Business Modelling Associates (BMA) has been appointed as contractor for the development of an integrated Risk and Cost Modelling capability.

BMA, a leading business analytics, supply chain design and solutions development firm with operations in Africa and the UK, announced that it has been selected by Yorkshire Water for the development of an integrated Risk and Cost Modelling capability. Yorkshire Water, part of the Kelda Group, is one of the UK’s largest water utility companies providing water and wastewater services to five million customers in the north of England.

“The development of an integrated suite of risk and cost models that accurately represent the business and the context within which we operate will support a technological and cultural change in the way in which we plan and operate our business. Applications for the modelling technology are diverse in nature to the extent that we expect considerable consolidation of existing bespoke modelling applications and reductions in third-party modelling expenditure over time,” says Stephen Herndlhofer, head of Data Services at Yorkshire Water.

BMA was selected for this seven-year contract, one of the largest business analytics software deals in the UK Utility sector to date, ahead of a wide range of the UK’s leading blue chip consulting and technology companies.

“We have spent over two years formulating our business analytics strategy, which has included a peer review by Cranfield University” says Herndlhofer. “BMA was selected to support the delivery of this strategy due to the uniqueness of its partnering approach, clear focus on value creation and the maturity of its technology.”

The independent review and critique of BMA’s approach, conducted for Yorkshire Water by their strategic research partner Cranfield University, concluded: “Yorkshire Water has an internationally leading approach to risk management and strategic cost modelling that is approaching best in class for the Utility sector.”

BMA’s co-founder and director, Rod Stout, says:“We are very excited to be embarking on this journey with Yorkshire Water to develop a long-term internal business analytics capability that could revolutionise the way the company optimises its operational and strategic decision making processes” said. “After a strenuous international due diligence process, we are delighted that Yorkshire Water has selected BMA as its business analytics partner.”

“The primary objective of this project is to create a business analytics capability within the Kelda Group. BMA will support the development of expertise throughout the client user community to the extent that the client will ultimately become self-sufficient in the ongoing development and maintenance of the Yorkshire Water integrated modelling suite,” says Stout.

BMA will utilise River Logic’s next generation business analytics software, Enterprise Optimizer, to build a series of bespoke yet integrated models that will allow Yorkshire Water to more accurately determine and forecast risk and cost throughout the organisation. This enterprise-wide integrated modelling framework will help Yorkshire Water solve business challenges at the strategic, tactical and operational level.

“The principal benefit of this project will be to develop a multi-application decision support framework that delivers sustainable capex and opex out-performance through end-to-end process optimisation, cost avoidance, more confident decision making, enhanced risk management and integrated financial planning,” concludes Herndlhofer.