Digitally Transforming EPC IndustryImplementing digital technologies to achieve operational excellence

Digitally Transforming EPC Industry2

EPC industry trends and imperativesThe EPC business and regulatory environment is changing and it’s changing fast. The industry is going through business consolidation and end market diversification, change in contracting models, and digital transformation. The perennial issues of fluctuating raw material prices, skilled workforce availability, and dynamic scope changes make it tougher to manage profitability during these times. The North America EPC industry is witnessing the following industry key trends:

• EPC companies are witnessing a surge in demand and avenues of revenue growth from developing economies such as Asia and Africa.

• EPC owners now increasingly prefer Lump Sum Turn Key (LSTK) business contract models thereby putting additional margin pressures and risk for EPC contractors.

• The majority of the EPC workforce demographics comprises of the “baby boomer generation” who are about to retire and will create a serious challenge in the availability of skilled resources.

• Environment, health and safety regulations are increasing and getting more stringent. • EPC companies are traditionally slow in adapting to new technologies such as analytics and IoT as

compared to Industrial Manufacturing. • Most EPC companies are looking for ways to further develop their annuity offerings to customers

In today’s business and operating environment, EPC companies need to focus on key imperatives i.e. retaining market position by embracing digital technologies, increasing service revenues through new business models such as operations and maintenance, and faster decision making in a global operating environment through collaboration.

Embrace emerging technologies and improve efficiency of operations(Projects, People and Processes)

Digital EPC

EPC companies must capitalize on these fast growing trends

Focus on Operations & Maintenance as a new revenue stream

New Business ModelsFaster decisions by providing

end-to-end visibility to partners and owners

Enhanced Collaboration

Our solutions

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Capgemini solutions are designed to address key EPC challenges and imperatives that help EPC companies transform their value chain not only for operational effectiveness but also to enhance market position and revenue. A few of our solutions are highlighted below:

1. Digital transformation

Emerging economies are the driver for new incremental growth for the EPC industry. Local markets are consolidating and EPC companies are searching for new avenues for demand by diversifying into new industry segments. As companies go international, the geographic spread of projects demands greater visibility, information flow, and collaboration among business units. Adoption of technologies and solutions such as big data and analytics, mobility, IoT, and digital content management across the value chain will help improve collaboration across an extended ecosystem, effective project execution in a complex environment, and intelligent decision making.

Digital is your new construction partner. We enable Digital Transformations to help you compete with nimbler, emerging market players as well as to drive gains in productivity, product quality, and operational efficiency.

EPC Digital Transformation

Opportunity Management

Initiation and Planning

Engineering Procurement Construction Closure Operations

Big Data / Analyticsv

HD Photogrammetry

Project Collaboration

E-Procurement 3D Laser Scanners

5D BIM Augmented Reality

Partner Collaboration Platform

3D Laser Scanners

4D Modelling Contract Management Platform

3D Concrete Printing

Predictive Maintenance

Social Analytics Drones Digital Content Management

Smart Safety Devices

Mobility Solutions

Document Management

LIDAR Technology

Mobile platforms

Digital Safety

GPS/GIS Field Solutions 3D Printing

Finance Robotic Process Automation

HR People Analytics

Digitally Transforming EPC Industry4

2. Technology transformation (Modernize and Manage)

CIOs everywhere are facing the same pressing industry challenges: on the one hand, the need to modernize complex application landscapes by taking advantage of leading-edge technologies to improve effi ciency and eff ectiveness; on the other hand, there is an imperative to reduce IT costs to remain competitive.

Capgemini’s Modernize and Manage unique off ering allows organizations to move toward system modernization while reducing IT costs. Our proprietary methodology, Eliminate, Optimize, Automate and Robotize (EOAR), is designed to enhance and simplify impacted processes arising out of change in technology to increase process effi ciency and eff ectiveness. We recognize the need to gain upfront stakeholder alignment and ongoing organizational change management through the life of the program. Acceleration in modernization is achieved by leveraging our specialists who are singularly focused on delivering cloud and SaaS migrations on a repeatable basis.

Capgemini’s “Modernize and Manage” solution self-funds the modernization while delivering up to 20-30% reduction in manage costs from Day 1.

Engagement Term

125%

85%70%

63% 60%

SPEN

DTR

AN

SFO

RM

Capgemini Governance

CG Investment1: Transition and SMO

CG Investment 4: Operational andManaged Contracts Transformation

CG Investment 2: SaaS Selection CG Investment 3: SaaS implementation

CG Investment 5: Autonomics

CG Investment 6: Continuousimprovement

Y0 Y1 Y2 Y3 Y4 Y5

CU

RR

ENT

5

the way we do itEPC

3. Financial Transformation

Geographic spread of projects, involvement of multiple partners and the changing nature of contracts makes fi nancial transaction recording, consolidation and reporting a challenge for EPC companies. We off er end-to-end services and solutions to enable fi nancial transformation and achieve signifi cant savings. Our solutions cover all areas including global billing and balance sheet assurance.

Global Billing

Cool Tool

Balance Sheet AssuranceModel

EPOM and e-contracts

Project Budgeting

Accounts Receivables

Accounts Payable

Global Billing

Fixed Asset Management

General ledger

Reporting

BE

NIF

ITS

SOLUTIONSFunctional AreasReduction in aged accruals

Correction in undervalued assets

Reduction in clients billing cycle

Improvement in process efficiency

Real time view of invoice status

ENABLERS

Benchmarking Analytics

Collaboration BPM/ARIS Platforms

Robotic ProcessAutomation

Digitally Transforming EPC Industry6

4. Operations and Maintenance

EPC companies need to look beyond their core competency for new streams of revenue generation. We believe Operations and Maintenance is the next growth frontier for EPC companies. EPC players need to move up the value chain and take on the responsibility of Operations and maintenance of projects and facilities built under EPC contract.

Capgemini off ers comprehensive solutions such as Enterprise Asset management and Service Life cycle Management for eff ective Operation and Maintenance Management. This includes enterprise asset management assessment, asset performance analytics, remote monitoring, case management, technical support, service analytics, and fi eld service enablement

Maintenance Service Operations Strategic Areas

Enterprise Asset Management

Operations Management

MRO Store Service Order Management

Asset performance Optimization

Strategic options / RAV analysis

Condition Monitoring

Operations Planning

Maintenance Optimization

Service part planning

Turnaround Management

PerformanceKPI Analysis

Remote Asset Diagnosis

Work order Management

Asset Mapping Service Contracts Predictive Analytics

Operational tower

Root Cause Analysis

Incident Management

Operations Visibility

Service parts procurement

Warranty Management

Knowledge Management

Defi ne Maintenance Strategies

Alerts and Notifi cations

Mobility Field service solution

Centralized service center

MRO / Spend Analytics

Energy Performance Management

Remote Maintenance

Maintenance Planning & Scheduling

Workforce Scheduling

Service Billing EHS Compliance Disposal / waste management

Asset Master data Preventive Maintenance

Issue Management Interaction analysis / triaging

Operational Feedback

Revenue recognition

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the way we do itEPC

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For more details contact:Jim Russojim.russo@capgemini.com

About Capgemini

With more than 190,000 people, Capgemini is present in over 40 countries

and celebrates its 50th Anniversary year in 2017. A global leader in consulting,

technology and outsourcing services, the Group reported 2016 global

revenues of EUR 12.5 billion. Together with its clients, Capgemini creates

and delivers business, technology and digital solutions that fi t their needs,

enabling them to achieve innovation and competitiveness. A deeply

multicultural organization, Capgemini has developed its own way of working,

the Collaborative Business Experience™, and draws on Rightshore®, its

worldwide delivery model.

Learn more about us at

www.capgemini.com

The information contained in this document is proprietary. ©2018 Capgemini. All rights reserved.

Team

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Capgemini has developed best-in-class competencies across the EPC value-chain. Our EPC practice is servicing multiple engineering and construction companies and provides industry practitioners, domain specialists, consulting services and industry solutions to address the most critical and key challenges of the industry. Our services include: Consulting and business transformation services

Deploying process and technology improvements across ERP, project control, engineering design, information management and IT operations

Adoption of next generation technologies and solutions such as analytics, mobility, collaboration, IoT for improved productivity, intelligent decision making, collaboration across extended ecosystem and eff ective project execution

Joint value propositions and broadening services through operational systems integration and IT infrastructure off erings.