Investing in the future: Digital asset information for the water industry

Looking at Aotearoa New Zealand, the Water Reform was designed to enhance asset information management, helping new entities better understand, prioritise and mitigate risks related to critical water assets. This addressed the significant underinvestment in our water systems, which will require an estimated $120-185 billion over the next 30 years to avoid critical failures and ensure water quality standards are met, avoiding potential public health risks.

While the new government’s “Local Water Done Well” policy shifts responsibility back to local councils, the need for effective digital asset information management remains. Councils can form Water Services Council Controlled Organisations (WSCCOs) to manage and prioritise investment in critical water assets, however, without accurate asset information, effective analysis will remain challenging.

Our recent webinar on Digital Asset Information Management, part of GHD’s Tides of Change series, highlighted why councils should continue investing in this area. Panellists emphasised that the challenges local councils face will persist under new WSCCOs, making this investment crucial. They agreed that change is hard, especially in a constrained funding environment, but it’s necessary to move beyond business as usual.

To address these challenges, Tauranga City Council is implementing digital engineering to streamline their information management processes, which aims to improve their ability to manage their water infrastructure. By standardising data collection and storage, they aim to reduce the data integration work, lower the maintenance costs and improve understanding and response times to infrastructure issues.

Some councils might believe that improving digital asset information management is only for larger councils with dedicated Enterprise Resource Planning (ERP) systems, better funding and larger asset teams, however this is a misconception. Even small investments by focused teams can yield significant returns. For example, Christchurch City Council started with a simple spreadsheet system to capture and standardise data, which later will evolve into a comprehensive digital asset management framework.

Councils we work with are looking at the bigger picture, implementing incremental changes that can scale up as the return on investment becomes evident. Even small investments by focused teams can yield significant returns. Research from the UK shows that every £1 invested in information management can secure £5.10 to £6.00 in direct labour productivity gains and £6.90 to £7.40 in direct cost savings¹. Improved digital asset information management is proven to reduce risk and cost in capital works projects and streamlines asset maintenance and operations by making correct data accessible when needed. 

1. Start small: Begin with manageable projects that can demonstrate quick wins and build momentum.
2. Executive sponsorship: Secure support from senior leadership to champion the initiative.
3. Training and development: Invest in training for staff to ensure they are equipped to implement processes and to manage and use the new systems effectively.
4. Collaborate and learn: Engage with other councils and experts to share knowledge and best practices.
5. Incremental improvements: Implement changes incrementally, allowing for learning, adjustments and scaling up as needed.