I NNOVATIVE, S AFE, SECURE & H OLISTIC MA NAGEMENT

TECHNOLOGY & QUALITY ASSURANCE

PRACTICAL VIEWPOINTS & WISH LIST

DIGITALSHIP – 22nd & 23rd May 2012

SHIP MANAGEMENT - SAVINGS CENTRE I/O COST CENTRE

Is Ship Management a Cost centre? No. It’s a Savings centre.

How?

Donald Rumsfield’s definition of risk:

1. There are known knowns ; there are things we know that we know 2. There are known unknowns; that is to say, there are things that we now know

we don’t know 3. But there are also unknown unknowns; there are things we do not know we

don’t know.

Risk assessment regime has been pushed hard by Majors This also leads to savings for Ship Owner/Managers – a win-win situation Further potential for business with Oil Majors increases the potential for profits

By systematic collation, analysis and synthesis of data – a quantum of known risks can be controlled and unknown risks highlighted.

SOLUTION: ERP?

ERP - EXPERT REDUCTION PROGRAM

DISCLAIMER

1. Nothing in this presentation is strictly my own creation – I am a learner, maybe more so than you.

2. Getting information off the Internet is like taking a drink from a fire hydrant.

One gets so much information that we lose our common sense – I leave you to decide….

3. You may have more questions than answers at the end of this presentation.

WHAT DOES A SMALL TO MID-SIZE SHIP MANAGER NEED?

A software to manage:

A. SQE system manuals

B. Data PMS/Defect reporting/Dry Dock mgr/Purchase mgr SQE data:

M-end reports, RAs, incident reports, NCs, NMs, BPs, Cust complaints, IA/EA/Vetting/PSC/Trg schedules Pre-vetting/Vetting schedules/approvals/vetting data New regulation management Environmental data management TMSA self assessment & KPI Monitoring Operations – Cargo plans, passage plans Review system Crew/HR management Payroll Analysis Reporting …

BENEFIT OF A SOFTWARE SYSTEM

Increased efficiency Data analysis at a click of a mouse

Quick and well informed decision making As shipboard competency poses ever-increasing challenges

Real-time decision making from shore becomes important

Up-to-date processed information is needed to reduce risk

Civilization advances by extending the number of important operations which we can perform without thinking of them. Enterprise Resource Planning = Enterprise Risk Management

DISCLAIMER Defect-free software does not exist.

WHAT IS THE POSSIBLE BUDGET ALLOCATION?

Meeting policy / budget of different Clients Market Situation………Uncertainty Can we put a figure to the cost saving? How do you leverage quantification of future risk towards budget allocation? What is the reliability of post sales support?

WHAT IS AVAILABLE IN THE MARKET?

Mostly 'One stop' solutions

Pros –

Single solution from data generation to ingestion Internal efficiency, efficient external interface

Cons –

Expensive Insufficient assimilation of existing software/data, Insufficient customization possibilities Insufficient data in terms of cost-benefit ratio tabulation Unknown long term fall-out / benefit

In software systems it is often the early bird that makes the worm.

MONOPOLIZATION

Initial outlay Yearly Maintenance Data migration Data transfer set-ups

Is there a mis-match between cost and budget allocations / current market scenario?

Bill Gates is a very rich man today... and do you want to know why? The answer is one word: versions.

WHAT IS THE COST?

WHAT ARE THE ALTERNATIVES?

Alternatives to ERP

Combining discreet software In-house software No software

Men have become the tools of their tools.

THE STEPS

Data transfer Data extraction Report generation Analysis Synthesis

DISCREET SOFTWARE MODULES

Data transfer

Office onboard or Vessel ashore? High volume data - high cost

Iota data transfer

Low data tx cost, high reliance on software / servers

Data extraction

What are the available solutions? Data reports / analysis

WHAT WE NEED FROM THE DIGITAL INDUSTRY?

UNDERSTAND THE ENIGMA OF SMALLER OPERATORS PROVIDE CHOICES OTHER THAN 'ONE STOP SHOP‘

EG. DATA EXTRACTION TOOL

EITHER SHIPPING SPECIFIC OR GENERIC

PROVIDE SOLUTIONS FOR EASY MESHING WITH EXISTING SOFTWARE / DATA

AFTER ALL, WE DON’T WANT THIS….

CONCLUSION - MORE QUESTIONS

Due to uncertain CBR of an ERP software for a medium sized Ship

Management Company:

The company may:

Adopt a wait & watch strategy till end of current down-turn Use small modules which can be harmonized Develop their own modules

OR Find ways to quantify potential losses from risks Offset ERP costs by replacing expensive data transfer solutions with

the iota transfer inherent in ERPs Hedge the ERP risk with the firm belief that the path ahead is

predominantly ‘digital ’.

If it keeps up, man will atrophy all his limbs but the push-button finger.

...you know the end of something great is coming, but you want to hold on, just for one more second...just so it can hurt a little more

…..So

ANY ANSWERS?

Thank You

PS: The views and opinions expressed in this presentation are those of the author and do not reflect the official policy or position of Ishima Pte Ltd.