Imagine that you see a problem that needs to be fixed. Because of your experience and skills, you were able to identify the issue or the opportunity for improvement.
Imagine that you go one step further and identify the solution. It can be a new technology, equipment, machinery, or software. All that you need to do is select the best vendor and implement the solution.
Now imagine that you get stuck and go nowhere because executives won’t release the funding for your project because they’re not seeing the financial benefits.
How familiar are you with this story? Chances are you know at least someone who went through it.
For example, many companies start a software project, only to put it on hold because of a lack of funding…until management understands the benefits. The project then gets re-started and leads to a software implementation.
Securing Funding for ORM Software
Operations managers in asset-intensive industries, such as oil and gas, mining, chemicals and heavy manufacturing, who are convinced of the need for operational risk management (ORM) software, are all too familiar with the challenge of securing funding.
According to a Verdantix survey of 221 operations managers, inability to access IT budgets and insufficient operational budget were mentioned as big obstacles for investing in ORM technologies.
Efforts to secure funding for ORM software are probably doomed to fail without a solid business case.
Luckily there’s a new Verdantix report that can help operations managers build an effective and credible business case. The report also has some encouraging news for operations managers: you’re not alone.
The Fabulous Four
There are four key stakeholders who can be valuable allies if the business case aligns with their strategic goals which are described in the Verdantix report. Let’s look at the four roles:
CEO. There is a growing trend of CEOs championing and leading digital transformation strategies. Verdantix expects this trend to strengthen. Managers seeking funding for ORM software can increase their odds of success by aligning with CEO digital priorities, or the priorities of the executive in charge of the firm’s digital transformation strategies.
COO. Winning the support of many members of the C-suite further helps to secure funding for ORM software. COOs care about reliably hitting production targets. According to Verdantix, this provides an opportunity to highlight how ORM software boosts plant uptime, operational efficiency and business results, thus increasing the odds of securing the investment.
IT Director. ORM software must not be viewed as a completely new IT infrastructure. Rather, the project lead must show how integrating ORM software with an existing IT infrastructure allows the monitoring of risks in real-time to reduce unplanned shutdowns and prioritize maintenance work, Verdantix says. An IT Director who sees that existing investments in IT systems will be leveraged is more likely to support the project, or at least not oppose it.
Head of EHS. According to a 2019 Verdantix survey of 284 operations managers, 58% of respondents said that improving safe operations is a high priority in the next two years. EHS managers who must ensure workplace safety will like the fact that ORM software brings together siloed data on workers, assets, maintenance schedules, and incidents to provide a better view of risks. This is turn will make the executive in charge of EHS a valuable advocate for the ORM software investment.
By aligning with the goals of the CEO, COO, IT Director, and Head of EHS, operations managers can make sure that these key stakeholders become valuable allies to secure funding for ORM software.
Download the Verdantix report to learn how to build the business case for ORM software. The report includes a detailed quantitative model to calculate the Return on Investment and Net Present Value of control of work, process safety management and barrier risk management investments. This allows project leads to calculate the costs and the benefits.
