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

Wednesday Jul 17, 2013

Live Q&A Automotive Webcast: Make or Break: Why Auto Products Must Get to Market On-Time - July 30

According to a new industry forecast from Bank of America Merrill Lynch, automakers who replace their products faster stand to increase market share over the next four years.

But standing in the way of this opportunity is a daunting reality:

  • A four month delay in the auto industry for new products can translate into a cost of $1m per day of delay.

  • Lost profits due to delays can be as high as 60% over the product lifecycle.

So, how can automakers avoid these challenges and get to market on-time?

Join auto industry expert John Reichard
and learn about the importance of how planning, resource optimization and project management enables automakers to reduce development cycles and time-to-market.

 Live Date: Tuesday, July 30th 2013 / Time: 12:00pm EDT

Wednesday Jul 10, 2013

Oracle Receives a Positive Rating and Is Named a Leader in New Gartner Reports

Gartner, Inc. evaluated Oracle enterprise project portfolio management solutions in two reports recently.

The Gartner MarketScope for IT Project and Portfolio Management Software Applications, published in May 2013, gave Oracle a positive rating.
The IT project and portfolio management (IT PPM) products included in the Gartner MarketScope address the challenges of portfolio, program, project management office leaders; program/project managers; and resource managers. The report says that these groups continue to struggle with selecting IT programs and IT projects, prioritizing them, executing them at the right time, matching and/or balancing IT supply with IT demand, monitoring and reporting IT project status and IT expenditures to date, improving IT project execution efficiency, proactively addressing emergencies on IT projects, and tackling changes to the existing and planned IT projects triggered by shifts in business direction. Read the full Gartner MarketScope for IT Project and Portfolio Management Software Applications report.

Also in May 2013, Gartner named Oracle a Leader in its Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services.
The report noted that “IT project and portfolio management (PPM) leaders are under extreme pressure to improve the speed, accuracy, and agility of their project organization, while also managing risks and costs. They are looking for software solutions that can support these seemingly conflicting objectives. For years, the IT PPM software market standardized on on-premises or traditional hosting for deployment of IT PPM software functionality, but with the continued maturity of the internet as an enterprise computing platform, on-premises and traditional hosting have given way to another viable option—cloud-based IT PPM application services deployment.” Read the full Gartner Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services report.

Read the complete article in the Oracle Information InDepth EPPM Newsletter here

*Read Oracle’s press release about the Gartner Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services.*

------------------------------------------------------------------------

Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


Friday Jun 28, 2013

Watch ON-Demand Oracle's 4th Annual Primavera Virtual Summit

Did you miss Oracle's 4th Annual Primavera Virtual Summit? Or, maybe you attended the virtual event live, but want to re-watch some presentations or download industry-specific assets - well you can! Watch and visit here, on-demand

This event is now available On-Demand for your convenience. Feel free to log-in anytime to listen again about:

  • New cloud based PPM solutions presentations.

  • Special Primavera Roadmap presentation- what's new and what's coming.

  • Customer stories highlighting their successes with Primavera Unifier, Oracle Instantis and Primavera P6 Enterprise Project Portfolio Management.

And don't forget to visit the Resource Library to check out all the latest product information, whitepapers, and demos which are all available to download and read at your convenience. During your visit to the Virtual Summit ON-Demand, we would appreciate you visiting the Networking Lounge and taking a few minutes to fill out the survey. We would really like to hear what you think.

You can also visit the Primavera Website for more information about the newest EPPM solutions and offerings.

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