Digital Transformation in practice: What does it mean for today’s industrial leaders?

To maximize growth and profitability, executives must pinpoint the value drivers of their individual business and apply creative business models to realize the results. Barghest Building Performance (BBP) – an infrastructure monitoring company based in Singapore – is a fascinating example of doing exactly that.

Posted: August 14, 2019

Digital Transformation

Digital Transformation in practice: What does it mean for today’s industrial leaders?

Note: this is part two of a two-part blog series. Read part one here: Collaboration, agility, talent: How digital innovation is redefining roles in today’s industrial operations

 

To maximize growth, and profitability, executives must pinpoint the value drivers of their individual business and apply creative business models to realize the results. An interesting example of this is Barghest Building Performance (BBP), a leading regional energy efficiency technology provider based in Singapore.

BBP achieved outstanding growth by committing to help building owners, mall managers and factories across Asia Pacific to reach their energy efficiency goals through innovative technology solution and attractive financing solution.

The building’s data is piped live into BBP’s unified control center, where it is compared against regional and global best practice, and performance is optimized by the BBP team. This has seen a fundamental shift in BPP’s business model: now, without spending on any additional equipment, BBP deployed its patented algorithms that continuously monitor changes in the internal and external conditions and adjust the equipment in real-time. BBP’s advanced analytics further enhance the algorithm over time, resulting in unprecedented savings for the clients’ energy consumption with no operational risk. Only once the customer sees measurable value does BPP draw a profit.

BBP offers its service as a fully-funded solution, without any upfront cost to the customers, and is paid via a portion of the savings achieved for the client. Not only does this model require different workforce skills – to pitch the solution, build the trusted relationship, and to drive and present the analytical results in a compelling fashion – it also demands entirely different funding models. Transformation of this kind is a complex challenge for industrial executives to activate but the financial rewards can be immense, if it is done correctly.

Accenture’s study digs deeper into this idea of changing financial models, by showing how established business planning based entirely on increasing market share is no longer valid for digitally transformed industry. As demonstrated by BBP, implementation has jumped ahead of profitability. When operational efficiency comes before profit, individual project economics are more important to business growth than scale.

The most crucial value driver is the need to empower your team to capture value and identify growth in this new operating context. As Ayesha Khanna, AI expert and our keynote at this year’s AVEVA World Summit says, “You need the skills to connect the dots, look at a problem and the solution. The glue between them is technology.

This ability to blend transformative tech – AI’s ability to pinpoint value and transform a business model to support it – combined with human insight, will be the key differentiator for tomorrow’s industrial success.

The key phrase here is human insight. Technology by itself is just an enabler, so it’s easy to see why McKinsey cites finding digitally literate, talented people as the number one success factor for digital transformation. Accenture’s study similarly concludes that fostering agile thinking and innovation, working closely with partners and using competitive insight is key harnessing the power of technology to secure your business’s, and society’s advantage.

At AVEVA, we are fortunate to work with companies who are driving this kind of innovation, and we learn from them every day. We are also fortunate enough to be able to share those insights with you this September at the AVEVA World Summit:

Hear BBP’s story in their CEO’s own words and discover more about AVEVA’s pioneering research into digital transformation at the AVEVA World Summit 2019 in Singapore this September.

Find out more and register today.

aws19_social_new-brand_food-production

author
Written By
Rob McGreevy

Rob McGreevy is the Head of Corporate Strategy.

See how APM 4.0 drives measurable and immediate results to your bottom line. Get Connected

Related Blog Posts

Stay in the know: Keep up to date on the latest happenings around the industry.

Oil and Gas
$1 trillion to be unlocked in Digital Transformation?

Data is the foundation of Digital Transformation of Oil and Gas. Data feeds into predictive analytics, optimises process, predicts machine failures.

Chemicals
Are you ready to ride the wave of the petrochemical industry growth?

To overcome business and operational challenges, companies will need to increase their level of digital maturity through value chain optimization.

Oil and Gas
Understanding the Refining and Petrochemical Value Chains to Drive Optimization

Understand the complexity of the refining and petrochemical value chains to create a solid digital transformation strategy that optimizes the entire enterprise.

Oil and Gas
When Digitalization and Transformation are not Enough: Accelerate.

Market-disrupting industrial organizations differentiate themselves by transforming business through innovating and accelerating past the competition.

Oil and Gas
Optimizing my Refinery Blend is Much Harder than Baking Cookies

Refinery products are blended to get final products with desired quantity, quality and schedule specifications. However, rigorous planning, scheduling and ...

Oil and Gas
3 Steps to Maximising Pipeline Integrity

Ageing infrastructure is posing huge challenges for pipeline operators in keeping their pipelines running optimally and profitably in the face of increasing ...

Oil and Gas
How Can Predictive Analytics Reduce Unplanned Downtime in Oil and Gas Production?

Production can increase either by developing new fields or improving asset uptime in existing fields, but asset downtime due to facility maintenance – planned ...

Oil and Gas
My Car Has Predictive Analytics, Why Shouldn’t My Refinery?

Rebroadcast of Air Liquide's experience with predictive analytics and AVEVA

Oil and Gas
How Digital Transformation in Engineering and Design boosts Project Profitability

Low oil prices had sanctioned almost every large Exploration and Production (E&P) projects in the oil and gas industry. Today, with the recent recovery of oil ...

Oil and Gas
The Price of Optimizing Your Process Is Asset Reliability

Predictive maintenance (PdM) strategies enable front-line personnel to act before costly failures occur and maximize value throughout the entire asset ...

Oil and Gas
How Closed-loop Operations Enable Digital Transformation of Oil and Gas Fields

Today, the advancement in technology – cloud platform, analytics and computing power – is revolutionising the way how companies can leverage big data and ...

Oil and Gas
How Pipeline Operators are Working to Improve their Asset Reliability

Asset reliability is a key component of an overall asset performance management strategy. And it plays a big part in helping midstream oil and gas operators ...

Oil and Gas
Maximizing Midstream Profits with OT IT Convergence

Historically midstream oil and gas organizations have kept two critical functions within their businesses almost entirely separate – IT and OT. One of the ...

Chemicals
Operational Excellence: Likely the Most Overused Term in the Process Industries

Operational Excellence isn’t achieved overnight. It is a methodology that takes a commitment to focusing on continually improving the process, and its ...

Oil and Gas
How Virtual Reality Compresses Operators Learning Curve in Oilfields

Unlike a traditional classroom environment, the VR immersive training system facilitates interaction between equipment and environment and scenario simulation ...

Oil and Gas
How Advanced Analytics improve Margins at Natural Gas Processing plants?

mproved fracking technology in oil and gas fields is creating an unprecedented boom in natural gas production, exerting tremendous pressure on natural gas ...

Oil and Gas
Implementing a tiered methodology for pipeline integrity significantly improves business’ chances of preventing leaks

With pipeline operators facing increased scrutiny as of late, the conversation must shift to pipeline integrity. Pipeline integrity encompasses three methods: ...

Oil and Gas
Digitizing the Mobile Workforce

The front-line opportunities to improve plant reliability, safety, and profitability are infinite. Value lies in digitizing the mobile workforce.

Oil and Gas
Why IIoT in Refineries Now?

IIoT in refineries is trending fast and promises great short and long-term results, allowing for smoother refinery optimization.

Oil and Gas
IIoT: Acting on All Big Data

The importance of IIoT, big data and closed-loop operations to bridge the gap between unused data and profitability in refineries.

Oil and Gas
Strategic Implementation of IIoT in Refineries

Delivering Closed Loop Business Operations for the Refinery Enterprise with Schneider Electric Software. Strategic Implementation of IIoT - Refineries.

Oil and Gas
How are you minimizing risk throughout the three phases of pipeline integrity?

Pipeline integrity includes three phases: prevention, detection, and mitigation, which together minimize the chances of a leak and the ensuing repercussions.

Oil and Gas
IIoT: Three Trends Impacting Upstream Producers

Many producers have started looking to IIoT to help them navigate through the digital evolution and create a competitive edge for their operations.

Oil and Gas
How the Internet of Things has Influenced Midstream Pipeline Operations

IoT Internet of Things has provided increased ability to connect, measure and analyze variety of behavioral statistics for midstream pipeline operations.

Oil and Gas
How Big Data and Analytics increase Production Asset Uptime in Oil Fields?

Oil companies must continue to make investments in improving operational efficiencies to sustain and improve their profitability.

Oil and Gas
How Digitalization of Process Design and Operations boosts Profitability in Ethylene production

Learn how to apply impacting digital technologies in ethylene production plant design and operations for higher profitability.

Chemicals
You Must Cross That Bridge Now; Not When You Get to It

A successful Unified Supply Chain and Operations Execution Management solution is a fully functional, bi-directional communicative interface between supply ...

Oil and Gas
Advanced Contractual Risk Management

Reducing cost of capital needed to fund large capex projects

Oil and Gas
China HQCEC uses AVEVA Solutions to Design World’s Largest Coal Liquefaction Construction Plant

Situated in the hi-tech heart of China’s Ningdong Energy Chemical Industry Park, the world’s largest indirect liquefaction processing facility covers 2.8 ...

Oil and Gas
How Digital Operations Management Improves Profitability in this Challenging Oil and Gas Environment

Learn how digital operations management framework enables refineries and petrochemical plants to optimize profitability.

previous next

Sign up for our newsletter and get all the latest information straight from the source.