Technology adoption in the construction business - a problem that stops the growth of the industry
photo by Josue Isai Ramos Figueroa
The construction industry has traditionally been slow to adapt to any changes, especially those related to technology and innovation. The last year was a positive experience for many, which allowed them to learn how to quickly respond to changes and adapt to realities. It is good if you have already created an ecosystem in the company that will allow you to quickly integrate any new solutions. If you are not yet familiar with change management, you can read more about it in one of our articles How to transform construction business in 2021
Perhaps today it is worth realizing where your company is on the path of technological development and where it should be. The use of technology today is precisely the factor that allows companies to take leading positions in the modern business world.
Every company is a technology company, no matter what product or service it provides. The companies that embrace this fact are the ones that shape our world.
Stephenie Stone, CIO Americas at M+W Group, a global high tech design and construction firm
Below are a couple of McKenzie studies that provide a global look at the state of the construction industry in terms of technological adaptation
"In 2018, we first assembled multiple data sets and employed advanced analytics to map the global construction technology industry ecosystem. We recently refreshed our analysis and found that the largest clusters of use cases include 3-D printing, modularization, and robotics; digital-twin technology; artificial intelligence (AI) and analytics; and supply-chain optimization and marketplaces"
The industry has continued to grow briskly with venture-capital (VC) activity rising to several billion dollars at the end of 2019 from low levels a decade ago (Exhibit 2). VC investment in construction tech outpaced the overall VC industry 15-fold through 2019, with clear indicators for continued momentum.
The world is now moving towards the stage of the digital economy, where the values of the software product prevail over the value of the rest of the industry.
The construction industry is still only moving towards the digitalization stage, when individual companies are moving into a technological state, in which software becomes the most critical link for business management and development.
Think about it, when the possibilities to digitize a particular process are practically unlimited, and technological progress is developing exponentially and is ready to offer a solution for almost any problem, what will be the competition in the future?
Where is your company on the scale of industry development and what do you need to do today in order not to be left behind the industry? How flexible is your company now to adapt to change? And if it turns out not to be flexible, won't it break under the pressure of the industry?
Many construction firms are taking action to integrate technology into their business processes to optimize and connect different areas of the company. The construction business is distinguished by its particular complexity and the content of a large number of business processes and technologies, exactly the tool that will remove the shackles of bureaucracy, human error, and limited resources. The introduction of technology into the business processes of your company can become not only a springboard for the development of your business but also a decisive factor in what place you will take in the industry of the future.