case studies / investment optimisation

portfolio optimisation / South West Water

We have a long standing working relationship with South West Water (SWW).  Our involvement initially focused upon providing and developing investment planning processes and an investment optimisation system.  This gave SWW a consistent means of valuing investment benefits across a wide asset base which enabled them to understand the tradeoff between different types of investment and structure their investment plan accordingly.  

In more recent years we have been supporting SWW in the development of a cost benefit approach to investment planning, updating the optimisation software so that investments are valued based upon a monetary value of risk.  The monetary values are based on customer willingness to pay (which were derived from both customer surveys and available government and academic literature) and the private cost associated with lack of investment.  This provided SWW with a comprehensive means of valuing risk to service and therefore the benefits that investment would deliver.  SWW used our optimisation software to formulate their 2009 Strategic Business Plan.

We have recently finished working with SWW in to relation to enhancing the optimisation software into a web deployed platform that has the facility of integrating with other corporate applications to support the end-to-end investment planning process.  We look forward to continuing our relationship with SWW into the long term.