Is Your Construction Business Ready for Digital Transformation?

Digital transformation is when an organization takes advantage of new technologies to redesign and redefine relationships with its customers, employees, and partners. Digital transformation for business covers everything from modernizing applications and creating new business models to building new products and services for customers.

With the world now in the 4th industrial revolution, we tend to see several construction businesses moving in this direction by working with laptops, tablets, document management systems and a series of other digital tools. This signifies the start of the digital transformation of businesses, which is radically changing many sectors. 

However digital transformation in the construction industry can be complicated due to several contractors and subcontractors being involved in a single construction project. The solution to this is for individual businesses involved in the project, to modernise their efforts to help them partner with other businesses more effectively.

Some of the suggested approaches to a successful digital transformation within a construction business are:

1. Don’t use technology just because it’s technology. Understand your business requirements and be solution orientated.

When social media first exploded, the hype of every company trying to jump onto the technology train without proper knowledge and lack of due diligence of the solutions required, led to little or no return on their investments. Understand your business needs and growth strategies, and in partnership with a good IT company, research the solutions that are best suited and will work for your business. The right mindset, together with careful choices, can result in significant savings for your construction business. Creating useful business cases that clearly identifies and define logistical problems within the business, will lead to an effective digital solution. Building specialised apps for your construction business should not be a case of “Should we develop one”, but rather one of “What features should it have” and “How quickly can we get it.”

2. Upskill your workforce for digital transformation.

Technology is evolving rapidly and radically, resulting in imminent change in all spaces, be it private or business. It is human nature to resist change, but through simple and effective training programmes, you can upskill your workforce and encourage staff to embrace change. You may not be able to teach an old dog new tricks, but if you equip the old dog with new tools, they will more than likely perform new tricks. The increased ability to learn as a result of digital transformation for both business and the workforce, is immeasurable.

3. Implement digital transformation at a business level.

Digital transformation does not only relate to upskilling your workforce. It is a journey to change the way your business operates and should be embraced from an executive level of management. Strategic decision-making in businesses where innovations from one project are taken and applied to many other projects, ultimately change the way entire businesses operate.

4. Modernise by implementing new digital tools. 
Many construction companies have been slow to implement new technologies due to a lack of experience in accurately planning timelines and the resources required for the introduction of digital tools. On the other hand, many construction companies that do invest in new digital tools, often do not implement them effectively. 
The successful implementation of digital tools can help site managers lower redundant resources, manage the site’s workforce time more effectively and speed up workflows. This leads to better cost management, collaboration of separate teams and good returns on investments.
Digital tools like the following can be considered for digital transformation: 

• Drone technology is increasingly being used to inspect construction projects and track construction progress. 
• Augmented reality (AR) and virtual reality (VR) are ideal tools for designs and visualisations. AR and VR can contribute to a better understanding of the construction process and help solve complex problems. 
• 3D scanning is used to analyse a real-world object to collect data on its shape, and possibly its appearance. This type of scanner is used to model and build a structure.
• Laser scanning is used to create quick and accurate 3D models of existing buildings. 
• 3D printing is an automated, additive manufacturing process for producing three-dimensional solid objects from a digital model.
  

5.Replace paper and spreadsheets with mobile apps.

By replacing paper and spreadsheets with dynamic mobile apps, construction businesses can capture data from any location and any device easily. Data collection can be done online or offline. Construction site teams can use standardised designed forms to enter data, geotag locations, scan barcodes, attach photos and document weather conditions, using these mobile apps.

6. One standardised platform for data collation

Having a single digital transformation central platform, will allow business executives to make informed decisions more quickly. Access to this platform can be restricted to authorised persons only, and thereby ensure the safety and confidentiality of data.

7. Automate business processes.

Manual work and change orders can lead to slow processes in the construction industry. However, automation of these processes frees employees from manual data entry and related tasks and enables them to focus on more productive tasks. Automation also ensures efficient monitoring of the progress of construction projects, helps to meet all contractual requirements, tracks productivity for project management and increases the likelihood of profitability. A reputable IT service provider can assist in transforming your paper-based data into electronic data in multiple formats. These services can be customized according to your specific business requirements.

8. Conversion and storage of data on Cloud-based platforms
Moving to the cloud allows businesses of all shapes and sizes to operate faster, be more agile, and innovate. Converting construction data into a digital format and storing it on a cloud-based platform, enables easy access to data at any time. An additional benefit of using a cloud-based platform is its ability to provide access to your business data using a variety of devices, regardless of your location. These platforms also strengthen the security of data by providing robust protection.

The shift to digital transformation in business has completely transformed how we work, communicate and collaborate. The world is changing, and it is becoming increasingly necessary for construction businesses to stay competitive in today’s digital and technological world. At Master Builders KwaZulu-Natal, we are currently increasing digital transformation by developing a customised Retirement Fund system for our members and moving the business’s infrastructure to the cloud. Have you started your digital transformation?

Reetesh Balgobind

Assistant Finance Manager

References

Merril, M. (2021) “Construction Digitization: Understanding the Impact on Profitability” [Online] Available at:
https://www.forconstructionpros.com/construction-technology/article/21451673/construction-digitization-understanding-the-impact-on-profitability. Accessed 15 August 2023

Windapo, A. (2021) “The construction industry transformation and the digital divide: Bridging the gap,” South African Journal of Science, 117(7/8) [Online] Available at: https://doi.org/10.17159/sajs.2021/10990. Accessed 15 August 2023

IOL Business Report. (2022) “Digital transformation in the construction industry cause for concern” [Online] Available at: https://www.iol.co.za/business-report/companies/digital-transformation-in-the-construction-industry-cause-for-concern-76b16ddc-58f4-438c-952d-7128aa5db184. Accessed 15 August 2023