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Across nearly every sector, digital technology has been transforming the business landscape. However, construction remains behind on the adoption of digital tools and systems. The industry has only grown by approximately 1 percent annually for the past 20 years, according to McKinsey & Company. Comparatively, the rest of the economy has grown three times that.
The reason construction has been slow to adopt these opportunities comes down to an overall industry attitude. Construction has a long history. For many industry leaders, the prevailing approach is to say “It’s been done that way and worked for decades, why change it now?”
This approach doesn’t just leave profit, and business development tools on the table, it actually takes the industry a step back. Digital transformation is improving businesses across the supply chain, and that’s not changing anytime soon. Construction companies need to get on board or risk falling behind the rest of the economy.
Consider bookstores when first faced with Amazon or taxis competing with Uber, or Google’s effect on advertising. When companies double down on older methods instead of embracing technology, they can lose business to competitors that do take those opportunities. In some cases, those direct competitors become the new norm, and completely overtake the industry.
It’s time to look to the future and lead the industry in digital transformation. With that in mind, let’s look at a few ways “going digital” can help construction businesses succeed today and in the years ahead.
- Improve productivity/profitability: Studies show that digitalization can improve productivity for construction companies by up to 15 percent while reducing cost per project by as much as 6 percent. (Source: McKinsey Global Institute)
- Enhance decision-making: Construction companies have a ton of data on which to make better decisions, improve estimates, reduce risk, and ultimately win more jobs; however, it’s often hidden behind different paper-based information silos and systems. Digitalizing allows organizations to centralize that data, connecting departments and systems, and unlocking its potential.
- Better resource management: Computers are built to keep track of data. Organizations can leverage data analytics to better distribute equipment, labor, revenue, and other key resources for an optimized spread.
- Increase employee engagement and collaboration: Automating mundane processes through digitalization allows employees to do more valuable work with their time. This results in a more engaged and satisfied team, and, by connecting data easily from across the organization, better collaboration.
These benefits are just the tip of the iceberg of what digital transformation can achieve for construction. That said, transforming your business can be a daunting process. Change always takes careful managing. When implementing new digital technology, there are a few key points that can set you up for success: it must be easy to use, integrated with existing systems, tailored for your business and industry, and bring value. Otherwise, it will simply sit collecting virtual dust.
It might not surprise you that Briq was designed with all that in mind, to make it easier for those in our industry to begin or continue their digital transformation journeys.
To learn more about the need for digital transformation in construction, and how it promises to disrupt the industry, read our eBook Digital Transformation: Disrupting the Construction Finance Ecosystem.
Or to learn how Briq can aid you in your digital transformation by breaking down information silos, helping you make better decisions, and more, visit briq.com/demo