Tuesday Apr 29, 2014

New Research: Improved Project Management Is Key to Reducing Infrastructure Risks in Energy, Power, and Chemicals Industries

The process manufacturing industry is confronting significant infrastructure problems that heighten risks to operations and leave executives struggling to bring their ageing facilities into the twenty-first century, according to a new report by the Economist Intelligence Unit and sponsored by Oracle. One executive put the challenge in stark terms, saying "It takes years to build a reputation, but one serious infrastructure failure can destroy it." 

The report, "The Impact of Aging Infrastructure in Process Manufacturing Industries," is based on a recent survey of 366 executives. The research found that aging systems are negatively impacting—sometimes substantially—companies in oil and gas, utilities, chemicals, and natural resource industries. A commanding majority—87 percent of the respondents—said aging infrastructure has impacted operations in the past 3 to 5 years, with 1 in 10 saying they suffered severe consequences that they are still trying to fix.
But as a group, the executives see a way to improve agility and seize new opportunities while protecting customers, employees, operations, and corporate images from costly infrastructure failures. The best solutions involve a blend of technology, project planning, and due diligence, the report stated. The executives added that these elements help organizations identify and resolve problems before crises occur.

Find out how others in the power and energy sector are adapting and developing new strategies to address the issues of ageing infrastructure. Compare your own experiences and strategies against those of your peers with Oracle’s interactive benchmarking test, take the test and receive a complimentary four-page personalized report http://oracleevent.com/18378/edm/img/spacer.gifIt’s a simple 5 minute test that gives you an instant graphical snapshot and recommendations on how to turn your organization’s ageing infrastructure issues into an opportunity.


Read the full article in the EPPM Information In-depth newsletter here.

Tuesday Mar 25, 2014

Delivering Consistent Project and Portfolio Management Success

As the business impact of project portfolios grows, organizations worldwide are challenged to deliver operational excellence, maintain financial discipline, and mitigate risks.
Watch a series of short videos from the Economist Intelligence Unit (EIU)
, and download EIU reports to get unique insights into how enterprise project portfolio management (EPPM) can help. Listen to senior executives at global organizations as they discuss how to plan, resource, execute, and assess projects—and what to do if things go wrong. 

Listen to the following experts:

  • Wells Fargo, Vice President of Project Management Office Manager

  • NASA, Chief Knowledge Officer

  • Conoco-Phillips, Senior Vice President of Project Development and Procurement

  • DuPont Vice, President of Corporate Supply Chains and Central Competency

  • US Department of Energy’s Office of Project Management and Evaluation

  • Fluor Corporation, Senior Vice President

  • CH2M Hill, Senior Vice President and Programme Manager

  • American Water Company, Vice President of Operations

  • Voltaix, LLC - Executive Vice President of Operations and Technology

  • Gates Corporation, President and COO

Friday Sep 07, 2012

How to Reap Anticipated ROI in Large-Scale Capital Projects

Only a small fraction of companies in asset-intensive industries reliably achieve expected ROI for major capital projects 90 percent of the time, according to a new industry study. In addition, 12 percent of companies see expected ROIs in less than half of their capital projects.

The problem: no matter how sophisticated and far-reaching the planning processes are, many organizations struggle to manage risks or reap the expected value from major capital investments.

The data is part of the larger survey of companies in oil and gas, mining and metals, chemicals, and utilities industries. The results appear in Prepare for the Unexpected: Investment Planning in Asset-Intensive Industries, a comprehensive new report sponsored by Oracle and developed by the Economist Intelligence Unit.

Analysts say the shortcomings in large-scale, long-duration capital-investments projects often stem from immature capital-planning processes. The poor decisions that result can lead to significant financial losses and disappointing project benefits, which are particularly harmful to organizations during economic downturns.

The report highlights three other important findings.

Teaming the right data and people doesn’t guarantee that ROI goals will be achieved. Despite involving cross-functional teams and looking at all the pertinent data, executives are still failing to identify risks and deliver bottom-line results on capital projects. Effective processes are the missing link.

Project-planning processes are weakest when it comes to risk management and predicting costs and ROI. Organizations participating in the study said they fail to achieve expected ROI because they regularly experience unexpected events that derail schedules and inflate budgets. But executives believe that using more-robust risk management and project planning strategies will help avoid delays, improve ROI, and more accurately predict the long-term cost of initiatives.

Planning for unexpected events is a key to success. External factors, such as changing market conditions and evolving government policies are difficult to forecast precisely, so organizations need to build flexibility into project plans to make it easier to adapt to the changes.

The report outlines a series of steps executives can take to address these shortcomings and improve their capital-planning processes. Read the full report or take the benchmarking survey and find out how your organization compares.

Sunday Apr 01, 2012

Building in Change: Project Construction in Asset Intensive Industries

According to a recent survey by the Economist Intelligence Unit, sponsored by Oracle, only 51% of project owners rated themselves as effective at delivering their projects to scope, budget, and schedule when confronted with change. In addition only 43% rated themselves as effective at anticipating potential change.

Even with the best processes and technology in place, change is often an unavoidable part of the construction process. How organizations respond to change can mean the difference between delays and cost overruns, and projects being completed on schedule and on budget.

Implementing Enterprise Project Portfolio Management and using a solution to help manage and automate those process can help asset intensive organizations:

  • Govern project and program compliance and regulatory requirements for project success
  • Unite project teams and stakeholders through collaboration and strong feedback methods to speed project completion
  • Reduce the risk of cost and schedule overruns and any resulting penalties to deliver on time and on budget
  • Effectively manage change throughout the project life cycle
  • Ensure sufficient capacity, utilization, and availability of people, skills, and other resources to meet commitments.

The results of the recent EIU survey, sponsored by Oracle:"Building in Change: Project Construction in Asset-Intensive Industries", will be revealed in an upcoming webinar with Hart Energy / Oil & Gas Investor, featuring the Economist Intelligence Unit and Oracle on April 11th at 1pm CST.

Click here for further information or visit http://www.oilandgasinvestor.com/

Monday Feb 06, 2012

Investment Intentions in the Oil & Gas Industry show significant improvements over the next 12 months

By Guest Blogger: Geoff Roberts, Oracle Primavera Industry Marketing Manager, Oil & Gas/Utilities

According to a recent survey conducted by the Economist Intelligence Unit (EIU) and commissioned by GL Noble Denton, “Big Spenders: the outlook for the oil and gas industry in 2012”  there has been significant improvement in a number of key areas around investment intentions over the next 12 months:

  • Industry optimism is high and rising up 6% on last year
  • Investment intentions are significantly stronger than last year, 63% of Executives plan to invest more or substantially more over the next 12 months.
  • Rising operating costs are seen as the key barrier to growth for the second year running, both employees and contractors
  • Skills are a growing concern with 34% of respondents identifying it as a top-three issue.

 With this in mind it is important that organizations look to manage their project portfolios throughout the Plan, Build and Operate phases, and to support this a solid PPM solution will help them to:

  • Ensure the correct investments are selected to provide the highest ROI
  • Ensure the most appropriate contractors are selected
  • Optimize the correct mix of contractor and employee staff
  • Forecast the skills requirements based on current/future projects

Monday Jan 02, 2012

How effective is your company at capital planning?

Asset-intensive industries are presented with many challenges when it comes to effectively managing the capital planning process. And failing to make good decisions when the stakes are high can lead to huge financial losses. Is your company making good investment decisions?

A recent survey by the Economist Intelligence Unit, sponsored by Oracle, found that:

  • Only one in ten companies in the utilities, oil & gas, chemicals and metals & mining industries consistently achieve the expected return on investment on capital projects
  • 47% of executives surveyed rate their organizations as "effective" at planning, prioritizing and selecting capital investment opportunities, and just 8% say they are "extremely effective"
  • Fewer than one in five organizations involve program managers in capital investment planning decision-making

With the cost of projects running into the millions, and even billions of dollars, the stakes have never been higher: timelines are long, investments are huge and lifecycles are even longer. Good decision-making in the planning stages can have a tremendous impact on the bottom line and mean the difference between the success and failure of a project.

How does your company compare? Take the EUI five-minute benchmarking survey to find out. See how your views of the capital planning process compare with those of more than 425 asset-intensive industry executives around the world.

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