… the business driven standard To Fee or not to Fee That is the question for SDO’s 101100110101...

… the business driven standard

To Fee ornot to Fee

That is the question

for SDO’s

101100110101

PPDM AssociationData Management ConferenceNovember 14th and 15th 2007

Yogi Schulz

Copyright 2007, PPDM Association. All Rights Reserved2

Yogi SchulzBiography

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


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


Presentation Outline

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


Presentation Goal

Compare the major strategic alternatives for achieving the mission of the PPDM Association

Fee SDOFree SDO


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

Fee SDOFree SDO


Oil & GasWishing for Better Exploration Results


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


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


I FOUND A CLEVERWAY TO WRITE MYAPPLICATION CODE

USING PPDM


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


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


Comparing Free SDO to Fee SDO in the Short-Term

Evaluation criteria

Free SDO Fee SDO

Market acceptance High Measured

Product quality Likely OK Higher

Development cost Low Higher

Sustainment cost Low Higher

User licensing cost None Higher

User operating cost Higher Lower

Business benefits Same Same

Fee SDOFree SDO


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


Longevity ofStandards


Comparing SDO Cost Categories

Standards Development Documentation Conferences & Meetings Management & Administration Communication & Marketing Public Relations

Fee SDOFree SDO


Comparing SDO sources of revenue

Revenue source Free FeeMembership fees Nada Significant

Publication sales Low Low

Conference fees Lower Higher

Sponsorship Modest Modest

Donation Essential Low

Fee SDOFree SDO


Comparing SDO sources of resources

Resource source Free FeeDevelopment Volunteers Contract staff

Management Volunteers Contract staff

Administration Volunteers Contract staff

Marketing Nada Contract staff

Member staff secondment

SomePotential

LowerPotential

Fee SDOFree SDO


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


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


Standards Improve Performance


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 toWeb development

Linux is a freeUnix-type

operating system

Apache HTTP server & more


Community Size Comparison

LAMP Consumers

PPDMConsumers


Funding Case Study

Funding category ImportanceMembership fees Primary source

of income

Fees for participating in the development of OASIS standards

None

License fees for the use of OASIS standards Minimal

Profits from OASIS events Minimal

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 grants None

UN budget None

Endowment funds None


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


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 yourorganizations

Avoid vendors whose products don’t align well with PPDM standards


Questions &Discussion

Can you helpdata managers?

Pleasefill out

evaluationform


1800, 250 - 6th Ave. S.W.Calgary, Alberta Canada T2P 3H7

Telephone: (403) 249-5255E-mail: [email protected]

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


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


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?


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


Funding Case Study

Funding category ImportanceMembership fees 80% of income

Fees for participating in the development of W3C standards

None

License fees for the use of W3C standards None

Profits from W3C events None

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 grants 20% of income

Supporters Program Minimal

Endowment funds None


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


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 S

ourcing• October 24, 2007

Managing communities Managing Crowdsourced Communities Managing Information Quality in Virtual Communities

of Practice


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


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


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


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?


World Oil Production 1997 - Present

68,000

70,000

72,000

74,000

76,000

78,000

80,000

82,000

84,000

86,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Th

ou

sa

nd

s o

f B

arr

els

per

Da

y

PPDM is more needed & valuable

than ever


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


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.


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 contributeto economic & political goals


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

… the business driven standard To Fee or not to Fee That is the question for SDO’s 101100110101...

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