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Ramco ERP on Cloud –Trends driving progressive change in EPC Industry
For Engineering, Procurement, & Construction (EPC) webinar seriesof Ramco ERP on cloud, dated 9 September 2015
Evolution in EPC
Agenda
Trends driving progressive change in EPC Industry
Mega Trends and challenges
1 23
Our solution•Project life cycle features map•Solution BPC•Alleviating overruns•Optimize resources utilization•Fund management•PM mobility•Differentiators
•Evolution in EPC practice•Growth prospects Construction –
Infrastructure sector Power sector
•Mega global trends in EPC vertical
•Contemporary industry challenges in EPC vertical
Evolution in EPC (Engineering, Procurement, & Construction) Industry vertical
CONSTRUCTION
Evolution in EPC practice
Proliferation of contractor centric liabilities in EPC projects
ENGINEERINGPROCUREMENT CONSTRUCTION
CONTRACT
CLIENT
PMC
30 YEARS Evolution in EPC practice contracting strategies
2015
1985
ENGINEERINGPROCUREMENT PMC
STRATEGY I
STRATEGY II+CLIENT SET UP ITSELFTHIRD PARTY OUTSOURCED
CLIENT SET UP ITSELF
STRATEGY III
THIRD PARTIES OUTSOURCED
ENGINEERINGPROCUREMENT CONSTRUCTION PMC
+
+ + +
STRATEGY IV
THIRD PARTIES OUTSOURCED BUT IN A CONSORTIA OR JV OF EPC COMPANIES
ENGINEERINGPROCUREMENT CONSTRUCTION PMC
+ + +D
ecre
asin
g d
irec
tio
n o
f P
roje
ct m
anag
emen
t ef
fort
s fr
om
Clie
nt
Dir
ecti
on
of
imp
rove
d E
PC
ris
ks s
har
ing
acro
ss p
roje
ct s
take
ho
lder
s
+
++ + 1993
2000
2008
HIGH BUSINESS OWNER FOCUS ON PMC WITH OUTSOURCEDE&P ACTIVITIES
E1
E2
E3
PROJECT RISKS AND ACCOUNTABILITY DELEGATED TO CONTRACTORS
EXTERNAL STAKE HOLDERS SIZE LIMITED TO A CONSORTIA AND EQUITABLE RISK SHARING
EX= Evolution milestones
Growth prospects
Global construction infrastructure sector
• In 2014, the global construction industry is estimated to be worth US$ 9.4 trillion, which is expected to grow to just under US$ 12 trillion in 2020representing a compound annual growth rate (CAGR) of 4% (FIGURE 1)
Growth prospects
Construction infrastructure sector – Asia/MENA/Latin America
Aging infrastructure in advanced economies and the need to fill infrastructure gaps in developing economies will be the main drivers for construction investment growth over the coming years
Source: Brooking Institute, World Atlas, IMF (Pie charts)
Growth prospects
Construction infrastructure sector - ANZ
The value for construction industry is equivalent to $40bn in New Zealand, spread across residential ($20bn), commercial and social assets ($15bn), and infrastructure ($5bn)
Engineering construction was the equivalent of 7.1% of Australia’s GDP at the end of 2012, a stunning rise from 1.9% of GDP a decade ago (as illustrated above by Deloitte Australia)
2018
Engineering Construction as a share of the GDP
Australia
Growth prospects
Power sector – India, UAE, Africa regions specific
22GW
INDIAHigh energy demand
1.2+ billion population
$100 billion opportunity -24X7 power across India
Improved climate of investment
Surplus renewables power demand
20 Years PPA (Power Purchasing Agreement)
Power generation Solar –100 GW, Wind – 60 GW
Year 2020
25 Solar Parks
AFRICAPotent demand – 600 m Africans without power
$20 billion commitment from private sector
Reformed climate, policy for Power sector for PPP
Sub Saharan power to attract $1.25 trillion invst
25 Years PPA (Power Purchasing Agreement)
East Africa power gnrtn Geothermal 15 GW
UAEEnergy demand to surge
up to 60GW in 2023
$90 billion investment requirement
Promotion of Energy conservation policies
Vision 2020 – Power + Water plants run on Solar
25 Years PPA (Power Purchasing Agreement)
Power gnrtn 120 GW (Total), 41 GW (Solar)
Year 2020
$30MLLN CONSTRUCTION
FACILITY
Waste into Energy
Trends and challenges
Trends and challenges
Trends in EPC vertical
• With the global outlook resorting to alternative contingent plans for producing & distributing energy
• There is rising interest as well as investments as catalyst for growth of the Renewables Energy (RE) space
1
RIS
ING
INV
ESTM
ENT
IN N
ICH
E R
ENEW
AB
LES
ENER
GY
Of total investment in the Twelfth FYP isexpected to come from private players. Inaddition, several government schemes &initiatives facilitate the entry of largeindependent power producers andencourage FDI in Renewables Energy sector.The sector provides a lucrative opportunityfor EPC companies.
88%
• Global entry – in emerging economies tapping growth potential and bringing in global project management expertise; Congenial – Policies and framework
• Players include but not limited to: Samsung (Korea), Leighton (Australia), Bechtel (US), UEM and IJM (Malaysia)
• Carbon footprint and emissions – Norms integrated as per quality and OHSAS systems
• Environmental engineering –Rising demand for environmental engineering
2
GLO
BA
LIZA
TIO
N –
GLO
BA
L EP
C
PLA
YER
S EN
TRY
; EN
VIR
ON
MEN
TAL
ENG
G
3
RO
LE D
IVER
SIFI
CA
TIO
NS
IN
THE
EPC
SEC
TOR
• Fit-for-purpose – Emergence of capital project contract management systems
• Easy integration • Connected stake holders – Common
contract communications platform• Disruptive technology enablers –
bringing in cognitive and precognitive ERP rendering algorithm engines for transactions
4
CA
PIT
AL
PR
OJE
CT
CO
NTR
AC
T M
AN
AG
EMEN
T SY
STEM
S
• Influencing increase in EPC IT spends – Processing power, Faster wireless data connectivity, Mobility, Cloud solutions, and Cheaper/more expansive data storage
• Most Engineering/EPC firms showing inclination towards a more strategic IT approach as projects increasingly become more complex, mobile and cloud dependent
5
INC
REA
SE IN
IT S
PEN
DS
INSI
NU
ATI
ON
S IN
EP
C
COMPANIES WITH $250 MILLION
REVENUE
1.10%
COMPANIES WITH $10 BILLION REVENUE
EPC –CONSTRUCTION
INDUSTRY STATISTICS FOR
%IT SPENDS
1.60%
Trends and challenges
Challenges in EPC vertical
• Scoping feasibility – From scattered individual silos-based systems to Cloud technologies or integrated on Premise
• Integrated PMIS with – Procurement, Finance systems
1st
• EPC lump sum contracting strategy – Emergence of claims due FEED latent errors
• Higher change order requests – High reviews• Higher Dispute/conflict resolution use cases
2nd
• New contractual related technology challenges – Dynamic operating EPC ecology
• Flexible ERP footprint – “Review” and “approval” or “reject” processes that govern the decision-making around change orders & ambiguous interface situations
3rd
ERP
40% EXCEEDING
ALLOCATED BUDGET
10%EXCEEDING
ALLOCATED CYCLE TIME
MEGA EPC PROJECTS
STATISTICS FOR OVERRUNS
473PROJECT MANAGERS AND ENGINEERS
RESOURCES CRUNCH
STATISTICS IN 000s NOS.
FOREMEN
TECHNICIANS
SUPERVISORS 473
946953
• Dispute/conflict resolution, accessing the true audit trail of decision making and efficient access to all of the evidence for a case is essential in negotiating the case and minimizing the associated cost with concision and clarity
4th
• Delay – Environment clearances, land acquisition• Regulatory challenges – Restrictions on entry of
international operators• Elongated wait – Project opportunities• Time overruns – Project completion• Project inflationary cost escalations
6th • Availability of long-term financing?• Precarious financial position of developers limiting
capacity to borrow funds• Aggressive bidding rendering the project unviable
5th
Our solution
Our solution
Ramco typical EPC solution map
PO
WE
RE
D B
Y R
AM
CO
VIR
TU
AL
WO
RK
S®
3
Lessons Learnt
Project ClosureAccounts payable
Accounts receivable
Milestone based payments
Project schematics, As built, Costing, Profitability
Resources, team mobilizingProject schedule and plan
Our solution
Features mapping across a typical project life cycle management
Resources, team profiling, deployment
WBSFinancing, cash flow, budget
ObjectivesProject charter
Project initiation
e-Procurement
CRMLead management
PROPOSAL + PROJECT LIFECYCLE MANAGEMENT (EPC)
12 BID NO-BID APPROVALS
4
GO NO_GO (POST ITERATIONS)
PROJECT MONITORING/ REVIEW
6
• Fully Integrated ERP for EPC with Real time Project Management Procurement, Site inventory, HR, Finance & Costing
• Inbuilt Dashboards and Analytics• Single Version of Truth on cloud as well as on premise
• Track your milestones on time & every time• Perform Ageing Analysis and Dunning• Track Customer Payment Receipts
• Track Project Costs Periodically• Track project profitability • Perform FSN Analysis to control site inventory costs
• Trigger alerts for mission critical tasks for delays / Over runs• Enable robust workflow for escalation management
• Fix project budgets• Track budget Vs Commitments• Monitor Budget Vs Actuals Project wise and Companywide
• Integrate with MS Project• Integrate with Prima Vera• Integrate with Emails SMS Gateways
• Review your Activity based subcontracting POs• Check Contractor Job Performance• Check deliveries , quality and effect payments
END-2-END ERP SOLUTION FOR COMPLETE PROPOSAL, PROJECT MANAGEMENT + CO-ORDINATION
FOR PROJECT PROGRESS TRACKING + CUSTOMER INVOICING
SUPPORTING DIFFERENT PROJECT COSTING METHODS + PROFITABILITY
FOR PROJECT RELATED ALERT TRIGGRANCES AS PART OF MONTORING + CONTROL
5PROJECT REVIEW AND LESSONS LEARNT POST CLOSURE AS PER KAIZEN
INTEGRATION CAPABILITIES WITH STD INDUSTRY PM TOOLS
Our solution (Project management)
Quick Dashboard – Alleviating time and cost overruns
PROJECT MANAGEMENT
DASHBOARD
QUICK INFOGRAPHIC STATS – COST + PROFITABILITY ALLOWING IMPROVED
CONTROL OVER PROJECT COSTSQUICK ENLISTING OF MATERIALS, MAN/MACHINE RESOURCES
TABS WBS ID WISE FOR SELECTED PROJECT FROM TOP TABLE WITH CONSUMPTION DETAILS, BALANCE, AND AVAILABLE INVENTORY
PROJECT LISTINGS FOR A LOCATION AND DETAILS TAB WITH COLOR CODED FLAGS FOR VARIOUS ATTRIBUTES ASSOCIATED WITH PROJECT PROGRESS VIZ.
SCHEDULE, COST, PROFITABILITY, EFFORTS, MATERIALS CONSUMPTION
Our solution (Project management)
Quick Dashboard – Effective utilization of resources
QUICK INFOGRAPHIC STATS – ABOUT THE S CURVE SHOWCASING THE RESOURCES UTILIZATION WITH DETAILS ON CONSUMPTION,
PLANNED, BOP QUANTITIES ENLISTED ALONGSIDE
QUICK LINKS PROVIDING STATUS QUO AND INTEGRATED INFORMATION ABOUT PROJECT PARAMETERS VIZ. PROJECT PROGRESS REPORTING, MILESTONE, WBS,
PROFITABILITY REPORT, GANTT CHART (VIA INTEGRATION WITH MSP/PRIMAVERA)
AR invoice Hub – Manage receivables centrally (Effective management of funds)
To Do List Quick launch
Bulk invoice processing
Processing of Individual document
Easily Accessible Additional Actions
AP invoice Hub – Manage payables centrally (Effective management of funds)
To Do List
One Touch Creation of invoice/ Copy
Bulk Processing of Invoices
Easily Accessible Additional Actions
Quick launch
View of Document details on select of the To do items or by Search
Processing of Individual document
Report Scheduler
18 Pre-Built Reports could be modeled in Customer’s required Layout/ Format,
for Statutory / Internal Reporting Purposes.
Generate Report
ProcurementProject Center
Project TrackingProject Center
Our solution
Mobility for procurement and project monitoring (illustration)
Approve PR’s
Create PR
Manage PR’s
PR-MOBILE
At Ramco, we
Hub it
Prompt it
Thumb it
Mail itZERO UIpowered by Genie| Gestures | Speech or just an e-mail
Era of cognitive & adaptive solutions
Ramco’s design philosophy aligned to this revolution
While on the move, If you want to
purchase a Part?
pull up the maintenance due list ?
apply for leave?
Approve purchase for an critical part?
Inquire work package status while talking to a customer?
.
.
.
You Log on to the system
Travel through the menu screens
Carry out the transactions
And then….Pull up the desired document/information
Mail it
.
With Ramco Mail it.
.
.
.
just send an e-mailRamco’s intelligent ERP will do it all for you…
Raise a PO
Assign an employee for a procurement enquiry
Inquire Stock availability
And much more…
Mail it
Request for purchase?
Mail it
Mail it
Inquire PR status? Mail it
Mobility is thumb rather than type
Thumb it
When you use Ramco Mobility
Solutionsmost probable is defaulted
recent ones are listed
click is Way, Selection is Preferred,
data entry … Minimal….
Thumb it
Payment Hub
Hub itPayment Hub crunches following in one screen
• 3 Unique Functions• 6 different Document types • 25 different Activities• 40 Main and Mandatory UIs excluding links • 43 actions across different document types
To-Dos – for User
efficiency
Document Search
Document overview
Document Details
Value Summary
Task based Security
Single / Bulk actions
Quick Launch
Supplier details
Links to take ActionsLinks to related
reports
Set preferences to work
Action by Exception
Quick Payment
processing
Flexible Query options
All in One page
User Collaboration
Hub it
Prompt it | Ramco Genie Prompt it
Suppliers recommended
User can accept or ignore the recommendation
Some recommendation:• An open contract exists. • Create a Release slip• Approved quotation exists• Create a Purchase Order• Create an RFQ• Stock Available in another location• Stock blocked by another division
Our solution
Differentiators
Mo
bili
ty
RFI
D
NFC
In M
emo
ry
Age
nt
Bas
ed T
ech
Exceptional Ideas
Cross Functional Open Source
Future`view
Future ShapersParallel Innovation
ON FIELD
ON DESK
ON BOARD
The
Gla
ss
The
Wat
ch
Bea
con
s
Ges
ture
C
om
pu
te
Co
gnit
ive
Dro
ne
3D
Pri
nti
ng
Eara
ble
s
Co
llab
ora
tio
n
browser desktop tablet phone watch glassInternet ExplorerSafariChromeFirefox
Windows 7.0Windows 8Windows 10
AndroidiPad
iPhone, iPod Android Phones
PebbleGear
Google Glass
Delivery : Deploy
Everywhere : Anywhere
On Premise On CloudPrivatePublicHybrid
Support
Latest technologies
DOTNET JAVA HTML5 SWIFTMOBILE SDK
TIZEN
PEBBLE SDK
GLASS SDK
iOS SDK
Android SDK
Xamarin
Sencha
jQuery
Thank you
Immersive Experiences, Enchanted Customers
Copyright 2015, Ramco Systems Limited. Information subject to change. All rights acknowledged.
The contents and information contained in this brochure are intended for general marketing purposes only and should not be relied upon by any person as being complete or accurate. Ramco Systems Limited, its
group, employees, agents and other representatives will not accept any liability suffered or incurred by any person arising out of or in connection with any reliance on the content of or information contained in this
brochure. This limitation applies to all loss or damage of any kind, including but not limited to, compensatory, direct, indirect or consequential damage, loss of income or profit, loss of or damage to property and
claims by third party.
Thank you,
Ramco ERP on Cloud –Trends driving progressive change in EPC Industry
For Engineering, Procurement, & Construction (EPC) webinar seriesof Ramco ERP on cloud, dated 9 September 2015
