Business Model Disruption – The Step-Wise Transition to Remote Operations

25 mins

Many assets have reached the “point of diminishing returns” in their pursuit of optimization benefits using conventional business models. To reach the next horizon of value, these assets must undergo digital process re-engineering, digital re-organization and digital business transformation. In many cases, the entire operations management system needs to be re-written and re-implemented.

The first step in transitioning to a new operating model involves defining the end-state and achieving a step-wise approach toward it. That end state might be a centralized optimization center, remote integrated operations center, minimal manning facility, or a fully automated facility. The internal rate of return (IRR) associated with the transition to remote operations depends on the extent to which operating cost savings can be traded for capital investment.

Through various case studies, this session will explore the key considerations in making a successful transition and the important factors driving IRR variability and operational risk.