Leveraging a Digital Strategy for Sustained Growth - Oracle · Provider to Maintain Change History, Back -up, System Real-time Data Accessible Via the Internet, Anywhere Any Time

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General Manager, Engineering & Construction Solutions, Americas

Leveraging a Digital Strategy for Sustained Growth Scott Boutwell, LEED AP


Transformation Challenges are Reflected in E&C Financial Performance

• > 50% • …for 17% of E&Cs

SG&A (% of Net Sales)

• <0% • …for 50% E&Cs

Free Cash Flow (% of Rev)

Drivers to Transform Financial Indicators

• <- 5% • …for 66% of E&Cs

Revenue Growth per Employee

(%)

New Pricing Models and GTM Approaches Required to

Capitalize on Market Opportunities

Fragmented Business Needs; Process and Systems

Optimization to Reduce Operating Expenses

Increase Financial Discipline and Visibility of Project Profitability to

Release Investment Potential

Source: E&C Industry Benchmarking Analysis, 2010-2013 & Wipro internal.

Revenue Growth and Cost Reduction will Lead to Value Creation


Business Transformation Journey for E&Cs – 2014 Recap


Why Digital Transformation?

CLOUD

SOCIAL MOBILE

By 2015, 95% of companies will support their applications on personal mobile devices

Most executives believe the cloud will make their organizations more agile and competitive

80% of Fortune 500 executives say enterprise-wide collaboration is the key to success

Text 90% of Fortune 500

companies have big data in place

BIG DATA


Digital Elements Across the E&C Value Chain

Eng. Design View Design, specification,

BOQ

Technical Analysis (clash, What if, Schedule

Simulation),Cost analysis. ECM

Digitization of facilities & 3D visualization, Virtual

reality

Engineering design tool as a cloud

service

Engineering design tool with EIM, procurement, Planning,

ERP, Bid management system

Engineering design

info

Collaborative Engineering Design – collaboration center

View, Approve PO, Payment, Order delivery tracking

Make Vs Hire analysis Sensitivity analysis

Spend Analytics

RFID based material management, track & trace

Procurement management on

cloud

Procurement with Engineering Design,

planning, inventory, delivery management, ERP

Procurement lifecycle management,

integration with knowledge base

Extended customer /Partner/collaboration, Managed File Transfer

Work Scheduling, view/progress update,

Inspection/& Audit, incident report

Asset/workforce Productivity/Utilization

Stock analysis Cash flow analysis

Asset/People/tool tracking (entry/exist), utilization,

availability CCTV surveillance

Cloud hosted site operations (Men,

machine, material)

Site operations with Planning, ERP, EIM,

EAM systems

SaaS for site operations

Subcontractor/ partner/Supplier collaboration

Handover progress tracking

Progress reporting X-check of As-built drawing with the

facility

Handover on cloud software

Portal integration with EIM, Engineering design, Asset

management system

SaaS for handover

Information/file exchange, Managed File Transfer

Approvals, mobile workforce management

Asset Analytics RT prod. Operation and Process

optimization Spend Analytics

Tools/mobile workforce, asset health

diagnostics, RCM

Mobile workforce management

Asset Management, PM, RCM/ RBI, MDM, ERP, Engineering

design, EIM systems

Workforce management, HR,

mobile Apps

Facility operation center

Procurement

Construction

Commissioning/handover

Maintenance

Mobility Productivity, cost

efficiency

Analytics Operations/Cost efficiency

Automation/IOT Productivity, Efficiency

Cloud Speed,

Cost efficiency

Integration Productivity, Efficiency

Market Services Speed,

Cost Efficiency

Collaboration Productivity, cost Efficiency

JV Capex Opportunities E&C Operations BD, Labor, KM Metrics

% of new JV opportunities worldwide % improvement in profitability % reduction in safety incidents % improvement in billability

% + success rate in PEC, RSC % timely project delivery

% improvement in proc. Efficy % Timely project delivery

% improvement in proc. Efficy % improvement in Bid Wins

$ cost savings on Eng Collab. % Enhanced Production

% increase in Asset Utilization % increase in Asset Utilization # of Knowledge base Assets % increase in Operational Readiness


Digital Transformation of Key Engineering & Construction Functions

1. Planning, Management and Control

2. Design and Engineering

3. Construction Management

4. Back Office


Digital Transformation of Planning, Management & Control

Standalone and File Based Limited Collaboration Features Limited Resource Management Capability No Integration Capability with Estimation

and Design No Capability to Fetch Cost Data from

ERPs

Lack of Collaboration b/w Planners and External Stakeholders Manual and Time Consuming Project

Status Reporting Excel-based Resource Management Manual Risk Assessment on Schedule

and Cost Overruns Multiple Versions of Schedule

Traditional Standalone Planning

Built in planning & management reporting seamlessly Substantial cost reduction with improved

system performance Monitor and visualize project performance

Anytime Anywhere Access Middleware Based Integrations (Gateway)

with ERPs PPM to EPPM Mobile Ready Interface

Cloud Enabled Project Mgt Enterprise PPM

Multiple Planners can Collaborate on Same Schedule Automated & Enhanced Project Status

Reporting Enterprise Resource Management. Earned Value Analysis Integrated Issue & Risk Management

Stores all Projects in a Single Database Adapters Available for Integration with

Major ERPs Version Comparison & Agile Scheduling Optional Integration with Estimation Tools Enhanced Security & Access Control Integration with Document Management

Systems

Standalone to EPPM

Cloud Enablement


Digital Transformation of Design & Engineering Traditional Standalone CAD Tools

Standalone and File Based File Based Model and Single User

Accessible No Interoperability or Cross Application

Interfaces Paper and Document (xls/doc) Based

Collaboration

Lack of Collaboration b/w Planners and Manual Quality Checking and Design Validation Complex and Document Intensive

Physical Handover Challenges in Clash Detection Paper Based Design Collaboration

Model file .dwg .dgn

Increased Quality Aspects by Auto Validation Electronic Data and Document Handover Easy Relocation and Work Sharing Automated Clash Detection Improved Engineering Information

Management and Collaboration

Data Based Model and Multi User Accessible Information Data Interoperability Across

Disciplines Integrated Cross Application Interfaces

Integrated Data Centric & Intelligent Model

File to Data Centric

Integrated Design Validation and Quality Management Minimal or Zero Plant Data Handover Re-use of Information and Digital

Coordination Information Shared Across Organization Design Collaboration Across Globe and

Real-time Data Management

Global Operational Access to Model Full Access to Project Ecosystem Highly Digital Collaborative Environment

Cloud Based Collaborative Design

Cloud Enablement


Digital Transformation of Construction Management Local Construction

Multiple Standalone Applications No Interoperability or Cross Application

Interfaces No Version Management, Effort Duplicity No Tool for Work Package Lack of Construction Sequence

Visualization at Site

Lack of Integration b/w Construction, Procurement, Engineering and Design Office = Poor Site Visibility Manual Process Flow QA/QC Complexity in Quantity Tracking Paper and Document (xls/doc) Based

Collaboration Lack Visibility on 3M (Man, Material,

Machine) Lack of As-built Incorporation at Site

Global Construction

Complex Integration of Multiple Applications Limited Remote Network Based Access Specific Business Process Flows Integrated Approval Process from Customer Near Real-time Site Transparency Mobility and Federated Information Access Better Decisions, Effective Use of

Resources Network Dependent, Latency in Data

Accessibility

Enterprise Level Integration Collaborative, Interoperable, Mobile

Platform Track Construction Progress and System

Status Visually in the Model at Site Office Seamless Data Integrity User Defined Customized Reports Easy Work-sharing for Multi-discipline

Location Independent, No Capex Infrastructure, Fully Scalable Built in Dashboards with Customized

Business Processes Integrated Process Flows Reduced Latency Accessing Data Zero Cost Site Specific Installation and

Maintenance Real-time Site Visibility and Transparency Construction Simulation and Collaboration

b/w Office, Site, and Field

PPM to EPPM Web Based 3-tier Architecture In-network to Cloud, Platform Independent Cost Effective Installations All in One, Access from Anywhere

Collaborative Construction

Integrated Cloud Enablement


Digital Transformation of E&C Back Office

Standalone and File Based Time Consuming Implementation and Deployment High Risk/Impact on Customizations due to Upgrades Required to Maintain Change History, Back-up and System

Configuration High OPEX for Data Center, H/W, Infrastructure, etc. Limitation on Remote Access

Required Dedicated Internal IT and Infra Support Team Required Mandatory Support and Maintenance from Respective

Vendor High License Cost for Each S/W, H/W, OS, Antivirus Requireed Renewals, Upgrades

On-Premise Based Integrated ERP Environment

Easy, Less Time Consuming Implementation and Deployment Continually Upgraded by Provider with Previous Customization

and Integration Provider to Maintain Change History, Back-up, System

Configures Real-time Data Accessible Via the Internet, Anywhere Any Time Benefit of Using the Latest, Most Advanced Version

Internal IT Needs Minimized Providers Have All Necessary Industry Standard Data Security

Certifications and Compliances No License and Operation Cost, System Pay Subscription Pay-

as-you-go Social Collaboration and Mobile First as an Embedded, Integral

Part of Our Product Design System Easily Rolled Out Across Multiple Regions, Subsidiaries

and Divisions

Cloud Based ERP

Cloud Enablement


Data Center Virtualization/ Private Cloud

The New Challenge…Cloud Integration

FMS

HCM Procurement MDM

Knowledge Mgmt

EAM

Enterprise Systems

Project Controls Cost

Control Planning & Scheduling

Progress Monitoring

Change Mgmt

Engineering & Design Elec. & Inst.

Mechanical

Piping Civil

Structural

Site People Machinery

Materials HSE


Based on Industry Best Practice Processes (L0-L5) Across Front Office & Back Office

Pre-Configured Oracle Based Solution: Planning & Management (P6 EPPM ) Integrated with BIM Enabled Estimation Tools Integrated with Contract Management and Cost Control

Cloud and On-Premise Availability Choice of Business Processes and Relevant System

Components PaaS Model with Optional Project Management Services

Automated Sites Integrated with Back Office and

Collaboration Systems Automated and Integrated Engineering Cost Control and Contract Management Integrated with Sites

and Back Office Standardized Processes with Seamless Integrations to Sites,

Partners, Suppliers & Customers Enabling Internal/ External Collaboration, EIM and KM

Wipro ProjectInsight Enables the Digital Enterprise…

Benefits

Achieve Collaboration, Compliance and Control


[email protected]

Thank You Scott Boutwell, LEED AP

mailto:[email protected]

Documents

Leveraging a Digital Strategy for Sustained Growth - Oracle · Provider to Maintain Change History, Back -up, System Real-time Data Accessible Via the Internet, Anywhere Any Time