Digital transformation in construction started with the introduction of computers and software-driven engineering. However, it has recently evolved into a new era of digital technologies impacting project delivery and management.
Advancements in this area include automation, big data, cloud computing, robotics in engineering, and design. Construction has also significantly changed due to 3D models and virtual reality (VR) tools. They make construction safer, faster, and more cost-effective.Here are 5 of the most common roadblocks to overcome when making the leap from traditional to digital.
1. Resistance to Digital Transformation
Resistance causes a barrier to digitization efforts regardless of the industry. An aging workforce often makes this problem worse in the construction industry.
Studies show the construction workforce is aging faster and integrating youths slower. For example, a 2018 construction workforce survey found that workers over 55 increased while those aged 25-54 decreased by 69%.
It’s usual for employees to be hesitant about change even if the technology improves operational processes. A survey by PEW affirms a high aversion to digital changes by adults over a certain age. As a result, many adults may refuse to use or struggle to learn about new technologies.
Your team may assume digitization efforts could cause transformation issues, but the tech itself isn’t to blame. Often, the big problem is existing operations and response to technology. For example, many construction companies struggle with adjusting their workforce and realigning it to embrace new tech roles.
Digital transformation in construction won’t survive if it focuses on tech only and assumes culture and workforce structures. Employees being resistant to digital transformation may result from inertia and ignorance.
Inertia occurs when employees hold on to outdated practices in the wake of proposals to change technology, operations, and processes. Meanwhile, ignorance limits their ability to interrogate and understand the benefits of digital transformation.
A transition transformation strategy is essential for successful digital transformation in construction. It could be challenging to train resistant employees, but putting them in a digital mode is necessary. Employees need to understand that digital transformation is for the organization’s future.
The foundation for successful digital transformation is getting all the employees on board. First, develop a vision that encompasses their needs, including potential benefits for successful transformation. Then, make the digitization smooth by letting specialists review your structures and recommend an effective construction transformation strategy.
2. Customization Challenges
Industry structures can determine the implementation of technology. Ordinarily, every industry follows standard operational practices and technology. But construction is different.
Project management practices brought to the construction often result in varied results. Construction projects are often unique. This means there’s a high need for custom approaches and systems.
Construction corporations usually consist of a subset of contractors. These subcontractors work on independent projects in different locations. As a result, each site brings unique challenges leading to a trade-off between efficiency and processes.
Relationships in most construction projects are usually short-term. The type of structure is bound to change with each project. In most cases, there’s a need to reassign roles and responsibilities with each new project.
Investing in digital transformation may not seem feasible, especially when managers consider the uniqueness of projects. However, proper coordination of changes is essential for successful digital transformation.
Coordination is the key to enabling cross-engagements with all stakeholders and promoting open communication for effective change. This is even more important in the construction industry with multiple organizational units. All stakeholders must be on the same page about the transformation strategy and schedule.
A transformation specialist can create a cohesive environment for building common ground, pacifying skepticism, and combating hostility. A trust-based relationship is a key to building momentum and sustaining reasoning throughout the digital transformation.
3. Inconsistent Teams and Projects
Construction teams tend to be highly volatile. Typically, a project should have a consistent team working together until completion. But construction project teams are rarely consistent.
Contractors are forced to cope with changes in workforce turnover across the various stages of a project. This makes it difficult for projects to adopt new technologies and build transition capacities.
Midstream changes alone are likely to lead to unresolved construction and project management issues. The new construction manager struggles to continue when a problem results from a previous team’s processes.
Not to forget, some construction projects happen in remote areas where software and hardware implementation can be a challenge. The transformation team will have to figure out the project transition and plan the technological accessibility of each site.
For the success of the digital transformation, construction companies must focus on collaboration and transition systems. Engineering teams must be skilled enough, and there should be a computerized handover system to prevent transition issues.
4. Competitive and Costly Market
Digital transformation is likely to be easier in a calm operating environment. Implementing change in low-competitive markets is less risky and costly. The cost of operations in an industry can be a frustrating impediment to change.
Unfortunately, competition is fierce in the construction industry. Mark Wakeford, Joint Managing Director at Stepnell and Chairman at Evo Energy, attributes our challenges to low financial barriers of entry. He says a high proportion of those working in construction is self-employed.
Competition can affect whether to opt for digital transformation in construction. Businesses may hesitate to test in a costly endeavor in an extreme environment. On the other hand, companies are likely to see more productivity after tying processes together through innovations.
The high cost of construction operations can also determine digital transformation operations. Innovative construction technologies may push the cost of operations and transitions higher. The good news is that construction technologies can help with boosting productivity.
5. Inadequate Data to Support Digitization Efforts
Many construction managers suffer from a lack of data to support successful digital transformation. With the challenges of adopting technology, the reason behind this challenge is somewhat apparent.
Construction stakeholders mainly collect data using traditional technologies. Often with manual methods, a lot of collected data is incomplete or inaccurate. Studies show a whopping 88% of construction data has human-caused errors.
In a competitive edge, timeliness is essential. Construction managers shouldn’t wait hours, weeks, or months for vital decision-making information. Unfortunately, information flow in the construction industry is slow to support effective decision-making.
One report shows that poor data collection strategies cost the construction industry about $1.85 trillion. Inaccurate, incomplete, inaccessible, or untimely data isn’t reliable for actionable decisions.
On a positive note, companies with effective data collection strategies report fewer delays. They also have more minor errors, reworks, and productive teams. Effective data strategies allow construction teams to prevent losses and gain a competitive edge.
Successful digital transformation in construction is only possible with a robust data collection system. Any implementation of technology in a business requires tons of data. An operating system supporting collaboration and coordination is the way to ensure construction managers access data.
Having updated and accurate data from interconnected systems will allow for better adjustment to changes in a project (being from suppliers, changing teams, delays, and other factors). This will improve cost-effectiveness and client satisfaction.
Technology Adoption and Implementation in Construction
Successful digital transformation in construction is critical for operational efficiency and access to insightful data. An analysis led by a transformational specialist can help develop an actionable transition strategy.
Here are some key technologies likely to shape your company once you figure out your transformation strategy.
- Artificial intelligence can help you predict client needs and develop better and more durable designs.
- AI-driven digital transformation can reduce errors and redundancy and boost productivity.
- Collaboration and project management software can streamline project transitions, improve supervision, and speed up team support.
- Managers can leverage big data to predict risks, safety, and weather to improve safety and boost project efficiency.
- Digital transformation in construction comes with intelligent modeling tools that allow real-time tracking of projects.
- The Internet of things brings operational efficiency through self-operating intelligent machines.
- Geo-tracking will enable you to identify dangerous sites and protect your team.
- Augmented and Virtual Reality technologies allow fast and accurate structural design ideation, modeling, and approval.
- Cloud technology can improve the control and safety of data and help reduce existing data gaps.
Real-time tracking technologies can enhance coordination and collaboration between project managers.
Importance of Digital Transformation in Your Construction Company
Prolonging digital transformation in a construction company can have detrimental effects. Please keep reading to learn the importance of successfully integrating it for your company.
Access to Insightful Data
The adoption of technology gives construction managers more access to insightful data. In addition, construction technologies such as drones and software can make it easier to control construction objectives.
Access to data means owners have more control over field decisions and project outcomes. A shared data environment can also boost collaboration and speed up workflows.
High-Quality Products
The digital capabilities of digital transformation reduce human errors in architectural and engineering modeling. As a result, engineers can produce more accurate models leading to better buildings and structures.
Improved Productivity
Lack of data is one reason the construction industry grows slower than other industries. Digital transformation can improve decision-making, staff management, and field monitoring. Correct technologies can reduce construction losses and improve efficiency and productivity.
Increased Safety and Improved Risk Control
Construction projects come with financial, environmental, and human risks. With the help of digital technologies, construction managers can access all the information they need while managing new sites. In addition, they can get real-time data from them to access and mitigate these risks during the execution of the project on their own.
Start Decoding Digital Transformation in Construction to Find the Right Strategy
Companies must develop cohesive and inclusive systems to promote collaboration for successful digital transformation. A unified team is a key to a smooth and effective digital transformation in construction.
Bashar, a transformation specialist, recommends using the Construct360 to speed up your digitization journey. The approach involves a complete overview of your processes and gradual change orchestration. Contact Bashar today to schedule a free consultation.
