Summary
Wellogix, a software company that delivers business process software to improve planning and purchase-to-pay, adopted PIDX to streamline its Supplier Enablement (SE) function and develop a scaleable integrated supplier network.

As part of its decision to embrace the PIDX standard, the Wellogix SE Team recommended the use of Applicability Statement 2 (AS/2) as the base TRP (Transport, Routing, Packaging) rather than the “original” PIDX TRP, Rosettanet (RNIF).

Wellogix found that the use of AS/2 met the company’s goals of rapid, repeatable deployment that yielded learning curve performance improvement and predictable integrations.

The Move to PIDX and the Choice of AS/2
As Wellogix focused on growing it supplier network, the Wellogix SE Team recognized that the company’s historic approach, which relied on point-to-point, non-standard web services, was not scaleable.

In response, Wellogix made a decision to adopt and fully embrace the PIDX Invoice Process to streamline its SE function and to develop a scaleable integrated supplier network. With no prior investment in PIDX, Wellogix was free to evaluate the newly ratified alternate PIDX TRP protocol, AS/2.

Faced with potentially hundreds of integrated connections, Wellogix established goals to evaluate the appropriate choice of TRP protocol.

• Quick, low cost connection that would work across a relatively complex, multi-partner landscape and be available to a wide range of trading partners.
• Standard connection that could yield learning curve performance improvement and predictable integrations.

Furthermore, it was important that,

• The implementation skills were broadly held in the community and, importantly, currently available within Wellogix
• The software be low cost and implementation and configuration straightforward
• The connections be inter-operable and integrations promised to be relatively short and predictable

The evaluation showed that AS/2 was a credible choice for new PIDX users, and Wellogix made the decision to implement exclusively an AS/2 PIDX-based business messaging functionality.

In choosing AS/2, the Team did have some concerns about the lack of standard, protocol driven technical/business message choreography and the acceptability of AS/2 within suppliers that were financially, and emotionally invested in RNIF. To date, neither of these concerns has become as issue.

Experience
One of the first AS/2 PIDX integrations undertaken by the company was to Baker Hughes (BHI). BHI had previously invested in an AS/2 connection to OFS Portal’s TMS provider, GXS, and was intrigued to expand its AS/2 footprint beyond GXS.

In contemplating this integration, it was important to BHI that the design leveraged their existing integration to GXS, and provided end-to-end business messages to allow communication of invoice status. This was to be achieved through a single secure connection between BHI and Wellogix that allowed for the exchange business documents with Wellogix clients. Also important to BHI was that the solution avoided the need to customize their back-office systems and processes.

The first step of the integration, establishing secure connectivity between GXS and
Wellogix, was completed in hours. A remarkable achievement made possible by interoperability between the AS/2 clients of Wellogix and GXS.

To meet the requirement to communicate invoice status, Wellogix developed functional acknowledgements based on PIDX recommendations for Invoice Response, effectively addressing the absence of technical/business choreography that is embedded in the RNIF PIPS.

In all, the complete project ran from January to May 2006 during which an estimated total of 20 man-days was expended. This included system and application setup in both organizations. Subsequent, AS/2 trading partner integrations have been completed within hours.

Since taking the decision to base its business messaging on PIDX and AS/2, Wellogix has implemented 20 AS/2 based trading partner connections. At the end of 2006 it was involved in three simultaneous integrations, including a global oilfield services company that had previously relied exclusively on RNIF; suggesting the low cost and rapid integration could also be prospectively attractive to companies with significant investment in RNIF

Conclusion
Wellogix concluded that adopting PIDX simplified and streamlined it SE activities, and that the choice of AS/2 delivered repeatable, rapid and low cost integrations; saving weeks compared to industry experiences of RNIF based implementation.

Moreover AS/2 is aligned with PIDX’s vision to achieve petroleum industry and enterprise-wide integration of business processes through seamless electronic business communication and AS/2 enables the achievement of TRP best practice; the ability to reach all trading partners, large and small, buyers and sellers; a low total cost of ownership; general purpose and not bound to certain industries or payload.

AS/2 is an obvious choice for companies starting a program of Business-to-Business integration and, because of its low cost and rapid implementation relative to RNIF; it is a credible option for companies with existing PIDX operations and RNIF investment.

About the Author
Steven Carter is a Principal of Eirô Consulting LP, a professional services firm that specializes in the business and technical aspects of eCommerce in the Oil and Gas Industry. Prior to forming Eirô Consulting LP, he was the VP Operations for Wellogix, Inc, a provider of business software designed to streamline and improve the planning and purchase-to-pay. In that role he was responsible for overseeing the deployment of company’s products, management of its ASP service and the development of the Wellogix Supplier Network.

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Contractors have long-provided such information using a variety of forms and/or third-party web-based systems, but the diversity of questionnaires and specifications (and no standard format for data transmission) can make processing both time consuming and expensive.

PIDX officials stressed from the start the committee would not be creating yet another HSE questionnaire – it would instead be based on modifications to a standard most companies now use in some form: API RP 76, Contractor Safety Management for Oil and Gas Drilling and Production Operations. The modifications will include an expanded glossary to standardize terminology definitions.

The project’s goals were to develop a standardized questionnaire and definitions, publicize the mechanism to request modifications (via API and/or PIDX) and provide an electronic message to transmit the data. Companies not interested in using the electronic message format would still be able to follow the relevant parts of the standard and use processes already in place (web forms, paper, etc.).

The modified standard and the mechanism to request updates should benefit the entire industry: companies conducting electronic transactions will benefit from the standardized XML format; based on the industry standard, contractors can respond more quickly; and operators and their agents can map data directly into their applications, eliminating manual processing.

A core team of practitioners began development by gathering oil and natural gas industry questionnaires and recommended practices from around the world to help define a standard information data set for the message. The team was composed of representatives from BP, Chevron, Devon Energy, ExxonMobil, Baker Hughes, BJ Services, Halliburton, Schlumberger, ISN Software, PEC, and IADC.

OGP and IPIECA also contributed, and industry review includes over 40 organizations – operators, contractors, vendors and associations. PIDX also requested a third party review of the questionnaire and glossary by Environmental Resources Management, a global consulting firm specializing in safety and environmental health within the oil & gas industry.

The team is now finalizing the questionnaire and preparing a final draft for industry review this spring. The draft will then be submitted to API’s Upstream Executive Committee (responsible for RP 76) for approval. PIDX will also begin developing the XML message which the committee hopes will be ready for testing later this year. The final product and associated specifications will be available on the PIDX website.

For more information, or to review the final draft of the RP 76 questionnaire, including the glossary, please contact Jana Schey, PIDX Business Process team leader, at jschey@ofs-portal.com or (832) 681-7319.

IADC = International Association of Drilling Contractors
IPIECA = International Petroleum Industry Environmental Conservation Association
OGP = International Association of Oil & Gas Producers

Jana Schey chairs the PIDX Business Process Work Group (BPWG), which works with industry practitioners to define best practices and business process guidelines for e-Commerce initiatives. Schey is responsible for catalog management and standards initiatives for OFS Portal.

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Chris Welsh, principal consultant for Eiro Consulting, will serve as interim chair. Chris has extensive experience in the oil and natural gas service industry in e-commerce, most recently at BakerHughes in Houston, TX. Chris is currently assigned to a client in the UK.

The remaining PIDX Europe Executive Committee members are:

Dave Wallis, who represents the OFS Portal Organization in Europe and has been an executive member of PIDX Europe since its formation. Dave continues to be a cornerstone of the group by following the various other standards bodies and promoting synergies with the oil and gas industry’s perspective wherever possible.

Alan Perro, who has been the vice chair of PIDX Europe for the last few years. PIDX was able to leverage Alan’s recent company transfer from Paris to Dubai late last year to expand PIDX’s reach to Middle East operators, service companies and solution providers.

The PIDX Europe Executive Committee welcomes Cameron Davis from Digital Oilfield as the newest member. Cameron has recently transferred to London from Canada. He brings a solution provider perspective to the committee.

Fall 2006 Fall PIDX Europe meeting a success: PIDX Europe held its most recent open meeting, hosted by OFS Portal, in London on November 16, 2006. The location was the prestigious Rugby Room at the East India Club, a new venue for the group.

Case histories of eCommerce implementations, secure communications and standards development were presented. As always, there was a roundtable review of each company’s eCommerce activities.

Representatives were present from both the mega majors to the smaller independents, from upstream E&P operators to true downstream/retail marketing operators, a healthy mix of the service and supplier representative companies, and a good showing of the solution providers/ marketplaces and software vendors.

According to a follow-up survey, the record number of participants gave the meeting high points for the range of topics covered and the opportunities it offered for networking with other professionals in the oil and gas industry eCommerce arena.

PIDX Europe spearheads Global Business Practices workgroup: Industry experts from within (and outside) PIDX have been volunteering information on country-specific eCommerce considerations to help develop a template of information for a company contemplating conducting eCommerce in that country. First drafts of the templates for the UK, Indonesia and Nigeria are available for review on the PIDX website, with additional countries such as Angola and Norway under preparation.

PIDX is API's Committee on Electronic Business Standards and Processes and is sponsored by API’s General Committee on Information Management & Technology. With a current mission focused on transaction standards for web-based business, product and service classification and many other specific projects, PIDX provides a forum for delivering the process, information, and technology standards that facilitate seamless, efficient electronic business within the oil and natural gas industry and its trading community.

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Travis has extensive experience with, and a passion for, building elegant and efficient technology solutions. He founded LiquidFrameworks in 2001 and today focuses on sales and technology for the company. LiquidFrameworks, based in Houston, provides software solutions and expertise to the oil and gas industry around business process management, smart-client technology, enterprise project management systems, SharePoint and.NET applications. The company’s product suite, FieldPro, is an electronic operations management application that automates business processes for field tickets, contract pricing and catalog management.

Prior to LiquidFrameworks, Travis was a founding member and served as a senior engagement manager for Emerging, an e-business professional services firm with offices in Houston, Austin, and San Francisco. While at Emerging, Travis successfully managed and delivered multiple projects for clients in the B2C and B2B areas using .NET and J2EE technologies. He participated heavily in the firm’s sales activities and was instrumental in recruiting staff for the San Francisco office.

In 1994, Travis joined BSG Alliance, a global professional services firm focused on delivering software solutions to a variety of industries (CBSI acquired BSG in 1999). While at BSG, Travis developed solutions for a range of companies including Apache, The Energy Authority, SYSCO, Intel and AT&T.

Travis holds a Bachelor of Science in Computer Science and Engineering from Texas A&M University.

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Registering for PIDX lets your partners, vendors and suppliers know that you have the right software to communicate effortlessly and securely around the corner or around the world, saving everyone time and money.

PIDX is sponsored and supported by API, the leading petroleum industry trade association.

PIDX is the future of eBusiness, and it’s spreading quickly. Don’t be left out – or you just may find yourself waiting at the station. Can your company afford to be left behind?

Self-register for PIDX today (it’s free through the end of the year)!
For more information, visit www.pidx.org

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