What Our Tactics Are Part II

There are two major trends that People, Ideas & Objects are capitalizing on in order to make the necessary changes within the oil and gas industry. The first has been the focus of most of the discussion that has taken place here on this blog. That being the unsustainable business model of the current bureaucrats in the industry. With them there is no future, no plans and no vision. Just more of the same losses and nothingness. The other trend that is as strong and is accelerating each and every day is the impact that Information Technology is having on our lives. People are experiencing change at a rapid pace in their personal lives. What could not be done a few years ago can now be done by the average four year old. It is truly remarkable. To disregard technology, which has been the attitude of many people, is now a dangerous position to put oneself in.

The effect of Information Technology in the business environment over the past ten years is of course a different story. The unchanging bureaucracy know that if they adopt the new technologies they lose control of their dominance and their desired form of organization. They need to stay in control and the way that they do that is to ensure that no technologies enter the organization that will ultimately render them even more obsolete.

So where do we stand in terms of the overall Information Technology horizon. I think that to state up to this point, the whole exercise has been a great exercise. The technologies have not been mainstream or powerful enough to make the promised changes. They have needed to mature and round themselves out in order to deliver on the promises that have been made. This history is one of the main reasons that people point to them as being irrelevant in the current marketplace. I think they are wrong. But its not too late. Now is the time in which to get on board and ride this train to its ultimate destination. Industries such as oil and gas will be fundamentally different as a result of the Information Technology revolution. And People, Ideas & Objects, I think, is the beginning of this trend.

When I began this journey in 1991 there was no way in which to implement the vision in any manner. The Internet was still a half decade away. Oracle’s technology was as dominant then but it was unable to carry the load. And computers, servers for that matter, were no better than what we have in our phones today. Probably most importantly was the problem of the user. How would they fit in? Its different today. I don't need anything more from Oracle other than for them to continue in their innovative ways. The Internet is more than capable. Computers and servers can do what we need in no time. And on that point there is an excellent article from the Wall Street Journal on where we are headed. And lastly the user is well educated and capable in the use and application of technology for their needs. I have what I need to implement the Preliminary Specification within the oil and gas industry. Something that until very recently I was unable to state.

So where do you fit in? Do you think the oil and gas industry needs to change? Is Information Technology an enabling capability to where you think it can go? Do you have ideas on how to improve the way in which we work? What will you do about it? I expect the bureaucrats to self select in the overall process. Either through the implementation of People, Ideas & Objects Preliminary Specification or not. They will retire from active employment in the oil and gas industry. Why do you think they have been spending so much of their money on their cabins these past few years? Either they will leave the industry to us, or they will leave it in shambles, they don't care. Their pensions are vested with the insurance industry. The point should be, what actions will you be taking as a result of this opportunity?

If we look at the Wall Street Journal article and understand the consequences of Information Technology in the workplace. Where can the individual go to implement these technologies and ideas in their business and realize the opportunities that are intimated in that article. In oil and gas people can move with People, Ideas & Objects. A vision of how the industry could operate captured in the Preliminary Specification. One that has as its primary focus the user and the importance of their role in the industry and the software that they develop and use. Its an exciting time to be alive. The next 25 years in oil and gas, and what that means in terms of the application of Information Technology, is as interesting as I think it gets.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative, profitable and successful means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

We're on Trend Here Too, Part II

As promised we have the McKinsey article that shows that People, Ideas & Objects is on trend in terms of the technological aspects that are occurring in the marketplace. Specifically the Preliminary Specification will see the movement of the administrative and accounting resources of the producers move from the producers themselves to the service providers. This will change the dynamic of the industry in fundamental ways. Making the administrative and accounting resources an industry wide capability that is variable based on production. What is also included in these resources is of course the IT resources of the producer firm. People, Ideas & Objects being a cloud computing solutions provider, these IT resources will also be handled by the service providers, which includes us. Additional IT resources will be held within the producer firm in order to manage the earth science and engineering applications. However, from an administration and accounting point of view these will be managed through People, Ideas & Objects, the user community and service providers.

To the McKinsey article. It seems like there is little love being dispersed to the IT people at most corporations today. The article speaks to a general dissatisfaction with the job that IT is doing in corporate America.

On the whole, executives’ current perceptions of IT performance are decidedly negative. Beyond providing basic services and managing infrastructure, just one-third or less of respondents say their IT functions are very or extremely effective at a wide range of tasks. Even within IT, the shares reporting effective performance are small (Exhibit 1). The results also indicate fading confidence in IT’s ability to support key business activities, such as driving growth. In the 2012 survey on business and tech­nology, 57 percent of executives said IT facilitated their companies’ ability to enter new markets. Now only 35 percent say IT facilitates market entry, and 41 percent report no effect.

From People, Ideas & Objects point of view IT is a critical element of a producers strategy. It is not enough to own the oil and gas assets, today you need to have access to the software that makes the oil and gas asset profitable. In a sophisticated world that we find ourselves in you can operate in the cave man style of hiring bureaucrats. Or you can employ software to identify and support advanced specialization and division of labor such as the Preliminary Specification does. This is the role of IT in an organization today.

What the bureaucrats are increasingly focused on is the upgrade to Windows 10 and the role out of a new network topology. IT hardware, software and services of the organization. In terms of implementing those components in a manner that will enhance the organization's profitability, there is no hope of them going beyond the Microsoft claims of the value of Windows 10 in your organization. What is increasingly disturbing is that the McKinsey article is saying that they need to involve themselves in strategy. And that they are also doing the job of supporting the technology poorly. McKinsey should be careful they may find more and more bureaucrats will be cancelling the subscription to their research.

What is needed is a new approach. The industry is failing. Chris Grisanti stated on Bloomberg that the last supply side pricing decline was 1986 and it was sustained for 15 years. I remember those days and it was not something that the industry wants to relive. If you think that producers will soon change their mode of operation check back in 15 years and see if they have. 15 years is what they went through with previous low oil prices without making any strategic or tactical changes. They are certainly well prepared to do it again. Who is going to stop them? Unless I'm mistaken and the sole purpose of the oil and gas business is to generate losses.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Revolutionary Information Technology Based Change

If an individual working in the oil and gas industry believed that technology was about to revolutionize the way in which people worked. Much in the fashion of the industrial revolution. And that industry after industry would be converted to more rational ways of organization. Where technology would be a key ingredient in the reorganization of that industry. Where could they go and what would they need to do in order to participate in this new, Information Technology driven environment? There may be multiple initiatives offering these types of opportunities to people in oil and gas. I am only aware of this one. The opportunities that are open to those that are looking for this type of participation in this new economy are significant and are available now with People, Ideas & Objects, the user community and service providers.

Does anyone foresee the current bureaucracy surviving the next few decades? Will it serve the needs of the oil and gas industry? Will it suddenly transform itself into the organizational form necessary to make the industry the dynamic, innovative and profitable industry that everyone needs oil and gas to be? I don't see this happening, ever. It should have happened by now as the need is significant. What’s worse is this is not even identified as an issue. The closest thing we have seen from the bureaucracy is last years hopes and prayers for a colder winter. And this year there has been nothing in terms of discussion of the issues and opportunities that the industry faces.

As a result there is little else that we can do other than remove and replace the bureaucracy with an alternative form of organization based around the Preliminary Specification. The Preliminary Specification is People, Ideas & Objects product that is based on the Joint Operating Committee, the legal, financial, operational decision making, cultural, communication, strategic and innovation framework of the oil and gas industry. By moving the compliance and governance frameworks of the bureaucracy into alignment with the seven frameworks of the Joint Operating Committee we achieve a speed, accountability, innovativeness and profitability in the producer firm.

Building on the eleven module Preliminary Specification we have established the user community to direct and develop the software developments that we conduct. It is participation in the user community that people should consider as an opportunity to participate in the oil and gas industry of the future, and a place where they can make a difference. On September 9th Apple started their keynote presentation for their iPhone 6 and 6 plus with the following text.

Here’s to all those who have seen things differently. The ones who follow a vision, not a path. Where others perceive first as valuable, you value the first thing that actually matters. While others are distracted by the new, you focus on the significance of a whole new take. Even before you could see how, you never doubted we would change things. And then we did change things together again and again. Relentless optimism is what moves the world forward. So keep seeing things differently. Keep trusting there is always another way, a better way, a bigger way. One that lifts up humanity, breaks down our barriers and heals the landscape. You are the difference between the world as it was and the better place it will become. And being different is the one thing about us that will always be the same.

It is these kinds of people that participation in the People, Ideas & Objects user community will appeal to. Ones that can see a better way in which to operate the oil and gas industry. One based on profits that provide value for all concerned. These are the things that we are working on at People, Ideas & Objects.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Who Will Work Within the User Community

Its true that not everyone will qualify to work within the user community. This applies to both the leadership team as well as the general community. We will be looking for certain individuals that are unique in their skills and understanding of the oil and gas industry. That is a given. And the diversity of those skills will make up the entire scope of the oil and gas industries administrative and accounting needs. It is these skills and understanding that are the primary concern that need to be addressed in the work that is done by the user community. The ability to analytically breakdown the processes and design new effective ones that are consistent with the Preliminary Specification is not something that will be easily done. That is why we have costed this work in our budget at the $195.00 / hour rate for the user communities participants. We are looking for people of that calibre.

As I noted the primary concern is that the user community participant be trained and experienced in the disciplines that fall within the administrative and accounting areas of oil and gas. However, we expect that there will be a strong element of Information Technology aptitude that will be inherent in their skill set. Particularly in the two areas we have mentioned before of relational databases and Java. Having a good working knowledge of these technologies, on top of your current skills, will make the design and development of the software, which will be your job after all in the user community, that much easier and better. The importance of this IT aptitude will make a significant difference in the quality of the People, Ideas & Objects Preliminary Specification in many different ways.

First it will permit you to better understand the issues and opportunities that the technology provides. What is possible to you as a result of the Oracle database, its deployment in a cloud computing environment and Java from a conceptual level offer interesting new perspectives and dimensions in ERP software. To add these to your tool kit and be able to employ them, either to use them as a service provider, or to ensure that the producers who use them are provided with the most dynamic, innovative and profitable means of oil and gas operations, should be of concern to all within the community.

Secondly your ability to communicate with the People, Ideas & Objects developers in their primary skill set will be necessary to enhance the communications between yourself and them. It is easier for you to understand the elements of these concepts in relational theory and Java then it is for them to comprehend the full understanding of the oil and gas industry which is represented in the entire user community. Therefore to enhance the communications between the developers and the user community it is by far the easiest for the user community to speak the language of the developers. As there is no way in which the developers are ever going to understand fully the scope and scale of the oil and gas industry which is contained in the entire user community.

This understanding of the technology may take three or four university level courses in order to acquire the type of understanding that I think is necessary. Thankfully we are not looking to start this type of development work until we are funded by industry in January 2017. Which provides ample time for you to acquire that knowledge if you should choose to do so. Think of it as an investment in order to earn those handsome hourly rates. The thing about providing the oil and gas producers with the most dynamic, innovative and profitable means of oil and gas operations. Is that you are able to prove substantial value propositions such as what we have. And therefore, as a result everyone benefits monetarily.

The Preliminary Specification and user community provides the oil and gas producer with the most dynamic, innovative and profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here. 

Looking Forward to 2019

If we look retrospectively at the changes that have been made as a result of the Internet. And the pace of those changes on our daily lives. I think we see a dramatic level of change that makes what had come before the Internet pale in comparison. If we look at just those changes that have happened since 2010, that can be quantified to be “cloud computing” and the impact it has had. We are in a particularly interesting time in terms of human history. Now I may be seeing things from a different perspective than some of my readers. But if we extend these trends out towards 2019, who would doubt that things will be very different from what exists today. And who would doubt that the type of organizations that we use today will be the same that we have used for the past one hundred years.

Its probably a bit embarrassing to state that I can do three hours of my work in the morning without having to get out of bed. Its not that I do that every day, but some days I do. Is there any reason that anyone else can't do the same? I am sure that most bureaucracies demand attendance at 8:00 AM be taken and therefore this is something that will not be happening in the short run. The fact that I can start my day at 4:00 AM in bed is the advantage that the bureaucracies are unable to comprehend.

I chose 2019 as the day that we should look towards. As that is the year that we begin the developments of the Preliminary Specification. That will also mark the fifth year of user community development. It will be that time that we have the vision, the details, the community and hopefully, the oil and gas investors and the resources behind us to begin the developments of the organizational model for the future oil and gas industry. It will also be a time when the Information Technologies have moved society even further than it has today.

During the next five years the user community will be able to take the vision that is the Preliminary Specification and make it into the type of organization that will be managing the oil and gas industry for the next 50 to 60 years. Based on the Joint Operating Committee, using the decentralized production model and all that can be, added to it by the many contributors that will have joined us. This will be how the industry is managed. Using the user community vision where the people who work within the industry have the means to affect the changes in ways that they work within the industry and provide the most profitable means of oil and gas operations.

What we are seeing today is that the Information Technologies are finally having an effect on our lives. And it is to the betterment. I think we can expect that these trends will continue and should soon begin to accelerate. However, they will accelerate much quicker in the hands of those that will be the benefactors. With the way the user community is established. It is they who have the power and the resources to effect the changes that they want in how they do their jobs. Our priority is to provide the oil and gas producers with the most profitable means of oil and gas operations. How and what we do to bring the producers with those profitable operations is within our control. So if something strikes us at 4:00 in the morning we can deal with it then, and not have to wait until the mandatory 8:00 attendance.

The Preliminary Specification provides the oil and gas producer with the most profitable means of oil and gas operations. People, Ideas & Objects Revenue Model specifies the means in which investors can participate in these user defined software developments. Users are welcome to join me here. Together we can begin to meet the future demands for energy. And don't forget to join our network on Twitter @piobiz anyone can contact me at 403-200-2302 or email here.