The engineering, construction, and operations (EC&O) industries are focused on transforming concepts into tangible realities in today’s ever-changing environment. To effectively manage projects, minimize risks, and maintain competitiveness, companies requires a platform like SAP for EC&O that supports the entire construction lifecycle.
In this context, digital transformation is the essential journey, and establishing strategic priorities is crucial for achieving success. This article discusses the industry-specific features offered by RISE with SAP‘s Business Transformation Service, which can help EC&O companies confidently build their businesses through sophisticated and intelligent software.
Let’s start by defining the strategic priorities and their benefits for the engineering, construction, and operations industries.
Outline of the EC&O sector
The engineering, construction, and operations (EC&O) industry is facing a significant challenge in standardizing business processes across projects. Day-to-day issues often take precedence over adhering to budgets and driving down project costs, leading to the inability to meet projected schedules and profits. Additionally, the lack of a structured approach to leveraging lessons learned and experiences from previous projects hinders the industry’s ability to improve efficiency and profitability.
Standardizing business procedures across projects is a big problem for the engineering, construction, and operations (EC&O) sector. Day-to-day concerns frequently exceed budgetary restrictions and cost-cutting measures, making it impossible to fulfill anticipated timelines and earnings targets.
Additionally, the industry’s capacity to increase productivity and profitability is hampered by the absence of a systematic method for utilizing the knowledge and expertise gained from earlier projects.
Key Issues Faced by EC&O Companies
Businesses involved in engineering, construction, and operations (EC&O) face a number of difficulties that affect their capacity to complete projects successfully.
Delivery Excellence – For a project to be completed successfully, precise estimations, efficient project management, effective construction, and cost control are required.
- precise estimations
- take-off and project management
- efficient construction
- cost control and monitoring.
Supply Chain – To keep a dependable and productive supply chain, strategically implement purchasing, manage long-lead time items, and successfully monitoring subcontractors.
- Purchasing
- Managing Long-Lead Time Items
- Managing Subcontractors
Strategic Priorities for EC&O
To thrive, Engineering, Construction, and Operations (EC&O) companies will focus on five strategic priorities:
▪ Digitalization of expertise and knowledge
▪ Connected construction sites
▪ Digitalization of intercompany collaboration
▪ Digitalization of commissioning and handover
▪ Digital supply chain
Digitalization of Expertise and Knowledge – This involves using digital tools to capture, store, and share knowledge within an organization. It includes implementing knowledge management systems, online training modules, and collaborative platforms. This ensures that valuable information and expertise are accessible and easily transferable among employees.
Connected construction sites – IoT devices, sensors, and cloud-based platforms are used by connected construction sites to facilitate real-time construction activity management and monitoring. Through the provision of current information and insights to stakeholders, this improves efficiency, safety, and communication.
Digitalization of intercompany collaboration – This focuses on improving cooperation and communication amongst various project-related companies. Better project outcomes and stronger relationships result from the smooth information interchange, project management, and coordination made possible by digital platforms.
Digitalization of commissioning and handover – This involves using digital tools to simplify the commissioning and handover processes. Digital documentation and automated procedures ensures that accurate information is received from construction to operations, guaranteeing the efficient execution of projects.
Digital supply chain – A digital supply chain integrates advanced technologies like blockchain, IoT, and AI to improve flexibility, efficiency, and transparency. It makes it feasible for manufacturer, supplier, and consumer communication to improve.
To undergo a digital transformation, the Engineering, Construction, and Operations organizations need to achieve one of their strategic aims, which is the “Digitalization of Expertise and Knowledge,” by the end of the 2025 vision.
Digital Transformation – In bird’s eye view
Basically digital transformation is a process of integrating digital technology into every aspect of a business and radically altering how you run and provide value to clients.
Let’s examine a recent example of organizational operations both before and after their digital transformation to gain a better understanding of this strategic goal.
Before the Transformation, The functionality of an organization is:
Manual Time Sheets: Each worker manually recorded their hours, a process leads to errors and difficult to manage.
Disconnected Progress Reports: Information about project progress was often outdated by the time it reached decision-makers, leading to reactive rather than proactive
On-Site Coaching and Job Training: New workers learned on the job, gaining hands-on experience but often lacking formal training.
Low Efficiency and High Risk: Projects moved slowly, and the risk of mistakes and accidents was significant, driving up costs and extending timelines.
After the Transformation, The functionality of an organization is:
Eliminating Work Through Automation: Routine tasks are now automated, reducing the need for manual labor and minimizing errors.
Real-Time Reporting and Analysis: Data flows constantly from job sites to decision-makers, enabling proactive management and swift adjustments.
Interactive Technology and Robotics: Advanced tools and machines take on complex tasks, improves precision and reducing physical strain on workers.
Better, Faster Decision-Making: Real-time sensor data and accumulated experience inform decisions, leading to quicker and more effective responses to challenges.
RISE WITH SAP for EC&O
You might be wondering now, “How can RISE with SAP help EC&O industry?”
The following are the main business features they provide to help you accomplish your goals:
- Workers have the flexibility to design their own learning paths
- A strong core ERP enables improved, faster, and more efficient response to quality and safety hazards.
- Single point of contact for the project during its execution, enabling project managers to react more quickly and accurately to any activity.
Conclusion
To summarize, adopting RISE with SAP for EC&O industry will drive a more flexible, agile, and effective organization, thanks to its comprehensive and regular partner updates.
With the help of this integrated solution, businesses can become flexible, agile, and efficient and respond to project demands and changes in the market faster.
For more information about SAP or other solutions that can help engineering, construction, and operations companies, do get in touch with us!
FAQ’S
1. What is RISE with SAP?
RISE with SAP is an integrated solution offering that helps businesses transition to cloud-based SAP S/4HANA, facilitating digital transformation.
2. How does RISE with SAP benefit the EC&O industry?
It streamlines operations, enhances project management, and improves resource planning, leading to increased efficiency and reduced costs.
3. Is RISE with SAP scalable for growing EC&O businesses?
Yes, RISE with SAP is highly scalable, allowing EC&O companies to easily expand their capabilities as their business grows.
4. How does RISE with SAP improve project management in EC&O?
It delivers real-time insights, better resource management, and improving overall project efficiency and outcomes.
