In today’s fast-paced and changing modern world, businesses have begun to rethink their business strategies as a result of the energy shift. All enterprises require a platform that provides integrated, connected and intelligent solutions to address today’s challenges while also laying the groundwork for future innovation and growth. But have you ever wondered how these needs can be accomplished? If you’re curious to know about the answer, keep reading the blog until the end.
Engineering, Construction and Operations Industry
In the current world, the construction firms are trying to find a balance between disruption and continuity. They are continuously challenged to transform into vertically integrated, modular enterprises while completing projects on time, within budget and with a focus on sustainability. Also, large-scale construction projects are a bit complicated and dangerous as managing all tasks manually led to huge workforce and efforts. Thus they are forced to convert themselves into an intelligent enterprise.
To begin the transformation the engineering, construction and operations companies should prioritise examining their entire business model and be prepared for it. Thus, they are concentrating on four strategic priorities outlined below in order to transform their organization into an intelligent enterprise.
- Digitalization of Expertise and Knowledge
- Connected Construction Sites
- Digitalization of Intercompany Collaboration
- Digitalization of Commissioning and Handover
- Digital Supply Chain
By 2025, they hope to bring prefabrication efficiencies, such as cost and quality control to the construction world. Construction firms require strategic priorities that drive transformation in order to achieve this vision and thrive in an evolving industry. We envision a reimagined set of business scenarios at SAP to support the strategic priorities required to work in a digital environment.
Let’s begin with the challenges faced by the engineering, construction and operations companies before undergoing digital transformation!
Challenges faced before transformation?
Engineering, Construction and Operations companies face numerous challenges that limit their ability to fully realise the value of the Intelligent Enterprise. Few of the challenges faced by them are:
- Inability to track end-to-end processes and in making effective decisions.
- Manual registers or excel-based follow-ups are used which is generally a lengthy and tedious process.
- Lack of real-time budget procurement management and inadequate work monitoring.
- For sales and procurement, there is no integrated project management platform.
- Lack of an integrated tool for workforce planning.
- The expenses related to handling maintenance, repair, and service requests are not automated.
- Lack of real-time project inventory visibility.
If you’re still unsure about what to do next, “Digital Transformation” is the only way to transform your company into a smart and intelligent enterprise.
Now let’s look at how SAP S/4HANA, an intelligent ERP system, can be used to address the aforementioned challenges.
RISE with SAP for Engineering, Construction and Operations Industry?
Every enterprise must create new business models to avoid disruption, gain efficiencies to fund innovation, and transform mission-critical systems without putting the company at risk. Generally, organizations start digital transformations for three main reasons: Changing End-Customer Behaviour, Automated Intelligent Supply Chain and Digitalization of Construction.
Thus, RISE with SAP supports your business and digital transformation ambitions to unlock two sources of value:
- Enable value creation with differentiating business capabilities — Industry best and next practises for improving employee engagement, generating new revenue streams and maximising existing ones, increasing asset efficiency, increasing productivity and ensuring long-term viability.
- Mitigate risk, reduce cost and accelerate time to value with cloud delivery capabilities — Capabilities that improve transformation readiness, simplified consumption, increase operational resilience and lower overall TCO helps business to move to next step.
You might be wondering how RISE with SAP will help you in your transformation journey? So, let’s have a look at the advantages gained as a result of after the digital transformation.
Benefits gained after Transformation?
S/4HANA assists the Engineering, Construction and Operations companies in achieving a smooth transition with numerous benefits such as:
- An improvement in project profitability
- Cooperative project space
- Enhanced planning for projects, costs, and revenues.
- Management of project issues and changes
To summarize, conclude making SAP S/4HANA your primary system will be a better choice for a more flexible, agile and effective organization as it also comes with regular partner updates.
To know more about how SAP S/4HANA or about other solutions that can help enterprises in engineering, construction and operations companies, do get in touch with us!