in collaboration with: Maximising ROI on your Assets Where are my assets? Adding the Spatial Dimension
Maximising Your RoI The ability to share accurate and up-to-date information has become the defining characteristic of successful 21st century organisations. Having access to one version of the truth is key to the success of all engineering based organisations. With this in mind, today s industry leaders are no longer content to ask What are my assets? Instead, they want to know Where are they?, What can they do for me today? and How can I maximise the return on my investment from them? Geospatial information and its management is the lynchpin. Its increasing influence can be seen all around us and through every stage in the lifecycle of an asset. Moreover, for those organisations whose cost base is impacted by asset depreciation and maintenance, it is rapidly becoming recognised as the key to ROI maximisation. We can help you maximise your investment. We will provide you with the ability to effectively share and meaningfully publish accurate and up-to-date information about your assets and their geospatial relations. More than this, we will help you deliver the business benefits you are seeking from investing in Geospatial Information Systems (GIS). Asset Integrity and ROI Asset Information Management (AIM) is a business driver in its own right. Without a complete data set, it becomes impossible to implement cost-effective maintenance regimes. Utility companies need confidence in their optimisation of Whole Life Costs (WLC) and Asset Management Plans (AMP). Poor AIM can have disastrous consequences: time and energy can be spent by maintenance engineers visiting the wrong location, missing other assets in the vicinity, making wrong assumptions on ownership and re-visiting assets due to lack of accurate and timely information. In short: chaos. There are around 4 million holes dug by utility companies annually and this excludes any excavations made as part of construction projects and works away from the street. National Underground Assets Group/ NUAG - 2007 We spent a million pounds maintaining a bridge, only to find it didn t belong to us... Confidential
OptiMising OpeRatiOnal expenditure The management of assets - their design, build, operation, maintenance, inspection and renewal - plays a key role in determining operational performance and business profitability. For organisations with geographically distributed assets, Operational Expenditure (OPEX) is often sub-optimal and impacts business performance. This is where we can help: by bringing in the spatial dimension to AMP and helping to reduce WLC. Cost Effective Maintenance Regimes In order to implement the most cost-effective maintenance processes, it is necessary to migrate from a Reactive Regime, through Preventative Regime to a Reliability Centred Maintenance Regime. This is only truly possible through the use, exchange, management and exploitation of Geospatial Information - a key component to the process of continuous improvement. Reduced Cost of Borrowing We are experts in PPP/PFI due diligence cases for investors in large capital programmes and advisors to the United Nations. Investors are looking for reduced WLC, optimised AMP and OPEX profile to support the risk profile of a debt finance lending position to cover the lifecycle of the PPP/PFI Agreement. Establishing an AMP typically involves the utility business borrowing to invest in significant capital expenditure in the first 2-3 years - often as much as 200million - with further, smaller capital investments planned in subsequent years (upgrades and extensions for example). Operating costs are also included in the AMP. Borrowing is typically raised from private banks and, particularly in emerging economies, from international and regional development funds.
Optimising Operational Expenditure cont. The quality of the AMP is a fundamental component of the bank s risks assessment, ultimately determining the cost of borrowing. For example, The World Bank Institute is trying to improve their aid project management by geocoding the locations and managing the funding and project assets in a more productive way, minimising duplication and maximising exploitation of available assets. The INSPIRE Directive is an opportunity to make money from existing dataset assets, be more efficient in managing information and be able to exploit 3rd party data more effectively. EU INSPIRE Directive Compliance and the UK Location Strategy EU nation states are implementing the INSPIRE Directive to develop a common European approach to mapping asset locations. The aim of the directive is to improve the efficiency of development project planning and implementation facilitating data exchange and exploitation between utilities, governments and the general public. The Directive will stimulate the development of common Geospatial Information Infrastructures (GII), enabling design teams to accurately share and exploit geospatial information. Design and build teams will be able to more accurately assess the impact on such properties as underground assets in order to minimise project delays. We are experts at advising organisations on how geospatial information from multiple disparate sources can be shared, managed and exploited throughout the business process. We can advise and help you understand the quality and marketability of existing datasets in the context of the European INSPIRE Directive. The cost to society through delays to road users, disruption to business, environmental damage and safety costs is estimated to be 5.5billion annually. (NUAG 2007)
BeHaViOuRal change Making an asset s information as valuable as the physical asset itself is key for high performing companies. This approach requires a behavioural change in staff. They need to change from an information-hoarding, information-is-power mindset, to one of sharing and valuing information if the true business benefits are to be realised from GIS applications. We excel in the cultural and business change elements of deploying new technologies. We address the People, Processes and Technology requirements of your change programme. We apply highly developed and fine-tuned programme and change management techniques in order to: Maximise business benefits Maximise user adoption Minimise business disruption current users of geographic information spend 80% of their time collating and managing it and only 20% of their time analysing it to solve problems and generate benefits. (NUAG 2007) fortunately, the uk has avoided the catastrophic impacts that result from 3rd party damage to high pressure gas pipelines 25 killed, 150 seriously injured at ghislenghien, Belgium in 2004. (J Stancliffe HSE, 2007)
Case Studies 3rd party damage caused by digging in the wrong place costs utilities 150M/year. (NUAG 2007) Accurate geographic information, aligned and integrated with the asset register, saves money during the design and planning stage as well as on-site - where the risk of 3rd party damage is minimised. A single view of an asset, in terms of its location, dimensions and affected area in the case of a fault is essential to increase efficiency across the business. A range of IT solutions are available to help optimise asset management processes. Some organisations have recognised the value of using geographic information to support these systems and processes through improved visualisation, data integration and access to new analytical capabilities. We are experts in integrating these applications with your AMP system. Scotia Gas Networks (SGN) We have provided technology, consultancy, support and services for SGN to improve asset location accuracy and data integrity. This has included the ability to import and export map and asset data from their customised GIS and posting data to other systems, utilising such software as Maximo for modelling gas pressures. A significant proportion of the SGN mapping, from which their network was captured, differed from any version of Ordnance Survey mapping that could have been made available. We provided a standard Commercial Off The Shelf (COTS) software product to automate the data checking, realignment and correction. Improved accuracy directly reduces planning works risk and increases customer satisfaction by sticking to estimated costs. (NUAG 2007) Scottish Power Scottish Power needed to correct and transfer both raster and vector asset data sets into its newly commissioned GIS. Over 6 million assets represented by over 13 million features were successfully corrected for accuracy and context over a 4 week period using our automated data harmonisation services. We enabled optimisation of the process to maintain business-as-usual - saving time, money and decreasing risk through automation. Again, improved accuracy directly reduced planning works risk and increased customer satisfaction by sticking to estimated costs. Portsmouth Water Another customer assisted by our automated data cleansing and accuracy management is Portsmouth Water. Having undertaken a detailed survey and review of all assets following various critical failures, the company discovered that the base mapping utilised for the exercise was undergoing significant improvement and that costly manual review was potentially a waste. Our automated services assisted in automatically adjusting their valuable dataset - improving confidence levels and maintaining the investment implemented by the previous review and ensuring ongoing reliability of information for the business. Maintaining customer satisfaction and minimising maintenance costs remain an achievable targets for the business as a result.
team profiles Envitia Envitia is a world leader in geospatial intelligence technologies. Our applications and software technologies provide the highest performance solutions for Defence, Government and Transport. Our software products and solutions are employed globally across a wide spectrum of disciplines including environmental analysis and exploitation, data fusion and integrity, the management of very large and disparate datasets with extreme precision. www.envitia.com OTB Engineering OTB Engineering LLP is a team of innovative Consultant Engineers who provide technical and transactional due diligence advice to lenders and borrowers looking to finance PPP/PFI commercial arrangements for infrastructure development and maintenance. Implementation of our advice and recommendations results in reduced cost of borrowing and financial risk exposure for all parties involved in the PPP/PFI arrangement. A key component of our work involves assessing the robustness of the AMP that underpins the WLC of the assets. Practicus Practicus is an international business specialising in change and transformation. We are UVDB and Link-Up accredited and have a deep presence within a number of industries where asset management is a driver for improved ROI. This includes Utilities, Engineering and Transport. We focus on the outcomes: the benefits you want to realise from deployments of new capability. We are focused on delivering your projects and provide teams of expert practitioners to work alongside your staff. We embed sustainable change through skills transfer to you and your colleagues. We hold ISO9001 and ISO14001 accreditations as a supplier working across both private and public sectors. We are a governmentaccredited supplier of consultancy services through the Office of Government Commerce s Buying Solutions Framework Agreement and hold a number of Framework Agreements across various industries, including the Utilities sector. www.practicus.com www.otbeng.com
in summary Together we have the expertise to help you realise significant savings on assets WLC by building location information into AMP from their inception. In the PPP/PFI due diligence case we develop an optimised AMP and OPEX profile to support a debt finance lending position to cover the lifecycle of the PPP/PFI Agreement. This can give a competitive advantage to support a deliverable and winning project. A key component of our role is to advise at strategic level how embedding specialist Service Oriented Architecture (SOA)-based geospatial intelligence services into the AMP from the beginning saves money throughout the lifecycle of the assets. If reduction in operational expenditure or migration to cost effective maintenance regimes are high on your agenda, please contact us to discuss these issues further. Matt Rawson BSc, MBA(Proj Mgt), CPM, MAPM Director Programme, Project and Change Management Outcome Delivery Management +44 (0) 1491 577122 www.practicus.com