1. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 1/17 Schlumberger transitioned to a cutting-edge product- platform software architecture by embedding a leading geological modeling software product—Petrel—within Ocean, its collaborative open software platform. The prac- tices it used to overcome the challenges of the transition give rise to three principles that can be leveraged by other companies.

2. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 2/17 Agenda  Product-Platform Software Architecture  Schlumberger  Transitioning to a Product- Platform Software Architecture  The Challenges  The Seven Practices and the Three Principles

3. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 3/17 Product-Platform Software Architecture  Increasing business complexity causes firms to view IT as a means to provide much-needed competitive advantage. As a part of their strategic initiatives, firms try to achieve this by orchestrating the multiple components comprising their IT infrastructures.  Firms can employ two classes of software architecture solutions:  software-product architecture (model-centric solution) or  software-platform architecture (the data-centric solution)

4. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 4/17 Product-Platform Software Architecture  Firms have moved from a product-centric approach to a platform-centric approach.  This approach poses two new challenges for the platform owners:  dilution of the owner’s control over the platform in the network; and  license revenues going to not only the platform owner but also to contributing members in the platform ecosystem.

5. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 5/17 Product-Platform Software Architecture  Firms are looking at novel ways for enhancing the functionalities of their software products by combining them with the extended reach offered by a software platform architecture.  As Schlumberger’s experience shows, such an orchestrated product-platform software architecture can help firms achieve the competitive advantage.  The product-platform software architecture as deployed by Schlumberger can be defined as: “an integrated software architecture solution developed through transforming a modular software product by overlaying it with an extensible open platform.”

6. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 6/17 Agenda  Product-Platform Software Architecture  Schlumberger  Transitioning to a Product- Platform Software Architecture  The Challenges  The Seven Practices and the Three Principles

7. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 7/17 Schlumberger 1/2  126,000 employees from more than 140 nations, today/ operates in over 85 countries.  It is the world’s leading provider of oil and gas technologies, integrated project management expertise and information solutions to companies around the globe.  Its services and products range from consulting to exploration and production. Consistent with its global reach, Schlumberger’s main offices are located in Paris, Houston and The Hague. Its 2014 revenues from continuing operations were $48.58 billion.

8. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 8/17 Schlumberger 2/2  Schlumberger’s important products and services:  Seismic and geophysical services for enhanced reservoir characterization, monitoring and performance  Exploration and well completions through enhanced recovery and drilling  Underwater production to maximize and extend production life of the reservoir  Well-intervention services to extend the life of producing wells by providing access to stranded and additional hydrocarbon reserves.  Schlumberger also specializes in providing management consulting services within the industry and provides innovative IT tools for enhancing exploration and production operations.  Schlumberger’s Software Integrated Solutions (SIS) business unit is dedicated to providing IT-enabled services to the company’s internal and external clients.

9. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 9/17 Agenda  Product-Platform Software Architecture  Schlumberger  Transitioning to a Product- Platform Software Architecture  The Challenges  The Seven Practices and the Three Principles

10. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 10/17 Transitioning to a Product- Platform Software Architecture  “In 2006, we recognized that we could not deliver everything that the marketplace and the industry wanted in terms of software by ourselves because the complexity of the problems that needed to be solved was beyond what a single company or a single group or a single person could deliver. We had to recognize this limitation and open up our platform to let other experts deliver functionalities to our products; otherwise it would not be the success we wanted to have.”

11. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 11/17 Agenda  Product-Platform Software Architecture  Schlumberger  Transitioning to a Product- Platform Software Architecture  The Challenges  The Seven Practices and the Three Principles

12. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 12/17 The Challenges  Fostering Innovation and Knowledge Sourcing  Securing Core Knowledge while Ensuring Platform Robustness  Regulating the Contributors’ Network  Ensuring an Adequate Quantity of High- Quality Contributions

13. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 13/17 Agenda  Product-Platform Software Architecture  Schlumberger  Transitioning to a Product- Platform Software Architecture  The Challenges  The Seven Practices and the Three Principles

14. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 14/17 Seven Practices for Overcoming the Four Challenges 1/4

15. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 15/17 Seven Practices for Overcoming the Four Challenges 2/4

16. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 16/17 Seven Practices for Overcoming the Four Challenges 3/4

17. How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture Joseph J. Nehme, Horacio Bouzas, Shirish C. Srivastava & Laurent Carcasset - September 2015 Page 17/17 The Seven Practices and the Three Principles 4/4  Principle 1: Develop Your Most Competitive Products on Extensible Platforms  Principle 2: Nurture Resource Sourcing by Opening the Platform  Principle 3: Foster Control with Collaborative Growth