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RIDE THE TURNAROUND Connecting talents to drive change

NOVEMBER 2018


N° 2 - November 2018 www.mairetecnimont.com

THE MAIRE TECNIMONT GROUP MAGAZINE EDITED BY Department of Institutional Relations and Communication Court of Milan registration - N. 338 on the 06-12-2017 EDITOR IN CHIEF Carlo Nicolais EDITORIAL COORDINATOR Massimo Dapoto PROJECT AND DESIGN Cultur-e www.cultur-e.it EDITOR Maire Tecnimont Spa Registered Office Viale Castello della Magliana, 27 - 00148 Roma - Italia Operative Headquarters Via Gaetano De Castillia, 6A - 20124 Milano – Italia PRINTER Gam Edit Srl Via Aldo Moro, 8 - 24035 Curno BG www.gamedit.it Issue completed: 07/11/18 The rights due for published texts are available for all parties that we were not able to contact.


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EDITORIAL Digital solutions that bring innovation Editorial by Franco Ghiringhelli Human Resources, Organization and ICT SVP, Maire Tecnimont Group.

STRATEGIES The future of intelligence

Linda Hill and the Collective Genius

How to turn the spotlight on the potential of the human mind?

Who drives the innovative process of a company is no longer a mere commander that issues orders.

The future engineering

Automation creates jobs

For analysts of Boston Consulting it's time to invest in the digital transformation.

The digital revolution knocks on doors, with enormous opportunities for development.

Tertiary sector becoming primary sector

Innovation agents

Group CEO Pierroberto Folgiero explains how profession of EPC contractor has changed.

Digital transformation in Maire Tecnimont told by its project managers.

CATEGORIES Words of... a famous scientist

How digital are you?

From Einstein to Steve Jobs, and to the Nobel prizes: technology quotes that have marked an era.

Answer the questions of our quiz: discover your technological knowledge.

SPECIAL Italian export is sky high

Seenergy in a nutshell

Competitiveness of Italian companies is measured in terms of advanced technologies.

Messages, numbers and declarations of the event dedicated to the supply chain.

REPORTAGE Digital connections From ‘smart helmet’ to virtual reality: a backstage for images of technology 4.0.

MOTTOS Addiction to results The Group values in the logic of Turnaround, introducing the topic of attitude for challenge.

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TERRITORIES A supply chain for Azerbaijan President Mattarella inaugurates the new polypropylene plant built by Maire Tecnimont.


EVOLVE | EDITORIAL

DIGITAL

02

SOLUTIONS THAT BRING

INNOVATION igital transformation, innovation, and smart working are among the most used words of the last years. Digitalization has reached widespread outreach with such speed as to induce companies to design new human resources management paradigms and define their own digital strategy to anticipate the trends, fully grasp the challenge and opportunities to change. Avoiding being caught unprepared by this “revolution” and creating the conditions to take advantage of the opportunities.

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After “Be Adaptive” of the last issue of EVOLVE focusing on managing change and structural growth, in this new issue of the magazine we enter the world of innovation and digital transformation. Convinced that promoting change means putting together potentially distinct elements that, in the current model, are strictly interconnected: skills, productivity, value and sustainability. Those involved in human resources and organization are called to face a double challenge. On the one hand, the organization must be supported in dealing with changes related to digitalization, modifying it depending on how the work is configured in the future. On the other hand, it is necessary to rethink the processes of management and development of people to adapt them to the changes caused by the transformation under way. Preserving the spirit and opportunities for collaboration and encouraging the sense of belonging to the team and, more generally, to the company. In a context where technology increasingly becomes a commodity and a factor of social interconnection, the opportunities and risks will emerge for the company and, if carefully picked, recognized and evaluated, they can be transformed into a competitive factor of success, protecting the distinctive identity of the company.

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In this perspective we were inspired by the contributions of futurologists Pierre Lévy, Jared Diamond, Geoff Mulgan and Alec Ross, who consider technology not as an enemy, but as an instrument of acceleration, to be studied and promoted. We dedicated some paragraphs to “Collective Thinking” by Linda Hill, Professor of Business Administration at Harvard. “Who drives the innovative process of a company”, explained Hill, “is no longer a mere commander that issues orders, but a sort of a film director who coordinates collective creativity of employees”. In the heart of the issue - along with the photo reportage that remains one of the evocative points of the EVOLVE editorial project - we tried to analyze the issue of digital transformation, which is successfully changing the value chain structure of Maire Tecnimont. We have faced this change with courage, putting ourselves at stake not only in terms of reviewing the company's production processes of procurement, engineering and construction, but also of behaviors that each of us is called to put in place. Believing that the only possibility of building this new industrial present lies in the change and mobilization of our resources, the only real protagonists of digital transformation undertaken. Thanks to the technologies and skills necessary to face this transformation, at Maire Tecnimont we are working on the progressive outreach of an organizational culture that can guide people towards innovation and its advantages. At a time when it is essential to introduce adequate digital skills, another great commitment is to enhance and motivate our human capital, to be able to predict changes and avoid chasing them in the future. “Ride the turnaround” must continue to be our beacon even in the current system scenario that can surely offer, despite its complexity and heterogeneity, extraordinary growth opportunities, to “everybody” and to the company.

Franco Ghiringhelli Human Resources, Organization and ICT SVP, Maire Tecnimont Group

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THE

FUTURE OF

INTELLIGENCE aken individually, an ant or a neuron are not particularly intelligent. However, if a sufficiently large number of such simple elements interact and self-organize, a unitary, complex and intelligent collective behavior, the so-called swarm intelligence, can be achieved. If this behavior has an adaptive value, we are faced with an “emergent” phenomenon such as an ant colony or a brain. What is collective intelligence and why are we talking about it in this issue dedicated to digital technology? We write about it because turning the spotlight on the potentialities of human mind (and the intrinsic capabilities of engaging at a community level) helps us better understand the current scenarios that make up our professions. And to consider technology not as an enemy, but as an instrument of acceleration, to be studied and promoted. In the next pages of Evolve, to recall our company mottos, you will find testimonies, news and contributions that lead us back to “Ride the turnaround”, to the importance of becoming an active part of the ongoing change. As the first stage of the “digital” journey that will take us to get to know the areas and tools with which Maire Tecnimont is drawing its future, we started - like in previous issues - from the thinking of philosophers and experts who dedicated their lives to research in this field.

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We have read and summarized the works of Pierre Lévy, a French professor who first studied the impact of the Internet on society. The works of Jared Diamond, essayist and evolutionary biologist, who hypothesizes a new kind of history based on science. A recent book by Geoff Mulgan, futurist and theoretician of “collective thought”, according to which cooperation between people (and between machines) is crucial for managing the power of artificial intelligence. We then browsed “Our future”, where Alec Ross - a technology expert, Columbia University professor and White House advisor on innovation - explains how to face the world in the next twenty years, saying “it's easy to forget how much the world has changed in the last decades, because we live immersed in the present”. Let's first brush up on the themes from which we can start our thoughts (and then go deeper on certain issues). With the aim of bridging the gap between legitimate fears and extraordinary opportunities related to the knowledge economy.

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TURNING THE SPOTLIGHT ON THE POTENTIAL OF HUMAN MIND - BY FUTUROLOGISTS PIERRE LÉVY, JARED DIAMOND, GEOFF MULGAN AND ALEC ROSS - HELPS US TO BETTER UNDERSTAND THE SCENARIOS OF THE BUSINESS WORLD. AND TO CONSIDER TECHNOLOGY NOT AS AN ENEMY, BUT AS AN INSTRUMENT OF ACCELERATION, TO BE STUDIED AND MANAGED.


BEGINNER MENTALITY There are constraints that limit radical thought: the influence of conventions, the strength of consolidated interests and inertia. The more experienced people are, the harder it may be for them to find alternatives: that's why you attach great value to the “beginner mentality” and to the need to unlearn in order to learn again. Knowledge is power, but knowledge can also limit us, when the paths between the synapses of the brain become a habit. [Geoff Mulgan]

SHARING OF KNOWLEDGE The outreach of communication techniques on digital media has allowed the emergence of new ways of social bond, no longer based on territorial affiliations, institutional relations or power relations, but on gathering around centers of common interest, on sharing knowledge, on co-learning, on open collaboration processes. [Pierre Levy]

APPLIED CREATIVITY THE AUGMENTED MIND Why do not smart technologies automatically lead to smart results? To solve the great challenges of our time, the role of an “augmented mind” that is the fruit of collaboration between human capabilities and the potential of machines is crucial. Collective intelligence, if well organized, can guide companies, governments, universities to make the most of the human brain and digital technologies. [Geoff Mulgan]

Every year the United States issues about 70 thousand patents, very few of which reach the market. For every great invention that eventually finds its use, there are thousands of them lost on the way. And it happens that a machine designed to satisfy a certain need shows itself more useful in different fields: The Watt engine was to be used only as a pump in mines. But it was soon used in cotton mills and with greater profit on trains and ships. [ Jared Diamond]

DIFFERENCES BETWEEN EUROPE AND CHINA For several geographical reasons, China has achieved political unity very early and was therefore little divided with respect to Europe. In the Old Continent, political disunity has fostered competition, giving more opportunity for innovators to develop their ideas and allow the advancement of science, technology and capitalism. [ Jared Diamond]

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INNOVATION IN A NUTSHELL

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ENHANCING ITALIAN EXCELLENCE Today the world is entering a new period of innovation, which will give birth to totally new industrial activities. An industry of the future - the analytics of Big Data - will transform sectors from agriculture to energy, from cars to fashion. In these fields Italy has an excellent competence: however, many Italian scientists, mechanical engineers, mathematicians and IT specialists keep working abroad. If it is true that Italians have the ability and willingness to be great entrepreneurs, what must change so that companies can settle in Italy and employ Italian resources? Having lived several years in Italy, I would like to mention four measures: reduce bureaucracy, take young people seriously, listen to the opinion of Italian digital entrepreneurs and reduce the barriers (both in culture and employment) with the full participation of women in the economy. [Alec Ross]

KNOWLEDGE CIRCULATION BETWEEN COMPANIES To face the new conditions, companies tend to organize themselves so that they can be crossed by innovation networks. Relationships and modern innovation networks are transversal, involving several companies. The growing development of partnership and business alliances is a testimony to this. Organizations must open themselves to a continuous circulation of scientific, technical, social and even aesthetic knowledge / know-how. The skill flow influences cash flow: knowledge has become the new infrastructure. [Pierre Levy]

MICROSOFT VS IBM Competition between companies, as in the case of Silicon Valley, generates at the same time great freedom of circulation of ideas, people and capital. On the other hand, companies in another industrial district near Boston, Route 128, one of the country's major technological innovation centers, tend to isolate themselves and look for a niche, as is also the case in some sectors in Japan. These are different business models, like the diversity that exists between Microsoft and IBM. In the Bill Gates’ group, the basic organizational unit is made up of 5-10 people, who enjoy great creative and time management freedom. A model that breaks the company in many semi-independent and competing units. On the contrary, IBM was initially divided into isolated hierarchical groups: a model that proved inefficient and led to a loss of competitiveness. With the arrival of a new CEO, the organization has changed (it looks more like Microsoft): consequently, creativity and innovation have thrived. [ Jared Diamond]

DATA AS A CORE ELEMENT TOO STUPID TO BE A DROID The dialectical model is applicable as follows: the human is the thesis; the machine is the antithesis. The synthesis is the empowered human, connected to a huge number of collective intelligences. So, when my son says I am too dumb to be a droid, my answer is: “Yes, for now it's true”. On the other hand, I will try to be smart enough to take advantage of the droid, in the hope that the droid is too dumb to prevent me from doing so. [Geoff Mulgan]

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With the increase of robots share (intended as machines in automation), the global economy will live a revolution powered by an artificial intelligence and a learning ability of the machines, such as to have effects on the workforce no less important than the agricultural, industrial and digital revolutions that preceded it. If earth was the raw material for the agricultural era and the iron the one for the industrial age, data are the raw material for the information age. Today it is essential to connect this information and draw factors to guide industrial plans. [Alec Ross]


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THE QUALITY OF NEW WORKS

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In the next twenty years, machines could perform or transform half of all trades. But in the last two centuries labor markets have proved dynamic and capable of dealing with an enormous reduction in jobs and simultaneous creation of new ones. There is no obvious reason why a more automated company should have less jobs. Let's think about demand: experience shows that what we want tomorrow will not be what we want today. Automation will increase the value and demand for what is not automated: craftsmanship, what is done manually, jobs in direct contact with people, services with higher personality. [Geoff Mulgan]

INVENTING NEW FORMS OF ORGANIZATION Collective intelligence expands the community's productive capacity because it frees individual members from the limits imposed by their memories and allows the group to rely on a wider range of skills. Today homo sapiens must face a rapid change in its environment, a transformation in which he involuntary plays his collective role. Either we succeed in overcoming a new threshold, or we continue to “communicate” through the media and to think from the inside of separate institutions, which limit and break apart intelligences. It is necessary to invent, gradually, techniques, systems of signs, forms of social organization that allow us to concentrate our intellectual and spiritual forces, multiply our imaginations and experience, and collectively invent ourselves as a species. [Pierre Levy]

COLLECTIVE INTELLIGENCE Collective intelligence is a form of distributed intelligence everywhere, continuously enhanced, coordinated in real time, which leads to an effective mobilization of skills. Rather than squeezing the individual in a massively uniform community, this distributed knowledge determines a real process of emancipation and civilization, since it places each person at the service of the community: on the one hand allowing them to express themselves continuously and freely, on the other giving them an opportunity to appeal to intellectual resources and to all the human qualities of the community itself. [Pierre Levy]

BENEFITS FOR COMPANIES Technology will give clear benefits to companies. The way they will adapt will play a key role in determining how stable and competitive they will be. The greatest benefits will go to those companies that are looking forward and are able to adapt and guide their components toward growing sectors. [Alec Ross]

INNOVATION IS BORN WHEN THERE IS A NEED If we think of man's intelligence and creativity, can we perhaps say that the history of technology really depends only on fate, which gives birth to a certain individual in a certain place? Some societies and populations seem to be irreparably conservative, focused on themselves and reluctant to change. But the starting point is that necessity is the mother of invention: innovation comes when there is a common need strongly felt, to which the existing technology does not give answers or answers in a partial way. Inventors and creative people understand the need and try to satisfy it. Until someone devises an improvement, that the society makes its own (if it is compatible from a cultural and technical point of view). [ Jared Diamond]

Taken from: • Jared Diamond, “Guns, Germs and Steel”, Einaudi • Jeoff Mulgan, “Big Mind. How Collective Intelligence Can Change Our World”, Codice Ediz. • Alec Ross, “Our Future”, Feltrinelli • Pierre Lévy, “Collective Intelligence”, Feltrinelli

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LINDA HILL

AND THE COLLECTIVE

GENIUS

he true innovation leaders are not solo players, instead make room for others, they are concerned with bringing out talents, transforming innovation into a routine made up of discussions and clashes to which anybody is a contributor. In practice, it is a continuous cogeneration process”. These are the words of Linda Hill, guru of collective intelligence, professor of Business Administration at the Harvard Business School.

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For her work on leadership and innovation, Hill has recently been invited to Rome to meet some international top managers and explain why the need to make room for “collective genius” is increasingly topical. “A leader must not only give answers”, she explained to the audience, “but he or she must know how to ask questions. He or she must ask not only the classic question: where are we going? But also: what is the meaning and purpose of our work? What happens if we do not do that?”. Linda Hill, who received the 2015 Innovation Award and numerous other awards for her books and articles, found that the best-known examples of leadership do not work when it comes to guiding innovative industries. “I am an ethnographer and I use the methods of anthropology to study the questions that interest me in depth. Together with three collaborators, I have spent almost a decade interviewing a group of international business managers, such as Google or Pixar, and studying their behavior closely”. The leader of innovation, who guides the innovative process of a company, is no longer a single man in command who issues orders to which others shall obey but is a sort of a film director able to coordinate the collective creativity of employees. Employees who, in turn, must be singled out from the most intelligent available, possibly, smarter than their boss, and be ready for an intense discussion with their colleagues, where it does not matter who is right and who is wrong, rather what benefits the company.

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WHO DRIVES THE INNOVATIVE PROCESS OF A COMPANY IS NO LONGER A MERE COMMANDER THAT ISSUES ORDERS. BUT A SORT OF A FILM DIRECTOR WHO COORDINATES COLLECTIVE CREATIVITY OF EMPLOYEES. To build companies capable of continuous innovation”, says Hill, “we must abandon our preconceptions about leadership”. “Driving innovation does not mean creating a vision and inspiring others to achieve it. Innovation must be something new and useful for the company: from a product to a business model to a new cost-cutting method. Observing the path of Ed Catmull, the founder and CEO of Pixar, I discovered that the true function of the innovation leader is to set up the stage and leave the performance to others. Catmull brought out a piece of talent that was in each of his collaborators, from the first to the last: and his door is always open for everyone!”. From the words of Hill it emerges that innovation comes from a paradox. She explains, “You have to free the talents and passions of many people and then harness them. Innovation is a journey. It is a collaborative solution to problems, usually between people with different experience and points of view. Innovations rarely come plain and simple. As many of you know, they are usually the result of trial and error. Many false starts, missteps and errors. Innovation can be very exciting, but also brutally scary!”.


STRATEGIES | EVOLVE

In many companies it has remained anchored to the most obvious model, used by most small and medium-sized enterprises: one where on the one hand there are the innovators who study a strategy and on the other the performers. “But in innovative companies the model is different, it has to do with the collective genius: this wall that separates the master-minds from the performers must fall, because everyone must know that they have a role to play”. The part in which Linda Hill goes into details is of great interest. “By studying an islamic bank in Dubai, or a luxury brand in Korea, or a social enterprise in Africa, we realized that the most innovative teams are communities with three skills in common: creative abrasion, creative agility and creative resolution. Creative abrasion consists in being able to create a 'market' of ideas through debates and conversations. Innovative companies tend to amplify differences, instead of minimizing them, so that people learn to defend their point of view. Creative agility is an ability to test and refine the portfolio of ideas through action, reflection and correction. It includes learning by discovering, which is the opposite of planning the future: because negative results can be used as a lesson too. Finally, creative solution is an ability to make decisions in a way that re-organizes ideas, also contrary to each other, in new combinations which produce new and useful solutions”. In the end, one wonders why Pixar and Google can continuously innovate? Because they have mastered the skills necessary to do it. They know how to do collaborative problem solving, they know how to learn from their discoveries, and they know how to make decisions in an integrated way. Bill Coughran, considered one of the best Silicon Valley leaders, managed Google's engineers and infrastructure at the time when the Mountain View multinational company was about to launch Gmail and YouTube. He once said, “I manage a team of volunteers. Talented, passionate people don’t want to follow you to create a better future. They want to co-create it with you. My task is to cultivate ideas and guide them the right way. I am a connector, an aggregator of points of view. Not a dictator”. From Hill's lesson to managers, the final paragraph summarizes the analysis: “Discuss publicly your role, hire those who disagree with you. Sometimes the best thing is to be deliberately uncertain, vague. If we want to invent a better future, then we must think that our task is to create a space where geniuses are set free, collected and transformed into products of collective genius”.

News taken from: • Linda Hill, “How to manage for collective creativity”, TEDx Cambridge • Marzio Bartoloni, “Leadership and innovation, it is time for collective genius”, Il Sole24Ore of 11.10.18 • Luciana Maci, “Linda Hill: the innovation leader is no longer a single man in charge”, EconomyUp

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FUTURE

THE ENGINEERING STRENGTHEN POSITIONS AND MAKE BUSINESS MODELS MORE SUSTAINABLE. IT IS TIME FOR EPC CONTRACTORS TO INVEST IN DIGITAL OPPORTUNITIES. ANALYSTS OF BOSTON CONSULTING GROUP OUTLINE SCENARIOS AND GUIDELINES FOR THE SECTOR PLAYERS.

he digital revolution is changing processes, work methods and best practices across the board; in EPC (Engineering, Procurement and Construction), industry, technology is playing a strategic role within the business models, driven by the need to improve productivity and profit.

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In particular, Oil&Gas EPC players are faced with new market uncertainties and dynamics: the main operators and their numerous OEMs (Original Equipment Manufacturer) are moving towards advanced and integrated solutions, taking advantage of Digital to support operations and asset management along the entire life cycle of an asset, to mitigate the risks due to market and regulatory volatility: the boundaries between operators and vendors are becoming increasingly blurred, putting at risk part of the market traditionally reserved for EPC contractors. EPC players have often been less inclined or structurally disadvantaged compared to other sectors as far as digital solutions are concerned. This has had direct impact on the performance of the industry as a whole: productivity of the labor force of the sector has grown by 1% per year in the last 20 years, less than a third compared to average growth in other sectors (over 3%). Bridging this gap, by adopting digital solutions, may generate over â‚Ź1,200 billion in cost savings for the industry.

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STRATEGIES | EVOLVE

Among the reasons for this situation are the historical difficulty in the deployment of large-scale tools (with subsequent impacts only on local scale), the complexity in the consolidation and standardization of platforms and processes, as well as the scarcity of “digital talents” in the sector: although many companies have actually started to use new technologies, incorporating them in their daily activities, the focus has been limited to the use of software for digital collaboration. At a time when the entire Oil & Gas value chain seeks opportunities in digital solutions, EPC companies should more than ever focus on a full transformation, to defend primarily its market segment from the entry of operators / OEMs and above all to enable two strategic guidelines necessary to ensure the sustainability of the business models: • the first guideline is internal and consists in the increase of effectiveness and efficiency of the processes, to improve productivity, reduce costs, ensure better control and quality • the second one is external and consists in the development of new distinctive services and products for end customers, to increase the value proposition of EPC services. Considering the internal guideline, the increase in efficiency and effectiveness is enabled by digital technology on all 3 macro-phases of a project (Engineering, Procurement and Construction) both through use case specific to each phase, and use case transversal to the whole end to end process. Each construction company has a huge amount of information from various sources, structured and unstructured (the latter can be processed through advanced processing tools such as text mining or image recognitions). The availability of data is a factor that enables multiple initiatives: a first example in the design phase is Concurrent Engineering (simultaneous and collaborative design of different parts of the asset by different users), where all information is updated real time and accessible remotely. Moreover, applying advanced analytics as a supplement to design software, it is possible to optimize the detailed design, comparing in parallel different alternatives both technically and economically; these solutions can be integrated

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construction site, using a GPS indoor technology to identify danger zones and activate security alarms; others (operators and OEMs among the first-comers) offer virtual reality training on safety procedures or monitoring of vital functions via wearables to prevent or manage dangerous situations. One comprehensive use case of particular importance is Digital Twin, digital reproduction of a physical asset accompanied by crucial information (e.g. Construction progress for each part), which facilitates communication between all actors involved in the end to end process: Twin can act as “single source of truth” to which Engineering, Procurement and Construction can access to view updated real-time information, track changes and progresses throughout the process (from design to materials procurement to on-field construction).

with risk assessment and risk mitigation models, based on historical performance linked to providers, locations, logistics solutions. Likewise, Procurement can benefit greatly from the construction of a Digital Bid Database, originally designed to gather information from previous projects and facilitate the bidding phase. However, this can be used as a basis for the construction of machine learning algorithms, with a dual function: on the one hand supporting the bidding phase by optimizing commercial offers, on the other hand minimizing the costs of procurement of materials. The efficiency in the Construction phase can be improved by equipping the operators with wearables device / tablet that digitize outof-spec and anomaly detection systems; further improvements may derive from the survey of improvements through the use of drones suitably equipped or from scheduling automation by integrating alerts from the digital tracking of materials and information on the availability of machinery from collaborative platforms for the coordination of contractors. In the Construction field, digital solutions can play an important role in guaranteeing higher standards of individual safety: for example, some players are moving towards advanced monitoring of the

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Digital Twin, if strengthened appropriately in line with the needs of operators, can also represent an excellent example of use case enabling digital services for the end customer. For example, it can enable condition based / smart preventive maintenance through intelligent monitoring of the systems thanks to innovative IoT sensors, providing predictive maintenance via models of machine learning which predict and avoid equipment breakage. Furthermore, through appropriate integrated physical and statistical models, process simulators can be developed to optimize plant yields and settings. In summary, EPC companies have the ability to effectively provide - from the very start of a new plant - the most advanced connectivity or performance monitoring systems (asset, process, HSE, supply) appropriately “installed” in plants and equipped with digital control, insight generation and decision-making interfaces that operators are imagining in their future Digital Units. The companies that are placing right bets now will probably become leaders in the next 10-15 years, if their investments are backed by willingness to change on a large scale. Primarily, they will have to change the fundamental aspects of their corporate culture, with the aim of integrating new tools and new digital skills into “seamless” business operation. In this way, digital solutions can provide a competitive advantage that no human effort alone can replicate.

Marco Tonegutti, Partner & MD, BCG Federico Colombara, Expert Principal, BCG

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AUTOMATION CREATES

JOBS ne thing is certain. The new trends are profoundly and irreversibly changing the professional habits of people and the processes of companies. The scenario experts predict that soon many thousands of low cognitive skill jobs will be replaced by artificial intelligence: in fact, a string of computer code will activate machines and computers to perform automatic and repetitive tasks. The same experts, however, also tell us that employment will be rebalanced by new jobs, qualitatively better, where the level of intellectual competence required will be much greater.

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It is somewhat fascinating to think that in an accelerated world, with infinite possibilities offered by technology, most of the new jobs that will be born between now and 2025 do not yet .... exist! The truth is that the digital revolution is already knocking on our doors. Innovation starts to be disruptive and changes our family and personal life, as well as the working and business world. Two studies in this respect have struck our attention. The first, performed by MIT (Massachusetts Institute of Technology) and therefore more international, helps us understand the transformations under way in the business world triggered by the arrival of robots (intended as digital automatisms and not as steel objects that obey our orders). The second study, related to Italian context, tells us about the development trends of the Internet of Things for the industrial world, thank to associations and companies to promote interoperability and access to data.

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THE DIGITAL REVOLUTION KNOCKS ON DOORS, BRINGING ENORMOUS OPPORTUNITIES FOR DEVELOPMENT. A "TURNAROUND" THAT MAKES HUMAN WORK MORE QUALIFIED AND LESS EXHAUSTING. GLANCING AT NEW TRADES OF THE DIGITAL AGE. Innovate to create jobs The Finnish scissors produced by Fiskars Ab in the Helsinki plant - where the metal blades were forged manually in 2,700 - degree furnaces - have been made by robots since 2011. The technicians who previously carried out that slow and dangerous operation, today perform quality control, tests and the fine corrections that no machine can handle. The result? An increase in production, lower prices and consequent growth in demand that led to double the number of employees: from just over 4,500 employees, today more than 8,600 people work there.


STRATEGIES | EVOLVE

An example like many, which could follow that of a BMW plant in South Carolina, where the use of robots in the production line has re-organized the working process: the employees take care of final quality controls (the parts to be checked have multiplied fivefold), the production has doubled, the manpower employed has almost tripled. Not to mention the Australian mines, where the truck-robots are digging longer, deeper and more accurately than any super miner. The consequences of the phenomenon analyzed by David Autor and Anna Salomons in the paper “Is Automation Labor-Displacing?” - are highlighted with another English research (Deloitte) according to which in the last 15 years automation has displaced 800 thousand unqualified jobs, creating 3.5 million qualified jobs simultaneously, with an average annual remuneration of over 13 thousand dollars each year and growing. Robots, as concluded by the experts, do not replace human beings but radically transform the labor market. A “Turnaround” to jump on without delay, with huge development opportunities for governments and private companies that will invest strategically in training and innovation. Valuing the genius, creativity and skills of new generations as well as senior workers.

David Autor (MIT) e Anna Salomons (Utrecht University) “Is Automation Labor-Displacing? - Productivity Growth, Employment, and the Labor Share” AAVV - “From Brawn to Brains - The impact of technology on jobs in the UK” (Deloitte)

THE INDUSTRY 4.0

SCENARIO

Looking at Italy, based on data from the Internet of Things Observatory at the Polytechnic University of Milan, we discover that the new approaches in the management of industrial devices require the redesign of the architecture of industrial monitoring and control systems. “In Italy”, explain the curators of the paper, “the Industrial Internet of Things is in full development: thanks to the National Plan Industry 4.0, which has contributed to the dissemination of knowledge on the subject and the adoption of innovative solutions in companies. Although companies are increasingly able to understand the opportunities offered by the IoT in the industrial world, we still need to work hard to take full advantage of the benefits that derive from it, in order to open the door to this fascinating paradigm. Knowing how to make the most of the data collected in factories and supply chains is the real change”. And if companies declare that many projects of Industrial IoT would not have been possible without the public incentives, the data of the University tell us that the most mature applications today are related to production progress monitoring (31%), preventive maintenance (28%), greater support to operators in carrying out on-line activities (22%) and material handling (20%). The solutions to guarantee energy efficiency in the factory (17%) and a better quality control in the production and assembly phases (14%) follow a short distance away. In fact, an unavoidable phenomenon that the actors involved can no longer ignore.

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The most sought-after jobs of 2018 Speaking of Industry 4.0, it is interesting to investigate the demand for high-skill professional figures on the labor market. “Some professions are going to drive employment trends, like software developers and logistics engineers” reports Sole24Ore, italian financial newspaper. Specifically, a Data Protection Officer with legal and IT skills, a new figure in the European privacy regulation, operating in all EU countries since 2018, in private companies and public administration, may face 40 thousand job opportunities in Italy. There are a lot of opportunities for Industry 4.0 project managers, who will be entrusted with the task of introducing new innovative technologies focusing on manufacturing and supply chain processes. In fact, a figure that must have experience with predictive algorithms and big data analysis. Some sectors are still characterized by “mismatch” between job demand and supply, especially when talking about younger candidates. An example? Many companies look for specialists in physics and chemistry, computer scientists, engineers under the age of 30: but in many cases they do not find figures with the right skills. On the one hand, companies invest a lot to renovate their plants and adapt to the digital revolution with Industry 4.0, on the other they risk not finding the people necessary to make them work. The experts of AgendaDigitale.eu explain: “If a factory 4.0 must be flexible by definition, then the Industry 4.0 super-expert must be equally flexible and responsive, or ready to interpret the new and ongoing needs of modern production”. It is true that the so-called “super-expert” will have to have an innovative mental attitude and a willingness to change: to be proactive and certainly have digital background. If in traditional factories the duties of a worker changed every twenty years, today this period is reduced to 3-5 years at most. According to Gianni Potti (president of CNCT - Confindustria Innovative and Technological Services) the ideal figure of the super-expert who knows how to guide Industry 4.0 should have managerial engineering skills (to understand the re-engineering of the entire production process), economic skills (to grasp the financial and market impacts) and certainly IT and digital skills (they are the backbone of Industry 4.0). Potti explains, “Digital professionalism will no longer be just that of the old Information Technology, but the new skills will be made, under hybrid logic, as a complex mix of skills, to strategically guide the changes imposed by Big Data, cloud, mobile, social, IoT and security. Above all they will be the figures with a mix of technological skills, managerial skills and soft skills such as leadership, emotional intelligence, creative thinking and the ability to manage change”.

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STRATEGIES | EVOLVE

GUIDE TO NEW DIGITAL CRAFTS DATA SCIENTIST (OR ANALYST)

EXPERT IN COGNITIVE COMPUTING

Extract information from data, model complex problems and identifies business opportunities. Including workforce analytics in companies.

Manages the tools that allow a broad reproduction of the functioning of the human brain, able to learn and interact naturally with those who use them. In this way they are able to provide significant elements to make decisions in the face of a very high quantity and heterogeneity of data and variables.

BUSINESS INTELLIGENCE ANALYST Provides customers with logical or technical solutions to organize, categorize and re-elaborate the information of a company, ensuring that it can give an indication of the progress of the business and the decisions to be taken to improve it.

DIGITAL LEARNING SPECIALIST Expert in digital training, learns new technologies by reconciling the needs of workers with those of companies. Using new contents and methods (videocourse, webinars and MOOC - Massive Open Online Courses).

COMPUTER AND INFORMATION RESEARCH SCIENTIST Invents and design new technology and identify new uses for the existing ones. Studies and solves complex problems in information technology for business, science, medicine and other fields.

DATABASE ADMINISTRATOR Deals with the installation, configuration and management of data storage systems, more or less complex, accessible and often updated via Internet.

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INFORMATION SECURITY ANALYST Takes the necessary measures to protect the sensitive and mission-critical data of a company trying to stay one step ahead of cyber-attacks. Identify innovative solutions to prevent critical information from being stolen, damaged or compromised by hackers.

COMPUTER NETWORK ARCHITECTS Designs and builds data communication networks such as local networks (Lan), but also Wan and Intranet networks. These networks range from a small connection between two offices and communication systems of a global multinational company.

ROBOTICS & AUTOMATION MANAGER Expert in RPA (Robotic Process Automation), manages “intelligent” software able to perform some repetitive tasks automatically, imitating the behavior of operators and interacting with the applications in the same way a person would do.

Some extracts are taken from: economyup.it and leadershipmanagementmagazine.com

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TERTIARY SECTOR BECOMING

18

PRIMARY SECTOR cenario experts see the phenomenon of digitalization and collective intelligence as an original way of rethinking their business models, no longer based on existing knowledge, but aimed at a creative thinking that is the driving force behind new ideas and unprecedented industrial strategies.

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ACCORDING TO CEO OF MAIRE TECNIMONT, PIERROBERTO FOLGIERO, DIGITAL TECHNOLOGY SHOULD BE SEEN AS AN OPPORTUNITY NOT ONLY TO REDESIGN PROCESSES, BUT TO OFFER THE MARKET THE KNOW-HOW HAT FACILITATES CHANGE.

In the petrochemical sector, the main trend which currently influences managers' decisions on a global level is digitalization. Recent research conducted by McKinsey highlighted how a series of (growing and interconnected) technologies can unlock a potential for savings and profit growth worth $ 50 billion. It is expected that these technologies - in areas ranging from artificial intelligence to blockchain, from robotics to sensor technology, from machine and deep learning to edge computing - can cut up to 20% of costs. “For some time,” explains CEO of Maire Tecnimont, Pierroberto Folgiero, “we have adopted a digitalization plan at Group level, knowing that artificial intelligence is the technology that will transform our world the most in the next ten years. The disruptive aspect of this process is that innovation tests our intelligence, both in terms of preparation and skills”. It's like saying: let's get ready, before it's too late.

As it will be discussed on further pages of this issue of Evolve, the project to digitize Maire Tecnimont starts from the roots, with real benefits for customers and employees, and extends to work methods, processes, individual behaviors. “We started from the core business,” continues Folgiero, “because it was more effective to immediately bring the technology to what we do today. It has been, and continues to be, a fundamental journey that has led us to review all our internal processes. And redesign them thanks to IT leverage”. This is how a digital transformation program was born with a vision launched in 2015, and that in 2018 was the core of implementation, focused on the digitization of key processes that include Engineering, Procurement and Construction.

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STRATEGIES | EVOLVE

With the use of 4D modeling (through BIM - Building Information Modeling) integrated with the programming, it will be possible to redefine the priorities and the management of the sequences typical of engineering design in an unconventional way. “A micro-example? Our engineers,” CEO repeats, “it will stop going to the contruction site with project sheets: they will be equipped with an iPad and will be aligned in real time with the whole process”. Redesigning process sequences is equivalent to optimizing time, resources and production levels. “Another of the thousand cases that we can mention,” says Folgiero, “is that of commissioning, that is of overall project management. Today our project manager travel around the world to put together all the data and make decisions. Soon from the Milan headquarters, thanks to the agumented reality that provides us with live images and updated data, the manager will be able to carry on the job without necessarily traveling and it will take him one fifth of the time”. A digital phase - taking advantage of innovative solutions - considerably impacts time and costs, for the benefit of Maire Tecnimont and its customers. “In doing this,” explains CEO, “the role of Maire Tecnimont is crucial for the entire supply chain, because as an EPC contractor we play a role of integrators, applying the opportunities for innovation that individual actors make available”.

19 Avoiding Kodak’s fate The second part of the digitization plan is one that looks at a medium-long term scenario. Folgiero goes back to the topic already discussed in the previous issue of Evolve, when we spoke about “Blue Oceans” markets suddenly becoming extinct. “In addition to digitizing core processes, we have opened another front to ask how our sector is changing: the petrochemical and the role of EPC contractor. Where is technology taking us? What will happen in the next few years? This is where a new strategic value chain course has been taken”. The new question is “What can I offer to my customers in addition to the product? Within your business, what can you do more thanks to the new technology?”. For a consolidated and structured group like Maire Tecnimont, this new paradigm represented a real step outside the comfort zone. “This is exactly the case”, confirms Folgiero, “because behind us we had the history of other sectors, of world brands like Blockbuster and Kodak, which were swept away not only by the new technology, but by the inability of their managers to see the new opportunities that the digital era was offering to the entire planet”. This stimulates our interest to redesign the processes related to our core business and, in parallel, to integrate the technology. Redesigning new control and simulation systems, useful to the customer as much as the product itself. Folgiero concludes: “In the near future Maire Tecnimont will start being perceived not only as a contractor that delivers turnkey plants, but as a source of intelligences that help you analyze and manage big data, see in detail how your system will be thanks to Digital Twin technology, develop artificial intelligence to streamline the management of an entire process. In short, a source of know-how that makes complex operations simple. And that soon will become increasingly essential for the customer. I would like to summarize by saying that in this case the tertiary sector, that is the services connected to the product, becomes the primary. It is a fascinating opportunity for the entire Country System Italy: isn’t it time to redesign the industrial identity of a manufacturing sector that exports globally renowned know-how? And may this know how be a cousin of technology?”.

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INNOVATION AGENTS merging digital technologies bring value to us and our customers, thanks to new, potentially disruptive business models. But without process intelligence, technology can prove useless”. Franco Ghiringhelli, Senior Vice President for Human Resources, Organization and ICT at Maire Tecnimon, with professional satisfaction tells the scenario surrounding Digital Transformation, a project that is successfully supporting all the Group's main activities.

"E

A transformation in line with the recent and current industrial history of our country, where internal traceability is often the first step taken by companies to enter the digital world and before moving on to maintenance and quality control. “Similar steps,” explains Ghiringhelli, “are taken by leading Oil & Gas multinational companies: digitalizing processes is nowadays a key tool for the production control, safety at work, and materials handling”. With the aim of increasing the effectiveness, safety and productivity of its business - and not losing ground in a highly competitive scenario - Maire Tecnimont has been applying holistic approach to digital transformation over a few years, working on different areas in synergy between them. Senior vice president adds: “Traceability and logistical monitoring - as well as the management of the current cycles of development of new products - are among the supporting activities that make the job of Contractors more efficient and productive. But in Maire Tecnimont the culture of innovation has spread to several levels: organization, processes and design systems. Our Group launched a digital transformation program in 2015, with the first phase completed in 2018”.

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DIGITAL TRANSFORMATION IS SUCCESSFULLY CHANGING BUSINESS MODELS AND THE VALUE CHAIN STRUCTURE. WITH A NEW IMPACT ON BUSINESS PROCESSES, ORGANIZATION AND CULTURE. Thanks to the digitization of critical activities in EPC processes, the Group has achieved a high level of development in modeling systems. Ghiringhelli continues: “Ride the turnaround has meant for us to turn the sequences of a project upside down. Since 2011 we have invested in design systems capable of supplying us in a timely manner the outputs deriving from the engineering, procurement and construction processes. Today the complete design of the disciplines takes place through BIM (Building Information Modeling): an approach to design and contracting activities that allows the integration of 4D models with programming. By implementing the AWP (Advanced Work Packaging) system, it is possible to redefine the priorities under a construction-oriented approach, from which procurement and engineering activities may be derived backwards. A paradigm shift to manage typical design sequences in an unconventional way. Experimentally, the customer can even preview his system thanks to the Digital Twin, a virtual sibling, which reproduces the complete timeline of the project, simultaneously highlighting the various process phases and anticipating the virtual commissioning of the facility. In the future we will make components with 3D printers: we already have significant experience in the production of digital printable catalysts”.


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IKEA

MODEL SEQUENCES With Max Panaro, Vice President Group Organization, ICT and System Quality, we are exploring Digital Transformation for Maire Tecnimont. “Our core business is changing, especially thanks to the acceleration brought by digital solutions. A few years ago, an engineer would design a project in a logical and convenient way. Today he must do so based on a new sequence, no longer classical, which can start from the construction phase, taking into account the procurement and supply process in the reverse sequence”. A few years ago, we reasoned differently. First the project drawings, then the supply from the suppliers. Who had to build a plant, could start only after receiving all the instruction manuals and materials needed.

To put it simply, Panaro makes an example. “When we buy a piece of furniture in Ikea, the box contains all the pieces we need, the keys and the instructions. But if we only found the instructions, with the parts arriving coming weeks and the tools to be supplied from third parties, we would get angry with the customer service!” Michele Mariella, ICT manager, remembers when there was no connection in the building sites: “Our engineers seemed to travel to the moon, physically carrying all the project documents and information: in fact, hundreds of files that were delivered by ship containers. Today a single document is generated by the headquarters and in real time and can be downloaded by those who, being thousands of miles away, need it urgently to move on. Nobody must wait until the engineering phase is complete. The idea of space and time is constantly changing”.

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Optimized costs and times Digital innovation reduces time and costs for the company and its customers. “The role of Maire Tecnimont”, explains Sathiamoorty Gopalsamy, Vice President Services Projects, “is crucial for the entire supply chain because as an EPC contractor we see the bigger picture, we carry out the task of integrator and bring innovation to the customer. Processes are optimized and efficiency increases, resulting in reduced time and costs. Technology? We try to use the best available on the market, but our skill is to adapt it to our industry and to the culture of our employees: innovation and growth of people must go hand in hand”. In this context, Maire Tecnimont is a key interlocutor for those who produce technology but does not have the right skills to “download it to the ground”. If thanks to the process intelligence you get to save up to 20 percent, your role in supply chain becomes crucial. Max Panaro sums up: “Our engineers are historically skilled in dealing with a thousand things related to instrumentation, today even more thanks to IOT, Internet of Things, and the faster interaction between various objects and the control station. Always with the aim of reducing costs for ourselves and for our customers, our value consists in knowing how to identify, among the innovations available, the one most suited to the system, and then apply it in the project under construction”.

Our value consists in knowing how to identify, among the innovations available, the one most suited to the system, and then apply it to the project under construction.

Quick example. The introduction of wireless digital systems eliminates miles of wires and cables. In the initial construction phase, you save time (even 2-3 months) and the cost of materials (up to 10-12% only by installing a wireless antenna). “Purchase of antennas may seem uneconomic”, explains Panaro, “because maybe you have to spend 2% more initially. But by simulating the process sequences, we can safely say to the customer that investing in new technologies will save more than 10 percent over a certain period”.

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STRATEGIES | EVOLVE

More flexible Project Management Use of Big Data and its timely analysis provides for more flexible management of EPC projects. There are three main actors: the so-called IT scientist, calculating and reworking the elements, and the customer who drives the machine, with the process engineer in between who creates business models and interprets the data for the customer. Sathiamoorty Gopalsamy explains: “The new digital platform allows us to effectively manage the consistency and unity of data, transferring them more easily to the various locations of the Group, production sites around the world, construction sites. In line with the open glass criterion, innovation allows the general usability and transparency of process data, with the aim of improving production and personnel training, transferring skills in an easier way”. The model is enriched with previously unavailable information. If with 3D you could see a three-dimensional but static photograph of the plant, today 4D technology lets you see the plant progressing in time. “With the other Ds we show the increase in costs and maintenance phases”, points out Mariella. “You get, via the exact construction sequences, to a timeline that holds up to 7 elements together. The advantage is that when you need to change one value, the whole sequence is realigned automatically”.

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With custom-made apps, dashboards and digital dashboards Maire Tecnimont’s engineering team can work knowing when and where a released item is located. If you want information on the purchase of a component you need, you can easily access a visual interface on your mobile phone from the site. Mariella adds: “To get that comprehensive data, which today can be obtained in real time with a click, in a pre-digital era it could take a project manager up to two weeks. It must be said that in the open glass model, everyone sees everything in real time. Including dysfunctions or delays in the sequence. In those 15 days I was talking about before, there was time to realign and respond to inputs. Today, however, the times of engineering and procurement are immediate. It's like in football: today everything is faster, and the decision-making is shortened”.

With custom-made apps, dashboards and digital dashboards Maire Tecnimont’s engineering team can work knowing when and where a released item is located.

Panaro and Mariella explain how digital culture brings attention to efficiency. “Digitizing one million documents a year”, they say, “makes a huge difference, especially when each document carries an average of four comments or changes. Optimization is contagious: with the smart elevator (in the Garibaldi Towers) 1,000 people save up to 4 million working minutes a year! The canteen was optimized to avoid waiting times, and reused as a workplace with 200 new stations, as well as the hall which now has about a hundred. Not to mention the meeting rooms, which no longer belong to a single sector, but are 'shared’ and therefore bookable by anyone to optimize space and time”.

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A CODE

FOR INTERNAL PROCESSES

Digital transformation is not just about smart apps and data aggregation dashboards, but also more efficient back-office activities. Today, Industry 4.0, as part of Robotic Process Automation (RPA), uses intelligent software to automate certain work processes. The so-called “robot software” perform repetitive tasks, those performed manually by the operators, imitating their behavior and interacting with computer applications. Mariella explains that “we have done a lot in three years. Let’s take invoices: a digital system developed by us receives the documents to a specific email address, verifies the supplier from which it comes and then automatically records the invoice on the SAP. People, free from repetitive and low-value tasks, are employed for creative and complex activities. The idea is to extend the robotics even to more complex documents: every year MT processes about a million documents, spending 10 to 12 minutes of human time on average per document. Let's not forget that the quality level of technology in the company today has grown a lot: devices and applications are highly efficient like those we use at home for personal reasons. Booking travel tickets, offices, meetings is a safe operation of a few seconds”. Panaro explains that the change of culture in MT occurred now when 400 new people entered the company, mostly young people who grew up with digital: “A phenomenon that we had to embrace to attract and retain new extremely valuable resources. A contagious culture that today allows a 65-year-old engineer to evolve with respect to the historical sequence he has always worked: print

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a project drawing, mark it by hand and re-scan it for sending. Now with a simple digital whiteboard or an iPad you can make comments and changes in a few seconds. A simple tool, which significantly changes the process chart in terms of optimization”.

The changing ecosystem These are the main areas, which drive Maire Tecnimont to play the role of “innovation agent” with greater awareness. A digital culture that starts from the roots, with real benefits for customers and employees, and extends to work methods, processes, and individual behaviors. Riding the change (Ride the turnaround) therefore means bringing benefits to the entire supply chain thanks to a process intelligence that starts from afar. “In Maire Tecnimont,” concludes Panaro, “I have always found people capable of interpreting technology on a practical side rather than theoretical. We do not say it to praise ourselves, but in such a complex and swirling market, a cold-blooded orchestra conductor or helmsman can make a difference. Otherwise, as Franco Ghiringhelli said, without process understanding and, I add, understanding of people, technology remains a useless toy”.


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WORD OF... A FAMOUS

SCIENTIST

All complicated phenomena can be explained by simpler We cannot solve our problems scientific principles. with the same thinking (Linus Carl Pauling, Nobel Prize in Chemistry we used when we and Nobel Peace Prize, 1901-1994) created them. (Albert Einstein, physicist, 1879-1955)

Scientists discover the world that exists; engineers create the world that never was. (Theodore von Kármán, Hungarian engineer and physicist, 1881-1963)

Science is what scientists do, and there are as many scientific methods as there are individual scientists. (Percy Williams Bridgman, Nobel Prize in Physics, 1882-1961)

I would trade all of my technology for Any sufficiently advanced an afternoon with Socrates. technology is indistinguishable (Steve Jobs, entrepreneur, computer scientist from magic. and co-founder of Apple Inc., 1955-2011) (Arthur Charles Clarke, inventor and author of "2001: Space Odyssey", 1917–2008)

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CATEGORIES | EVOLVE

DIGITAL

HOW ARE YOU?

1.

Robotic Process Automation, that is use of "intelligent" software for the automation of work processes.

A data scientist:

Recombinase Polymerase Amplification, a technology for isothermal amplification of nucleic acids.

3.

A dashboard of the latest generation cars equipped with a new infotainment system.

RPA stands for:

A centralized data visualization tool that can be accessed by multiple users on a screen.

2.

Digital dashboard is:

Test yourself by answering the quiz questions: you will discover how much you know about new technologies and digitalization.

Spray cleaner with neutralizing formula to remove allergens from a passenger compartment.

Studies on bee behavior in the process of organizing work in hives.

Ancient coins with incisions and symbols not yet deciphered.

Updates the annual increase and decrease in day length from sunrise to sunset.

Studies the share of television programs through Auditel analyses, single, global or comparative.

Regal Protection Agency, a British body responsible for the security of British royals.

4. Swarm

5. Cryptocurrency

Analyses huge amounts of data, both structured and unstructured.

intelligence refers to:

Decentralized systems to which different actors contribute, both human and software, each of which offers a part of the solution to a problem.

Software used by digital orchestras to precisely reproduce the sound of various musical instruments.

refers to: In the film "Superman", the payment system used on the planet from which the Superhero comes.

Answers: 1 a; 2 b; 3 a; 4 b; 5 c.

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Bitcoins invented in 2009 by a character known under the pseudonym Satoshi Nakamoto.

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EXPORT IS SKY HIGH

ITALIAN

A RECORD-BREAKING 2017, AN EXCELLENT 2018 AND 2021 GROWTH FORECASTS THAT SET THE FINISH LINE AT € 540 BILLION. CREDIT GOES TO? THE COMPETITIVENESS OF ITALIAN COMPANIES IS MEASURED IN TERMS OF ADVANCED TECHNOLOGIES, KNOW-HOW AND AN INCREASINGLY SOPHISTICATED INDUSTRIAL MECHANICS. the business world of the country: Jean Pierre Mustier, CEO of Unicredit, Alessandro Decio, CEO of Sace, Emma Marcegaglia, president of Eni, and Fabrizio Di Amato, president of Maire Tecnimont.

ood news. Indeed excellent. According to SACE SIMEST report which forecasts “Unstoppable growth” of Italian exports up to 2021, despite the uncertainties of world markets. The most significant performance is that of instrumental mechanics, number one Italian export sector (+ 5.2% in 2018, and + 3.1% in the following three years): the companies of the Peninsula are in fact considered, at the global level, among the best suppliers of industrial goods, technology and know-how. These results certify how the country has managed to ride the technological change with great response, to the point of winning not only the leadership in spreading knowledge and skills, but also in exporting increasingly advanced and sophisticated industrial machines, necessary in the development processes of other economies.

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A leading role in an increasingly digital and technological present, as the numbers demonstrate: after an exceptional 2017 which marked the year of records with 448 billion euros and a positive spike of 7.4%, 2018 should close +5.8%. The positive trend will continue until 2021, reaching the milestone of 540 billion (with an average of +4.5% annually). Widespread forecasts in Milan, during a summer conference at Palazzo Mezzanotte, which was attended by some of the most important exponents of

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What led Italy to achieve such flattering results? The answer that everyone agrees upon is the growth of the competitiveness of Italian companies, that CEO of SACE Alessandro Decio defines

Today there is no need for large dimensions, but for innovation, flexibility, and ability to take risks and move quickly.


SPECIALE | EVOLVE

“stronger, more international, effective and competitive than a few years ago”. And it is the French number one of Unicredit, Jean Pierre Mustier, to explain in detail the winning formula: “The medium and small Italian companies have a right business model for the new millennium and this represents an immense competitive advantage. Today there is no need for large dimensions, but for innovation, flexibility, and ability to take risks and move quickly. This way of doing business does not exist in France”. International projection of Italian companies is qualified as “National heritage” in SACE report. This statement is more than legitimate, given that in recent years only exports have succeeded in providing a positive contribution to the country's economic growth. Let the numbers speak for themselves: without exports, the Italian GDP would be less than six percentage points lower today. A fact that the president of Eni, Emma Marcegaglia, emphasized in her speech, explaining the important role played by large companies to create a supply chain of Italian companies involved in projects overseas: “Global companies like Eni must carry out a leading role for small Italian companies, because only through the supply chains the latter can fit into distant scenarios and gain market shares in other countries. This is the way of operating that allows us to increase exports, a fundamental item for our GDP”. SACE report (a company of the Cassa Depositi e Prestiti group, which specializes in supporting Italian companies abroad) says that “Made in Italy” continues to be oriented towards sectors with higher added value and less subject to price competition. A so far rewarding strategy expressed by president of Maire Tecnimont, Fabrizio Di Amato: “We are a nation of entrepreneurs and people able to innovate. We have to move around the world bringing the skills of Made in Italy everywhere. If we believe in it, impossible challenges become possible. But to succeed, it is important that the strengths of our entrepreneurial system, innovation and flexibility, are transferred - in the case of supply chains - to all suppliers and are shared with them. Only this way we will become even more competitive”. The new challenge accepted by Maire Tecnimont will see the involvement of the Italian engineering industry in the implementation of a new projects requiring significant technologies and digital innovations input. In the name of an increasingly advanced export.

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Export of capital goods Among the most important in terms of weight (40% of total exports), export of investment goods is expected to increase by 5% in 2018 and slightly lower (4.6%) in the three following years, which reflects the signs of recovery in the investment cycle on the global scene. Among the sectors that will stand out in terms of performance: transportation, one of the leading sectors of Italian exports in 2017, especially automotive industry (+4.6% in 2018 and +6.9%, on average, in the three-year period 2019-2021) and instrument mechanics, Italy’s top export sector (+5.2% in 2018 and 3.1% in the following three years).

Countries in focus According to SACE, several emerging countries are in focus: Morocco, the Philippines, Colombia, Senegal and Turkey. These countries are added to the 15 regions of opportunities which in 2017 generated 90 billion euros in exports and which will remain for the next few years: the most important, Asia, Emerging Europe and the Americas; in recovery, Brazil and Russia; at significant rates, China, India and Asean markets; growing, Middle East and North Africa.

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WHAT IS SEENERGY

EVENT NUMBERS

Annual event organized by Maire Tecnimont dedicated to its supply chain aimed at maximizing value for all stakeholders in the supply chain.

More than 70 Managing Directors of partner companies took part, representing a total of almost 900 billion euros in turnover and a workforce of approximately 4 million workers.

LATEST EDITION

RESULTS

June 7, 2018 at the Milan headquarters of Maire Tecnimont.

800 initiatives and more than 300 agreements were concluded a year later by the Group Procurement team, led by Paolo Mondo.

KEY MESSAGE Create a long-term customer-supplier bond to face global energy market challenges together. The goal is to promote a “more proactive” approach with partners and devote common energies to identify cost and time savings.

6 PILLARS IN THE RELATIONSHIP WITH SUPPLIERS •

Participation in the bidding phase

Concurrent Engineering

Win-win approach

Competitive total cost

Risk sharing

Impeccable execution

THE DECLARATIONS “A licensor and EPC contractor like Maire Tecnimont must be a pioneer if it wants to face the challenges of the market in this new energy era. A new proactive and collaborative approach with our business partners is a key component of our strategy and is already delivering concrete results in our projects”. (Pierroberto Folgiero, Chief Executive Officer of Maire Tecnimont Group).

“Today we are taking another step forward to create value together with our partners. A step forward not only for our supply chain, but for the entire engineering sector of Made in Italy”. (Fabrizio Di Amato, Chairman of Maire Tecnimont Group).

“Today the boundaries between companies should be gone. In this new world, we need to act in two directions: to push towards "open" platforms and to believe that diversity is a precious factor. Only if the walls inside and outside a company fall, you can grow in this new way of doing business”. (Andrea Guerra, Executive President of Eataly).

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IDENTIKIT SEENERGY EVENT

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DIGITAL

CONNECTIONS “Smart helmet is a tool that directly connects a technician working on any industrial site in the world and a specialist in the Milan headquarters”.

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“From the Milan office you can see exactly what the technician sees, giving instructions via audio and the special viewer on the helmet”.

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“Today disciplines use BIM (Building Information Modeling) to complete their designs: an approach to design and contracting activities that allows integration of 4D models with programming”.

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“Thanks to virtual reality it is easier to represent, look up and interpret huge amounts of data collected by sensors in each field. It is one of those 'killer technologies' that will significantly impact companies’ future work”.

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A SUPPLY CHAIN FOR

AZERBAIJAN

PRESIDENT OF ITALY MATTARELLA INAUGURATES THE NEW POLYPROPYLENE PLANT BUILT BY MAIRE TECNIMONT IN AZERBAIJAN. WITH GREAT ATTENTION TO THE ENVIRONMENTAL IMPACT.

From the left: Fabrizio Di Amato, Sergio Mattarella, Ilham Aliyev

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oming here with President Aliyev demonstrates the concreteness of the collaboration between Italy and Azerbaijan. The ceremony this morning is very significant, I must congratulate Socar and Maire Tecnimont for the great commitment to growth and work that is expressed here between the Azeri and Italian companies�, these are the words of our President.

"C

On 18 October Sergio Mattarella and the Azerbaijani counterpart Ilham Aliyev attended the inauguration of a major project in the Caucasus, carried out Maire Tecnimont. To welcome the two presidents, on the occasion of the opening of the polypropylene mega-hub within the Sumgayit petrochemical complex is the Group's top management: the president Fabrizio Di Amato and CEO Pierroberto Folgiero. The new plant, which is located about thirty kilometers north of the capital Baku, is of crucial importance for Azerbaijan, allowing it to become independent in the production of large-scale plastic semi-finished products. This is the first time an Italian President visits Azerbaijan: clear evidence of the increasing importance of economic cooperation between the two countries (Azerbaijan is the first oil supplier and the second supplier of gas for Italy). It is precisely in this context of economic activities, rich in

Azerbaijan

N° 2 - NOVEMBER 2018


EVOLVE | TERRITORIES

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commercial agreements and new business startups, that the Maire Tecnimont project is inserted, able to contribute to the green and sustainable growth of Azerbaijan. Fabrizio Di Amato explains: “It is a great honor that presidents Mattarella and Aliyev have inaugurated our plant. This project allows Azerbaijan to produce technological polymers with great attention to the environmental impact, diversifying the Azerbaijani economy and attracting foreign investments in high-tech sectors”. The complex, which will contribute to the development of the petrochemical industry in Azerbaijan, will also boost the domestic manufacturing industry and the growth of the internal economy.

It is a great honor that presidents Mattarella and Aliyev have inaugurated our plant. This project allows Azerbaijan to produce technological polymers with great attention to the environmental impact.

PROJECT SHEET

SOCAR polypropylene and polyethylene plants COUNTRY Azerbaijan - petrochemical complex Sumgayit, 30 km north of Baku

CUSTOMER Socar Polymer

COMPANY

INVOLVED

Tecnimont and KT–Kinetics Technology

PROJECT H igh densit y polyet hylene plant, 120,0 0 0 tons per year (under const r uc tion) and a poly propylene plant,18 0,0 0 0 tons per year (completed)

CONTRACT

PRICE

500 million dollars

REQUIRED

ACTIVITIES

Engineering, equipment and materials procurement, construction activities up to start-up and performance testing of both plants

SUSTAINABILITY Three specific programs aimed at: An important performance, that of Maire Tecnimont, not only from the point of view of the technological know-how demonstrated, but also in terms of speed and safety. “The complex,” underlined the Chairman of the Group, “was completed in a fast track mode and with the highest standards of safety, reaching a total of 17 million hours worked without accidents on site. It was also an extraordinary lab for industrial cooperation between Azeri and Italian companies”. In fact, as it often happens in its commitment abroad, Maire Tecnimont has

N° 2 - NOVEMBER 2018

1. providing support to the education of local stu dents, in collaboration with Baku Higher Oil School (BHOS) 2. acquiring local specialized staff 3. giving priority to local suppliers


TERRITORIES | EVOLVE

COUNTRY SHEET

played a pivotal role for the entire industry chain, involving more than 120 Italian companies and about 140 Azeri companies, with a peak of about three thousand people mobilized at site, locally for the most.

Republic of Azerbaijan

Figures that also refer to the other project that the Group is completing in the same district of Sumgayit: the first 180 thousand tons per year polypropylene project will soon be followed by a 120 thousand tons per year high density polyethylene plant.

CONTINENT Asia

More...

BORDERS Russia, Turkey, Georgia, Armenia, Iran, Artsakh (until 2017 Nagorno Karabakh, disputed territory)

In Azerbaijan, Maire Tecnimont is also contributing to the revamp of Heydar Aliyev Baku Refinery for SOCAR, which will allow the production of fuels in line with international environmental standards.

POPULATION 9.624.900 inhabitants

TERRITORY Surface 86 600 km², largest country in the Caucasus

CAPITAL Baku, 2,181,800 inhabitants

L ANGUAGE Azerbaijani (Latin alphabet). Russian is widely spoken and considered the language of the wealthy class

RELIGION 96% of the population is Muslim (65% Shiite)

CLIMATE Mild winters and very hot summers. Baku autumn is rainy

TIME

ZONE

UTC+4

CURRENCY Azerbaijani manat

ECONOMY Oil and gas are the main export products of the country

TAP From the Greek-Turkish border, the Trans-Adriatic Pipeline (TAP, Trans-Adriatic Pipeline) will cross Greece and Albania to arrive in Italy (in the province of Lecce). It will allow the inflow of natural gas from the Caspian Sea area (Azerbaijan) to Europe.

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EVOLVE | MOTTOS

48Smart Working Award 2018 In large companies, the phenomenon of Smart Working is widespread, and its impact is increasingly evident and comprehensive. This is what emerges from a conference of Smart Working Observatory of the Milan Polytechnic University, organized last 30 October to present a survey conducted on a sample of 183 companies. Among the data presented, it emerges that 59% of large companies have introduced new digital technologies to support Smart Working projects, while in 27% of companies Smart Workers were already equipped with the necessary technologies. On this occasion the “Smart Working Award” 2018 prizes were awarded. The Maire Tecnimont Group - together with A2A, Gruppo Hera and Intesa Sanpaolo - received recognition as a company that has distinguished itself for its ability to innovate working methods towards Smart Working. Maire Tecnimont's decision to introduce smart working launching “BE ADAPTIVE! - Think Tank” competition, was born from the awareness of an irreversible process already underway, immediately involving its employees, as real protagonists of the transformation of the model of work organization. From the left: Mariano Corso, Franco Ghiringhelli, Fiorella Crespi

Addiction to results Digital Transformation it is a fundamental element of the company’s ‘turnaround’, as it not only facilitates work operations, but also creates the circulation of know-how. The previous issue of EVOLVE dealt with the change inspired by Be Adaptive!. On these pages we adopted a new logic of Ride the Turnaround within the collective project ‘call to arms’. Each collaborator of the Group is called to be an active part of the change in progress. After three issues that have consolidated EVOLVE as a tool for transformation and cultural debate (see our value MOTTOS), we are ready to welcome a new challenge: “Take the Challenge” will in fact be the motto in the next issue of EVOLVE at the beginning of 2019. The new claim is “Let your passion for results guide your actions”, and it introduces the theme of entrepreneurship and appetite for challenge. According to CEO Folgiero “difficult things are a chance to grow”. N° 2 - NOVEMBER 2018


RIDE THE TURNAROUND!

The challenge of our Group: impeccably deliver our portfolio through operational and financial discipline.

Master the change, be actively part of it!

EVERY SINGLE DECISION COUNTS! Our work-success is the result of a thousand single choices made in the right sequence. There is no time for procrastination.

Your contribution makes a difference!

BE ADAPTIVE!

Fast changes in the market create discontinuities while opening also opportunities to the most responsive players.

Agility is the key!

NOT JUST THE COMPANY, THIS IS YOUR COMPANY! Building together the success of our Group creates shared value to everyone.

Be entrepreneur in a network of entrepreneurs!

TAKE THE CHALLENGE!

Managing uncertainties is the core of our job… As a sailor faces the sea every day.

Let the passion for results drive your actions!

STEP UP AND MAKE THINGS HAPPEN! Talk and listen directly to your colleagues. Sending an e-mail could not be a solution. Let’s keep our doors open.

Beat the bureaucratic approach!

WE ARE RESILIENT!

Recovering quickly from drastic changes is part of our noble and precious DNA. We live in a tough environment, but adversity made us stronger.

Let’s capitalize on lessons learnt!

OUR TOMORROW IS NOW! These are extraordinary times. If we stay focused on our corridor of growth we will be ready to build the next decade of Maire Tecnimont.

The floor is ours!


www.mairetecnimont.com

EVOLVE n.2  

English version

EVOLVE n.2  

English version

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