capture the D&C data needed for reporting and aid in making decisions that can optimize future projects?
- Software Environment – Can the current IT infrastructure handle the daily processes needed for speed and uptime?
- Sustainability and Extensibility – Can the solution grow with the company?
- Vendor Support – Are issues resolved in an accurate and timely fashion? Does the vendor respond to user feedback regarding enhancements?
- User Acceptance – Do users trust the solution’s capabilities and the accuracy of the data?
Best Practices for Criteria Analysis
Over the years I have learned that, in successful software selection projects, the proof of the pudding is in the analysis. Here are a few tips that will help you make sure you get the most out of your selection-criteria analysis.
- Be specific with business requirements. This will make it easier to compare systems “apples to apples.”
- Within each of these selection criteria, establish a measurement for success.
- Don’t waste too much time on basic system functionality. The software would not be evaluated if it did not do the basics. Look instead for specific functionality that will help improve the business process or reporting metric.
- Listen to users. We all know that at times people are resistant to change. Change can be scary, and learning a new application can be intimidating. It has been my experience that user acceptance is THE major factor in what software choice is made. So, a word to the wise: Do not take this portion of the selection criteria lightly. Managers do not like to hear negative feedback from end users constantly.
An Opportunity to Create Business Value
While it is perhaps natural that most companies dread this entire process because it has risk and is confrontational by nature, the software selection process really affords you the opportunity to effect positive change for the business. It’s a time to be inward-focused and review how the flow of information is designed, managed, and optimized for your business. When it’s time to rationalize software post-acquisition, it’s in your company’s best interests to embrace it for the opportunity it is.