GHD’s Global Asset Management Leader recently addressed the 2018 bi-annual Advancing Asset Management Forum (NAMS) on the impact of the current cyber revolution in relation to asset management.
As part of the conference theme of “Gamechangers - readiness for tomorrow’s infrastructure”, this keynote address challenged asset management practitioners to prepare and adapt their organisations and the infrastructure they oversee for radical disruptive change.
In considering the potential change 4IR will drive, it is useful to reflect on the major impacts that came with the preceding revolutions:
- 1IR – mechanised utilising water and the power of steam
- 2IR – mass production utilising electricity and the assembly line
- 3IR – Computerisation utilising electronics and automation.
Building on what has come before, 4IR is bringing cyber systems, artificial intelligence and the power of digital networks. This change will create a further step change in automated opportunities achieved by each industrial revolution.
From an asset management perspective, maximising the automation opportunity presented by 4IR requires the industry to digitise assets and incorporate a digital overlay into the way we operate and manage them. This does not necessarily mean all asset management systems and processes require immediate and comprehensive digitisation, given it is not realistic for most asset owners.
A more cost-effective approach would be to consider holistically what the opportunities are and how these can progressively be implemented within current financial parameters. The opportunities available through 4IR include:
Because these opportunities are wide and varied, integration of digitisation into asset planning requires an appropriate road map that can be utilised to consolidate tactical opportunities within an overall strategic framework.
Examples of these opportunities include:
- Building a digital overlay into new projects and contracts
- Proactively seeking input into new projects and contracts
- Capturing the emerging pockets of digitisation in a structured way e.g. making sure the use of sensors has the appropriate wrap processes to maximise their utilisation
- Considering how the current emphasis on outcome-based contracts will evolve into ‘point’ delivery, based on censored just-in-time need
- Including digitisation in asset management programs.
Although these changes point to an exciting future for asset management practitioners, Leaders re-emphasised the importance of not underplaying the overall intent which must remain the same – seeking to minimise total cost of acquiring, operating, monitoring and renewing assets.
In addition to maximising the value of this cost of service objective, it has to be delivered within the context of service level requirements and an acceptable level of risk.
Organisations who embrace 4IR through integrated, holistic planning realise benefits through:
- Improving customer experience as services are supplied on demand
- Improving asset efficiency as smart technology predicts renewal and maintenance needs
- Improving labour efficiency and steering resources to where and when they are needed
- Avoiding disruption to services through embedding cyber security, energy supply reliability, and global warming impacts within the plans.
For more information about the impact of 4IR or wider asset management please contact:
David Walker
Market Development Lead
GHD Advisory New Zealand
T: +64 21 904 084
Email David Walker
