Digital Transformation Insights - AECOM · Digital Transformation Insights Introduction In many ways, those organisations that design, build, operate and/or maintain infrastructure

Digital Transformation

Insights

Introduction

In many ways, those organisations that design, build, operate and/or maintain infrastructure and other operational assets will be at the forefront of the evolution of digital technologies.

The challenge will be to keep pace with the continual improvements and implement new technology in a timely fashion to allow benefits in cost savings and productivity to be realised. To that extent, a holistic approach to industry reform by making changes that link people and processes to these emerging digital technologies will be the key to advancement.

In short – efficiently delivering ‘best value’ projects is a complex proposition for both private and public organisations alike. It requires not only a digital transformation, but an organisational transformation to truly capitalise. This quandary was addressed at AECOM’s recent Digital Transformation event, where we invited Darren Hadfield (PanAust), Ivan Beirne (Unitywater), Andrew Curthoys (Department of Infrastructure, Local Government and Planning) and Mark Cronin (Peddle Thorp) to lead the conversation. The insights of these speakers who are at various stages of the Digital Transformation journey are outlined in this paper, and it is my pleasure to share these with you. May these insights guide your own discussions around technology, and perhaps sow the seed that ultimately secures the future success of your business.

Colette MunroAECOMChief Digital Officer - Australia and New Zealand

Digital transformation: A wondrous journey With ready access to cheap bandwidth fuelling the rapid evolution of digital technologies such as tablets,

smart phones, cloud computing and in-memory databases, the use of digital technology is no longer just a support service function, but a key driver of organisational growth and profitability.

The streamlining, integrating and automating of functions that had previously required manual management has removed a level of tedium and drudgery from the business playbook, and replaced it with opportunity to service

both internal and external stakeholders with innovative and user-friendly solutions. This digital transformation is changing the corporate landscape, allowing forward-thinking players across all industries to be leaner, more agile and

responsive to client needs, all while improving cost efficiencies and supporting growth.

PanAust, a Brisbane-based mining company with assets in Laos, Papua New Guinea and Chile, switched its thinking just five years ago, and the gains realised by elevating information technology to the forefront of its strategy are an example of

what a digital transition can achieve - systemic improvement across all facets of a business.

Faced with a disconnection between IT services and the needs of the business, PanAust applications operated independently of one another, making it difficult for employees to find and collate data, access information remotely, or share services – a costly and time consuming problem faced by many organisations. Darren Hadfield, PanAust Group Information Systems Manager, said the business recognised a company-wide digital transformation was necessary if it was to remain competitive. One of the key focus areas was implementing SAP software. Through using the latest in-memory database and user interface technology, a number of functions that would have typically required access to another server or application were brought together on a single database platform.

“It changed the way we do business,” said Hadfield. “We mapped out the needs of the business, highlighted our priorities and created a four year program of work. Our key goal was to improve access to higher quality real-time data to inform better decision-making around reducing process costs and increasing the efficiency of our business assets.”

“SAP was implemented in just under 11 months and the final solution was cheaper than the previous five mid-tier legacy systems we had used to provide this functionality. However, aside from the cost efficiencies, the true value in the solution was that our staff were able to access all of the information they needed from their laptops, tablets and smartphones in an intuitive way, in real-time and with minimal training.”

Thanks to the new SAP system, PanAust managers and finance team members can now simulate different scenarios in real-time, forecasting changes in commodity prices to predict business impacts and plan accordingly. The PanAust SAP implementation is widely recognised as the most advanced implementation of SAP in Australia and across the mining world. Now that PanAust has a solid digital foundation, they are now exploring the next phase of innovative digital solutions including more predictive analytics, wearable technologies and Internet of Things (IoT) applications.

Making our assets payFor large corporations managing billions of dollars’ worth of infrastructure, a progressive digital technology strategy is a must for improving cost efficiencies, sustainability and customer value.

Take Unitywater, which operates and maintains more the AU$3.1 billion of essential service infrastructure in Northern Southeast Queensland, providing water and wastewater services to communities in a 5223 square kilometre area. Ivan Beirne, Unitywater’s Asset Data Manager knows all too well the importance of a tailored asset performance program using digital technologies.

“Our strategic goal is to reduce the cost of providing water and waste water services to our customers, while still delivering these services to a quality standard,” Ivan explained. “To achieve this goal, we leveraged our systems to maximise return from our assets.

“…the true value in the solution was that our staff were able to access all of the information they needed

from their laptops, tablets and smartphones in an intuitive way, in

real-time and with minimal training. It changed the way we do business.”

Darren Hadfield, PanAust

We focused on four main areas – improving the quality of data collected across our water and wastewater network; improving how this data is shared across the business; automating operational reports to allow for more qualified, timely decision making and risk assessments; and providing field staff with remote access to relevant reporting dashboards and technical information.

Since adopting this more tech-savvy approach, Unitywater has been able to transition away from a conservative approach to asset replacement to more of a risk based approach with the ability to tune capital programs based on the business risk appetite.

“We now have the ability to monitor our performance and assign rectification measures, be it maintenance or renewal, to our assets immediately,” Ivan said. “This also means there are no surprises as to how our assets have performed when we address our annual regulatory reporting requirements.”

In an industry first, Unitywater has also specified the use of Building Information Modelling (BIM) technology on its largest capital project, the Kawana STP K150 upgrade. “Whilst BIM will help improve design and construction efficiencies, we expect to see the biggest cost savings during the operate and maintain phase,” said Ivan.

“Linking the asset information to the asset and incorporating that data into our maintenance management systems ensures we have accurate and timely insights about our facilities. It enables us to better understand how well they are performing, and in turn we can optimise the timing and execution of our work.”

For large organisations, the ability to deliver a better customer experience by making more detailed data available to the public is the holy grail – and this is Unitywater’s next focus. They are currently rolling out digital water meters that will eliminate the need for technicians to manually read and record each customer’s meter, and will allow water usage to be automatically applied to a customer’s bill each month instead of the current process of projecting usage and reconciling it months later. This provides the ability to alert customers to excessive water usage which may indicate leaks on their property.

Government and industry: Pulling in the same directionFor a digital transformation to occur at a national level, it needs the support of government through resources, astute policy and adequate funding.

In March 2016, the Queensland Government released the State Infrastructure Plan (SIP), a strategy document focused on encouraging and supporting innovation and ideas from industry. It aligns with the Government’s long-term commitment to improving the utilisation of our state’s infrastructure assets, to more efficiently maintain these assets, and to address the challenge of funding new infrastructure assets.

One of the essential drivers of this commitment is the mandate that BIM will be progressively implemented across all major state infrastructure projects by 2023. BIM has been identified as the best solution to a number of asset management challenges such as extending the life of an asset and managing it at peak times. It also opens up a suite of opportunities for advances in cost estimating and risk assessment through virtual design construction.

Andrew Curthoys has worked for Queensland Government since 1992 in project and program management roles, and is currently assisting government agencies and the private sector to flesh out their infrastructure policies in the asset management space. He will lead the delivery of Queensland’s BIM implementation program.

“We need to collaborate to build capability in both government and within industry,” he said. “We also need to work with universities, TAFE and private trainers to understand how we might redesign curricula for universities and schools to develop the digital skills we will need.”

While there is no national policy in place when it comes to BIM, on 4 November the Transport Infrastructure Council – a subcommittee of the Council of Australian Governments (COAG) – signed off on the National Digital Engineering Working Group principles and policy. It is anticipated that this development will aid the creation of an umbrella arrangement at the national level that will facilitate the adoption of digital technology by Australian states and territories.

Queensland has used BIM on some of its iconic public projects, including the Brisbane City Hall redevelopment and the Queensland State Archives at Runcorn. Other states are progressively adopting BIM for hospitals, rail systems, sports stadiums and educational facilities.

“A decision must be made on what is best practice when it comes to training and educating the next generation to adapt to a digital transformation in the infrastructure sector.”

Andrew Curthoys, Department of Infrastructure, Local Government and Planning

SIP and the BIM mandate – what’s next?The State Infrastructure Plan (SIP) is the bold first step to embedding BIM technology and digital thinking in all upcoming infrastructure projects. A working group of government agencies has been established across government to create an environment where the use of BIM by contractors on government projects is both seamless and collaborative in nature, from the initial design phase, right through to the operation and maintenance of the asset.

This working group will zero in on issues concerning standardisation of systems and processes, ensuring the accuracy and integrity of information, how that information is best represented and used, and how new data collected through BIM can be effectively integrated with information stored in legacy systems.

“Many large consultants are already using BIM and other digital technologies to design, build and maintain infrastructure assets, so government is looking to industry to share best practice,” Mr Curthoys said.

“We need to set standards that can be adopted industry-wide so major projects can ‘talk’ to the organisations they will touch. For example, how can we ensure that a project like Cross River Rail can share data with Queensland Urban Utilities, Energex and other key infrastructure providers? The complexities require deep consideration and we’ll turn to countries well-versed in BIM, like the UK, to accelerate our own adoption.”

Plans are in motion to define the principles and policies that will be implemented at a national level and these will continue to gain momentum in 2017. BrisBIM, a key body based in Brisbane dedicated to knowledge sharing in respect to technology innovation, will take a key role in the process.

A bold future for the built environmentRight now is an exciting time for the infrastructure industry. As people are becoming increasingly exposed to evolving technologies in their everyday lives, we are seeing broader application and acceptance of digital technologies in the work environment.

“Industry participants are encouraged by a push for innovation, collaboration and embedding digital technologies into infrastructure assets, while the continued identification and education around new roles required during this digital transformation will ensure the next generation of Australians possess the necessary skills for the workplace of the future,” said Mark Cronin, Senior Executive – Design Systems & Technology, Peddle Thorp, who facilitated AECOM’s Digital Technology forum. “Furthermore, a strong shift into providing digital solutions to enhance customer experience will ultimately change the way business is done, leading to greater client satisfaction and an improved perception of companies in the wider community.”

The digital future is bold and bright. Let’s embrace it.

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