Improving productivity in the UK Construction Industry

6 ways to improve productivity
in the UK Construction Industry
The impact of Industry 4.0 on UK Pre-Construction & Procurement
Analysis of Global Management Consultants Research
by
myConsole team

Credentials -Philip Collard MD of MarketingWorks and founder of myConsole
Expertise
Consultancy - 25 years of
Consultancy experience advising
firms to improve client-centric work
winning behaviours, processes and
culture.
Research - 2014 Bid Cost Research
with Reading University
Digital Solutions – A cloud based
tool to manage bid performance
data, encourage collaboration, and
best practice behaviours.
6 July, 2017
A sample of the clients we have worked with:

myConsole Partners
3
6 July, 2017
Eric Sandor
Chairman
• Accenture for 20 years, as
Global Managing Partner
• A profound understanding
of using AI in business
processes, and experience
across strategy,
operations, technology.
Philip Collard
Chief Executive
• Managing Director of
MarketingWorks Training &
Consultancy for over 25 years.
• Designed "win workflow"
change processes, and helped
over 2000 firms align the
market and client facing
behaviours.
Anush Newman
Chief Information
Officer
• 11 years of global strategy and
operational consulting experience.
• A deep understanding of data
science techniques to solve
commercial problems.
Michael LeoValan
Chief Information Officer
• 20 years experience in IT, with 10
years in Silicon Valley, USA.
• Managing the offshore team, his
technology experience ranges
from Product Development, ERP,
CRM and Performance Analytics.
Tony Bicknell
Chief Operations
Officer
• Past MD of Futuresource
Consulting.
• Tony brings a wealth of
experience in leveraging
digitization to improve
collaboration and achieve
corporate transformation.

myConsole Webinar Team introduction
Philip Collard
Chief Executive Officer
myConsole Ltd
pcollard@myconsole.co.uk
07973 501599
Tony Bicknell
Chief Operating Officer
myConsole Ltd
tbicknell@myconsole.co.uk
07718 625805
Amy Hazlehurst
Projects Manager
myConsole Ltd
ahazlehurst@myconsole.co.uk
07951491154

Previous Webinar – Reducing the £3bn annual industry bid spend
in 5 key steps
6 July, 2017
Same process being followed in BIM.
In 10 years everyone will have this, but first movers get the
profound advantages
Technology can process and
analyse immense amounts
of data and instantly
transforms data into
knowledge
- Real time insights
- Vast processing capability
- Each user can access their
own data analytics
- Complex algorithms
inform predictable
outcomes
- Cloud based collaboration
- Cognitive workflows
Peak performance requires planning
Invest time in developing relationships
Selectivity is mission critical
Well defined checks and balances
Constant evaluation, feedback & analysis

Key themes on the importance of
Digitisation from PwC and
McKinsey
How these relate to the
Procurement Phase of
Construction
Demonstration of an approach to
Digitisation in the construction
industry
Agenda

PwC and McKinsey are looking at Digitisation in the Construction industry*
Forecast for 2020
 Worldwide survey, of over 2,000 businesses in
26 countries
 19% of which were from the construction and
engineering sectors
Current position
• McKinsey Global Institute
• Reinventing Construction: A route to higher
productivity

myConsole analysis for Intelligent Procurement Strategy & Activity

Key findings from the McKinsey research show:
http://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/reinventing-construction-
through-a-productivity-revolution

Productivity today has flatlined
• McKinsey suggest the construction industry globally has averaged growth of 1% per
year over the past forty years
• The Farmer Report in 2016 highlighted that the productivity growth in the
construction industry had remained flat since 1994
6 July, 2017
McKinsey tested 10 root causes for low construction productivity:
1
2
3
4
5
Of causes relate to
procurement
50%
2

The potential for productivity growth is massive
To achieve anywhere near this target, we as an industry need to embrace profound change.
McKinsey states if we do not adopt digitalisation we will miss a huge opportunity to turn around
the industry.
“Construction-sector participants should rethink their operating
approaches to avoid being caught out in what could be
the world’s next great productivity story.”
6 July, 2017
£££
Savings
33%
The vision for Construction in
2025, includes a target to
lower costs by 33%

How can UK Pre-Construction and Procurement change this picture?
6 July, 2017 http://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/reinventing-construction-

Making changes in these areas will deliver 13% to 18% in cost savings and could offer
a rise in productivity of 29% to 42% within Procurement.
6 July, 2017
29-32% 13-18%
How can UK Pre-Construction and Procurement change this picture?

Collaboration and Contracting *
• McKinsey identifies a need to move to “a
system focused on collaboration and problem
solving.”
• The tendering process needs to change from
focusing on cost alone to “be based on best
value and past performance.”
• Visibility and transparency are paramount.
• “Establishing a “single source of truth” on
projects for monitoring progress early,
potentially supported by collaborative
technology, helps to minimize misalignments
and enable joint corrective action.”
6 July, 2017
• at myConsole our new cloud-based collaboration
platform delivers transparency and visibility across
the entire procurement process .
• All information is accessed and updated in real-
time.
• With everyone working from the same information,
organisations can deliver a joined up approach, that
increases client desired outcomes and expected
performance
• Pre-construction can innovate client centric value
adding solutions that will help ensure our clients
win more bids.

Procurement and supply chain management
• McKinsey concludes - The industry needs to focus
on using digital solutions to host and deliver best
practice across the entire procurement cycle.
• “…digitally enabled approaches can deliver
substantial change. Improved planning and
increased transparency among contractors and
suppliers would reduce delays significantly.”
• “Best practice in areas such as digitizing
procurement and supply-chain workflows will
enable more sophisticated logistics
management and just-in-time delivery.”
6 July, 2017
• We designed myConsole to leverage benefits of
24/7 virtual team collaboration across a
multitude of bids irrespective of their individual
stage.
• We integrated our workflows as a core
management process
 so users can instantly undertake pre agreed
or system prompted improvement actions,
across complete virtual team activities
simultaneously
• This delivers immense benefits for all the team,
 visible via their own dashboards to ensure
real time governance reporting across all
gateways and reviews.

Technology Adoption
Infusing Digital Technology as advanced automation
• The report clearly states that one
route to higher productivity is new
technology.
• “..the tools for that more productive
approach are increasingly available
through digital technologies...”
6 July, 2017
• Our platform, myConsole, is a digital tool that will
follows the conclusions of the research to harness
the power of digital in pre-construction work
winning.
• We predict our clients will experience 70%
increase in profitability
 from achieving 1:2 win rates.
 through each member of pre-construction
gaining a 20% personal productivity
improvement.
Theory into Practice
• Improve monitoring  Digital collaboration and mobility tools to track progress and
collaboration in real time.
• Data analytics that is real-time, both backward looking and predictive, can increase
productivity by as much as 50%.
• Imperative to ensure that the you have the right data, at the right time, flowing through
the various points of the supply chain.

McKinsey Key Findings - Rewiring the contractual framework
Establish a single source of truth
There is a need to drastically improve transparency within the industry, and visibility
along the supply chain.

The impact of Industry 4.0 on Pre-Construction
& Procurement
Analysis by myConsole team

The case for digitalisation
• Survey respondents identify significant opportunities for Construction to increase revenue and
exploit huge efficiencies by adopting digital technology
6 July, 2017
Forecast for 2020
 Worldwide survey, of over 2,000 businesses in
26 countries
 19% of which were from the construction and
engineering sectors
PwC survey respondents plan to make significant investments in digital
And expect to spend around 5% of their revenue p.a.
And 55% of this investment is expected to payback within two years.
https://www.pwc.com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-your-digital-
enterprise-april-2016.pdf

Key findings from the PwC research show:
• Annual revenue to increase by +2.9% on average as a result of digitalisation in construction
 Some forecasting ‘ T.O. increases of more than +50% over five years.’
 Combined with 3.4% p.a in cost reductions over the next three years
• PwC is calling this seismic change to the business landscape ‘Industry 4.0’.
 It is about digitalisation and integration of vertical and horizontal value chains.
Huge cost
savings &
quick ROI
Quantum
leads in
productivity
&
performance
Empowers
deeper
collaborative
relationships
Through End to End Digitisation:

Only an end to end solution will deliver these increases
Digitalisation and integration of vertical
and horizontal value chains
1. Vertical  integrate process
vertically down through client
desired outcomes at concept
and feasibility phases,
continuing through
procurement and delivery
phases and right down to
project completion and
handover all within one end
to end integrated digital
environment.
2. Horizontal  End to end
integration of services within
one digital platform. From
planning to execution all key
value chain partners are
collaboratively working
together, offering real time
governance.
Concept & Feasibility
Procurement
Delivery
Project Completion
Planning Collaboration
With Value Chain
Real Time
Governance
Execution
Vertical
Horizontal

Vertical & Horizontal integration
• PwC findings are reflected in the design workflows of
myConsole
• Bringing together client desired outcomes from concept
and feasibility phases and using them vertically down
through the entire process
 through procurement and delivery phases, right down to
project completion and handover.
6 July, 2017
• myConsole provides a seamless
process within one end-to-end
integrated digital environment
• with the additional features of real-
time dashboards providing complete
access to all business intelligence
and governance.
• PwC also positions how to exploit horizontal integration to
share data across all operational processes.
• The aim is to provide insights in real-time, increasing the
capabilities for reporting and execution across the entire
work winning and bid management process, which
combined will deliver profound process efficiencies and
time savings.
• For myConsole users, this means
sharing information across all
functions of the pre-construction
process
• Business strategy, sector and key
client planning and business
development and pipeline
management.

Quantum leaps in productivity & performance
• Successful data analytics drives transparency and performance enhancement.
• Real time end to end platforms drive integration of key data and metrics from horizontal value
chain partners.
• Improved customer insight from smart data analytics also allows companies to better focus on
additional high-margin business.
• “Digital services based on data analytics, or even complete digital solutions serving a customer
ecosystem, will drive breakthrough revenue growth.” Global Industry 4.0 Survey, p5
• “Improved customer insight from smart data analytics also allows companies to better focus on
additional high-margin business.” Global Industry 4.0 Survey, p14
Data Analytics across vertical and horizontal supply chains

Important Message from PwC about Digitalisation
- First movers are 3 x more successful

6 ways to improve productivity
in the UK Construction Industry
The impact of Industry 4.0 on Pre-Construction & Procurement
Analysis of Global Research
by
myConsole team

Improving productivity in the UK Construction Industry

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