Sunday Feb 08, 2015

Managing Change on E&C Projects

Written by Krista Lambert, Director Engineering & Construction Strategy, Oracle

 As the saying goes: change happens. But the recent report from the Economist Intelligence Unit (EIU), Building in Change: Project Construction in Asset-Intensive Industries revealed that for engineering and construction projects, change is not only inevitable, it creates its own set of challenges. According to the report:

  • More than 60% of survey respondents blame unexpected change for at least one-half of all project overruns
  • 55% of the executives surveyed consider their companies as average or below at anticipating change

Clearly, both owners and E&C firms feel that they could vastly improve their ability to manage change. An enterprise-wide project management system not only provides greater visibility and insight into changes, but also improves communication across organizational boundaries, so you can quickly adapt to disruptions in labor, materials, and costs. To find out more, read the article Critical Components to Effective Project Execution in the latest issue of Construction Connection.

Wednesday Feb 04, 2015

Visualization and the Digital Project

written By Garrett Harley, Director, Engineering & Construction Strategy, Oracle

5D virtual construction will transform the construction industry

 Redesign should take place on the computer, not on the construction site.

 5D virtual construction modeling, or 5D BIM (short for building information modeling) enables the various participants of a construction project—from designers and contractors to owners—to visualize and display the entire construction progress sequentially over time, factoring in a critical component: actual and forecasted costs. It has the potential to vastly transform the delivery of projects large and small.

 Here’s how BIM technology has progressed through the years:

3D: Three-dimensional design modeling that enables project visualizations, walkthroughs, clash detection, and item scheduling

4D: 3D modeling plus time, linking the project schedules: resources, tasks, etc.

5D: 4D plus cost, integrating design with estimating, scheduling, and costing

 Leveraging the data available in the 3D BIM model, 5D BIM optimizes construction project management, enabling project team members to visualize the progression of construction activities and the associated costs. Beyond the ability to maximize physical and constructability constraints, 5D virtual construction gives companies the ability to better manage budgets and forecasted expenditures. Understanding construction sequencing can help prevent problems related to constructability and optimize cash flow within the framework of construction sequencing.

 In today’s environment, many E&C companies and some owners have begun to adapt and adopt 5D into their work processes. Recent surveys predict that 100 percent of owners and 80 percent of contractors will use BIM in some way in 2014.

 Currently, there is no standard definition of BIM and many partial or incomplete solutions. Dual standards have been developed by different organizations such as the Industry Foundation Classes (IFC) by the buildingSMART allianceTM and ISO 15926. The number of developers in the BIM space has also grown creating integration issues.

For visualization to drive projects from concept to completion and into operations and maintenance, developers must extend current BIM capabilities. Users need mapping and display capabilities between the embedded construction schedule and the 3D model. They need easy, effective ways to verify clearances, identify design incompatibilities, and detect clash or collision points.

 All construction contractors are currently investing in standalone, specialized niche technology, so now is the time to bring those niche technologies together in an interoperable environment.

 For more information on BIM, read the whitepaper: “Leverage 4D Building Information Modeling (BIM) to Help Meet the Challenges of Infrastructure Growth”

Monday Dec 08, 2014

Litmus Test: 86% of Large Enterprises See the Value of Business Transformation, Yet Nearly Half Are Not Fully Ready to Execute

Author: Mike Sicilia, Senior Vice President and General Manager, Oracle Primavera

 Today, “business as usual” simply does not, and will not, suffice for large enterprises seeking success. New competition is emerging, existing competitors are upping their game, and the legislative regulation is challenging organizations to reach new levels of transparency. The landscape is dynamic, and for those businesses that strive not simply to compete, but to win, the need for business transformation is urgent. However, while the majority of executives agree that business transformation is vital to maintain a competitive edge, nearly half (48%) are only somewhat or not at all prepared to successfully execute a business transformation today.

 Oracle, in partnership with Forbes Insights, explored what drives business transformation initiatives both internally and externally for a company, and what determines the success or failure of such initiatives in the study, “Making the Change: Planning, Executing and Measuring a Successful Business Transformation .

[Read More]

Monday Jul 14, 2014

Managing Change on Engineering & Construction Projects

By Krista Lambert, Engineering and Construction Strategy Director, Oracle

As the saying goes: change happens. But the recent report from the Economist Intelligence Unit (EIU), Building in Change: Project Construction in Asset-Intensive Industries revealed that for engineering and construction projects, change is not only inevitable, it creates its own set of challenges. According to the report:

  • More than 60% of survey respondents blame unexpected change for at least one-half of all project overruns.
  • 55% of the executives surveyed consider their companies as average or below at anticipating change.

Clearly, both owners and EPC firms feel that they could vastly improve their ability to manage change. An enterprise-wide project management system not only provides greater visibility and insight into changes, but also improves communication across organizational boundaries, so you can quickly adapt to cost overruns, scope and schedule and quality impacts. To find out more, read the article Critical Components to Effective Project Execution in the latest issue of Construction Connection.

Tuesday Oct 08, 2013

Explore the Fundamental Connections Between Stock Value and Project Management

Senior executives are today more accountable, even vulnerable, than ever before to poor share price performance. There are numerous reasons for this, but the increasing negative impact for organizations means that senior executives need to take a more active role in making the right decisions throughout business operations. According to research conducted by the global consulting firm Booz & Co.1, over the last decade the average tenure of a global chief executive has dropped from 8.1 years to 6.3 years. This analysis of the world’s top 2,500 publicly listed companies found that executive turnover had increased from around 12% in 2000 to 14.3% in 2009, with more than a third (36.7%) of departures in 2009 being dismissals rather than part of a planned succession. project and portfolio management on share price and stock value

For project-intensive organizations, there is even more intense pressure on executives to deliver forecasted returns on investment (ROI). With the current economic climate, shrinking margins and increased global competition, the impact of huge capital investment projects extending beyond their scope and budget carries significant consequences. This places even greater emphasis on capital planning, a core business process that remains fraught with difficulties. In a survey conducted by the Economist Intelligence Unit in October 20102, only 11% of companies could claim they delivered expected ROI on major capital projects 90-100% of the time, and 12% reported planned ROI delivery less than half the time. These results highlight that organizations – irrespective of industry sector – are still struggling to manage risks, accurately predict levels of ROI and consistently deliver bottom line growth from their major capital investments. Bad investment decisions can lead to huge financial losses, which serves to place the spotlight firmly on the capital planning process. It also places greater emphasis on executive decision-making capabilities to determine which potential investments deliver the greatest value and reliability, as well as providing the financial stability to attract funding.

The danger of poor evaluation can quickly lead to a significant reduction in the value of the organization’s overall portfolio and compromise long range capital planning goals. From here, it is a short journey to poor share price performance.

Click here and read this full complimentary paper that looks at the intrinsic connection between long-term capital investment and short-term market performance, and how this can in turn affect the profit outlook for project-intensive organizations. Discover existing research undertaken in this area, and highlight case examples where project management performance has impacted – whether positive or negative – the stock price and, in turn, the overall image of both the company and those in the C-suite of these organizations.

Read here and share with your colleagues.

1Favaro, Ken et al, CEO Succession 2010: The Four types of CEOs. Issue 63 2011. Booz & Co

2“Prepare for the unexpected: investment planning in asset-intensive industries,” Economist Intelligence Unit, January 2011

Thursday Aug 29, 2013

Top Strategic Drivers to Success in an Unpredictable, Changing World

Whether they are in the power or process industry, owners, operators, and their E&C partners face extraordinary demands in the next 20 years. The International Energy Agency (IEA) 2012 World Market Report estimates that a cumulative investment of US$37 trillion is needed in the world’s energy supply system by 2035.1 Of that investment, US$19 trillion will need to go to oil and gas facilities and infrastructure and US$17 trillion to meet generation, transmission, and distribution needs with the remaining targeted at other energy solutions.

The $19 trillion in oil and gas investments is expected to span the globe from U.S. shale and Canadian oil sands to Iraq’s new oil fields and Brazil’s deepwater drilling. IEA also points out that the current energy renaissance in the U.S. will have significant implications for energy markets and trade. By 2030, the U.S. should be self-sufficient in net energy needs and a net oil exporter because of its increased production of oil, shale gas, and bioenergy as well as improved fuel transport efficiency. As a consequence of the U.S. shift, international oil owners will place more emphasis on Asian markets and strategic links to the Middle East. Utilities face unprecedented pressures, as well, given IEA’s estimating $17 trillion investment in power infrastructure. Global electricity demand is expected to increase over 70% by 2035, according to IEA, with over half that demand from China and India. As well, electric utilities in the U.S. are expected to invest at least $51.1 billion in transmission projects through 2023.2 The Edison Electric Institute (EEI) estimates that more than three-quarters of the $51.1 billion will be used to support the integration of renewable resources in an effort to meet growing demand, relieve congestion, improve reliability, and support new generation sources to power grids.

Whether owner, developer, utility, or E&C company, success in the current and emerging environment will most certainly depend on an organization’s cost control, operational efficiency, and risk mitigation—read the full article in Engineering News Record’s (ENR) 2nd edition of the Construction Connection digital magazine to discover why.

Visit the microsite to read highlight articles from the digital magazine.

Monday Aug 26, 2013

NEW! Oracle's Enterprise Project Portfolio Management (EPPM) Webcast Center

We have just launched Oracle's new EPPM Webcast Center, a single console where you can search and watch all EPPM related OnDemand webcasts and register to attend upcoming live webcasts.

These webcasts provide updates on new product features, best practices, customer case studies and more.

Simply log-on to the webcast center where you can filter by products and industries that you are interested in.

Click here to visit the webcast center now!

Tuesday Aug 20, 2013

Oracle Expounds on Primavera Software Roadmap

Since acquiring Primavera in 2008, Oracle has worked on enhancing several features of its software, such as application integration and mobile functionality.

Looking to the future, Oracle seeks to provide more governance of the project portfolio management (PPM) application. Tony Banks, product director for Primavera software, spoke recently to TechTarget editor Lena J. Weiner about the roadmap for Primavera software.

In the video, Banks said that Oracle's goal is to continue to deliver "its vision" of a "true" enterprise PPM solution. According to Banks, that means "single platform, single vendor."

But Banks added that it also means being able to organize projects across all departments, capitalizing on similar business functions across departments while acknowledging specific business use cases. Watch the video for more details.

Friday Aug 16, 2013

SOLV Provides Accurate Risk Estimates for Oil and Gas Customers with Monte Carlo-based Simulation—Saves Customer US$550 Million

SOLV is an engineering consultancy and software developer based in the United Kingdom. It provides flow measurement engineering and consultancy services for fiscal, allocation, and process flow

measurement in upstream oil and gas production, pipelines, transportation, downstream petrochemical

refining, and power generation.SOLV’s experience stems from North Sea oil and gas, fiscal,

and allocation flow measurement, which is subject to stringent regulation by the

UK Department of Environment and Climate Change, the Norwegian Petroleum Directorate,

and other regulatory bodies.

 Challenges:

- Provide accurate estimates of uncertainty around the measurement of oil and gas output from pipelines

to enable global oil and gas organizations to manage exposure to risk.

- Assess accuracy of oil and gas allocation to multiple partner organizations, working in oil fields with

shared interest throughout the world.

Read more

 Solutions:

- Deployed Oracle Crystal Ball to perform Monte Carlo simulations to more accurately measure

the uncertainty around oil and gas flow measurement and calculate the probability that

measurements and allocations of oil to individual partners are correct.

- Saved one oil and gas client US$550 million by providing better risk estimates with the help of

Oracle Crystal Ball.

Read more….

"Oracle Crystal Ball enables us to use Monte Carlo simulation to estimate allocation uncertainties

in oil and gas flows and advise oil and gas clients on minimizing risk exposure."

– Martin Basil, Senior Flow Measurement Consultant, SOLV Limited

Read complete customer snapshot here.

Monday Jul 29, 2013

Upcoming Webcast Series: Drive project success with Enterprise Project Portfolio Management

With an increased focus on controlling costs, driving efficiency and minimizing risk, delivering projects that create measurable business value is becoming increasingly tough. Consistently delivering successful projects is vital to the financial success of any organization. Watch these exclusive Oracle Primavera webcasts, featuring expert insights and real-world case studies from across a range of industries showing how you can meet these challenges. Each webcast focuses on one of the three hottest topics in project portfolio management today:

  • Financial Discipline: learn how you can gain greater visibility and control of project finances
  • Operational Excellence: discover the key to increasing efficiency and reducing project costs
  • Risk Mitigation: understand how to overcome uncertainty and avoid costly project delays

If you need to deliver consistent project success, register for the webcasts today to learn how EPPM is helping organizations like yours do just that.

Register today, for the first webcast of this three part series, Financial Discipline: Take Control of Project Finances to Maximize Business Value, August 1st, 2013 – 2:00 p.m. ET

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