Project development and engineering must digitize
Chain integration and digitization provide flexibility
Companies in the project development and engineering sector continuously lose millions on their billion-dollar projects, sometimes in just a few hours. The reason is often that they do not have the whole picture. This white paper discusses the trends that make it increasingly difficult for companies in this sector to generate profits. Chain integration and digitization can turn the tide for them.
More difficult to generate profits in a buyers’ market
A few hours’ delay or a cancellation can mean a major financial setback that causes profits to evaporate, or worse. The margins in project development and engineering are small and clients are demanding more and more from companies in shorter amounts of time. This places them under immense pressure to deliver flawless work. It is a buyers’ market, in which the client shops around and increasingly demands a lump sum turnkey (LSTK) contract. Additionally, projects are becoming larger and more complex. Being able to make predictions and change course in time is more important than ever.
Complex chains in project development and engineering
Understanding costs, critical milestones and the interdependence of activities is essential, particularly because as many as 98% of projects experience delays or run over budget. Coordination between sometimes dozens of chain partners is complicated. Success is ensured through proper monitoring of schedules and budgets, as well as alignment between the various players.
Solutions to the challenges
In addition to trends within the sector, the white paper also discusses various solutions for companies that want to increase their profit margins. Points explored in-depth include:
- Internet of Things
- Different ERP systems
- The automated chain
Making better use of potential
Companies in project development and engineering still have a tremendous untapped potential to increase their profits. If you would like to learn how to make projects more successful and gain (automated) control over processes, download the white paper.