SNC Lavalin is prepared for digital times ahead!

Transcription

1 SNC Lavalin is prepared for digital times ahead! Kaiserslautern Consulting Leonie Max Prashhanth Julian Technische Universitaet Kaiserslautern

2 Key question 2 Which digital alternatives can provide a sustainable future and growth for SNC Lavalin?

3 Key recommendation 3 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

4 Key issues 4 Increasing importance of EDPM within SNC Lavalin Challenges of increasing importance of digitalization Difficulties of acquiring and keeping high experienced engineers Increased efficiency results in decreasing billable hours

5 Todays agenda 5 1. Analysis 2. Alternatives 3. Evaluation 4. Implementation 5. Risks & Contingencies

6 SNC Lavalin Group 6 Clean power Infrastructure Mining & Metallurgy Nuclear Oil & Gas Engineering, design & project management Capital Consulting & Advisory Digital & AI Design & Engineering Procuremen t Construction & Project management Operations & Maintainance Sustaining capital Covering the whole supply chain

7 SNC Lavalin Group 7 Clean power Infrastructure Mining & Metallurgy Nuclear Oil & Gas Engineering, design & project management Capital Consulting & Advisory Digital & AI Design & Engineering Procuremen t Construction & Project management Operations & Maintainance Sustaining capital Covering the whole supply chain

8 SNC Lavalin EDPM 8 Key activities Key resources provide homes, education and connections by building apartment complexes, schools and bridges Customer relations Customer segments Revenue streams

9 SNC Lavalin EDPM 9 From design to finished project Physical Financial Human provide homes, education and connections by building apartment complexes, schools and bridges Customer relations Customer segments Revenue streams

10 SNC Lavalin EDPM 10 From design to finished project Physical Financial Human provide homes, education and connections by building apartment complexes, schools and bridges Customer relations Customer segments Revenue streams

11 High experienced engineers 11 Hard to get and even harder to keep?

12 Hard to get and even harder to keep? 12 Customer Quality Safety Service Worker Task Deliver project Safe job & salary Comfortability Engineering service High effort of acquiring

13 Reduced effort through interaction platforms 13 Worker Platform Customer Will this affect SNC Lavalin EDPM?

14 Probability Likelihood of arising affects 14 Impact Public and private customers with big projects

15 SNC Lavalin EDPM 15 From design to finished project Physical Financial Human provide homes, education and connections by building apartment complexes, schools and bridges if there is a service a customer needs we cover it for him Increasing interest in digitalization techniques public private Revenue streams

16 Is SNC Lavalin EDPM digital yet? 16 In order to stay competitive it is highly important to leverage core values of innovation and collaboration to overcome challenges of digitization!

17 SNC Lavalin EDPM 17 From design to finished project Physical Financial Human Percentage of revenue share: 40 provide homes, education and connections by building apartment complexes, schools and bridges Contracts: if there is a service a customer needs we cover it for him Increasing interest in digitalization techniques public private Reimbursable Fixed Price

18 Increased efficiency leads to decreased revenue 18 Increased efficiency leads to shorter work time Shorter work time leads to viewer billable hours 75% of the revenue comes from reimbursable contracts Increasing importance of EDPM How can SNC Lavalin increase efficiency without compromising revenue?

19 Earnings per share

20 In summary 20 Strength Innovation and collaboration as core values Financial resources Weakness Revenue streams rely mostly on reimbursable contracts Opportunity Construction has low degree of digitalization First mover? Growing world population Threat Fast changes in technology landscape Challenges of acquiring high experienced engineers

21 Digital alternatives for future growth Cloud engineering 2. Open community with incentives 3. Human resource platform 4. Artificial intelligence 5. Big Data 6. 3D printers 7. Virtual reality

22 Evaluation of digital alternatives 22 Increasing customer service Employee satisfaction Costs Complexity Cloud engineering Open community Human resource platform AI Big Data 3D printers VR

23 Key recommendation aspects 23 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

24 Key recommendation aspects 24 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

25 Implementing cloud engineering to set international working teams 25 Engineer 1 Engineer 3 Communication, collaboration, working environment Engineer 2 Engineer 4 Optimization of HR capacity worldwide

26 Selection process of project members 26 Finalizing project contract Uploading project details in cloud Selection options: - Data analysis of own employees - Own registration Increased efficiency through higher motivation

27 Key recommendation aspects 27 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

28 Introducing idea finding platform 28 Online platform Diversified members Bringing expertise together Monetary incentives for best practices Finding best ideas and practices for problem solving and optimization

29 Key recommendation aspects 29 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

30 Leveraging human resources without permanent contracting 30 Scanning engineers with personal data Selection, negotiation and contracting for project Adding to cloud with own employees to complete team Overcoming insufficient availability of needed engineers

31 Key recommendation aspects 31 Stay competitive on the disrupted market of construction in the digital age through implementing Cloud engineering Open community Human resource platform Virtual Reality

32 Introducing virtual reality to reach more efficient project and time management 32 Enabling more satisfying customer management

33 Timeline 33 Measures \ Year Costs in Mio $ Contracting cloud engineering provider Customizing and implementing cloud engineering 70 Seminars for users 45 Development of open community and HR platform 10 Introducing open community and HR platform 0.05 Procurement of VR technics 20 Installing VR customer experience rooms

34 Investment costs 34 Measures \ Year Costs in Mio $ Contracting cloud engineering provider Customizing and implementing cloud engineering 70 Seminars for users 45 Development of open community and HR platform 10 Introducing open community and HR platform 0.05 Procurement of VR technics 20 Installing VR customer experience rooms

35 Investments in Mio $ How to fund the investments? Funding through EPS Funding through loans

36 Development of the EPS 36 Earnings Per Share

37 Key Performance Indicator 37 KPI's EPS Employee satisfaction 80% 84% 87% 92% 92% 92% Billable hours 100% 102% 101% 100% 100% 100% Loan in Mio $

38 Risks & Contingencies 38 I. Quality issues II. Lack of social skills III. Imitation High Impact Low III I II Minor Probability Major

39 We are looking to further discuss on the topic with you! Kaiserslautern Consulting Leonie Max Prashhanth Julian Technische Universitaet Kaiserslautern