Throughout our GIC report series, we’ve focused on how digital transformation can powerfully shift the engineering and construction (E&C) industry.
The Boston Consulting Group (BCG) notes that E&C can expect annual savings— up to US$700 billion to $1.2 trillion— by embracing digital transformation.
The E&C industry must heavily invest in technology for project delivery to achieve these numbers.
As we’ve heard from many clients, one of the biggest challenges is defining innovation metrics to assess project performance. So, how can E&C develop a solid ROI to capitalize on this massive potential savings at an organizational or project level?
Organizations can follow the traditional construction project measures, such as:
- Financial return
- Breakeven points
- Planned value = planned % of tasks left to complete x project budget
- Actual cost of work performed = the amount of money spent on a project to a certain date
- Cost variance = planned budget against the actual budget