AVEVA World Magazine

AVEVA World Magazine 2015 #1

AVEVA World Magazine | Technology insights and customer successes with AVEVA software

Issue link: http://aveva.uberflip.com/i/452036

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Page 21 of 47

Driving Out Risk Economic growth is driven by innovation, or not being afraid to challenge the way things work today, and by finding ways to do more with less. These same principles drive AVEVA's growth strategy; everything we do is aimed at bringing more capabilities and greater productivity to our customers. Our latest technology acquisition is yet another exciting example of this. Despite continuing advances in technology, Owner Operators (OOs) still struggle to complete major projects on time or on budget. Two-thirds of all projects overrun their budgets; half of these overrun by more than 50%. And the problem is not just limited to the oil & gas or engineering industries; it is endemic to all the capital project sectors. The oil & gas industry perhaps suffers the most, with its huge capital demands and revenue flows compounded by increasing project complexity and ever more difficult production environments. Combine this with a depressed and uncertain oil price and the need for project risk reduction has never been greater. When even the most sophisticated users of AVEVA's technology can achieve industry-benchmark levels of project performance but still suffer from serious overruns, it is clear that major opportunities lie outside the engineering, design and Information Management environment. In 2013, a McKinsey consultancy research report on capital projects found: '…the key risks for the [project] sponsor or developer are related to contractual default, claims, keeping public political stakeholders aligned, and monitoring any mismanagement.' For this reason, the interface between the OO and the contractor is key. As a key technology provider to both the OO and contractor (EPC) communities, AVEVA is acutely aware of this problem and has been actively seeking ways to bring to market tools that address it. As this magazine closes for printing, we are delighted to announce a significant breakthrough with the acquisition of 8over8 Ltd, providers of ProCon™, a powerful software solution for risk management in capital projects. As with all AVEVA acquisitions, the synergies with 8over8 are considerable. Not only does it already serve many of AVEVA's biggest customers, it also shares our understanding that success in capital projects or asset management depends on mastering change. Our respective technologies are therefore aimed at solving related aspects of the same fundamental problem. Every contract has a real-time Financial Health dashboard that displays financial commitment, expenditure and potential risk exposure. Every project and contract has a fully auditable trail of contractually significant communications between each party, and the formal decisions made about those communications, by whom, and when. ProCon 2014 Analytics rolls up Early Warning Indicators and other KPIs across the portfolio of major capital projects to provide a management overview of contractual risk. (continues) AVEVA World Magazine 2015 | Issue 1 p22

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