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Responses from the UK’s leading clients to our Smart Infrastructure Index show an industry making valuable progress, but still not realising the full potential of digitalisation.
Digitalisation is a key enabler across all aspects of asset-intensive organisations, but our industry still lags behind others in realising its true value. This is clear from the findings of the Infrastructure Client Group’s (ICG) latest annual Digital Benchmarking Report. The report is based on over 360 responses to our Smart Infrastructure Index and provides a snapshot of the digital maturity of the UK’s leading asset owners and operators. Our benchmarking approach is structured around seven core areas: customers; commercial; asset management; asset delivery; asset performance; continuous improvement and digital transformation.
The Digital Benchmarking Report shows that good progress had been made on resilience and aligning with customer outcomes. However, it also shows that an abundance of data was not yet leading to better decision-making, and that there are still challenges in securing investment and boosting digital skills in the industry.
So how can we unlock further digitalisation across infrastructure? Speaking with members of the ICG and others who have completed the Smart Infrastructure Index, four areas of focus have emerged:
Drive connectivity: The idea of ‘connection’ was a strong theme this year. While our industry is great at focusing on discrete projects, combining knowledge from one project to another – rolled out across a client’s entire asset base – can unlock greater benefits. This principle can have even greater impact when applied across sectors, using knowledge sharing to raise the efficiency of the industry as a whole.
Embrace digital twins: Take-up of digital twins – accurate digital representations of physical systems, enabled by real-time connectivity – is still limited in our industry. However, where digital twins have been used, they have brought whole-life efficiencies by enabling a data-based approach to asset management, with smart infrastructure solutions helping to boost service and limit downtime for maintenance and renewal. As an example of the impact, New Zealand’s largest water and wastewater client Watercare used digital twin technology to view and analyse past, present and future network service status to make better-informed decisions. This led to a 400% return on investment in just two years.
Focus on people: It’s not just about technology and apps – unlocking a step-change in digital maturity depends on having the right people with the right skills. Some progress has been made, especially in embedding digital ways of working. However, digital maturity needs to be advanced by upskilling existing staff and introducing new capabilities across data science, technology and software development. For example, we co-created a digital operating model with Sellafield to set out how they structure and organise their business so data gets to the right people at the right time to improve decision-making and enhance the nuclear decommissioning process. This people-led approach has delivered efficiencies that would not be possible by just focusing on data gathering and analysis.
Spearhead enterprise delivery: Clients increasingly recognise the tremendous value that can be created by aligning staff from their own organisation and supply chain partners into integrated teams that are built on trust formed out of long-term relationships, i.e.: enterprises. Enterprise delivery focuses on value and overall outcomes, leveraging skills and innovation for wider benefit across all members of the enterprise. This should be led through an ‘integrator’ – appointed by the client – who works closely with all parties to facilitate the enterprise approach. However, the value of this can only be maximised by digitally mature organisations that can unlock the combined power of a collaborative mindset, data and digital technology. We have seen the benefits of this ourselves in our work to expand Sydney’s metro rail system. Our role has evolved from designer and technical advisor to trusted delivery partner, using our digital know-how to facilitate a streamlined delivery process.
The ICG Digital Benchmarking Report provides a snapshot of where the UK’s leading owners and operators stand right now. Progress is being made, but so much more can be achieved by embracing the latest in digital innovation – boosting collaboration and decision-making to unlock greater industry-wide benefits.
As an industry we need to keep building momentum. We know the elements we need to do this, yet more has to be done to bring them together for collective gain.
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