1. … the business driven standard To Fee or not to Fee That is the question for SDO’s 101100110101 PPDM Association Data Management Conference November 14 th and 15 th 2007 Yogi Schulz

2. Copyright 2007, PPDM Association. All Rights Reserved 2 Yogi Schulz Biography  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 Management Consultants

3. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 4 Presentation Outline  Presentation Goal  Background & Context  Achieving the PPDM Association mission  Comparing Free SDO to Fee SDO  Conclusions & Recommendations  Questions & Discussion

5. Copyright 2007, PPDM Association. All Rights Reserved 5 Presentation Goal Compare the major strategic alternatives for achieving the mission of the PPDM Association Fee SDOFree SDO

6. Copyright 2007, PPDM Association. All Rights Reserved 6 Mission & Ends of 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 Fee SDOFree SDO

7. Copyright 2007, PPDM Association. All Rights Reserved 7 Oil & Gas Wishing for Better Exploration Results

8. Copyright 2007, PPDM Association. All Rights Reserved 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? Fee SDOFree SDO

9. Copyright 2007, PPDM Association. All Rights Reserved 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 Fee SDOFree SDO

10. Copyright 2007, PPDM Association. All Rights Reserved 10 I FOUND A CLEVER WAY TO WRITE MY APPLICATION CODE USING PPDM

11. Copyright 2007, PPDM Association. All Rights Reserved 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 Fee SDOFree SDO

12. Copyright 2007, PPDM Association. All Rights Reserved 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 Fee SDOFree SDO

13. Copyright 2007, PPDM Association. All Rights Reserved 13 Comparing Free SDO to Fee SDO in the Short-Term Evaluation criteria Free SDOFee SDO Market acceptanceHighMeasured Product qualityLikely OKHigher Development costLowHigher Sustainment costLowHigher User licensing costNoneHigher User operating costHigherLower Business benefitsSame Fee SDOFree SDO

14. Copyright 2007, PPDM Association. All Rights Reserved 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? Fee SDOFree SDO

15. Copyright 2007, PPDM Association. All Rights Reserved 15 Longevity of Standards

16. Copyright 2007, PPDM Association. All Rights Reserved 16 Comparing SDO Cost Categories  Standards Development  Documentation  Conferences & Meetings  Management & Administration  Communication & Marketing  Public Relations Fee SDOFree SDO

17. Copyright 2007, PPDM Association. All Rights Reserved 17 Comparing SDO sources of revenue Revenue sourceFreeFee Membership feesNadaSignificant Publication salesLow Conference feesLowerHigher SponsorshipModest DonationEssentialLow Fee SDOFree SDO

18. Copyright 2007, PPDM Association. All Rights Reserved 18 Comparing SDO sources of resources Resource sourceFreeFee DevelopmentVolunteersContract staff ManagementVolunteersContract staff AdministrationVolunteersContract staff MarketingNadaContract staff Member staff secondment Some Potential Lower Potential Fee SDOFree SDO

19. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 21 Standards Improve Performance

22. Copyright 2007, PPDM Association. All Rights Reserved 22 Open Source Success Stories - LAMP  Linux  Apache  MySQL  PHP MySQL is an open source database Can’t these organizations provide a model for the PPDM Association? PHP is a scripting language especially suited to Web development Linux is a free Unix-type operating system Apache HTTP server & more

23. Copyright 2007, PPDM Association. All Rights Reserved 23 Community Size Comparison LAMP Consumers PPDM Consumers

24. Copyright 2007, PPDM Association. All Rights Reserved 24 Funding Case Study Funding categoryImportance Membership feesPrimary source of income Fees for participating in the development of OASIS standards None License fees for the use of OASIS standardsMinimal Profits from OASIS eventsMinimal Member secondment of staff/experts to work at OASIS in management & administration No Member secondment of staff/experts to work in the development of OASIS standards No Government or foundation grantsNone UN budgetNone Endowment fundsNone

25. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 26 Recommendations  Don’t be seduced by the alleged benefits of Free SDO  Implement PPDM  Strengthen your relationship to the PPDM Association  Sell the PPDM value proposition within your organizations  Avoid vendors whose products don’t align well with PPDM standards

27. Copyright 2007, PPDM Association. All Rights Reserved 27 Questions & Discussion Can you help data managers? Please fill out evaluation form

28. Copyright 2007, PPDM Association. All Rights Reserved 28 1800, 250 - 6th Ave. S.W. Calgary, Alberta Canada T2P 3H7 Telephone: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Information technology related management consulting Project management and systems development Microsoft Canada columnist & CBC Radio host PPDM Association board member To Fee or not to Fee Management Consultants

29. Copyright 2007, PPDM Association. All Rights Reserved 29 Benefits of the Public 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. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 32 Funding Case Study Funding categoryImportance Membership fees80% of income Fees for participating in the development of W3C standards None License fees for the use of W3C standardsNone Profits from W3C eventsNone Member secondment of staff/experts to work at W3C in management & administration No Member secondment of staff/experts to work in the development of W3C standards 2 Government or foundation grants20% of income Supporters ProgramMinimal Endowment fundsNone

33. Copyright 2007, PPDM Association. All Rights Reserved 33 Bibliography - 1  The Case for New Economic Models to Support Standardization Efforts The Case for New Economic Models to Support Standardization Efforts by Clifford A. Lynch, BioBio  Citizendium Citizendium A wiki with experts and real names. Co-Founder to Launch Edited Version of Wikipedia  Creating and Managing an Open Source Project, Creating and Managing an Open Source Project, by Michael Nascimento Santos, 28 July 2005  Cultivating Communities of Practice: Cultivating Communities of Practice: A Guide to Managing Knowledge - Seven Principles for Cultivating Communities of Practice, 25 March 2002  The Empirical Economics of Standards The Empirical Economics of Standards DTI Economics Paper No.12 - June 2005

34. Copyright 2007, PPDM Association. All Rights Reserved 34 Bibliography - 2  Energistics 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 GNU General Public License  Innovation: Managing, Creating, Disrupting & Open Sourcing Innovation: Managing, Creating, Disrupting & Open Sourcing October 24, 2007  Managing communities Managing communities  Managing Crowdsourced Communities Managing Crowdsourced Communities  Managing Information Quality in Virtual Communities of Practice Managing Information Quality in Virtual Communities of Practice

35. Copyright 2007, PPDM Association. All Rights Reserved 35 Bibliography - 3  Managing Open Source Managing Open Source  Managing the Risks of Open Source Software 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 MIT Open Source Research Community  The Myth of Free Standards The Myth of Free Standards Giving Away the Farm Andrew Bank

36. Copyright 2007, PPDM Association. All Rights Reserved 36 Bibliography - 4  Online Communities Online Communities Pew Internet & American Life Project  Online Community Toolkit Online Community Toolkit  Open Data Consortium Open Data Consortium derive a model policy for distributing governmental geospatial data  Open Standards Consortium for Real Estate - Americas, Inc. Open Standards Consortium for Real Estate - Americas, Inc.  Opensource.org Opensource.org Open source is a development method for software that harnesses the power of distributed peer review and transparency of process

37. Copyright 2007, PPDM Association. All Rights Reserved 37 Bibliography - 5  The PODS™ Association 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 PPDM and PODS Associations Houston Standards Conference, Spring 2005  Real Estate Transaction Standard (RETS) 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 RETS Value Proposition describes the many components of the RETS Value Proposition as these apply to each stakeholder in the real estate industry

38. Copyright 2007, PPDM Association. All Rights Reserved 38 Bibliography - 6  Standards-based knowledge environments for the oil and gas industry 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 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 Virtual community  Will my Wiki Work? Will my Wiki Work?

39. Copyright 2007, PPDM Association. All Rights Reserved 39 World Oil Production1997 - Present PPDM is more needed & valuable than ever

40. Copyright 2007, PPDM Association. All Rights Reserved 40 “Our standards are very high. We even have high double standards.”

41. Copyright 2007, PPDM Association. All Rights Reserved 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. Copyright 2007, PPDM Association. All Rights Reserved 42 China Subverting 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. Copyright 2007, PPDM Association. All Rights Reserved 43 References for China Subverting Standards?  China lab checks Windows 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 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 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 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