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Transforming the Capital Project Life Cycle

Increase Visibility and Communication to Ensure Outcomes Meet Expectations

by Bill Ponseti | insiderPROFILES, Volume 6, Issue 1

December 23, 2014

InEight

One of the primary causes of project failure is the gap between expectations and outcomes. Whether due to poor estimating practices or simply a failure to deliver, successful projects can be difficult to pull off. Read about InEight’s solutions for project-driven companies that integrate all project systems to reduce risk and increase project predictability and profitability.

 

A consistent and clear problem persists in the construction industry today — outcomes do not meet expectations. Surveys of project-driven companies suggest that 86% of projects fail to deliver against their budget, scope, quality, and benefits baseline.1 And, according to a September 2014 PwC survey of global project management practices, the top reason for project failure is poor estimating practices.2 Combined with the uncertainty and changes that inevitably come during project execution, successful project delivery can be a tough challenge for even the most adept companies.
 
InEight, a provider of technology solutions for project-driven companies in the engineering and construction, mining, oil and gas, and utilities industries, is focused on removing uncertainty to help companies achieve project success. While other construction software vendors offer point solutions that focus on single functions, InEight’s solutions integrate all of a company’s project systems together, from the back office to the job site.
 
As an SAP partner, InEight delivers comprehensive solutions for reducing risk while increasing predictability and profitability of capital and maintenance projects. Let’s take a closer look at how these offerings connect people and information across the project life cycle.

Leveraging Models

There is a recurring gap between initial project expectations and actual outcomes. Project estimates are often created in the isolated environment of the front office, with the assumption that those on the job site will deliver the desired results. However, front-office estimates are often not based on historical experience, which can lead to unrealistic expectations. Field activity is also challenged by the ongoing need to translate high-level goals into executable work packages.
 
Furthermore, the job site is a dynamic environment where inclement weather, change orders, and other unexpected problems can quickly lead to unforeseen results. This conflict breeds internal discord and can manifest itself in missed schedules, cost overruns, and unhappy employees.
 
Similar to how 3D models remove ambiguity about the design of a project, InEight solutions such as Virtual Design & Construction, HD Estimating, and HD Performance remove doubt by modeling project costs, resources, work plans, and expected outcomes that can be validated and benchmarked, improving future performance. Instead of unclear assumptions, estimators can generate detailed cost projections based on similar previous projects. By encouraging benchmarking and process best practices, the solutions help businesses hold themselves accountable to ever-improving standards. The solutions also improve project cost certainty through consistent access across the project life cycle to visual models, estimates, performance, operations, dashboards, and reports so questions about how a project is performing can be clearly answered. No more digging, wondering, or speculating.

Syndicated Information Sharing

Communication breakdowns between project stakeholders are often widespread — and can be catastrophic. Active projects have so many moving parts that it is difficult to keep everyone and everything aligned, communicating, and moving in the same direction. For example, a site supervisor needs lists of equipment, materials, and supplies from engineering, while an accountant requires the work breakdown structure (WBS) from the scheduler, and project managers need bids and proposals from subcontractors. How can a company keep this moving orchestra aligned and playing the same tune? 
 
With InEight’s solutions, it’s easy to share information among all internal and external stakeholders by electronically publishing information. The unified platform is tightly integrated with other project-driven systems and incorporates role-specific functionality for each stakeholder. By increasing communication and sharing insights among all the players on a project, transparency is improved, expectations are set, and better collaboration can take place.

Real-Time, Predictive Analytics

While leveraging cost models and synchronizing communication can increase a project’s productivity and efficiency by leaps and bounds, providing key metrics and insight to managers and executives via real-time, predictive analytics is just as important. Without having the right information at the right time for all project components and their dependencies, managers are sometimes forced to make decisions based on gut feelings.
 
Looking holistically at key performance indicators through all phases of the project will provide the visibility needed to make better decisions and avoid project surprises. InEight’s solutions, such as Project Dashboards & Reporting, deliver this intelligence, helping managers better understand data and allowing for more informed decisions. With enterprise visibility, companies will have the well-rounded perspective needed to achieve project success.

Learn More

Within a project, it’s imperative that all team members, from the back office to the job site, communicate better and are aligned. Without this coordination, visibility is obscured, stakeholders are out of sync, and inefficiencies abound.
 
InEight’s solutions help project-driven companies achieve expected results, run more smoothly, and ultimately improve the bottom line. Learn more at www.ineight.com.

1 The Center for Business Practices, “The State of the PMO – 2007-2008: A Benchmark of Current Business Practices” (2007). [back]

2 PwC, “4th Global Portfolio and Programme Management Survey” (September 2014). [back]

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Bill Ponseti
Bill Ponseti

Bill Ponseti joined InEight Inc. in January 2014 as the President and CEO. Since then he has applied his vision and knowledge to bring together best-in-class technologies for the engineering and construction, oil and gas, utilities, and other project-centric industries. Before joining InEight, Bill was the Global Vice President and Head of the Engineering, Construction, and Operations (EC&O) business unit at SAP. He brings more than 30 years of combined EC&O and oil and gas industry experience. Bill holds advanced degrees in physics and computer science.
 
Though the InEight name is relatively new, its solutions have been refined through years of experience. Over the past 18 months, the company has made multiple strategic moves to deliver more value to customers, including the acquisition of three companies: Hard Dollar Corporation, Aeka Consulting, and et alia. Solutions from these three companies have been integrated to address all aspects of the capital project life cycle.



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