Systems Engineering in the Business Case Phase to Reduce Risk in Megaprojects

Abstract

One of the main Frequently Asked Questions (FAQs) in project management for built environment or physical infrastructure projects is “How will this project scope be delivered on time and under budget, addressing health and safety in a sustainable way?” This article presents a parallel point of view summarised in a competing question: “Have you followed a systems engineering methodology to detail interfaces and integrations in the business case?” Megaprojects face multiple risks that incur project delays and cost overruns; hence, this article proposes a simple but nevertheless innovative model that incorporates a systems engineering framework at the start of the built environment or physical infrastructure project: the business case phase. This proposed approach seeks to derisk megaprojects composed of complex systems of systems (SoSs) in their earliest stage when financial decisions based on cost estimations have to be made. The scope of this article covers built environment and physical infrastructure projects and their associated ICT, digital, and technology programmes, rather than purely IT developments. The inconvenient truth is this additional systems engineering task embedded in the business case comes at a further project CAPEX cost that decision makers or stakeholders should be willing to accept as it provides a wider technical vision of the project and better quantifies the Return on Investment (ROI).

Keywords

• built environment
• physical infrastructure
• systems engineering
• physical and digital integration
• business case
• megaprojects