Manage capital investments like a supply chain

With generative AI, the rewiring of global supply chains, and investments in clean energy and related technologies, businesses are on the brink of unprecedented capital spending. Traditionally, organizations view capital projects as one large project, broken into many components that ultimately need to be integrated for the project to be successful. Instead, organizations need to think of capital projects as integrated, end-to-end supply chains. There, “demand” (i.e., what the project delivers) informs supply (the organization has to coordinate everything upstream to meet the demand). . Today, supply chains and operational functions generate trillions of dollars in revenue every week with limited disruption. This is because the methods companies use to manage and operate their supply chains have been strengthened, refined and continually improved over time. Applying these techniques to new types of capital projects can greatly increase the prospects for success of these projects and generate the return on investment that companies are seeking.