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DIGITALISATION IN
POWER GENERATION
The state of the industry
March 2018
In association with:
REPORT
DIGITALISATION IN POWER GENERATION
FOREWORD
If there is one word on the tip of every business leader’s tongue right now,
that word is ‘digital’. Digital disruption. Digital transformation. Digitalisation.
Everything that can be digital will be digital and, judging from the articles we
read, the events we attend, the meetings we hold and the conversations we
have, it seems that digital is the only thing that matters.
In my work as a digital transformation strategist and speaker, Indeed, the digital revolution is creating a wealth of new
I have the opportunity to discuss digital with senior executives opportunities for enterprises across the power industry. Older
in a wide range of industries. When I do, I hear a desire. A power plants are turning to increased digitalisation to gain a
desire to do something. To stave off disruption. To avoid being more accurate understanding of operations, while new-build
left behind by competitors who are faster and not meeting the plants are fully digitalised and require intelligent systems to
needs of customers who are more demanding. Industries as manage and take advantage of unprecedented amounts of
diverse as entertainment and automotive, telecommunications data. New technologies will play a critical role as organisations
and travel, healthcare and retail are being buffeted by a rapidly pursue their strategic goals in areas ranging from process
shifting landscape and exponential technological change. You optimisation and intelligent information management to
might even be asking yourself if the power generation industry maintenance and modification planning.
could be next.
That much is clear. What is less clear is what other
You may be wondering if it’s too late (it’s not), if you’ve fallen organisations like yours are actually doing, where they’re
behind (you haven’t). You might be feeling the pressure to fully investing, what kinds of results they’re seeing, how your own
reimagine and reinvent your business for a future that is not organisation stacks up, and what you should do next (or first!).
yet clear. You may worry that your organisation will struggle to
overcome critical challenges that will impede your progress – This is exactly why AVEVA partnered with research firm
challenges like a weak vision for the future of the business, a Vanson Bourne to field a landmark study of digitalisation
risk-averse culture, a digital skills gap in the workforce, or even perceptions and practices – to put digitalisation in perspective
an over-reliance on legacy IT systems that are more likely to for the power generation industry. In the data, drawn from a
hinder digitalisation than drive it forward. mixture of telephone and online surveys with senior decision
makers at power companies around the world, you will learn
You may question whether all of the energy, effort, investment just how big a priority digital is for your peers, what factors
and resources you could put into digitalisation are really worth are driving their digital agendas, what challenges hold them
it. And so you should. At some point, you have to ask yourself, back, which technologies they invest in, and what benefits
‘What does this all really mean for me?’ they see as a result of the digitalisation efforts. You’ll also see
how power compares with other plant industries because it’s
For those of you working in the power industry, the World important to see digitalisation within the broader context of
Economic Forum (WEF) has a compelling answer to business in general.
this question. They have estimated that by 2025, digital
transformation will create $1.3 trillion of new value in the As you read the findings in this report, I encourage you to
electricity sector alone. Their report, ‘Digital Transformation of reflect on the state of digitalisation in your own organisation,
Industries’, goes on to say: think about where your own experiences match or differ from
those of others in your industry, and consider ways in which
By making full use of the building blocks of digitisation, such you can tap into the true power of digital to capture your share
as service platforms, smart devices, the ‘cloud’ and advanced of the $1.3 trillion in new value that the WEF projects for the
analytics, companies in the industry have the opportunity power industry over the coming years.
to increase the asset life cycle of infrastructure, optimise
electricity network flows and innovate with customer-centric To your digital success,
products. New pools of value could also be tapped ‘beyond
the electron’ by harnessing big data across sectors. Greg Verdino
Digital Business Strategist
www.gregverdino.com
3
REPORT
EXECUTIVE SUMMARY
KEY FINDINGS
AVEVA partnered with Vanson Bourne, an independent specialist in
market research for the technology sector, to undertake a comprehensive
study of the current state of digitalisation in the power generation industry.
We aimed to determine the industry’s current level of digital maturity, as
well as the sector’s perceptions related to the opportunities and challenges
inherent in digitalisation, and its implementation of, and investments in, the
technologies required for plant digitalisation. We then asked technology
analyst Greg Verdino to reflect on the trends and offer some conclusions
on the findings.
The findings presented in this report are drawn from a far-reaching survey that collected responses
from 400 senior decision makers working in five plant industries and in 21 countries around the
globe. Respondents included officers, directors and managers in roles ranging from operations,
projects, maintenance and engineering to data, finance and safety.
Our key findings for the power generation industry include:
● 88% of respondents say adopting digitalisation will increase revenues for their organisation
● 46% believe plant digitalisation is a rapidly growing focus of attention across the industry
and 28% say it is here and happening now
● 40% feel increasing competition is influencing plant digitalisation
● On average, respondents believe digitalisation can boost production capacity by 29%

and cut operating costs by 27%
● 44% are currently investing in intelligent information management and a further 50% are
planning to do so in the future.
These findings and many others presented in this report echo those in the MIT Sloan
Management Review’s broader business report, ‘Achieving Digital Maturity’, which concluded that
several important factors are key to the success of any business’s successful journey towards
digital maturity. These factors include the extent to which digitalisation is core to their organisation,
the application of longer time-horizons to their digitalisation strategies, and a greater ability to scale
their digital experiments enterprise-wide.
4
The findings presented in this report are drawn
from a far-reaching survey that collected
responses from 400 senior decision makers
working in five plant industries and in 21
countries around the globe.
REPORT
DIGITALISATION IS HERE
AND HAPPENING
How real is digitalisation, and how important is it?
In ‘How Digital Transformation Is Reshaping the Energy Industry’, Energy Digital asserts:
‘The disruptive changes of digital transformation are currently sweeping through the
energy industry. Increased use of renewables, resiliency issues and sustainability
concerns are just a few of the drivers behind the industry’s need to transform – and
digitalisation is the single biggest enabler of that change. The digital age has not only
brought us a “Digital Twin” version of the physical power plant that monitors every
asset, but it’s also capable of providing an intelligent response with analytics that trigger
the appropriate actions from a service and maintenance perspective.’
Given this pattern and the opportunities it presents for power companies, it comes as no surprise
that the vast majority of power generation leaders see plant digitalisation as a key focus of the
business. While nearly 50% see digitalisation as a rapidly-growing feature of plant operations and
a near-term strategic imperative and another 25% see it as developing more slowly but still worthy
of exploration, nearly 30% assert that digitalisation is here and happening right now.
From your perspective, what is the current state

of plant digitalisation in your industry overall?
2% Plant digitalisation is in the early stages and only a

few organisations are looking into it
Plant digitalisation is slowly gaining traction and

24%
more organisations are exploring what it can offer
Plant digitalisation is here and it’s happening now –

28% it’s a case of keep up or get left behind
Plant digitalisation is a rapidly growing focus across

46% the industry with most organisations working on their
strategy and initiatives
6
REPORT
As a result of the urgency in the power sector caused by the trend toward digitalisation, the
majority of organisations rank a variety of digital initiatives across the business as top or high
priorities.
Some 90% say plant digitalisation is a top or high priority, with 22% rating it as their
organisation’s ‘number one/top priority’. Customer experience digitalisation ranks a close
second for top priority (20%), with a combined 58% saying it is a top or high priority for their
organisation. However, digitalisation is clearly an organisation-wide imperative, with more
than half of respondents saying that it is a high-priority initiative in areas as diverse as finance,
purchasing, workplace and marketing.
Please assign a level of priority to the following

digitalisation initiatives for your organisation:
Plant digitalisation 68 22
Customer experience digitalisation 38 20
Workplace digitalisation 58 8
Purchasing digitalisation 58 2
Financial digitalisation 60 2
Marketing digitalisation 56 2
0% 25% 50% 75% 100%
High priority Number one/top priority
7
REPORT
The ‘why’ that motivates these digitalisation initiatives is as

important as the ‘when’ and the ‘where’. The dual risks of
falling behind competitors and of plant obsolescence topped
respondents’ fears, while the potential for new digital processes
to increase revenues in their organisations resonates with 88% of
respondents (strongly agree/slightly agree).
At the same time though, the majority of organisations

may struggle to ward off these risks and seize new revenue
opportunities if they are unable to overcome challenges that could
hold them back: 52% still view digitalisation as a ‘buzz word’ that
is ‘not…part of a long-term revolution’, 74% say they would need to
‘significantly upskill’ their employees, and the majority struggle to
maintain (72%) and analyse (62%) data.
To what extent do you agree or disagree

with the following statements?
If my organisation does not begin to adopt

plant digitalisation then our competitors will 54 34
leave us behind
If my organisation does not further embrace

digitalisation then our plant/laboratory/ 60 28
production facility could become obsolete
The adoption of new digital processes will

50 38
increase revenues in my organisation
We would need to significantly upskill our

employees in order for us to adopt new 36 38
digital processes
Digitalisation is just a buzz word and is

not here to stay as part of a long-term 32 20
revolution
My organisation
struggles to analyse the 40 22
data we collect
My organisation
struggles to maintain 52 20
and update the data we collect
0% 25% 50% 75% 100%
Slightly agree Strongly agree
8
REPORT
In light of the urgency, motivations and prioritisation of key digital initiatives, it is not surprising that
60% of power generation executives say that they are ‘early adopters of plant digitalisation – ahead
of most’. That said, fewer than one in five (18%) consider their organisation to be a true digital leader
that is well ahead of others in the industry.
How do you believe that your organisation

compares to its competitors in your industry when
it comes to plant digitalisation progress?
18% We are leaders in plant digitalisation – well

ahead of others in our industry
60% We are early adopters of plant

digitalisation – ahead of most
We are fast followers of plant digitalisation

6% – inspired by others to undertake it
We are late adopters of plant digitalisation

16% – just getting started
Whether an organisation is a leader, ahead of the game, or lagging behind its competitors, most
would agree on the importance of two vital factors for success. More than nine out of ten say their
organisation could stand to improve its digital vision and almost as many agree that digital must be
built directly into the core business.
To what extent do you agree or disagree

with the following statements?
My organisation could
48 44
improve its digital vision
In order to succeed,
digitalisation must be built 36 52
into our core business
Improving existing management

practices could speed up our plant 42 46
digitalisation progress
0% 25% 50% 75% 100%
Slightly agree Strongly agree
9
52% are driven toward
digitalisation by changes
in demand
REPORT
THE ROAD TO
DIGITALISATION
What’s driving digitalisation? How are organisations
benefitting and what are the barriers to increased adoption?
Given that the majority of respondents fear falling behind the

competition in digitalisation, it’s not surprising that 40% also
see increasing competition as a key trend that is fuelling their
organisation’s digital agenda. However, this is not the top factor.
52% are driven toward digitalisation by changes in demand.
Roughly 30% rank commodity costs, and political and economic
uncertainty as important factors.
Notably, only 28% name ‘rapid advances in technology

development’ as a trend that is influencing their organisation’s
push toward plant digitalisation, underscoring the reality that
digitalisation is first and foremost a strategic business imperative
rather than merely a technological one.
What are the key trends/issues that are influencing

plant digitalisation for your organisation?
Changes in demand 52
Increasing competition 40
Changing regulatory landscape 36
Commodity costs 34
Uncertain political environment 32
Uncertain economic environment 32

Rapid advances in technology development (e.g.
28
AI, machine learning, robotics, etc.)
Shift in geographic markets of interest 26
Shift in workforce generation 26

There are no trends/issues influencing plant
4
digitalisation for my organisation
0% 25% 50% 75% 100%
11
REPORT
Whether you view digitalisation as driven by market forces or technological innovation though, there
is no denying the fundamental role the IT function plays in driving the organisation forward. In fact,
nearly 75% of all respondents say IT is driving plant digitalisation, albeit not necessarily on their own
as operations (48%), engineering (38%), and R&D (32%), among others, play a role.
Which functions are driving the need for plant digitalisation?
IT 74
Operations 48
Engineering 38
Finance 36
Research and development 32
Commercial 30
Legal 6
Nobody – there is a general

4
understanding of the need to digitalise
0% 25% 50% 75% 100%
Regardless of which function is driving digitalisation, the focus of their digital initiatives is more
likely than not on optimising the core fundamentals of the business. More than half cite cost
management and exactly half report that optimising processes are a main focus. Nearly half
point to safety, operations and production capacity as priorities.
In light of the struggle to manage and analyse data highlighted earlier in this report, it’s also worth
noting that 42% of organisations have made intelligent information management a digital priority.
What are your organisation’s main areas of

focus when it comes to plant digitalisation?
Cost management 54
Optimising processes 50
Process health and safety 48
Operations and maintenance 48
Maintenance and modification planning 44
Expanding production capacity 44
Intelligent information management 42
Project engineering 34
Monitoring plant performance 30
Minimising downtime 28
Ensuring regulatory compliance 20
Shutdown and turnaround planning 20
0 25 50 75 100
12
REPORT
The data underscores the importance of setting realistic

expectations at the outset of any plant digitalisation initiative
and having a realistic view of where digital is likely to have the
biggest impact in your own organisation
REPORT
Among organisations that pursue these focus areas, most find that their results meet or exceed
their expectations. At the same time, the data underscores the importance of setting realistic
expectations at the outset of any plant digitalisation initiative and having a realistic view of where
digital is likely to have the biggest impact in your own organisation.
How does your experience of plant digitalisation compare to your (Respondents only the saw the areas
that their organisation is focusing on
original expectations in terms of the following? when it comes to plant digitalisation)
Optimising processes 4 52 36 l It has helped more

than expected
Intelligent information management 5 52 38
l It has helped the
same as expected
Process health and safety 4 38 63
Project engineering 4 65 29
l It has helped less
than expected
Cost management 15 52 30
Maintenance and modification planning 14 36 45
Shutdown and turnaround planning 50 50
Operations and maintenance 42 58
Expanding production capacity 9 45 45
Monitoring plant performance 67 33
Minimising downtime 21 36 29
Ensuring regulatory compliance 10 50 40
40% 20% 0% 20% 40% 60% 80% 100%
Beyond the impact of their own digitalisation initiatives to date, respondents believe
in digital’s broad ability to benefit their organisations. Almost half believe digitalisation
can be of most benefit in production performance. Even more say it can help in the
operations arena and in improving safety.
Which of the following do you believe that plant

digitalisation can help most with in your organisation?
Safety 56
Plant/laboratory/production facility operations 50
Plant/laboratory/production facility production 48
Plant/laboratory/production facility maintenance 44
Greenfield site development 26
Brownfield site modifications 24
Compliance 24
0% 25% 50% 75% 100%
15
REPORT
Homing in on production performance, every respondent agreed that digitalisation has the
potential to boost production capacity of their facility by at least 10%. On average, responses
indicate plant digitalisation could boost production capacity by more than 29%.
By how much do you feel that plant digitalisation can boost the
production capacity of your plant/laboratory/production facility?
100%
Percentage of respondees
Average 29%
28 30
24
18
0%
0% Less than 10-20% 20-30% 30-40% 40-50% More than
10% 50%
Nearly all also feel that digitalisation can reduce operating costs by anywhere from 10% to 50%,
with the average falling just over 27%.
By how much do you feel that plant digitalisation can reduce the
operating costs of your plant/laboratory/production facility?
100%
36
Average 27%
22
20
14
2 2
4
0%
0% Less than 10-20% 20-30% 30-40% 40-50% More than
10% 50%
16
REPORT
Of course, to achieve these types of improvements will require organisations to overcome

the challenges that might hold them back, and nearly all respondents concede that they face
challenges.
When asked about their own main challenges, 42% say plant digitalisation could be compromised
by lack of IT infrastructure and 36% say they are overly reliant on legacy systems; 40% say they
don’t possess the in-house skills; 34% believe they would have to overcome a risk-averse culture;
and 34% worry about lack of interdepartmental collaboration.
What are the main challenges you face

when it comes to plant digitalisation?
Lack of IT infrastructure 42
Lack of in-house skills 40
Over-reliance on legacy IT systems 36
Fear of disruption to core business 36
Risk-averse culture 34
Lack of collaboration between departments 34
Digitalising access to engineering information management 32
Lack of senior management support 28
Lack of budget 22
Regulatory compliance 12
There are no challenges to plant digitalisation 4
0% 25% 50% 75% 100%
17
REPORT
However, the vast majority express some degree of confidence their workforce can adapt
to a digital workplace.
How would you rate your confidence levels in your

organisation’s workforce to adapt to new digital processes?
8% Not overly confident that they can adapt
44% Totally confident that they can adapt
48% Somewhat confident that they can adapt
0% Not confident at all that they can adapt
And when internal challenges such as the ability to implement major IT infrastructure changes
and knowledge gaps in the workforce are stacked up against external challenges, it is outside
forces like environmental regulations (50%), increased energy demand (50%), and outdated grid
infrastructure (48%) that topped our respondents’ list of challenges.
What do you believe are the main challenges in

the power industry currently?
Environmental regulations (e.g. renewable 50

energy requirements)
Increased energy demand 50
Outdated grid infrastructure 48
Implementing large IT infrastructure changes 44
Complex equipment maintenance 36
Economic pressures 32
Knowledge gaps in the workforce 24
Plant/laboratory/production facility expansion

16
difficulties
0% 25% 50% 75% 100%
18
REPORT
DATA: INFORMATION
OVERLOAD
Issues and opportunities associated with digital
information management
Simply put, power companies are awash with data. So much so that, as our respondents told us,
many companies in the sector struggle to maintain, analyse and put their own data to use for their
own organisation. The digitalisation of power generation holds the key to overcoming this obstacle.
As Power Engineering has written in “Ones & Zeros: How Digital Power Plants Are Leveraging Big
Data and Analytics for Greater Reliability and Profit”:
‘A modern gas-fired power plant is equipped with more than 10,000 sensors. They
measure and communicate movement, vibration, temperature, humidity, and chemical
changes in the air and water. Historically, only a fraction of this data has been analysed
and quantified in the day-to-day operation and maintenance of a facility. The digital
transformation of power generation has begun to change this, creating opportunities to
exploit data and make sense of information that would otherwise go to waste. This allows
power plants to trim costs, increase sales, and boost efficiency and reliability. “Big data”
it’s called, and it’s a world where analytics rule.’
Promising, for sure, but many power generation companies have a long way to go before they
can put their data to work for these types of benefits. More than 90% of respondents concede
that they have difficulties embracing digital engineering information management.
Incomplete and inaccurate data are each a problem for nearly 50%, and 40% cite lack of real-time
data as an issue.
What problems does your organisation face in implementing

digital engineering information management?
Lack of a complete data set 48
Inaccurate data 46
Lack of real-time data 40
Lack of digital copies of files 32
Limited access to legacy document systems 32
There are no problems in implementation 8
0% 25% 50% 75% 100%
20
REPORT
In light of challenges like these, none of our respondents say their organisation uses more than
half of the data they collect to move business forward. In fact, on average these organisations
put just over one quarter of their engineering data to use.
What percentage of the engineering information that your organisation

collects, regarding operating/running and maintaining your plant/
laboratory/production facility, do you believe is analysed in a manner
that allows the organisation to progress?
100%
34
Average 27%
24 24
14
2 2 0
0%
0% - we Less than 10-20% 20-30% 30-40% 40-50% More than
do not 10% 50%
analyse any
of our data
effectively
21
REPORT
Digital information management

is key to helping organisations
improve on these numbers.
More than 60% say data analysis
would be easier with digital
information management and
40% say it would allow them to
make more informed decisions.
What benefits would access to digital engineering information management

offer for the data that your organisation collects specifically?
Data analysis would

64
be easier
Our data would be

56
more secure
We would know where

all of our data was stored 40
More informed decisions could be

made from the insights we gain 40
We would be able to transfer

our data more easily 38
Data would not

become siloed 34
We would store less

irrelevant data 30
0% 25% 50% 75% 100%
22
REPORT
Naturally, the benefits of digital information management extend well

beyond the data itself, to the positive effects it can have on the business.
Of our respondents, 62% see information management as a way to unlock
increased revenues, 42% anticipate gaining a greater ability to upgrade
facilities, 42% see a chance to upskill the workforce, and 40% anticipate the
ability to expand production or implement new greenfield projects.
What do you believe are/could be the main benefits of access to digital

engineering information management in your organisation?
Increased revenues 62
Greater control over our data 46

Improved ability to analyse our data 44
Greater ability to upgrade our
42
plant/laboratory/production facility
Upskilling our workforce 42
Implement new greenfield projects 40

Greater opportunity to expand the
plant/laboratory/production facility 40
Access to real-time data and insights 32

Easier day-to-day running of the plant/ 30
laboratory/production facility
Competitive advantage 28
Implement more brownfield projects 16

Faster handover of information 14
0 25 50 75 100
23
REPORT
IMPLEMENTING
DIGITAL
Technology adoption and investment
Power Engineering notes that digitalisation isn’t cheap, but argues that the payoff comes in
technology’s ability to improve productivity. They write:
‘Nothing in the power generation industry is inexpensive. Between the never-

ending struggle to comply with environmental regulations and the constant costs
of maintenance and operations at a facility, plant stakeholders could be forgiven if
they tired of spending money. Still, the case for investing in plant digitalisation is a
strong one. Indeed, it is because of the enormous capital expenditures required by
the industry that it becomes so important to wring every last drop of productivity
from power assets, and software is indispensable in this effort.’
Realising the potential of digitalisation and reaping its rewards call for smart, strategic decisions
about where to invest your organisation’s time, money, resources and energy. These decisions
must, of course, be guided by your vision for digitalisation in your business and across the
sector, and should be calibrated to the areas in which you can seize the most significant
opportunities.
When we asked respondents which digital offerings they believe provide the single greatest
opportunity for their own organisations, cloud and intelligent information management topped
the list.
Which of the following digital offerings do you believe provides the

single greatest opportunity for your organisation to exploit?
l 28% Cloud
l 16% Intelligent information management
l 14% Advanced analytics
l 12% Robotic process automation

l 8% IoT
l 8% Sensors
l 6% Drones
l 4% Machine learning
l 2% HyperBubbles (Integrated Laser Scans)
l 2% Data warehouses
24
REPORT
Understandably, these organisations are already investing in these technologies, with 50%
currently investing in cloud and 44% already funding intelligent information management.
Further, they show no sign of slowing down. Considering the challenge many organisations
have in putting their data to work despite acknowledging the power of analytics to drive
business growth, exactly 50% plan to invest in intelligent information management and even
more say that advanced analytics is on the investment agenda.
Is your organisation currently investing/planning to invest in any of the

following technologies as part of its plant digitalisation strategy?
Planning to
Planning to invest within Planning to Planning to
invest within the next six invest within invest, but
Currently the next six months to a the next one in more than
investing months year to two years two years
IoT 28% 30% 22% 6% 4%

Intelligent information management 44% 18% 14% 14% 4%
AR/mixed reality 18% 26% 24% 10% 8%
HyperBubbles (Integrated Laser Scans)
18% 18% 28% 10% 4%
Cloud 50% 24% 10% 10% 4%
Drones 22% 20% 22% 12% 2%
Sensors 48% 26% 10% 10% 0%
Advanced analytics 38% 28% 20% 6% 0%
Machine learning 26% 36% 20% 8% 2%
Robotic process automation 40% 18% 8% 14% 6%
Data warehouses 46% 26% 8% 12% 0%
25
REPORT
As these organisations invest in new technologies as part of digitalisation, most recognise the value of
having the right partners for successful implementation. Of organisations that are investing or planning to
invest in new technologies as part of digitalisation such such as alternative or mixed reality, a full 94% say
they will need external support.
Do you believe that your organisation will require support from third-party service providers
for any of the areas currently being invested in or where investment is planned?
Intelligent information management 47

Cloud 45
Advanced analytics 33
Sensors 31
IoT 29
Alternative or mixed reality 29
Drones 27
Machine learning 27
Robotic process automation 20
Data warehouses 20
HyperBubbles (Integrated Laser Scans) 12
My organisation will not require any support 4
Don’t know 2
0% 25% 50% 75% 100%
Beyond the obvious ability to lean on a third-party supplier for external technical expertise, power
industry executives see clear benefits of partnering for success. Choosing to involve an outside service
provider in important digitalisation initiatives allows the organisation to realise financial gains, minimise
risk and maintain focus on core areas like company strategy, plant growth and operations.

What are the main drivers for your organisation using a third-party service
provider in order to implement the areas previously selected?
We can focus on expanding the plant/laboratory/production facility 50
We can focus on plant/laboratory/production facility maintenance 48
Financial benefits of using a specialist 43
More resource available to focus on company strategy 41
Less chance of something going wrong 35
We do not have the skills in house 20
We can focus on plant/laboratory/production facility safety 17
There are no drivers for using a third-party service provider 2
0% 25% 50% 75% 100%
26
Of organisations that are investing or planning to invest
in new technologies as part of digitalisation, a full 94%
say they will need external support
REPORT
YOUR NEXT
STEPS
Conclusions and your course of action
Ultimately, a company’s decisions to pursue Handovers between EPCs and Owner Operators
digitalisation, invest in new technologies and become more effective, leading to faster transition
implement digital initiatives (with or without the into full production. Owner Operators are better
support of a good partner) come down to one able to minimise unplanned outages while better
fundamental question: how does digitalisation managing planned downtime. And across the entire
benefit the business? power generation ecosystem, lean, distributed teams
deliver work more quickly, efficiently and profitably,
In other words, is digitalisation ‘worth it?’ Based on even when spread across multiple locations and
the findings from AVEVA’s research, the answer is a companies.
resounding ‘Yes’.
It is undeniable that digitalisation is a ‘now-term’
But I would add an important caveat. If digitalisation imperative for any company that wants to not only
were nothing more than investing in new survive but thrive in a world where market conditions
technologies or amassing even more data, it would are forcing change, new competitors are emerging,
be no different from what your industry has been existing competitors are adapting rapidly, and
doing for years. Instead, digitalisation is about customers are demanding more. This is as true
innovating your strategy, improving your operations, in the power generation industry as it has been
and uncovering unprecedented new opportunities in every industry. So whether you consider your
for both efficiency and productivity. The technology own organisation to be a digital leader or a digital
you choose and the technology you use must serve laggard (or like most of the executives we surveyed,
a sound vision for your plant’s (and company’s) somewhere in between), the simple message is
digital future. that now is the time to act and if you haven’t already
In fact, technology investments and implementations started it is definitely not too late, as digitalisation has
that are grounded in strategy provide clear benefits. put everything into play.
When technologies like intelligent engineering data
management, cloud, advanced analytics and digital You gain the ability to write your own winning
twin are pursued as part of an organisational digital playbook for digital when you:
strategy, they can play a role in improving operating ● Know more…
margins by as much as 20%. While the advantages
of going digital would come as no surprise to ● So you can do more…
many in an industry that took its first steps toward
digitalisation decades ago when switching from ● That empowers you to achieve more.
paper drawing of plants to sophisticated 3D digital
renderings, the upsides today are more pronounced Greg Verdino
than ever.
Modern digital tools that support data-centric

processes across the entire plant lifecycle not only
enable new plants to be delivered more effectively
and with full data-centric digital information, but
also enable established power plants to manage
their operations more efficiently than ever before.
28
REPORT
Know more... Put information 3 Assess the digital readiness of your

to work for your organisation: infrastructure, workforce,
organisation skillsets, culture and assets
3 Invest in intelligent information management
So you can Implement a 3 Set a data-driven vision and strategy

do more… digitalisation for your organisation
roadmap that is 3 Formulate the right responses to
informed by data external drivers like changing demand,
commoditisation and regulatory uncertainty
3 Make the right technology investments
3 Upgrade your existing plants or design
new ones, optimise your processes, upskill
your workforce, improve your customer
experience
3 Increase plant-wide and ecosystem-wide
collaboration
That empowers Translate data-driven 3 Increased productivity

you to achieve digitalisation into real 3 Improved efficiency
business results
more 3 Competitive advantage
3 New revenue, more profit
29
REPORT
METHODOLOGY
This study is based on a mixture of telephone and online surveys conducted
with 400 senior executives at organisations with at least 500 employees, in the
Power Generation, Pharmaceuticals, Chemicals & Petrochemicals, Mining &
Minerals and Pulp & Paper sectors.
Our international sample included 50 Power industry respondents from the United States, Canada,
United Kingdom, Germany, China, and France. Respondents included Chief Financial Officers, Chief
Technology Officers, Chief Information Officers, Project Directors/Managers, Engineering Directors/
Managers, Design Directors/Managers, Operations Directors/Managers, and Maintenance Directors/
Managers.
POWER GENERATION:
COMPARISON WITH OTHER INDUSTRIES
Because this study is one of five undertaken ● According to the survey, power generation
across five industries (Power Generation, companies (at 52%) are most likely to cite
Pharmaceuticals, Chemicals & Petrochemicals, changes in demand as a trend influencing
Mining & Minerals and Pulp & Paper) we have digitalisation; the average was 40%.
an opportunity to place the state of digitalisation Conversely, increasing competition was
in power generation organisations within a wider a factor for 40% in power generation but
industrial context. averaged 45% across all sectors.
● Plant digitalisation is here and happening ● Respondents from all sectors anticipate an
for 30% of respondents across the five increase of 26% in production capacity from
industries. Power generation lags slightly plant digitalisation; for power generation, it
in this context, at 28%. Further, at 46%, is 29%. Similarly, power generation (27%) is
power generation is behind the overall above the average figure of 24% across the
average of 54% of respondents who say that five sectors in terms of anticipated reduction
digitalisation is a rapidly growing focus for in operating costs.
their industry.
● A total of 72% of power generation
● In power generation, 88% agree that respondents say they struggle to maintain
digitalisation must be built into their core and update the data they collect, and 62%
business if they are to succeed – compared say they struggle to analyse it (against
to 92% across all industries. averages of 56% and 54% respectively).
44% say they are already investing in
● However, power generation businesses
intelligent information management,
are more likely than others to say that
against an average of 41%, although power
they see themselves as early adopters of
generation lags a little in its plans to invest
plant digitalisation; 60% agree with that
over the next two years (46% for power vs.
proposition, against an average of 51%.
an average of 51%).
To learn more about the state of digitalisation in each industry and overall, view
our complete set of digitalisation reports at: www.aveva.com/digitalisation
30
REPORT
About AVEVA
For over 50 years, AVEVA software has enabled the creation of
some of the world’s most complex power and process plants, vessels
and offshore facilities. AVEVA’s Digital Asset approach ensures
there is always an accurate digital representation of each physical
asset. This allows engineering contractors, owner operators and
shipbuilders to work more safely, more efficiently and with less risk
throughout the lifecycle of their projects and operations. AVEVA is
the proud winner of the Frost and Sullivan 2015 Global Engineering
Information Management Solutions Competitive Strategy Innovation
and Leadership Award. To learn more, visit www.aveva.com.
About Vanson Bourne

Vanson Bourne is an independent specialist in market research
for the technology sector. Their reputation for robust and credible
research-based analysis is founded upon rigorous research
principles and their ability to seek the opinions of senior decision
makers across technical and business functions in all business
sectors and all major markets. For more information, visit
www.vansonbourne.com.
About Greg Verdino

Greg Verdino is an independent expert in digital transformation
who helps enterprises thrive in the face of disruption. For more than
25 years Greg has worked at the forefront of change, advising 50
of the Fortune 500 and holding senior positions at a half-dozen
technology start-ups. He is a speaker, author and go-to expert for a
wide variety of media outlets including Bloomberg Business, CNBC,
eMarketer, the New York Times, and the Wall Street Journal. Learn
more at www.gregverdino.com.
31
linkedin.com/company/aveva
@avevagroup
About AVEVA
AVEVA software and services enable our customers to solve the world’s most complex engineering and design
challenges. Discover how we can help you redefine engineering possibilities to successfully create and manage
world-class capital-intensive assets. Headquartered in Cambridge, England, AVEVA employs more than 1,700
staff in 50 offices around the world.
AVEVA believes the information in this publication is correct as of its publication date. As part of continued product development, such
information is subject to change without prior notice and is related to the current software release. AVEVA is not responsible for any
inadvertent errors. All product names mentioned are the trademarks of their respective holders.
Copyright © 2018 AVEVA Solutions Limited and its subsidiaries. All rights reserved. DIPGI/FR/18.

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aveva.

Our key findings for the power generation industry include:

● 40% feel increasing competition is influencing plant digitalisation

● On average, respondents believe digitalisation can boost production capacity by 29%

From your perspective, what is the current state

2% Plant digitalisation is in the early stages and only a

Plant digitalisation is slowly gaining traction and

Plant digitalisation is here and it’s happening now –

Plant digitalisation is a rapidly growing focus across

Please assign a level of priority to the following

Customer experience digitalisation 38 20

0% 25% 50% 75% 100%

High priority Number one/top priority

The ‘why’ that motivates these digitalisation initiatives is as

At the same time though, the majority of organisations

To what extent do you agree or disagree

If my organisation does not begin to adopt

If my organisation does not further embrace

The adoption of new digital processes will

We would need to significantly upskill our

Digitalisation is just a buzz word and is

0% 25% 50% 75% 100%

Slightly agree Strongly agree

How do you believe that your organisation

18% We are leaders in plant digitalisation – well

60% We are early adopters of plant

We are fast followers of plant digitalisation

We are late adopters of plant digitalisation

To what extent do you agree or disagree

Improving existing management

0% 25% 50% 75% 100%

Slightly agree Strongly agree

Given that the majority of respondents fear falling behind the

Notably, only 28% name ‘rapid advances in technology

What are the key trends/issues that are influencing

Changing regulatory landscape 36

Uncertain political environment 32

Uncertain economic environment 32

Shift in workforce generation 26

Which functions are driving the need for plant digitalisation?

Research and development 32

Nobody – there is a general

What are your organisation’s main areas of

The data underscores the importance of setting realistic

Optimising processes 4 52 36 l It has helped more

Maintenance and modification planning 14 36 45

Shutdown and turnaround planning 50 50

Operations and maintenance 42 58

Expanding production capacity 9 45 45

Monitoring plant performance 67 33

Ensuring regulatory compliance 10 50 40

40% 20% 0% 20% 40% 60% 80% 100%

Which of the following do you believe that plant

Plant/laboratory/production facility operations 50

Plant/laboratory/production facility production 48

Plant/laboratory/production facility maintenance 44

Greenfield site development 26

Brownfield site modifications 24

0% 25% 50% 75% 100%

Of course, to achieve these types of improvements will require organisations to overcome

What are the main challenges you face

How would you rate your confidence levels in your

8% Not overly confident that they can adapt