Download - From Transactions to Enterprises From Transactions - Events...2019/03/12 · Decision making accounts for defined customer preferences, but with limited personalisation. Data provides

Institution of Civil EngineersDigital Underground – Barry KermischPR

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Project 13 - Infrastructure Client Group

A new approach to deliveringhigh performing infrastructure

FromTransactions to Enterprises

Infrastructure Client Group Project 13

From Transactionsto Enterprises

Mark Enzer – CTO, Mott MacDonaldMarch 2019


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Agenda

• Introduction to Project 13

• Core principles

• Next steps for adoption

• Digital transformation


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Infrastructure Client Group (ICG)

• identify, share and disseminate best practice in the development and delivery of infrastructure.

• provide a single voice to government and industry.

• support the effective deployment of products.

• achieve these by collaborating with other key industry groups.


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Project 13 - Infrastructure Client Group4

Source: McKinsey&Company, “The construction productivity imperative” By S

Changali, A Mohammad and M van Nieuwland, July 2015

Why we need a new approach

Productivity

Unsustainable Industry

Source: Construction Leadership Council, “The Farmer Review – Modernise or

Die” By M. Farmer 2016

Digital Transformation

http://www.theconstructionindex.co.uk/assets/news_articles/2017/08/1503667290_chart-2.jpg


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o ICG / IPA workshop on new delivery model

o Discussion with ICG members and construction industry leaders;- consultation with companies in infrastructure and construction- studies of infrastructure projects, led by Bartlett School at UCL

o Project 13 Report; From Transactions to Enterprises

o Development of Project 13 knowledge and capability, led by ICE

Project 13 history

2015

2016

2017

2018


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GovernanceOrganisationIntegration

Capable ownerDigital transformation

Project 13 workstreams


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What is Project 13?

• An industry-led movement to transform the way high performance infrastructure is delivered.

• A new operating model – based on an enterprise, not on traditional transactional arrangements.

• Being adopted on some of the UK’s largest projects and bringing together skills and technologies in a collaborative environment.

• Building a sustainable future for the construction industry, creating a more highly skilled workforce and creating infrastructure that represents better value for all.


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Three stages of maturity

Simple collaboration Integratedfunctions and relationships

High performing enterprise


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From Growth To Maturity

Focus on asset creation Focus on asset management and operation

Focus on cost of initial build Focus on long term performance

Outputs for Clients Outcomes for the ultimate customers

Traditional constructed solutions Innovative integrated digital/physical solutions

Fragmented, siloed organisations Integrated enterprise team

Limited reward for developing skills Incentivised to improve skills and staff productivity

Purchase scope Reward outcomes + performance

Short term transactional relationships Long term sustainable enterprises

Transfer risk Incentives joint performance

A shift in our thinking

Customer focus

Sustainable Industry

Improved Productivity


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Outcome per

whole life £ for the

ultimate customers

Re-thinking the definition of value


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Alignment – Commercial relationships should be aligned with achieving the customers’ outcomes.

Rewards – The parties rewards should be based on the value they add in achieving the outcomes.

Risks – Risks should be limited to those that the parties can manage. Owner’s risks are not passed to the supply chain.

Three commercial principles


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Engagement – The enterprise should be engaged as early as possible in the asset lifecycle.

Scale – The enterprise yields greatest benefits when applied across complete portfolios.

Duration – The enterprise will improve performance over time. The longer it works the better it will get.

Three success factors


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Project 13 core principles


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@One Alliance – Commercial Performance(vs 2004 baseline)

AMP 4 AMP 5


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@One Alliance – Accident frequency rate

AMP 4 AMP 5


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@One Alliance – Capital Carbon

AMP 5 AMP 6


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How are we implementing Project 13?

Resources Support Early Adopters Embedding

Commercial handbook

Project 13 blueprint

Maturity matrix

Enterprise roadmap

ICG mentors

Events

Project 13 community

Six infrastructure programmes

Sharing experiences

Helping to develop Project 13

Challenging systemic blockers

Business cases

Regulatory practices

Procurement practices

Standard contracts


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Implementation Early Adopters

Implementation; Supply Chain

Strategic Advisors

WorkstreamSteering Groups

P13 Community

Development

ImplementationP13

Development

Capable Owner

Organisation

Governance

Integration

DigitalTransformation


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Progress ….

• P13 Report 2016• Launch 2018

• Early Adopters

• Structure for implementation phase


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Infrastructure

in use

Assets

in delivery

Physical infrastructure


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Smart infrastructure

Digital delivery

Digital transformation


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Physical assets Digital assets



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Industry benchmarking

Energy

• National Grid• Scottish Power • UK Power Networks

Transport

• Crossrail 2 • Heathrow • HS2• Transport for Greater

Manchester

Water

• Anglian Water• Environment Agency• Northumbrian Water• Scottish Water• Tideway • Welsh Water


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Industry Readiness Level (IRL)

Digital transformation maturity assessment

Leadership

Commercial

Asset Management

Asset Delivery

Capability

Customers0 – Traditional 1 – Simple Collaboration

Insight

How well do you understand your customers?

No customer information available to most Owner functions

Limited to payments, complaints and formal consultation with a small sample of customers.

Decision making accounts for defined customer preferences, but with limited personalisation.

Data provides insight on customer value across multiple groups - including those who don't contact the Owner.

Customer-led culture developing across Owner functions, but does not yet extend to partners.

Participation

How do you include customers in your decisions?

Customers viewed as passive recipients of a service.

Owners seek customer validation of their plans.

Captive customers have limited choice, with little transparency or differentiation in Owner's offers of services.

Owner is transparent in their use of personal data and informs customers of service availability.

Plans in place to give customers more control over their services.

Educated customers understand how their data is used, have insight into the bigger picture and buy into benefits of Owner activities.


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Summary

• Understand your customers

• Embrace digital transformation

• Break down data silos

• Get the basics right first

• Security is everyone’s responsibility

• Incentivise outcomes, not hours spent

• Bridge the skills gap

For owner organisations:

For infrastructure industry:


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Engineering Institutions

ITRC

NCSC

GC

ONSATI

Coordinated digital transformation landscape

HS2

Tideway EA

ODI

UK BIMAlliance

Geo6

UKCRIC

CPNI

CLC

Heathrow Airport

Anglian Water

Crossrail 2

National Grid

SellafieldScottish Power

i3P

LUL

NDA

SW Water

UKRN

UKPN

Highways England

Network Rail

CDBB

IPA

TechUK

BSI

EDFICG


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Engineering Institutions

ITRC

NCSC

GC

ONSATI

Coordinated digital transformation landscape

HS2

Tideway EA

ODI

UK BIMAlliance

Geo6

ICG

UKCRIC

CPNI

CLC

Heathrow Airport

Anglian Water

Crossrail 2

National Grid

SellafieldScottish Power

i3P

LUL

NDA

SW Water

UKRN

UKPN

Highways England

Network Rail

CDBB

IPA

TechUK

BSI

EDF

DFTGTo steer and guide the successful development and adoption of the Framework

DTTGTo facilitate and accelerate Digital Transformation in

the UK’s infrastructure industry


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Strategies

Maturity assessment

Digital twins

Case studies

Four priorities for 2019


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Digital twins

Physical

Twin

Digital

Twin

Data

Interventions Decisions

Outcomes Insights


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Questions?