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USING DATA DEBATE TO CHANGE BUSINESS MODELS OUND R T E A H B T L E E D SMART INFRASTRUCTURE T E A WITH MICHAILA HANCOCK B 52 NEW CIVIL ENGINEER | AUGUST 2017 READ MORE DEBATES AT NEWCIVILENGINEER.COM/NCE-LIVE igital transformation is in its 40 years they had never previously seen a infancy in the UK construction client’s business case. When we did that it sector. Much of the current was no surprise to me that suppliers then debate is focused on the said to us: ‘you know what, we can see your technologies rather than on problem and we think we can solve that’. It the new business models that is no more scientific than that. It’s a mind-set will actually change the way we do things. change” DThis round table debate, held at New Civil Engineer’s UK Transport Conference aimed Passive and active assets to address this. “The way we deal with passive assets and “We are taking a far more holistic active assets is very different, if we are approach and the emphasis is about putting thinking about digital,” said Mott MacDonald the customer first,” said Bentley Systems major projects portfolio director Chris vice president, rail business development Dulake. Mike Coldrick. He started off the discussion “We are putting the same level of effort talking about the industry as a whole. “Any into both areas, but actually we should be Dulake: We should concentrate on active assets investment that we make, in any project, it concentrating on the active assets which has to improve the customer experience, have a shorter life cycle which can drive whether it be road or rail,” he said. the performance of the whole system and The way we deal improve the efficiency of what we can The move to outcomes deliver.” with passive The cornerstone of a new business model Dulake continued: “If it is a passive asset, is detection of value in terms of the then we are restoring asset knowledge assets and active assets is outcomes to be achieved from investments and maybe we are over complicating that very different, if we are in infrastructure. process.” Digital Railway’s group managing director Crossrail head of technical information thinking about digital David Waboso agreed that, with any outcome Malcolm Taylor agreed, but said there were “ based project, it was vital to share problems many ways to look at financing, operation early with the supply chain so it can help and maintaining an asset. “Working in the Taylor continued: “We need to plan from develop a solution. public sector you do see the totex (total the start, and if we want to be outcome “Historically we produce very detailed expenditure) issue and the whole life cost focused, we need to be driving it all the specifications, and the supply chain often geared around the asset. way through the design process, so that asks: ‘why are they doing that?’ In future, we “As you head towards reliability, risk- procurement can catch up and make sure need to invite the supply chain to challenge based maintenance, then you do need you get what you want, when you want it.” to contribute to our thinking and help us remote conditioning monitoring everywhere. develop outcome-based solutions” Not only to operate and maintain, but Pace of change Since starting at Digital Railway, Waboso also going digital in robotics and offsite “We need to remember that when Crossrail has initiated early contractor involvement construction. started, the iPad hadn’t been invented,” said and brought in the supply chain as partners. “That entire move being outcome focused, Costain group innovation and knowledge “As a result of that, we have our first trial where we do need to capture the whole director Tim Embley. “The journey we have contract, which is an innovative, partially picture of asset life, we don’t seem to do this gone on has involved a massive change in contractor funded, scheme. It is not just so well in opex [operational expenditure] our business and how we use data to make about the technology, it is about how you and capex [capital expenditure] world, but better decisions.” tool up to become an intelligent customer we do in totex.” He went on to say that the industry does and build relationships with the supply need to work more closely with the supply chain, and make sure you do recognise the chain to allow it to put more technology in rapidly changing nature of the technology the assets to help with maintenance. with long term support,” he said. “In terms of looking after strategic So is it possible to be innovative highway networks and technology coming in in the way the industry delivers more from other markets, we are actually seeing outcome-based projects within the current more relationships with other industries. constraints? Before we just had to take care of the “It’s not easy,” Waboso continued. “You road, fill in a pothole; today technology is have to challenge, you have to look at your collecting data to understand the asset and rewards mechanism and managing that, and see how it is performing and provide more how the money flows. People try and get affordable solutions.” everything right straight away and it’s best to start small. Outcome thinking into the mainstream “We externalised our business case, Atkins senior engineer and practice manager and one seasoned contractor said that in Coldrick: Customer must come first Chris Brock argued that the industry needs AUGUST 2017 | NEW CIVIL ENGINEER 53 Smart Infrastructure Changing the Business Model to maximising output per capex pound, and what we want is to define value by outcome per whole-life pound, then that is very big shift.” “If this what we are actually after we need a completely different way where outcomes for customers are rewarded.” Recognising the value of data “The industry has moved on,” said CH2M practice technology director, rail Vasileios Vernikos. AROUND THE TABLE Waboso: Involving the supply chain is vital Vernikos: Data needs to be organised Chris Barron chief communications to integrate and get into alignment if it is to officer, Bentley Systems I don’t think the achieve outcome based targets. Chris Brock senior engineer and “Ninety nine per cent of data is not used practice manager, Atkins industry as a effectively and we need to get the point Mike Coldrick vice president rail whole has got to a point where we are specifying the right outcomes business development, Bentley for each project.” Systems of genuinely valuing Is this a problem because the industry Chris Dulake major projects portfolio doesn’t know what to do with the data? director, Mott MacDonald information and treating Atkins’ Brock continued: “When you work Nicholas Dunne director technology, with existing structures, the problem is we Siemens “ data as a resource are trying to manage something that we Tim Embley group innovation and don’t necessarily understand. We have a knowledge director, Costain huge amount of assets and we are trying to Mark Enzer group technical director, be reactive without actually understanding Mott MacDonald “The building information modelling the problem because we don’t have the data Mark Hansford Editor, New Civil (BIM) agenda was introduced to the industry to inform what the problem is and how best Engineer with capex in mind, and therefore a lot of to solve it. Jon Kerbey director BIM, HS2 Ltd data was created, and justified the business “We then apply the standard engineering Jennifer Schooling director of cases with capex efficiencies.” approach where we see a problem and we Centre for Smart Infrastructure Vernikos continued: “We don’t know what apply the same solution.” and Construction, University of we know. We have a lot of data now and we Cambridge need to organise it in a certain way.” Redefining value Malcolm Taylor head of technical Mott McDonald’s Enzer agreed, and added Mott MacDonald group technical director information, Crossrail that BIM had helped the industry recognise Mark Enzer said he thought that Project 13 Shashi Verma chief technology officer the importance of information. would help revolutionise the industry. & director of customer experience, “Information is at the heart of BIM and Project 13 is and ICE-led initiative to guide Transport for London once people get their heads around the idea the industry towards a new approach Vasileios Vernikos practice that information is important in design and based on outcomes (New Civil Engineer, last technology director – rail, CH2M construction, you can see it as the golden month). “Project 13 is about bringing around David Waboso group managing thread that joins everything up. transformation, and not just writing another director, Digital Railway “I think a lot of people understand that in report about it,” says Enzer. Jennifer Whyte director of Centre for principle, but I don’t think the industry as a “It is about creating a movement, a Systems Engineering and Innovation, whole has got to a point of genuinely valuing collection of toolkits to help the industry Imperial College London information and treating data as a resource. move, and a coalition of the willing made “We know in theory that value is attached up of leaders and organisations from the to it, but we don’t value it.” infrastructure industry. But importantly it is In association with client-led,” he added. Embracing the future “And if we are moving to something more “We have to embrace this technology outcome based and more whole-life, what change,” warned Waboso. “It’s not an option. that fundamentally points to is a redefinition We have to.

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