Strategy ShiftWorking with an oil production company, we faced the challenge of capital projects hampered by financial risks stemming from the latest financial downturn in Canada and the drop in oil price. The prevalent project development approach was a focus on large development projects with high capital costs, supported by an ingrained cultural belief that the approach was the most economical.
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Work process modifications and cultural shiftWe identified a need for an engineering, procurement and construction (EPC) firm to shift old-style engineering procedures for relief calculations to new, more accurate approaches using transient analysis. Because the prevalent methodologies were perceived as conservative if inaccurate, they were widely accepted by the industry which viewed transient analysis as an overly complex, costly and “fancy” solution. All these perceptions were inaccurate.
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Work process modifications and structural changesWorking with an oil and gas company, we identified a severe deficiency in their approach to project execution. Projects oscillated between stop and go states and changes were constantly being introduced after kickoff. While the client had made numerous attempts to ensure a solid project basis before execution to prevent such oscillations, rapidly changing industry and market conditions hindered their efforts.
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Business Model InnovationA greenhouses startup business that uses industrial waste heat to run greenhouses efficiently was facing the challenge of raising enough capital to execute their first project.
The company unique design, when used with a combined cycle gas fired power plant, can increase energy efficiency from 50% to more than 85%, which equates directly to a 35% reduction in power plant carbon emissions. |