Capital-intensive industries – like oil and gas, manufacturing, and life sciences – are facing a challenging macro-economic environment of rapid changes in supply and demand. With insight and certainty as today’s hot commodity, businesses are recognizing the value of enterprise content management and master data governance when responding to demand highs and lows.
Unfortunately, most capital-intensive organizations are not yet equipped to fully maximize the value of their enterprise information to keep their plants running profitably during any economic condition. Information is often too disorganized and scattered across multiple (and often competing) solutions to consolidate and find insights quickly and with ease.
While the cost, time, and resources needed to maintain such a complex and diverse landscape are intense, the risk of doing nothing is more devastating. Delayed access to information negatively impacts how project teams meet deadlines, work productively, and adhere to compliance requirements – resulting in millions in lost capital.
Luckily, according to the Forrester Consulting report “The Total Economic Impact of SAP Solution Extensions for Asset-Intensive Industries,” it is possible to break through this asset information trap. A unified, enterprise-wide core system of extended content management and master data governance can help capital-intensive organizations set the foundation they need to seize a US$17.7 million edge spread across the next three years.
Unlocking business value hidden in enterprise content and asset master data
Most capital-intensive companies are pursuing the innovation and delivery of safe, reliable, and sustainable products and services focused on satisfying consumers’ energy needs. In fact, 90% of them are moving toward using real-time equipment and asset performance data to self-diagnose issues. Additionally, 35% are going even further by creating new ecosystems with advanced analytics-driven technology such as artificial intelligence, digital twins, and blockchain.
Turning such a bold vision into reality requires businesses to replace their diverse array of legacy and in-house solutions spread across departments and smaller teams with a single solution extension for enterprise-wide content management and master data governance. Forrester Consulting’s research found that such an investment can lead to considerably improved returns and savings:
- 281% ROI
- $17.7 million in benefits (PV)
- 13.0 net present value
- 7 months payback
The reason behind these outcomes is the unification of content management and master data governance in an integrated solution. This approach consolidates everything from spreadsheets, emails, and call center records to CAD drawings, test reports, and asset information into one source. One executive surveyed by Forrester Consulting shared that providing such business-wide access to information helps ensure that the right person is sent to the right job at the right time with the right equipment, tools, and training.
For example, the burden of capital project handover can cost upwards of $100,000 and the efforts of 30 full-time equivalents for one year. But with access to proper insights, a project team can avoid two full days of delays – whether related to severe weather, environmental changes, or processes – annually. In return, an average daily value of $1.5 million (or over $2.2 million across three years) of the project’s budget can be redirected toward more value-added investments.
For our customers, such an advantage is only 13% of the full potential of an integrated enterprise content management and master data governance system. Incident risks are also lower, as training and knowledge transfer become more seamless and accessible anytime, anywhere. Audits and permit acquisitions are faster, making it easier to avoid penalties, legal costs, and reputational damage. Even first-time fix rates are higher, while asset downtime and rework continue to decrease.
Bringing an edge in a market where every moment counts
Let’s face it: capital-intensive businesses are on a dizzying roller-coaster ride of slow descents into market deterioration and high-speed send-offs to peak demand – and it’s not ending anytime soon. By integrating enterprise content management and master data governance solutions, they can run an intelligent asset-management operation that’s ready to navigate every disruptive twist and turn.
Explore the calculated cost savings and business benefits of SAP Solution Extensions that support content management and data governance for capital-intensive projects and operations. Read the Forrester Consulting report “The Total Economic Impact of SAP Solution Extensions for Asset-Intensive Industries,” sponsored by SAP.