—Making the most out of OpEx

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Making the most out of OpEx

Optimizing your existing infrastructure for greatest impact and returns

Making the most out of OpEx Maximizing and optimizing your existing infrastructure for greatest impact and returnsContents

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From CapEx to OpEx:

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Maintaining a competitive advantage

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Modernizing assets to save energy and accelerate decarbonization

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Digitalization enabling interconnectivity
and smart automation

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Collaboration and service partnerships
to drive new levels of operational efficiency

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Conclusion

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Making the most out of OpEx

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Introduction

Companies across all industries share a common goal: to maximize profits by satisfying demand for their products and services at the lowest possible production costs, without sacrificing quality or integrity.

Traditionally, this has been achieved through capital expenditure (CapEx) where companies make one off purchases of fixed assets. More recently, external factors such as global events, the rapid pace of technological development, energy prices and shifting markets have seen businesses adapt their strategy. Priorities have favored operational expenditure (OpEx) as companies seek to maximize existing investments and assets. With more budget allocated to OpEx, companies can optimize their processes in a flexible way maximizing output and minimize operating costs for bottom-line benefit.

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Smart servicing is often the most cost-effective way to unlock the value of existing electrical equipment. Extending asset life span and improving the performance of that asset throughout its life can significantly reduce costs and deliver a positive return on investment (ROI).

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Maintain and modernize

Investing in high quality maintenance and/or repair strategies for existing assets defers capital costs and prevents operational disruptions by helping ensure equipment continues to operate reliably.

Meanwhile, modernizing existing equipment can vastly improve performance, enabling companies to reap the benefits of new technologies. For example, integrating digital functionality into an installed base provides operators with accurate data to optimize performance and management of individual assets or whole systems.

Modernization programs can also reduce operational costs and carbon emissions, helping organizations meet environmental standards and improve their Environmental, Social and Governance (ESG) outcomes.

To experience the greatest benefits from OpEx, companies must prioritize service activities across asset lifecycles and adopt a strategic approach that focuses on achieving an outcome, such as increased uptime or energy savings, which supports their business strategy objectives. This requires collaborative working between customer and vendor, whereby service partners develop regimens based on the individual business objectives of each customer, their needs and the risks.

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This whitepaper examines the key global forces currently shaping markets and underpinning the CapEx to OpEx shift and the emergence of “as-a-Service” business models. It looks at how service activities including asset maintenance, retrofits, upgrades and equipment digitalization unlock value in and reduce the carbon impact of existing assets, and shows why collaborating with an experienced service partner is crucial to maximize OpEx ROI.

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