The construction industry is in the midst of change. More and more construction companies are going digital for a variety of reasons: higher productivity, less waste and costs, and higher profitability, to name a few. Here are 3 key elements that will contribute to a successful business plan in this “new era” of building.
People are the first and foremost resource for any organization (including construction companies). Of course, you can’t expect sustainable success if your employees and contractors don’t get into your processes.
Unfortunately, when it comes to digitization, many construction companies fail to seek approval from their key stakeholders. This creates a huge gap between the initial implementation of new technologies and the number of employees who use them on a daily basis.
In short, the solution is communication. You need to keep your employees informed at the start of any major change. For example, you should do whatever you can to buy-in across the board before starting a new pilot program. If the pilot program is successful, it is important not to scale the new solution arbitrarily, but to introduce it gradually so that employees throughout your company can familiarize themselves with it. Training and patience are key, but the people in your company will reward you for your attention.
Over the past few decades, the construction industry has seen negligible year-over-year productivity growth compared to other sectors such as manufacturing. Admittedly, the construction industry is not a “production-based” industry in the traditional sense; However, the value of the sector could be increased by trillions of dollars if its productivity were raised to the average of the economy as a whole.
Implementing lean digital processes can make a big contribution to increasing productivity. In fact, research shows that going digital can lead to a productivity increase of up to 15% and a cost reduction of around 5% per project.
You can incorporate digital transformation into your plans by first identifying operational “bottlenecks” that are holding your company from performing at its best. Then model digital solutions that can meet the needs you have identified. With standardized, digitized workflows, you can avoid unnecessary wasted time and money and your company can grow faster.
Even if the construction industry is one of the least digitized industries in the world, there are many opportunities for new, innovative solutions. It is important for construction companies to look at the “big picture” and to see digital transformation not only as a stopgap solution for solving specific process problems, but also as an opportunity to streamline and optimize their businesses for sustainable growth.
At the same time, new technologies should be implemented to address pain points that are actually hindering growth. To achieve the best results, technical solutions have to be provided as fully integrated, coherent systems – or they have to fit seamlessly into existing systems. An isolated approach is counterproductive, as is a “tech-first” approach that focuses more on the “cool gadget of the week” rather than finding practical solutions to existing problems.
When you consider these 3 key elements at the beginning of your digital transformation, you will find that the investment is well worth it. Your construction company will undoubtedly grow faster and enjoy a strong market position for years to come.
Briq is a business performance management platform designed specifically for financial professionals in the construction industry.
We combine modern technology with hundreds of years of combined construction experience to give you deep insights into your business.
Briq unifies your financial processes and makes them more efficient, accurate and timely.
By automating workflows, consolidating financial data and providing real-time reporting, we enable contractors to make efficient and effective financial decisions.