Background
A leading North American engineering, procurement and construction (EPC) firm aimed to become an AI-driven organization but faced significant challenges. The client lacked a unified vision for data, analytics, and AI, had fragmented datasets, and lacked standardized and reliable data. Recognizing the potential AI could bring for increased profitability through cost efficiencies and top-line growth, the client engaged L.E.K. Consulting to redesign its analytics and artificial intelligence (AI) operating model and to develop a visionary “North Star” for AI within the organization.
Approach
Looking to spark thinking and introduce creative new use concepts, our team began by identifying best-in-class analytics strategies and operating models to inspire the ‘art of the possible’. To be pragmatic and showcase opportunities that could deliver value in the very near-term, we engaged with individuals across the organization to identify opportunities where AI could create value. We focused the efforts to identify key levers for profitability and to understand customer pain points and value creation opportunities.
Next, we mapped the client’s existing data and analytics organizational structure and capabilities, assessing the alignment with stakeholder needs. Collaborating with our client, we pinpointed where the current organization, processes, technology, and data usage fell short of strategic goals. This led to a recalibration of critical processes, enhanced governance, and a shift of teams to align to the client’s strategic direction.
Getting to an end-state required more than just “flip the switch” approach, so the team developed a roadmap to align data choices with operating model principles, evaluating gaps between current capabilities and new requirements. Prioritizing capabilities and assigning key milestones, we outlined initiatives and designated owners for implementing new capabilities.
After crafting the new strategic direction and operating model, we detailed the necessary investments and additional operating costs, outlined key workstreams and initiatives, and supported the client in defining changes and securing stakeholder buy-in.
Results
Our client emerged with a clear strategic vision for AI, a clear path forward on critical operating model changes, and an identified set of over $350 million in annual cost savings that could be made possible through improved deployment of data and AI solutions. This comprehensive plan set the foundation for the EPC firm to achieve substantial growth and enhanced profitability by becoming an AI-driven organization.
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