Project Management Report: Data Analysis and CRM in Oil & Gas Sector

This project management report focuses on implementing a data analytical solution within the oil and gas sector. The report begins with an introduction to project management principles, emphasizing data-driven decision-making and the importance of CRM. Section 1 provides background information on the industry, highlighting the increasing significance of innovation and digitalization. It presents a project plan, including a Gantt chart and network diagram, and a project scope statement. Section 2 includes a business environmental analysis, examining micro and macro factors, Porter's Five Forces, and stakeholder analysis. Section 3 delves into risk management, utilizing Force Field analysis and outlining risk control measures and resource reviews. Section 4 presents SMART business objectives, a cost-benefit analysis, and a financial appraisal of the project, along with non-financial benefits. The report concludes by summarizing the key findings and recommendations for successful project implementation.

PROJECT MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
SECTION 1.................................................................................................................................................3
Background.............................................................................................................................................3
.................................................................................................................................................................5
Purpose of the project..............................................................................................................................5
Project plan..............................................................................................................................................5
Project scope statement...........................................................................................................................7
SECTION 2.................................................................................................................................................7
Business environmental analysis.............................................................................................................7
Information requirement..........................................................................................................................9
Merits and limitation of stakeholder analysis..........................................................................................9

Merit and limitation of constraints analysis...........................................................................................10
SECTION 3...............................................................................................................................................10
Risk management..................................................................................................................................10
Risk analysis using Force Field analysis................................................................................................11
Risk control...........................................................................................................................................12
Resource reviews...................................................................................................................................12
Personnel requirement...........................................................................................................................12
SECTION 4...............................................................................................................................................13
SMART business objectives..................................................................................................................13
Cost benefit analysis..............................................................................................................................13
Financial appraisal of the project...........................................................................................................17
Non-Financial benefits.......................................................................................................................18
CONCLUSION.........................................................................................................................................18
REFERENCES..........................................................................................................................................20

INTRODUCTION
Managing project is a disciplined and methodological approach that encompasses clearly defined principles, procedures,
actions and policies with the aim to administer, monitor and control the project from concept development to completion stage. Project
management look over the planning, organizing, implementation and its correct execution from beginning to closure phase. In present
era, companies are highly focuses in building fact-based decisions through data-driven culture. Leading and pioneering establishments
are embedded with data-driven business decisions to offer truly differentiated or unique consumer experience. It is because, with the
change in demographic, socio-economic and behavioural shifts, new type of consumer dynamics and behaviours shaped in
unpredictable ways. Therefore, it becomes important for the companies to make strategies powered by data analytical solutions. Thus,
in the study, a new data analytical solution will be used and for its implementation, different project management tools and strategies
will be made including budgeting, resource management, environmental scanning and others.
SECTION 1
Background
Nowadays, as technology changes at a faster pace, energy CEOs rate innovation as the most important strategic element.
Energy companies not only investing huge money in these area, but also take steps to better manage associated risk and maximizing
efficiency.

According to the most recent survey of 83 oil and gas companies by PwC in 39 different nations, it is found that innovative is
the most important factor, as per above figure, 18% O&G companies CEO are focusing on strengthening innovation to capitalize
market opportunities and 10% on digitalization. In technology-driven world, energy-driven companies are looking for breakthrough
innovations. It totally changed the way how the business activities are carried out by the companies. Although oil production is
increasing, still, decline in prices and crimp margins resultant intense pressure on companies, thus, driving operational efficiency
becomes necessary and it is only possible through the use of matured technologies i.e analytical solutions, sensors, robotics and others
(Improving oil and gas efficiency through digital, 2015). Oil and gas companies that are making use of advanced technologies and
digitalized capabilities will be winner in coming period.

Figure 1 Areas of digitalization for value creation in upstream project

As per the figures, it is presented that technology becomes a part of everyday operations and marginal or little bit improvement
in it can benefited oil and gas companies with considerable or sizable increase in production volume.
Figure 2 CEOs are realising value from digital technologies across
As per the PwC survey report, it is found that CEO rated operational efficiency and data analytics as the most important
benefits which they are deriving through using digitalized technologies in their business unit. It helps them to maximize their business
value and build competitive strength. It is because, CRM and other data analytics supply data-driven input to the firms and enable

them to analyze their performance, consumer need and other key factors, as a result, better decisions can be made targeting actual need
of the user.
Figure 3 CEOs think their diversity and inclusiveness strategies
As per the results, it is seen that CEO strongly agree that diversity helps them to yield strong benefits, enhance their
performance, and build brand reputation. It is also an important requirement for the company to successfully implement CRM

strategies, so as to track the expectation of final product users and plan accordingly to satisfy them. Evidencing the results, 33% CEO
strongly agreed that CRM will assist organization in meeting their client expectations properly and 44% CEO just agreed with it.
Purpose of the project
The main purpose of the current project is to measure risk prevailed in oil & gas sector through the means of digital
technologies such as data mining and analysis. This in turn provides high level of assistance to the companies in taking strategic action
for improvements and thereby aid in the growth and success.Along with this, project pertaining to data mining and analysis will make
contribute in effective customer relationship management (CRM). By measuring and dealing with the risk more effectually oil & gas
sector can meet the demand as well as pricing expectation of customers and thereby would become able to improve profitability
aspect.
Project plan
Task Name Duration Start Finish Predecessors
Selection process 26 days 4/3/2017 5/8/2017
Determining CRM
software acquisition 2 days 5/1/2017 5/2/2017 1
Purchase of CRM
software 1 day 5/9/2017 5/9/2017 2,1
Determining hardware’s
acquisition 1 day 5/10/2017 5/10/2017 3
Purchase of hardware 1 mon 7/25/2017 8/21/2017 4
Setting of desktop in
office 5 days 5/11/2017 5/17/2017 3,4

Data collection 1 mon 8/22/2017 9/18/2017 6
Data cleansing 1 mon 9/19/2017 10/16/2017 7
Storytelling 25 days 10/17/2017 11/20/2017 8
Data related discussion 1 mon 11/21/2017 12/18/2017 9
Data analysis 6 mons 12/19/2017 6/4/2018 10
Preparation of report 0.15 mons 6/5/2018 6/7/2018 11

Figure 4GANTT chart

Figure 5Network diagram
Selection process

Selection
process
(1)
Determini
ng CRM
software
acquisitio
n (2)
Determining
hardware’s
acquisition
(3)
Purchas
e of
hardwar
e (4)
Net
wor
king
(5)
Setting of desktop
in office (6)
Data collection (7)
Storytelling (8)
Data
related
discussio
n(9)
D
at
a
an
al
ys
is
(1
Pr
oj
ec
t
pr
ep
ar

Advantages of CPA
 Risk of elevation in project cost reduced as it help managers in deciding duration by which project must be completed.
 In case any activity get delayed it act as warning signal and help managers in preparing risk management strategy on time.
Disadvantages of CPA
 If duration for performance of activity is wrongly determined then relevant approach cannot help managers in making prudent
decisions.


SHEFORMAT
Components of budget will be
monitored regularly.
Quality standards will be
determined.
In this regard growth rate of
expenses will be computed
weekly
action will be taken.
Comparison of model
building will be done with
accuracy standards
Are reliable results obtained.

Project scope statement
Project scope is wide as in this entire infrastructure will be developed under which data will be stored and generated. Moreover, data
cleansing and analysis will be done which will help managers in making business decisions (Siegel, 2016). In these projects varied tools and
methods will be applied on data set and on that basis varied facts will be identified and accordingly business decisions will be taken by managers
at workplace.
SECTION 2
Business environmental analysis
As per the current trends of oil and gas sector, despite large production volume, volatile pricing, shifting markets, complexity of
exploration and extraction activities and others bring pressure for the energy companies. What is now changing is digitalization and data-driven
analytics that enable companies to handle mass data volume. Proliferation of IoT (Internet of Things) and digitalized devices are exploring
opportunity for the entities to make informed decisions through big data analytics and management. Companies are now processing and examining
real-time data for the purpose of making good decisions.
Micro analysis: It implies for the factors or elements that come under the category of controllable such as employees, shareholders etc. Micro
factors are recognized as controllable because by taking strategic measure or action firm can exert control its influence on growth as well as
performance.
 Customers: From research, it has assessed that customer base of UK oil & gas sector is wide. From companies to households each &
everyone use energy to meet their own objectives. However, customers lay more focus on quality aspects which energy firms need to keep
in mind while performing activities.
 Employees: UK oil & gas companies employ several people for meeting the requirements of extensive supply chain. However, employees
who are working in such sector demand for high level of health and safety arrangements ( Walker, 2015). Such aspect and relative laws
have significant influence on the operations as well as policies of oil & gas firms.

 Competitors: In UK oil & gas sector, there are some leading companies which involved in the activities of oil exploration and
commercialization. In this, data mining and analysis will help business unit in assessing opportunities and enables to gain competitive
edge over others.
 Shareholders: Investors related to oil & gas sector expects high level of return from business units (Wysocki, 2011). Thus, it is the
responsibility of the companies to develop competent framework that maximizes shareholders wealth.
 Media or public: On the basis of public expectations, firm is responsible for performing activities in a sustainable way. Thus, for meeting
public requirements oil & gas companies need to exert effective control on pollution.
Porter 5 forces analysis of oil & gas sector:It is one of the most effectual external analysis tools that assist in evaluating the ability of buyers and
suppliers in relation to negotiation. In addition to this, porter five force analysis also helps in getting information about competition as well as
threat which is facing by the company from new entrants and substitute products or services. Thus, by making assessment of all such aspects, firm
can develop suitable frame work for dealing with the external market or environment prominently.
 Bargaining power of buyers: The main buyers belonging from oil & gas sector includes refineries, national oil companies, traders and
countries (USA, China, Japan) etc. Thus, due to having large number of buyers it can be said that bargaining power is low.
 Bargaining power of suppliers: By doing investigation, it has found that bargaining power of suppliers in oil & gas sector are relatively
small due to its nature. Moreover, companies of oil & gas sector are highly interested in the price and quality of product because global oil
benchmarks such as Brent Blend, West Texas intermediate etc. makes vital contribution in setting oil prices.
 Threat from substitutes: In the context of oil & gas sector threat from substitute or alternative products are very small. Main alternative
sources that produce energy include coal, nuclear, hydrogen and bio-fuels. However, all such requires huge investment so it can be said
that companies which are operating in oil & gas sector having less threat from substitute products.
 Threats from new entrants: There are several factors that create issue for oil & gas firms such as huge capital investment, internal
competition, price volatility, international law restrictions (Porter's Five Forces Model for the Oil & Gas Industry, 2017). Thus, by taking
into account all such aspects it can be said that threat from new entrants are not high.
 Competitive rivalry: Intense competition takes place in the oil & gas sector due to the availability of leading companies which have
generated high revenue. Such firms include Royal Dutch Shell, Exon Mobil, BP, Chevron etc.

PESTLE analysis of UK oil & gas sector:Company can get information and evaluate external factors more effectually through conducting
PESTLE analysis. Such tool of external environmental analysis covers wide range of factors that closely influences the functioning and
performance of business organization. Such analysis is highly significant which in turn gives input for the formulation of competent framework.
Political factors
In the oil and gas sector, companies are obliged to
comply with tax policies, labour laws and other
charges. Along with this, political stability,
environmental laws and tariffs also have significant
impact on the performance of oil companies.
Economic factors
Activities and functions of oil and gas companies
have significant impact on the economies of the
countries. Hence, from assessment, it has found
that economic factors have high level of impact on
the supply and demand of oil prices.
Social factors
In this, for meeting future demands companies
which are operating in oil & gas sector lays
high level of emphasis on employing skilled
labours. Thus, personnel who work in such
sector get high wages with relaxing working
hours (PESTLE analysis of Oil & Gas Industry,
2017). In this way, by offering effectual
opportunities to the people oil companies aid in
their living standard.
Technological factors
In the recent times, companies which are involved
in oil and gas sector lays high level of emphasis on
undertaking technological aspects from exploration
to data assessment.
Legal factors
By doing evaluation of legal factors, it has asserted
that laws and legislation pertaining to oil
Environmental factors
Functions of oil & gas companies and
environmental aspects are highly associated

exploration and commercialization has greater
impact on the operations of firms operating in such
sector.
with each other. Thus, for gaining success and
competitive edge firms are responsible for
performing activities in an eco-friendly
manner.
Information requirement
From evaluation, it has asserted wide level of information and research is highly required to employ as well as perform data mining and
analysis. In the recent times, use of digital technologies are increased significantly in the oil or energy sector as it helps in managing risk and
enhancing operations to a great extent. Thus, to gather information about data mining and analysis and its requirement in the concerned sector
secondary data has been gathered. Hence, by making assessment of journals and scholarly articles micro & macro analysis has been conducted.
This in turn furnishes information about industrial trend or pattern and thereby helps in developing suitable framework.
Merits and limitation of stakeholder analysis
Merit: There are several benefits which are associated with stakeholder’s assessment or analysis such as:
 Risk identification
 Formulation of sound strategic framework
 Facilitates high level of acceptance of organizational actions and strategies by stakeholders (Kerzner, 2013)
 By doing such analysis, oil & gas firms can identify relative importance, power and interests
 It offers opportunity to the companies to know stakeholders in a better way and thereby develops better as well as managed relationship
with them.
Limitations: Along with the merits, some limitations are associated with stakeholder’s assessment which in turn closely influences its
significance such as:
 Subjective in nature
 Interest of all the stakeholders may not be met at the same time (Burke, 2013).

Merit and limitation of constraints analysis
Merit: Constraint analysis is highly significant, in the context of project management because it gives indications to the firm in assessing
alternative courses of action. Major constrains which are associated with the project of data mining is time and resources ( Meredith and Mantel Jr,
2011). Moreover, for data mining and analysis companies require highly skilled or talented personnel. In this way, by assessing constraints firm
can develop competent framework to deal with the same.
Limitations: For identifying and analyzing constraints companies have to do wide research. This in turn may result into delay in project
and meanwhile it has direct impact on the effectiveness of outcome (Schwalbe, 2015).
SECTION 3
Risk management
In CRM dataanalysis project there are some of the risks to which firm is exposed. Usually, predictive modelling encompass
lots of assumptions and same need to be tested.If data that is taken from CRM system will not be transformed correctly then in that
case wrong predication can be made by analyst.Analysis of data that is taken from CRM system will help firm in understanding
customers’ needs and requirements. As customers keeps on purchasing oil from the company in specific interval. Analysis of data
taken from CRM system will help in identifying oil purchase requirements in terms of volume for different customers and accordingly
oil reserved can be maintained in the business so that on order immediately shipment of containers can be done so as to make
available crude oil in short duration to customers. In this way their needs can be satisfied. Data cleansing is considered as important
stage of data analysis under which raw data is transformed in to usable data by using data transformation techniques. Dimension
reduction need to be done in order to deal with multicollinearity problem using PCA analysis (Raghupathi and Raghupathi, 2014). In
analytic project one of major risk is availability of HR. Firms often does not get perfect data scientist for in house analytic
infrastructure. Small mistake in data cleansing on data that is taken from CRM system and predictive modelling may lead to making

wrong decision in the business in respect to retaining specific sort of customers in the business. This is the one of the risk that is
associated with the current project. Secondly, many employees does not have skills in all relevant software’s like R, SAS, SQL and
Tableau. Thus, non-availability of required skill set of employees is one of major risk associated withCRM data analysis project. In
order to deal with these problems selection procedure can be made strict and only specific candidates must be selected. Secondly,
there must be a separate panel that will look after entire work related to data cleansing, data transformation and predictive modelling.
By doing so risk can be controlled in the business.
Risk analysis using Force Field analysis
Force field analysis is the one of the important model which reflect positive forces for change and factors that act as constraint
to change. Firm intends to carry out CRM data analysis project but there are some of the risks that are associated with project (Rubin,,
2017). One of main risk is that there are chances that model wrongly made and second risk is that there is probability that firm failed
to receive appropriate sort of candidates as employees at its workplace for this project.
Risk Positive forces for change Obstacles to change
Wrong
preparation
of model
In order to solve this problem
multiple metrics can be employed
in analytic project that will enable
project manager to verify
efficiency of model. For example
if cluster analysis performed then
confusion matrix metric can be
used to measure efficiency of
model.
There are some of obstacles to change. In case
there is multicollinearity among variables then
clusters cannot be formed rightly. Ignorance of
such kind of errors in work or in data are
obstacles to change and may lead to project
failure (El-Nasr, Drachen and Canossa, 2016).
Problem of Lots of reputed organization now Fresher’s often looking for job change as they

non-
availability
of best
candidate
a days are providing training on
analytics and from same
candidates can be hired for
analytics project.
want to earn more and more salary and due to
this reason it is difficult to retain employees on
job.
Risk control
In order to control risk specific structure will be developed and under this there will be project manager and subordinates.
Rules will be formed that project manager will look after each and every task assigned to subordinates and will verify each task
whether it is completed in proper manner or not. For example if outliers are removed then transformed data will be send immediately
to project manager. Similarly, if logistic regression is run the predicted results, AUC curve and model accuracy percentage along with
written cut off point will be communicated to project manager. In this way, first risk will be controlled (Agarwal and Dhar, 2014). In
order to handle second risk, high salary will be offered to employees and contract bond will be signed under which before one year
employees can not resign from company. By doing such kind of things risk will be managed.
Resource reviews Manpower: Manpower is the one of the factor due to which problem may come in existence. In order to solve this problem
high payment strategy can be used in business. Machines: Resources are not problem in any way as it can be seen that sufficient PC and laptops will be available to deal with
situation. Materials: Raw material will be data that is generated in business through CRM system. Relevant data will be transformed to
make business decisions. Methods: Employee selection procedure are the one of the method where there are loopholes. Apart from this, there are
chances of inaccuracy in data analysis and it major risk associated with project.

 Management: Management is big issue as it is possible that data does not managed and prepared in proper manner for analysis
purpose (Dawkins, 2016). Thus, here there is need to solve problem.
Personnel requirement RACI resource capacity: There is sufficient availability of human resources in the business and it can be said that there is no
problem on this front to the business firm. Resource capability: Sufficient amount of resources are available in the business and there is need to make best use of them in
order to achieve pre-determined objectives.
SECTION 4
SMART business objectives
SMART stands for smart, measurable, achievable, realistic and time bound. For current analytic project also there is need to
prepare SMART objectives and same are given below. Specific: Objectives that are determined must be specific in nature. Major target of current CRM data analysis project that is
operated by energy sector firm is to identify those customers that are highly profitable for the firm (Demirkan and Delen,
2013). Apart from this, other main objective behind running mentioned project is to identify customers buying pattern so
accordingly contact can be established with them and focus can be made on specific customers in the business.Main aim may
be to work only on specific variables as part of corporate business strategy. Measurable:Objective that is determined must be measureable in nature. On basis of outcome of CRM data analysis project 10
customers will be identified that are loyal to the firm and on which focus need to be made specifically. On basis of obtained
results about purchase pattern deals can be offered to the customers more revenue can be earned in business.

 Achievable:Determined objective is achievable in nature as it is possible to identify 10 loyal customers in the business by
using varied methods like RFM analysis and cluster analysis etc. Thus, it can be said that CRM data analysis project will help a
lot to the firm in achieving its target. Realistic: Determined objectives must be realistic in nature and it can be said that same must be possible to achieve. It can be
seen that identification of mentioned number of loyal customers in the business is realistic in nature and can be achieved in
easy way. Time bound: Objective that is prepared must be time bound in nature means that time period must be determined within which
objective must be achieved (Kumar, Morstatter and Liu, 2014). Every month regression technique will be used by the firm
data scientist so that change in trends can be easily identified.
Benefits and limitations of SMART objectives
Major benefit of this method is that it help firm in developing objectives in proper manner upon which entire workforce have
full consensus. Major limitation of SMART objective is that it is time consuming approach and it is possible that on specific objective
different entities have varied opinion. This may lead to wastage of lot of time and origination of conflict among employees of
organization.
Cost benefit analysis
Budgeting with type of budget
Budgeting is the one of the important method that help in effective use of cash in then business. There are different sort of
budgets that can be prepared by the business firm. One of them is zero based budgeting under which departments at their own level
prepare budget and top managers after receiving budget from all departments prepare final budget for an organization. There are many
other sort of budgets that can be used in the business like incremental budget under which increase is made to previous year figures
budget for current year is prepared. However, zero based budgeting seems more appropriate for the firm.
Budget

Budget prepared is given above as it can be seen that same is classified in to multiple categories and by considering expenses of all
years it is identified that total project cost per user is 1, 24,728 which is usually incurred in analytics projects. It can be said that within
given cost firm have to control expenses in its business.
Financial appraisal of the project
Financial benefits
It must be noted that company that is taken in to account is related to energy sector and it is going to start analytics project. In
monetary terms it is hard to measure financial benefits of the project but it is clear that implementation and successful operation of this

project will help business firm in focus on specific factor which will lead to formulation of business strategy in strong manner and this
will generate good amount of profit in the business (Gašević, Dawson and Siemens,, 2015). Hence, it can be said that there are
financial benefits of this analytics for the firm.
 Due to implementation of CRM analysis project good amount of revenue will be earned in business.
 According to requirement in warehouse oil will be stored which lead to reduction in storage cost in business.
1 2 3 4 5 6 7 8
-300
-200
-100
0
100
200
300
Project cash flows
Cash flow
Cumulative cash flow
Years
$/£'000
It can be seen from table that forecasted cash flows are increasing consistently in the business as bars are upward but moving at same rate which
reflect consistency and profitability in cash flows.
Results
Summary
Total project cost savings/income
$'000 1475

Total project expenditures
$'000 -862
Net project savings / income
$'000 613
ROI (return on investment - after 5
years) 71.1%
NPV (net present value) 279
at a discount rate of: 12.0%
IRR (internal rate of
return) 45.3%
Payback year Year 4
It can be seen from table given above that ROI is 71.1% which reflect that good amount of return can be earned on invested amount
and this project is profitable for the firm. NPV of the project is positive which reflect that it is viable for the firm and after subtracting
cash outlay from sum of cash flows there is positive value which is good for project. IRR is 45.3% which is huge and reflect that
project is profitable for the company. With 4 year investment can be covered on project out of 10 years and this again show that
project is profitable for company.
ROI definition, limitation and benefits
ROI reflect return on investment and it indicate return that is earned on invested amount. Major benefit of this approach is that
it reflect portion of investment that is covered by cash inflow in specific duration. Limitation is that in this approach it is not clear that

which sort of net cash inflow need to be taken either EBIT or net profit etc. It depend on managers that which amount they take as
profit in business.
Payback period definition limitation and benefits
It is the approach that reflect duration within which invested corpus can be covered by earned cash flows in the business.
Benefits of payback period is that it indication time period after which profit will be earned on project. Limitation is that it does not
reflect net profit that will be earned after covering entire investment amount on project.
Break even analysis definition limitation and benefits
Break even analysis is the method that reflect number of units that need to be sold in the market to cover cost of production.
Benefit of this method is that it help firms in determining sales target in their business. Limitation of this approach is that break even
analysis concept ignore concept of economies of scale in the business.
Non-Financial benefits
 There are some of the non-financial benefits of the current analytic project as it will help management to make wise decision
and identifying direction in which there is need to work in order to improve business.
 Apart from this, management will be able to make real time business decisions. All these things reflects that there are multiple
non-financial benefits of analytics for the firm.
 Firm will be able to retain customers in its business which help firm a lot to increase its business at fast rate.
 Advance preparation will be done in warehouse and shipment duration will be less.
CONCLUSION
On the basis of above discussion it is concluded that there is significant importance of CRM data analysis project for the
business firms. This is because it help firm in analysing data and by using same lots of facts are identified about customers of the
business firm and accordingly attractive deal can be offered to them which lead to fast growth in the business. It can be said that by

using analytic methods firms successfully improve their business performance and due to this reason there is need to develop in house
infrastructure of analytics in the business. Hence, time to time analysis of CRM related data must be done and on that basis solution of
business problem must be identified.