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Written by Guy Parker, Shyam Ramaiya, Will Hunt, and Maxwell Brown
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This series is for people who might be trying to answer one of the following questions:
This series is for people who might be trying to answer one of the following questions:
We recognize that every organization is unique and at a different stage on their journey to adopt digital. But we have noticed many have the same needs and face the same challenges.
Delivering Transformation through technology adoption has proven difficult for many organizations. Across industry there is a ‘graveyard’ of failed proof of concepts, and programs that have failed to meet their benefits case. Why is this?
The research speaks for itself, with many organizations falling into the trap of viewing technology as a shortcut, failing to see that introducing technology alone cannot effect change. People are the most important enabler of technology. Until the data they capture and the decisions they make become entirely automated, they must be engaged and part of that means ensuring they are brought along on the journey. This often means influencing an organization’s culture, values and behaviors, for which there is no quick fix. Delivering people change takes time and effort but for some reason, time and time again, transformation is expected to happen within the time frame of a single technology project.
At AMCL, we believe that data and technology must always maintain line of sight to business needs and clear outcomes. We believe that all organizations are somewhere on ‘the Wheel’ below between understanding what they’re looking to achieve (outcomes), pulling together a design that meets their business needs, or perhaps fully immersed in implementing their design.
We recognize that every organization is unique and at a different stage on their journey to adopt digital. But we have noticed many have the same needs and face the same challenges.
Delivering Transformation through technology adoption has proven difficult for many organizations. Across industry there is a ‘graveyard’ of failed proof of concepts, and programs that have failed to meet their benefits case. Why is this?
The research speaks for itself, with many organizations falling into the trap of viewing technology as a shortcut, failing to see that introducing technology alone cannot effect change. People are the most important enabler of technology. Until the data they capture and the decisions they make become entirely automated, they must be engaged and part of that means ensuring they are brought along on the journey. This often means influencing an organization’s culture, values and behaviors, for which there is no quick fix. Delivering people change takes time and effort but for some reason, time and time again, transformation is expected to happen within the time frame of a single technology project.
At AMCL, we believe that data and technology must always maintain line of sight to business needs and clear outcomes. We believe that all organizations are somewhere on ‘the Wheel’ below between understanding what they’re looking to achieve (outcomes), pulling together a design that meets their business needs, or perhaps fully immersed in implementing their design.
Whether this is your ‘first turn’ in adopting digital, or you have been circumnavigating the wheel and are constantly re-examining how digital capability can redefine the way you work, this paper will offer you context, awareness, and top tips for the next step in your journey.
We aim to give you an understanding of the role technology and data can play across Infrastructure Asset Owners and Operators as well as the scale of the digital challenge. We provide a practical perspective on the potential benefits weighed against the hype, and a glimpse at a tried and tested methodology to approach digital capability adoption.
‘Digital’ is on everyone’s lips, the world of technology and data is doing things we couldn’t even imagine 10 years ago. The possibilities are seemingly infinite, and we can’t ignore that we live in an age where technology superpowers are widely available and highly economical. Industry peer pressure and regulatory and economic stress are all driving toward a trillion-dollar industry across the world but why is the average Infrastructure Management Organization so far behind ‘leading edge’?
There are many reasons why digital transformation efforts fail to realize their business case which we will explore in part 2 but to begin, we need to define digital capability to set the scene for the rest of this thinking.
You might have heard of the journey from digitize and digital-ize to digital transformation. The idea is to take an organization from turning paper into digital data; through shifting your processes to being supported by technology; and ultimately through to a data and technology system of systems that fundamentally challenges your business model. Whatever happened to good old software and hardware?
‘Digital’ is on everyone’s lips, the world of technology and data is doing things we couldn’t even imagine 10 years ago. The possibilities are seemingly infinite, and we can’t ignore that we live in an age where technology superpowers are widely available and highly economical. Industry peer pressure and regulatory and economic stress are all driving toward a trillion-dollar industry across the world but why is the average Infrastructure Management Organization so far behind ‘leading edge’?
There are many reasons why digital transformation efforts fail to realize their business case which we will explore in part 2 but to begin, we need to define digital capability to set the scene for the rest of this thinking.
You might have heard of the journey from digitize and digital-ize to digital transformation. The idea is to take an organization from turning paper into digital data; through shifting your processes to being supported by technology; and ultimately through to a data and technology system of systems that fundamentally challenges your business model. Whatever happened to good old software and hardware?
Imagine a world where…
You have all the data you need at your fingertips, all the best available data to help you to make decisions
You can monitor and control your physical assets through a digital window
Technology is helping you not only record data but also interpret and analyze it as close to real-time as it needs to be
Your processes are automated as far as practical and you may have even delegated decision-making and action to your smart systems
Imagine a world where…
You have all the data you need at your fingertips, all the best available data to help you to make decisions
You can monitor and control your physical assets through a digital window
Technology is helping you not only record data but also interpret and analyze it as close to real-time as it needs to be
Your processes are automated as far as practical and you may have even delegated decision-making and action to your smart systems
Well, it’s not the future and it’s all possible. It is very likely people are doing it in your industry right now.
Well, it’s not the future and it’s all possible. It is very likely people are doing it in your industry right now.
Without getting into the nuances and for a (relatively) accessible definition, we define digital capability as the data and technology which contribute to the definition and delivery of the operating model and the business capabilities which sit beneath it. Essentially the data and technology component of ‘everything that an organization is and can do.
To break digital capability into data and technology for infrastructure asset management businesses looks something like the below:
Without getting into the nuances and for a (relatively) accessible definition, we define digital capability as the data and technology which contribute to the definition and delivery of the operating model and the business capabilities which sit beneath it. Essentially the data and technology component of ‘everything that an organization is and can do.
To break digital capability into data and technology for infrastructure asset management businesses looks something like the below:
Digital data that, with the right context and integration, enables the creation of information that supports decision-making and knowledge. This data is housed within technologies across the business and is ideally supported by some form of an Information Management System (See ISO 8000)
Technology are the layers of software and hardware between an asset and the people responsible and accountable for service delivery. This includes all relevant ‘Information Technology (IT)’ and ‘Operational Technology (OT)’ as well as data science tools, platforms etc.
Digital Data
Digital data that, with the right context and integration, enables the creation of information that supports decision-making and knowledge. This data is housed within technologies across the business and is ideally supported by some form of an Information Management System (See ISO 8000)
Technology
Technology are the layers of software and hardware between an asset and the people responsible and accountable for service delivery. This includes all relevant ‘Information Technology (IT)’ and ‘Operational Technology (OT)’ as well as data science tools, platforms etc.
Well, think of your mobile phone – one of the modern wonders that has radically changed almost everyone’s day to day life. Though its use is relatively simple it could take a lifetime to understand every layer of the software, hardware, and data that comes together to make it work. We’re not suggesting you need to understand it all but an understanding of potential, limitations, and considerations is the key.
Across industry, we need to be thinking about how the next generation of digital transformation efforts can learn from the last 10 years and put their best foot forward on a practical path to realizing the benefits from data and technology.
See Part 2 – Is it possible to get it right the first time?
Well, think of your mobile phone – one of the modern wonders that has radically changed almost everyone’s day to day life. Though its use is relatively simple it could take a lifetime to understand every layer of the software, hardware, and data that comes together to make it work. We’re not suggesting you need to understand it all but an understanding of potential, limitations, and considerations is the key.
Across industry, we need to be thinking about how the next generation of digital transformation efforts can learn from the last 10 years and put their best foot forward on a practical path to realizing the benefits from data and technology.
See Part 2 – Is it possible to get it right the first time?
Hindsight doesn’t often capture the detail of the challenges and steps of the journey and it takes to deliver success in technology and data. While many case studies are selling the potential of unlocking benefits from data and technology, getting people to talk openly and honestly about failed digital transformation projects isn’t always easy. Lucky for you, AMCL has the exposure of working with industry bodies and has done the research and brought together key concepts from countless discussions over the years. For this part of the paper, we wanted to summarize the breadth and depth of the common challenges faced by our industry.
The data speaks for itself, digital transformation programs often fall short of their original business case and in many cases, fail to deliver any significant returns on their investment. Another piece of bad news, with the advent of new technologies; implementation has only become more complicated and success only more elusive.
Well, the reality is that they are. In manufacturing or retail, you have a specialized organization repeating a small number of processes to produce relatively consistent outputs, optimization is highly incentivized and so the latest digital capability is adopted at pace. The simple reason why it’s so hard in our industry is the complexity, number of integrations between processes, interfacing organizations, and legacy assets and technology across the scope of assets and systems within a typical infrastructure services organization.
We can learn from those who have been before us. So why are data and technology change efforts so likely to fail to deliver their business case? Why do people go back to excel, create their own data repositories on their desktops or make a complete mess of technology post-go-live?
Hindsight doesn’t often capture the detail of the challenges and steps of the journey and it takes to deliver success in technology and data. While many case studies are selling the potential of unlocking benefits from data and technology, getting people to talk openly and honestly about failed digital transformation projects isn’t always easy. Lucky for you, AMCL has the exposure of working with industry bodies and has done the research and brought together key concepts from countless discussions over the years. For this part of the paper, we wanted to summarize the breadth and depth of the common challenges faced by our industry.
The data speaks for itself, digital transformation programs often fall short of their original business case and in many cases, fail to deliver any significant returns on their investment. Another piece of bad news, with the advent of new technologies; implementation has only become more complicated and success only more elusive.
Well, the reality is that they are. In manufacturing or retail, you have a specialized organization repeating a small number of processes to produce relatively consistent outputs, optimization is highly incentivized and so the latest digital capability is adopted at pace. The simple reason why it’s so hard in our industry is the complexity, number of integrations between processes, interfacing organizations, and legacy assets and technology across the scope of assets and systems within a typical infrastructure services organization.
We can learn from those who have been before us. So why are data and technology change efforts so likely to fail to deliver their business case? Why do people go back to excel, create their own data repositories on their desktops or make a complete mess of technology post-go-live?
1. Senior leadership fail to effectively support and dedicate focus to change efforts and creating stakeholder buy-in
2. Vision, requirements, and understanding do not endure as people leave the business, or new leaders join – the adage ‘Stick to the plan’ applies here.
3. Stakeholders often expect an immediate return on investment and may ‘panic-pivot’ mid-implementation often diverging from the set strategy
4. Failure to recognize that change management is not a one-off, it’s an enduring activity that starts well before kick-off of the technology project and goes far beyond ‘go live’
5. Technology requirements developed without a line of sight to the art of the possible, often trying to do too much and failing to capture success criteria trade-offs in procurement
6. Organizations purchase technology solutions with unrealistic expectations, poor scope definition, and without accurately quantifying or understanding the cost/benefit of requirements
7. Lack of resources or specialist expertise to support system design and implementation; too reliant on consultants, vendors and implementors. Not resourced to shadow design and implementation to develop internal knowledge
8. Failure to invest in competency development and technology training during and after implementation, often with a poor ‘train the trainer’ approach
9. Data requirements and current data quality are not considered effectively resulting in an inability to leverage technology as delivered
10. Technology requirements are not well aligned with current business requirements or well communicated to the market; resulting in as-built misalignment with current maturity and business readiness
11. Desire for customization, post design, results in scope creep and distraction as well as complications in contractual relationships
12. Rushed go-live without adequate representation in design, testing and sign-off
1. Senior leadership fail to effectively support and dedicate focus to change efforts and creating stakeholder buy-in
2. Vision, requirements, and understanding do not endure as people leave the business, or new leaders join – the adage ‘Stick to the plan’ applies here.
3. Stakeholders often expect an immediate return on investment and may ‘panic-pivot’ mid-implementation often diverging from the set strategy
4. Failure to recognize that change management is not a one-off, it’s an enduring activity that starts well before kick-off of the technology project and goes far beyond ‘go live’
5. Technology requirements developed without a line of sight to the art of the possible, often trying to do too much and failing to capture success criteria trade-offs in procurement
6. Organizations purchase technology solutions with unrealistic expectations, poor scope definition, and without accurately quantifying or understanding the cost/benefit of requirements
7. Lack of resources or specialist expertise to support system design and implementation; too reliant on consultants, vendors and implementors. Not resourced to shadow design and implementation to develop internal knowledge
8. Failure to invest in competency development and technology training during and after implementation, often with a poor ‘train the trainer’ approach
9. Data requirements and current data quality are not considered effectively resulting in an inability to leverage technology as delivered
10. Technology requirements are not well aligned with current business requirements or well communicated to the market; resulting in as-built misalignment with current maturity and business readiness
11. Desire for customization, post design, results in scope creep and distraction as well as complications in contractual relationships
12. Rushed go-live without adequate representation in design, testing and sign-off
You might notice something about the challenges above. In many cases, technology vendors and system integrators are blamed for failed technology projects but slowly, across industry, we are starting to learn that the accountable party/client/buyer must control the people, process and data needs for digital capability adoption.
Perhaps we are all thinking about this the wrong way. Should a technology implementation project, with a scope, budget and time frame by definition; be responsible for complete organizational change? Why is it that so often, digital transformation efforts fail to deliver their business case and fail to maintain alignment with what the business needs right now?
Should we be looking at digital capability adoption as a journey? Perhaps a journey that has a vision, destination or direction in mind from the start and is structured around a strategy that acknowledges that things can change. Like all long journeys, it should begin with good planning and the right resources, it should be adaptable and resilient to external conditions but also recognize the fact that things change as we challenge what we don’t yet know.
Our approach to defining your journey is discussed further in Part 4 but before we get to that, let’s have a look at what to get excited about in Part 3!
You might notice something about the challenges above. In many cases, technology vendors and system integrators are blamed for failed technology projects but slowly, across industry, we are starting to learn that the accountable party/client/buyer must control the people, process and data needs for digital capability adoption.
Perhaps we are all thinking about this the wrong way. Should a technology implementation project, with a scope, budget and time frame by definition; be responsible for complete organizational change? Why is it that so often, digital transformation efforts fail to deliver their business case and fail to maintain alignment with what the business needs right now?
Should we be looking at digital capability adoption as a journey? Perhaps a journey that has a vision, destination or direction in mind from the start and is structured around a strategy that acknowledges that things can change. Like all long journeys, it should begin with good planning and the right resources, it should be adaptable and resilient to external conditions but also recognize the fact that things change as we challenge what we don’t yet know.
Our approach to defining your journey is discussed further in Part 4 but before we get to that, let’s have a look at what to get excited about in Part 3!
The advent of new technologies and improvements in data capture, connectivity, and artificial intelligence will be constantly redefining how assets are being managed, now and into the future. The doubling of computing power every year, combined with breakthroughs in machine intelligence; are driving systems of systems that are more aware, connected, learning, and even acting on our behalf. In the coming years, we will look back and wonder how we ever lived without it.
The hype around technology is only growing and we need to not only understand where the market is heading but more importantly, what is practical over the next 10 years to be ready to adopt and implement the right technology at the right time.
Acknowledging that it will be different for every organization, some are early adopters, wanting to be the first to innovate, some looking to explore pockets of excellence and others simply wanting tried and tested.
There is no better time than now for asset-intensive organizations to embrace digital capability as there is simply so much opportunity to do things better and so many that have been before you both outside your industry and across the world. Fundamentally each business case will come down to cost and benefit.
The advent of new technologies and improvements in data capture, connectivity, and artificial intelligence will be constantly redefining how assets are being managed, now and into the future. The doubling of computing power every year, combined with breakthroughs in machine intelligence; are driving systems of systems that are more aware, connected, learning, and even acting on our behalf. In the coming years, we will look back and wonder how we ever lived without it.
The hype around technology is only growing and we need to not only understand where the market is heading but more importantly, what is practical over the next 10 years to be ready to adopt and implement the right technology at the right time.
Acknowledging that it will be different for every organization, some are early adopters, wanting to be the first to innovate, some looking to explore pockets of excellence and others simply wanting tried and tested.
There is no better time than now for asset-intensive organizations to embrace digital capability as there is simply so much opportunity to do things better and so many that have been before you both outside your industry and across the world. Fundamentally each business case will come down to cost and benefit.
This is the most common benefit and lowest-hanging fruit in digital capability. Not only can you put technology to work for you by programming it to act on your behalf (everything from capturing data to actioning other machines) but digital capability can revolutionize the way employees and machines communicate and interact; often elevating people from boring and monotonous tasks.
Key takeaways:
Digital data is easy to copy, translate and collate; making it easier to create tighter loops between data creation and it’s use to support decision-making.
Key takeaways:
Advancements in Analytics & Machine Learning can identify trends and patterns that may have not previously been noticed and make decisions quicker than humans ever could.
Key takeaways:
Though this isn’t the reality for many, digital capability can be delivered to be a master for your data and create a single source of truth. A single source of truth means less time spent in managing multiple disconnected pieces of data.
Key takeaways:
Nowadays, technology plays a big part in both attracting and retaining talent, as it can make jobs more intuitive, streamline processes and train staff. Asset-intensive organizations can often be perceived as ‘old-fashioned’, but you can attract diverse talent by being shown as keen digital adopters.
Key takeaways:
Technology can play a key part in keeping people safe as it reduces the need for humans to be in harm’s way. In asset-intensive organizations, for example, it might mean the use of drones, training workers in virtual environments, and using monitoring devices to monitor human activity.
Key takeaways:
This is the most common benefit and lowest-hanging fruit in digital capability. Not only can you put technology to work for you by programming it to act on your behalf (everything from capturing data to actioning other machines) but digital capability can revolutionize the way employees and machines communicate and interact; often elevating people from boring and monotonous tasks.
Key takeaways:
Digital data is easy to copy, translate and collate; making it easier to create tighter loops between data creation and it’s use to support decision-making.
Key takeaways:
Advancements in Analytics & Machine Learning can identify trends and patterns that may have not previously been noticed and make decisions quicker than humans ever could.
Key takeaways:
Though this isn’t the reality for many, digital capability can be delivered to be a master for your data and create a single source of truth. A single source of truth means less time spent in managing multiple disconnected pieces of data.
Key takeaways:
Nowadays, technology plays a big part in both attracting and retaining talent, as it can make jobs more intuitive, streamline processes and train staff. Asset-intensive organizations can often be perceived as ‘old-fashioned’, but you can attract diverse talent by being shown as keen digital adopters.
Key takeaways:
Technology can play a key part in keeping people safe as it reduces the need for humans to be in harm’s way. In asset-intensive organizations, for example, it might mean the use of drones, training workers in virtual environments, and using monitoring devices to monitor human activity.
Key takeaways:
In Parts 1 and 2 we’ve talked a lot about technology, but what technologies should we be getting excited about within infrastructure? The answer to this depends on how mature the technology will be at the point of adoption, and how ready you are to implement it.
To make it easier, we’ve listed down the trending technologies in infrastructure at the moment, and assigned this against four categories, based on how ready the technology is in the market, and how much value it would add if you were to adopt it in your organization tomorrow:
Hover over the ‘hotspots’ to learn more
Exactly what it says on the tin-technology in this space is way out into the future, and not ready to be adopted just yet.
Technology in this space is generating a lot of hype - and should be kept on your radar for the medium-to-long term as they mature.
Technologies in this space are relatively mature but will improve further and eventually become standard. Careful consideration should be given on whether you are ready for adoption.
These technologies have already proven to add value within infrastructure and have a low adoption risk. Because of this, the market offering for these is competitive.
Your readiness to take on proof of concepts and experiment with emerging technologies is based on your company culture and risk appetite. This is typically only seen in organizations that have been once or twice around ‘the wheel’ (see Part 1) and have implemented technology, taken lessons learned and are looking at ways to further improve how they work.
In Parts 1 and 2 we’ve talked a lot about technology, but what technologies should we be getting excited about within infrastructure? The answer to this depends on how mature the technology will be at the point of adoption, and how ready you are to implement it.
To make it easier, we’ve listed down the trending technologies in infrastructure at the moment, and assigned this against four categories, based on how ready the technology is in the market, and how much value it would add if you were to adopt it in your organization tomorrow:
Hover over the ‘hotspots’ to learn more
Exactly what it says on the tin-technology in this space is way out into the future, and not ready to be adopted just yet.
Technology in this space is generating a lot of hype - and should be kept on your radar for the medium-to-long term as they mature.
Technologies in this space are relatively mature but will improve further and eventually become standard. Careful consideration should be given on whether you are ready for adoption.
These technologies have already proven to add value within infrastructure and have a low adoption risk. Because of this, the market offering for these is competitive.
Your readiness to take on proof of concepts and experiment with emerging technologies is based on your company culture and risk appetite. This is typically only seen in organizations that have been once or twice around ‘the wheel’ (see Part 1) and have implemented technology, taken lessons learned and are looking at ways to further improve how they work.
Following on from Parts 2 and 3, Digital Transformation is a journey, rather than a single project. Acknowledging that every organization is different, so must be their journey.
What we do know is that organizations around the world know they need to get on the bandwagon and build digital capability. The opportunity and business case for investment is just too compelling but looking at the data, it’s effective strategy and the right preparation (business readiness) that seems to be letting us down.
We’ve looked at the maturity of digital capability across many of the world’s Infrastructure Asset Management Organizations (AMCL does a lot of maturity assessments). While it might be human nature to go after the exciting new and shiny concepts, as a rule – if you don’t have good foundations, consider starting there. While keeping energy and momentum with exciting projects in any delivery or change program is important; organizations that have focused on getting the basics right and expanding from there are far ahead in not only what they know but also in knowing what they don’t know.
From our benchmarking, getting just the basics right will put you around the top quartile of maturity in this space for infrastructure management organisations. We haven’t got to know each other well enough yet so we can’t advise on the specifics but through our methodology, we want to give you some guidance as to how you take your next step.
Following on from Parts 2 and 3, Digital Transformation is a journey, rather than a single project. Acknowledging that every organization is different, so must be their journey.
What we do know is that organizations around the world know they need to get on the bandwagon and build digital capability. The opportunity and business case for investment is just too compelling but looking at the data, it’s effective strategy and the right preparation (business readiness) that seems to be letting us down.
We’ve looked at the maturity of digital capability across many of the world’s Infrastructure Asset Management Organizations (AMCL does a lot of maturity assessments). While it might be human nature to go after the exciting new and shiny concepts, as a rule – if you don’t have good foundations, consider starting there. While keeping energy and momentum with exciting projects in any delivery or change program is important; organizations that have focused on getting the basics right and expanding from there are far ahead in not only what they know but also in knowing what they don’t know.
From our benchmarking, getting just the basics right will put you around the top quartile of maturity in this space for infrastructure management organisations. We haven’t got to know each other well enough yet so we can’t advise on the specifics but through our methodology, we want to give you some guidance as to how you take your next step.
Like all journeys, adopting digital capability takes time. Data and technology are like a left and right leg, you need to put one in front of the other and ensure they’re in step to get anywhere. Following the analogy, your mind might represent the business process and the heart, your people. All elements are often symbiotic and we can’t neglect them.
To help you understand where you might be in your level of digital maturity (and the next step that you need to take), we’ve done a bit of brainstorming of the things you need to think about as maturity develops across these three elements:
Like all journeys, adopting digital capability takes time. Data and technology are like a left and right leg, you need to put one in front of the other and ensure they’re in step to get anywhere. Following the analogy, your mind might represent the business process and the heart, your people. All elements are often symbiotic and we can’t neglect them.
To help you understand where you might be in your level of digital maturity (and the next step that you need to take), we’ve done a bit of brainstorming of the things you need to think about as maturity develops across these three elements:
