2016 Winner: Outstanding Science And Technology Start-Up
Optimization System Saving Millions of Dollars
Running a successful business requires constant attention to improving operational efficiencies. However, implementing new procedures can be costly and time consuming.
Stream Systems has solved this issue by building a software platform that allows companies to “build their own assets like an ecosystem, play around with it and get more out of what they have,” says Stream Systems Vice President of Operations, Birgit Juergensen.
This platform is like a virtual sandbox that allows businesses to manipulate their operations to see the corresponding results without actually implementing the changes. This virtual simulation eliminates the risk of trying out new operations and is especially useful for oil and gas companies, which is Stream Systems’ primary target market.
Out With the Old, In With the New
Modeling and simulation technologies have existed for many years, but have only recently become advanced enough to properly account for the complex engineering systems of the oil and gas industry. This is leading to more widespread adoption of this technology and is the start of what industry experts believe will be a significant growth in simulation technology.
Traditionally, oil and gas companies have relied on individual contractors to develop, support, and maintain custom-built models when determining a new innovation or operations system. While this method is effective, it is also expensive and time consuming. The use of custom-built models also tends to exclude the 30 to 90 day planning period, which is a crucial part of implementing a smooth and successful operational change.
Stream Systems’ technology identifies and solves these issues by replacing these custom models with a business solution that can be created five to ten times faster than the models. This software also conforms to many different business situations through an array of proprietary software libraries and routing algorithms.
Despite its impressive capabilities, Stream Systems works hard to encourage potential clients to implement this new technology. “Our main challenge is trying to get people who have never used this kind of simulation technology before to trust this new software,” says Stream Systems CFO, CTO, and co-founder Dumitru Cernelev. “We have to convince them that this technology will do better work than a person with 30 years of experience who is using a spreadsheet. So we explain that we are taking the same reliability of individual contractors and actually adding another tool that allows them to play with their assets and better understand how everything works.”
Stream Starts Its Success
Stream Systems was launched in early 2014 by co-founders Cernelev and President and CEO Allan Chegus. Together, they launched their first midstream sector product in December 2014 and in less than a year, they secured oil and gas giants Secure Energy and Kinder Morgan Canada as clients. Each company was able to identify millions of dollars in savings through the use of Stream Systems’ software.
Several commercial proposals are currently pending with major oil and gas companies in Canada and in 2016 Stream Systems entered into a technology cooperation agreement with General Electric. As a result of this quick growth, Stream Systems was selected to join the Zone Startups Calgary initiative in 2016.
Stream Systems also plans to take a big step by launching a cloud-based version of its software platform this September.
This success is also reflected in their staff, growing from six employees in early 2015 to 18 in May 2016 and more expected by late 2016. Stream Systems expects to become cash flow positive by the end of the 2016/17 fiscal year.