Based on a survey of Agricultural, Engineering, and Construction (AEC) companies, Aberdeen, in their September 2014 report, shows how successful AEC companies manage information, resources and risk.
Improving Profit Margins in AEC: Visibility, Risk-Mitigation, and Project Management
Aberdeen research has consistently shown that the key challenges facing AEC companies are around visibility of information and managing delivery to meet customer expectations. Based on the experiences of over 70 survey respondents, this report looks at how successful AEC companies are connecting all of the right people to the right information, so that the right decisions are made at the right time.
The Business Environment in AEC
Aberdeen’s ‘2014 Project and Portfolio Management Benchmark Survey’ talked to 73 AEC companies about their business environment and how they have addressed key challenges in their own businesses.
Leaders are Better at Managing it All
In this report Aberdeen groups survey respondents into two maturity classes:
• Leaders: top 35% of respondents based on performance
• Followers: bottom 65% of respondents based on performance
Figure 2 shows that leaders are better at basically everything to do with making information available for decision-making.
The next area where leaders outpace followers is around risk management. Figure 3 shows us exactly where leaders lead.
Figure 4 reveals how much better equipped leaders are over followers to efficiently project manage. From standardised business processes to skills-based resources management and basic exception-based management, leaders are likely to have a significant edge over followers.
Technology Enablers Should Make the Project World Go Round
AEC companies should prioritise and look at what the leaders tend to do from Table 1:
The Results for AEC Companies
Table 1 already showed us that leaders tend to be bigger users of technology and applications than followers. Many of the capabilities and enablers from table 1 are part of enterprise resource planning (ERP) and project management applications. Table 2 shows us the comparison of AEC companies that use ERP and project management applications versus companies that don’t use them.
Some of the important steps to follow to improve your business and become a leader in the AEC industries include:
• Implement an ERP system to manage the overall business
• Standardise your performance metrics across all projects
• Use technology to manage their change and quoting processes
• Manage risk as discrete steps at milestones and gates
• Provide broad visibility to manage projects and allow decisions to be made in the context of the entire business
Aberdeen Group has been an international research partner of Nebula since 2010. With thousands of research documents, growing daily, Aberdeen’s research library helps enterprises and service providers discover the priorities and strategies of best-in-class enterprises.
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