Utility Enterprises Need Improved Collaboration
Enterprises in the oil, gas and utility industries are reeling under delays and budget overruns on some of their large capital projects, according to an Accenture study. In a bid to improve their success in delivering capital projects, the technology research company noted that enterprises can broaden their focus on collaboration – that includes project management beyond engineering and procurement by way of incorporating technology, human capital strategy, stakeholder and supplier relations, and defining and measuring success.
The International Energy Agency (IEA) forecasts that the energy industry will spend nearly US$38 trillion globally on investments for global energy projects by 2035, in order to maintain existing assets such as pipelines and electric grids and to build new assets.
The research firm estimated that the potential overspend across the whole capital budget of the energy industries could be approximately 13 percent, which translates to US$5 trillion overspend on the US$38 trillion IEA forecast for global investments.
When asked the key decision makers in these sectors to identify challenges to getting projects launched on time, nearly 50 percent cited regulatory requirements, while, 25 percent mentioned workforce availability as the key challenge.
“The increasing size and complexity of today’s major projects has added to the scale of challenges for energy companies globally,” said Jean-Marc Ollagnier, Group Chief Executive of Accenture’s Resources operating group.
Accenture recommends that areas such as risk management, data and analytics, product lifecycle management and improved collaboration with suppliers through strategic collaboration and data transfer will certainly better the situation.
Ollagnier added that it is also important to develop a talent strategy in order to increase the labour pool and build skills in project leadership and managing assets in order to overcome some of the key challenges that arise when launching large capital projects.
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