Capital Project Performance Analysis
Key Insights
Cluster 0: Projects in this cluster demonstrate low to moderate cost and schedule overruns, short ROI timelines, and high modularity. By leveraging AI/ML & analytics, these projects have the potential to reduce actual cost and time by 30-50%.
Cluster 1: Projects in this cluster are characterized by moderate cost and schedule overruns, longer ROI timelines, and are often EPC projects. Agility, flexibility, and resilience are crucial factors to consider for effective management.
Cluster 2: Projects in this cluster exhibit high cost overruns, moderate schedule overruns, and very long ROI timelines. They are typically highly complex and regulated, requiring sustained capability building and future-proofing for successful execution.
Cluster 3: Projects in this cluster display very high cost and schedule overruns, as well as very long ROI timelines. They are highly complex and require strategic planning and risk management to navigate the challenges effectively.
Cluster 4: Projects in this cluster are characterized by high cost and schedule overruns, moderate ROI timelines, and strategic importance. Fostering ecosystem collaboration and industrialization are key strategies for delivering these projects successfully.
Cluster 5: Projects in this cluster are critical infrastructure projects with moderate cost overruns, low schedule overruns, and very long ROI timelines. Optimizing the outcomes of these projects requires maximizing total value for all stakeholders involved.
Cluster 6: Projects in this cluster are focused on disaster mitigation and are associated with very high cost overruns, moderate schedule overruns, and very long ROI timelines. Continuous innovation and improvement are vital for the effective delivery of these projects.
Cluster 7: Projects in this cluster experience moderate cost and schedule overruns, have moderate ROI timelines, and encompass a diverse range of project types. A balanced approach that combines agility and disciplined processes is necessary for managing these projects effectively.
Key Metrics
Typical Schedule Delay
McKinsey (2022)
Share of Schedule Delays
McKinsey (2022)
Average Cost Overrun
McKinsey (2022)
Average Cost Overrun (Initial Budget)
McKinsey (2022)
Est. Total Cost Overruns (2024)
$5.6 trillion
Cybereum estimate
Est. Total Project Costs (2024)
$13.5 trillion
Cybereum estimate
Schedule Overrun Impact
Significant delays lead to increased costs adding to cost overruns and lost opportunities
Cybereum estimate
Sector Statistics
Sector Cost Overrun Schedule Overrun ROI Timeline
ROI is typical, cost and schedule overruns are averages for each sector.
Recommendations
Adopt AI/ML and Analytics: Use Cybereum's AI, machine learning, and data analytics to improve project planning, forecasting, and risk management, leading to significant reductions in cost and time overruns.
Foster Ecosystem Collaboration: Leverage Cybereum's platform to enhance collaboration among stakeholders, driving innovation and optimizing outcomes. Crucial for Cluster 4 projects.
Improve Processes & Practices: Utilize Cybereum to enhance flexibility and resilience in project management, particularly for Cluster 1 and Cluster 7 projects.
Better Forecasting and Risk Management: Use Cybereum's ML for forecasting to identify the 5-10% of activities that control cost and schedule performance, tracking and managing them to deliver on time and budget, especially for Cluster 2, Cluster 4, and Cluster 7 projects.
Establish a Data-Driven Operating Model: Cybereum's robust data architecture enables real-time visibility and insights-driven management, essential for optimizing performance in Cluster 3 and Cluster 7 projects.
Prioritize Future-Proofing: Incorporate long-term sustainability and risk management with Cybereum to ensure project viability, particularly for Cluster 5 and Cluster 6 projects.
Utilize Lean Construction Techniques: Implement lean construction methods through Cybereum to improve productivity and reduce rework, ensuring efficient project delivery for Cluster 0 and Cluster 2 projects.
Integrate Modularization and Standardization: Use Cybereum to identify and apply modularization and standardization opportunities, reducing lead time and costs, particularly beneficial for Cluster 5 projects.
PCA Insights
PC1: This principal component captures 60.7% of the variance in the data, likely representing a combination of cost and schedule overruns, as these two variables are strongly correlated in many projects.
PC2: This component captures 30.9% of the variance and likely represents the ROI timeline, showing how the long-term financial performance of projects varies independently of their cost and schedule performance.
PC3: This component captures 8.3% of the variance and might represent some other specific factor or combination of factors not captured by the first two components.
Cluster Separation: Clusters 0 and 1 are tightly grouped, indicating consistent performance metrics with low to moderate overruns and balanced ROI timelines. Clusters 2 and 3 show significant cost overruns and long ROI timelines.
Sector Grouping: Affordable Housing Projects and Cybersecurity Infrastructure are positioned close together, indicating similar performance characteristics with low risk and short ROI timelines. Nuclear Power and Storage sectors are distinctly separated from others, highlighting their high cost and schedule overruns.
Distinct Outliers: Nuclear Storage is a distinct outlier with very high cost overruns and long ROI timelines, reflecting its high complexity and regulatory requirements. Olympic Games and High-Speed Rail projects also stand out due to their significant cost and schedule overruns and strategic importance.

cybereum™ will unlock billions in value by improving project efficiencies in a multi-trillion dollar market

cybereum™ will unlock billions in value by improving project efficiencies in a multi-trillion dollar market

MARKET

MARKET

MARKET

Infrastructure Market
Infrastructure Market

Now

57 Trillion

          • US$57 Trillion at an average of US$3.3 Trillion a year, is required for infrastructure spending by 2030.*

6-9 Trillion

          • Mega project spending was estimated at US$6-9 Trillion annually, accounting for 8% of global GDP in 2014.**

11 Trillion

          • Global value added by construction projects alone.***

*   McKinsey (2016), **  Flyvbjerg (2014), *** McKinsey (2020)


 

Future

24% of World GDP

          • Megaprojects could increase rapidly to 24% of the global GDP by 2026.*

27 Trillion

          • Value of 24% of the world GDP in 2025.**

* Söderlund, J., Sankaran, S., & Biesenthal, C. (2017)

** Data from IMF WEO database: Oct 2020


 

Megaproject market per year
Megaproject market per year
Megaproject market per year
Megaproject market per year

Future

24% of World GDP

          • Megaprojects could increase rapidly to 24% of the global GDP by 2026.*

27 Trillion

          • Value of 24% of the world GDP in 2025.**

* Söderlund, J., Sankaran, S., & Biesenthal, C. (2017)

** Data from IMF WEO database: Oct 2020 


 

The upper limit of the addressable market is only limited by the percentage of global economic activity that cannot be projectized.

OPPORTUNITY

OPPORTUNITY

Value creation opportunity
Value creation opportunity

Problem

0.1% Efficiency

          • 1 in 1000 Megaprojects meet cost, schedule & benefit targets.*

1.6 Trillion

          • Amount lost by the construction industry alone by being slow to adopt digitization.**

*  Flyvbjerg (2014), ** McKinsey (2017)


 

Opportunity

265 Billion

          • Annual profit pool awaiting disrupters in the construction industry alone*

RECOGNITION OF NECESSITY

          • The importance of project management, current inefficiencies, and the potential of digital technologies are increasingly recognized by governments & senior management in projectized industries.
          • The importance of reliable project data for forecasting project outcomes and course correction is backed by recommendations from several academic studies, consultancies & governments.

* McKinsey (2020)


 

Profit opportunity
Profit opportunity
Profit opportunity
Profit opportunity

Opportunity

265 Billion

          • Annual profit pool awaiting disrupters in the construction industry alone*

RECOGNITION OF NECESSITY

          • The importance of project management, current inefficiencies, and the potential of digital technologies are increasingly recognized by governments & senior management in projectized industries.
          • The importance of reliable project data for forecasting project outcomes and course correction is backed by recommendations from several academic studies, consultancies & governments.

* McKinsey (2020)


Most consulting & industry publications measure productivity gains from the adoption of extant digitization technologies. Our ground-breaking architecture and AI/ML algorithms enable the unlocking of significantly greater value.

Value Proposition

Value Proposition

https://blockchainforprojects.com/wp-content/uploads/2020/04/cropped-cropped-circle3.jpg

Pioneering Technology

BlockChain

          • "Multidimensional" Directed Acyclic Graph (DAG) network of authenticated Smart Contracts, rather than a one-dimensional linear chain.
          • Tokens represent real assets created by authenticated projects; mining type incentivization is unnecessary.
          • Smart Contracts & Execution are directly linked, rather than being present in random blocks.
          • Private project ledgers are linked by a public verifiable blockchain of project results and track-records.

AI / ML

          • Our machine learning algorithms are methodically built-up from a solid foundation of project performance study and practice & rigorously mapped into applications to offer tangible and compelling value.

Platform Business Model

Operating System of Projects

          • Our platform architecture integrates projects, participants & stakeholders into one eco-system.
          • Ability to deploy applications to projects. Ideal for deployment of AI and digitization apps by developers.

Asset-Backed Tokens

          • Native asset-backed tokens for value creation and exchange on the platform.

cybereum platform
cybereum platform
cybereum platform

Platform Business Model

Operating System of Projects

          • Our platform architecture integrates projects, participants & stakeholders into one eco-system.
          • Ability to deploy applications to projects. Ideal for deployment of AI and digitization apps by developers.

Asset-Backed Tokens

          • Native asset-backed tokens for value creation and exchange on the platform.

In creating a ground-breaking distributed ledger architecture for complex projects, we ended up making significant progress in addressing the fundamental limitations of current blockchain technology.

Get in touch

You have the opportunity to be part of a venture that will fundamentally transform a multi-trillion dollar industry, unlock significant value, and build the world of tomorrow.