Digital Transformation in Construction

According to the latest studies, 60% of the construction sector is still analogue. This puts it clearly behind other economic sectors. We have not yet managed to break the linear design model in construction and this has slowed down the progress we should have made in the last 25 years, despite the enormous potential that exists.

Here we propose a seven-point plan to accelerate the digital transformation of our industry:

 1. Why this transformation? First, we must ask ourselves whether digitalisation is going to improve our business, our efficiency or the quality of our product. What impact will it have in terms of delivering value? It is important to calibrate our expectations. Transformation takes time and effort, and we need to be clear that it is worth it to maintain momentum without losing sight of the objectives. The increase in productivity that will come with the gradual assimilation of this shared progress should facilitate the acceptance of change. In construction, the application of knowledge gained from one project to another is a good starting point, and with digitisation this knowledge no longer stays in paper documentation or in the heads of those responsible, but is implemented in process improvement, which has exponential benefits throughout the organisation.

2. Are we ready? People are the heart of the business, and digitalisation can appear to be a threat to their jobs if we fail to articulate our work culture with the benefits it brings, without disruption. So, knowing why we want to evolve, we must now prepare for change. It is important that our people understand that digitalisation will not only improve the business but also their jobs. Our teams need to understand that it is not about replacing them, it is about improving their production. Providing training in new systems, broadening the scope of each job to include innovative ways of working, or involving our people in implementing important changes to the business can help in this transition. We must be clear why this is a step forward and can only be positive for everyone.

3. Mark the starting line. Identifying a field that aligns with the change rationale for digitisation, with the right scale so that its impact can be assessed, is the best way to get off to a good start and raise the issue in other areas. It is about looking for a stand-alone project where the introduction of change is not disruptive for the whole organisation. Extract the ‘lessons learned’ from this first project, share them and apply them to the next one, so that their impact can be assessed before they are applied across the board.

4. Audit the business structure. Strange as it may seem, ask yourself: Do we understand our own company? How does the business work today and where do we want it to go in the future?

Where have we incorporated digitalisation and where do we maintain analogue systems? What processes can/need to be improved? Analysing and questioning our business structure can provide us with a complete picture not only of the systems and technology we employ, but of the entire business. If we only focus on the systems and neglect the people, we will miss the goal of overall profit. If someone leaves the company, their progress and knowledge should not be lost, but reflected in well-established processes, so that the performance of the team is not affected.

5. Spending money on someone else's head! To make your transformation faster and smoother, it is important to surround yourself with people who have already been through the experience; expert consultants who can point the way and show us what the end we are aiming for will look like and what challenges we will face in order to reach it.

6. Failing early is better in the long run. If you have to stumble, it is better to do it sooner rather than later, learn from your mistakes and move forward, faster and better armed than before, towards ultimate success without compromising your results. The management of KPIs (Key Performance Indicators) is vital to achieve this success, as it allows us to identify early in the process the parts that are getting us off track, and to ask the right questions: What changes need to be made? Do we need to rethink something and try a new approach? The initial reasons (the ‘why’) must remain present - stick to the plan! Experience tells us that digitalisation initiatives can be held back by unrealistic or poorly planned expectations, but do not give up but adapt to reality - we may be closer to achieving this than we think! It is important to look back and value the small victories that allow us to see the success of the strategy, and to maintain that momentum until the end.

7. The moment of truth. Once the previous six points have been overcome, it is time to scale the digitalisation strategy throughout the company, it only remains to decide in what order. Some quick changes can be positive to drive the transformation of the team. Visualising the process is satisfying for everyone, and for this we must continually review this six-step process.

Implementing change often makes us look for immediate impact, but moving forward in leaps and bounds is rarely the path to long-term, sustainable digital transformation. It is essential to remember the reasons that drove us to this challenge and make it worthwhile. So be patient with your team and yourself, and you will see the rewards.[No text in field]