Current digital transformation landscape
In a fragmented $10-trillion global construction industry where data silos impede value creation between players, the current market shift from point solutions towards the platform era proves that technology alone is insufficient in creating lasting changes.
Fast forward a decade later and with the pandemic accelerating tech adoption, industry players now find mapping a digital transformation roadmap an essential strategy in their organization to stay ahead of the curve.
Deploying digital transformation
What are the key components for a successful digitization rollout, and how can you capitalize on these areas? Recent study from HBR lists technology, data, process and organizational change as its foundation pillars. Consider how these 4 factors play out in the slow tech adoption of the AECO industry:
Technology
Point solutions offered short-term capabilities for certain use cases, but lacked the holistic leverage needed when it comes to digitizing across the industry-, portfolio- and project-level. In a recent study by McKinsey, industry trends move toward mergers & acquisitions, expanding core value offerings into an integrated suite of solutions from increased customer demand.
Data
Small-scale firms do not have the same access, pilot tools and resources as well-capitalized enterprise clients do, pushing them deeper into the bottom projectile and creating a wider gap in the market share without a data repository of baseline benchmarks and predictive analytics.
Process
Building a tech stack without a strategy-first-before-tool approach on the abundant conTech solutions can lead to technology overload. On top of measuring the KPIs and justifying the ROI from upfront CapEx and OpEx investments, finding the right tool that can address their business needs and fit into their legacy systems prove to be challenging for stakeholders.
Organizational change
Eliminating the disconnect with effective change management and engaging stakeholder buy-ins from the C-level deciding on the back-office integration, down to the field-level workers, will move the value driver for the company-wide digital transformation. Figures from the Dodge Construction Network survey show:
-
95% of field workers are willing to use tools that could streamline their workflow
-
34% of field-level respondents claim their company already implemented a digitization strategy, but without a cohesive integrated platform for all departments
-
19% attribute slow tech adoption from workers’ resistance on digital upskilling
Rise of construction value chains
Construction value chains expand as bolder disruptions and consolidation plays for integrated project delivery sweep across the industry. In the June 2021 Swiss PropTech Report by Credit Suisse, data shows over 88% of propTechs in Switzerland, and 72% of Germany propTechs confirm horizontal and vertical cooperation with other startups in the digital solutions market, citing two important drivers:
Product bundling
High-growth Swiss proptechs cross-segment point solutions via API with the broader real estate industry for competitive market positioning on the larger part of the value chain, leading to innovative solutions for the customer groups.
Building ecosystems
To reach more market share, Swiss proptechs build compatible offerings around their core proposition, harnessing the power of network effect where the product increases in value and sales with more end users.
BIM at the core of digital transformation
As market movers continuously disrupt what's now a data-driven industry, new study from Dodge Data & Analytics in partnership with Autodesk finds BIM at the cornerstone of construction value chains.
Dodge Data & Analytics SmartMarket Report, 2021
Findings show that 85% of architects and engineers with high BIM intensity find the improved ability to manage complexity as a top benefit, while 79% of contractors reap the most value from reduced constructability issues on-site using common data environment (CDE). Phillip Bernstein, former vice president of BIM strategy at Autodesk, said:
Familiarity with BIM processes, and the ability to manage BIM-related data and collaboration tools, has prepared today’s architects, engineers and builders for what appears to be the coming explosion of 'BuildTech' capabilities as the industry is finally digitized.
What further value can you get from BIM? In this same 2021 SmartMarket report, BIM benefits for AECO players range across business and operational efficiency, starting from increased client satisfaction (61%), enhanced team collaboration (67%), efficient cost control (43%), and increased worker safety (37%).
Connected construction
Since BIM capabilities span the entire project lifecycle from 3D to 7D BIM, this explains the strong data correlation between Dodge, McKinsey & BCG reports. Over 50% of Dodge respondents cited improved interoperability between software applications as the highest priority for maximizing BIM benefits.
BIM dimensions in the whole building project lifecycle
Similarly, McKinsey highlights critical clusters in digital collaboration, performance management, back-office integration and on-site execution with specific construction technology use-cases on:
-
Field productivity
-
Engineering-design tools
-
Planning & scheduling
-
Artificial intelligence
-
ERP systems
McKinsey dataset on construction technology solutions
How do you build a tech stack which can drive your organization forward? Diving deeper into the Dodge SmartMarket insights, the AECO industry enters an onset of new digital era, with a revolutionary wave of emerging design intelligence tools, innovative construction methods, jobsite technology, smart building technology and data-sharing technology centered around BIM.
Currently, BIM users utilize technologies on cloud computing (42%), model-based simulation (33%), VR/AR/MR (28%), 3D printing (25%) and reality capture (25%). For the next two to three years, some of the high-growth tech solutions poised for adoption include:
-
generative/outcome-based design (20%)
-
model-driven prefabrication (18%)
-
robotics/automated vehicles (18%)
-
AI/machine learning (17%)
Strong construction tech ecosystem
How can industry players capitalize on this data revolution to stay competitive and gain traction?
In the global conTech market, Microsoft together with its flagship product Azure, joins forces with RIB Group's iTWO 4.0 to create MTWO, a 5D BIM enterprise cloud solution with AI-powered business intelligence for real estate and construction industries.
Securing a strong foothold in Switzerland as a leader in open BIM project management, smino currently aims to extend its market leadership in Europe, starting in Germany. Thanks to the collaborative Swiss proptech ecosystem, smino expands its open API cloud-based construction project management tool with Inside Reality's web-based interactive 3D visualization platform.
Think digital control tower of IFC-format BIM models, but in VR-powered immersive virtual experiences. Currently in the works, this integration between smino and Inside Reality strengthens product-market fit across the construction value chain—deconstructing silos while empowering collaboration among industry players.
Learn how smino can accelerate your roadmap to a future-proof digital transformation.
Eigile
Moving the needle with mavericks.™