Digital Transformation in the Construction Industry

The Current State of Construction Industry & Need for Digitalization 

A digital transformation in the construction industry is necessary. Due to the fragmented and decentralized nature of construction companies, working in traditional methods of data collection, daily logs and communication have historically produced delayed progress, a lack of communication among stakeholders and outdated data. Despite calls for digital construction processes and systems, many companies are still collecting manual timesheets and paper daily logs and receiving reports that aren’t based on real-time data in the field. Construction projects are one-of-a-kind and utilize new teams of project managers and contractors, making it harder to implement digital construction processes and solutions. 

What is Digital Transformation & How it Can Play a Role in the Growth of the Construction Industry 

While a digital transformation in the construction industry may appear challenging, implementing digital construction processes and solutions is achievable. First, it’s important to understand what exactly this means. And it’s simple. Digital transformation is incorporating digital technology in the construction industry. For construction industry digitalization, adding new digital tools and processes improve efficiency, produce high quality projects on time, and promote collaboration between all stakeholders whether they are in the field or the office. 

Top 3 Challenges in Construction Digital Transformation 

1. No Standardized Mode

Standardization must be part of the digital transformation in the construction industry. But in today’s construction field, there are so many stakeholders involved in the project that everyone on the job site is doing their own thing and processing their data and progress on different legacy systems. This makes it impossible to gain real-time visibility of a project and leads to wasted time, cost, and frustration. There’s a significant lack of digital technology in the construction industry because of all of the“ point solutions” and varying needs within a construction company. Instead of relying on digital construction processes that connect all processes and systems in the field, data is not available, and companies miss an opportunity to work cohesively and efficiently. For digital transformation in the construction industry to be successful, companies must standardize their processes for all their construction-specific challenges. 

2. Disconnected Systems

For companies to go through a digital transformation in the construction industry, it’s impossible to communicate progress upgrades, late deliveries, and change orders or overall ROI of large-scale investments through outdated manual tools. Companies that embrace change and undergo a digital transformation in the construction industry empower contractors to make better decisions. When construction companies don’t share information in real-time, they leave contractors, project managers and additional stakeholders unaware of their project process and goals, which leads to poor resource management and communication. Equipment and manpower aren’t utilized fully as stakeholders make decisions with inaccurate, outdated status reports. When there’s poor visibility and poor communication, there’s mismanaged resources and frustration all around. Digital construction process in construction that efficiently share project progress, daily logs, and predictive insights is critical. They cannot rely on manually synching data between systems. Today’s construction companies are producing significant data with no single source of truth. Disconnected systems increase errors, which lead to scattered decision-making and open a company to greater risk. While there may be collaboration in the field, there is no collaboration between software, which leads to improved costs, slower turn-around times, and poor resource management. Construction companies need digital construction processes that integrate platforms and have project data flow seamlessly into one, central location for better reporting and documentation, quality assurance and control. 

3. Incomplete visibility

It’s impossible to communicate progress upgrades, late deliveries, change orders, or overall ROI of large-scale investments through outdated manual tools, like spreadsheets. Companies that embrace change and undergo a digital transformation in the construction industry empower contractors to make better decisions. When construction companies don’t share information in real-time, they leave contractors, project managers, and additional stakeholders unaware of their project process and goals, which leads to poor resource management and communication. Equipment and manpower aren’t utilized fully as stakeholders make decisions with inaccurate, outdated status reports. When there’s poor visibility and poor communication, there’s mismanaged resources and frustration all around. Digital construction processes in construction that efficiently share project progress, daily logs, and predictive insights is critical. 

Role of Technology in the Construction Industry 

The digital transformation in the construction industry improves a company’s culture and operations by using new digital tools to drive change and efficiency. In today’s competitive market, it’s no longer acceptable to rely on spreadsheets to measure performance. Rather, the digital transformation in the construction industry means using new digital tools like Internet of Things, Mobile Technology, Big Data, Cloud services, Machine Learning and Artificial Intelligence to improve processes, be more efficient and profitable, and deliver smarter construction with insight into the future. 

How Can Digital Initiatives Redefine & Automate Processes in the Construction Industry? 

The digital transformation in the construction industry is pushing construction companies to adapt and gain the competitive edge needed to deal with global disruptions, while also tackle some challenges that have long plagues the industry. Digital technologies in construction mitigate risks, streamline operations, drive productivity, and improve profitability. The benefits from digital construction solutions, such as internet of things (IoT), artificial intelligence (AI), and robotics within workflows, can automate and optimize construction operations for quality project results, on-time and on-budget. 

5 Critical Questions Construction Organizations Should Ask Before Embracing Digitalization 

As your company considers embracing the digital transformation in the construction industry and integrates automation, software, and other digital construction solutions, companies need to look at five critical areas. 

1. What digital model is best for our construction company?
2. What is the threat and opportunity for digital transformation in the construction industry?
3. Are we organized and trained properly to ensure successful implementation?
4. How can the digital transformation in the construction industry apply to my business and processes?
5. How can we guarantee that the digital construction solutions will sync with future needs?

How Can CEM Business Solution Help 

CEM Business Solutions empowers companies to achieve the digital transformation in the construction industry with initiatives and technology that that works best for them. We offer businesses with the best construction digital solutions to achieve and exceed their business goals. We offer innovative digital technology in construction industry that are based on Microsoft Dynamics 365 and best-suited for U.S. Payroll, HR, Recruit, Union & Certified Payroll software. Our trusted consultants evaluate, research, and implement digital construction services for project-driven industries. 

How Digital ERP solutions can help automate & simplify the complex construction processes – Talk to CEM Business Solutions