Construction is among the world’s most complex and fragmented business ecosystems, with many disconnected people, processes and tools. This fragmentation is one of the main drivers of low productivity, causing an increasing need for governance and control.
Whether the capital projects industry is ready or not, global construction is expanding dramatically. The sheer volume of projects, as well as the expectations and performance demands placed on the industry, are now increasing at faster rates than ever before. For contractors and owners, project volume equates to increased risk, higher competition for resources, more complexity and more barriers to success.
Exactly how much growth is expected? For the near future, global construction is set to rise to almost $13 trillion by 2022, according to the Global Construction 2030 Report.
But further out, the numbers are even more staggering. The report found that by 2030:
- Growth in global construction will increase by 85 per cent
- Spending will rise to $21.2 trillion on capital projects
- Construction will account for 14.7 per cent of the global GDP
Enabling a business digital evolution
Industries reliant on large capital projects– engineering and construction in particular– have historically been resistant to new processes and technologies. But for organisations to thrive in an evolving and increasingly competitive market, they’ll now need to embrace change rather than being content with the status quo.
To navigate the industry’s transformation and enable their own digital evolution, organisations need near real-time access to more accurate information. They need greater standardisation and better predictability, enabling timely corrective action to shape positive project outcomes and deliver business objectives.
However, most organisations are dealing with a tangled web of internally developed tools, siloed commercial software and Excel spreadsheets to run their projects.
This setup acts as a barrier to high levels of project performance, leaving organisations unequipped to deal with the complexity of today’s projects, unable to drive strategic alignment and lacking the confidence to make good business decisions.
Full integration to a single information platform
So how can organisations turn this liability into a competitive advantage? How can project teams leverage massive amounts of project data to improve outcomes? How can executives ensure everyone is on the same page, working toward the same goals in a standardised way? How can decision makers positively impact performance with confidence?
The answer is a single environment for the full lifecycle of projects that allows project stakeholders across disciplines to work more efficiently and effectively together. The answer is an Enterprise Project Performance (EPP) strategy.
EPP is a mindset that expands from improving outcomes of individual projects to one that also heavily considers achievement of business objectives for ALL projects within your organisation.
Thus, an EPP software platform facilitates this approach by integrating processes that span the full lifecycle of projects, inclusive of portfolio, project and contract management, and the sub-processes that enable them. EPP improves efficiency, predictability and control across all projects, programs and portfolios in an organisation for all stakeholders. The result: maximising project success.
This partner content is brought to you by Hexagon PPM. Read more about EPP in The Business Case for Enterprise Project Performance, a 23-page e-book covering the what, how and why of EPP. Get your copy at connect.hexagonppm.com/business-case-for-epp-infrastructure.
