Why Digital Transformation?

“Some industries are not the best known for using data effectively. Consider the construction industry, where much of the work is done on the ground — by workers in hardhats, not in front of computers. But why should this industry not benefit from the advances in technology that other sectors have experienced?”  – Business Harward Review [See the article below]

Harward Business Review – Article

Increasing competition and falling profitability rates in recent years necessitate digital transformation. While some sectors do not have difficulty in switching their business processes to the digital platforms, adaptation processes are going much slower for sectors such as construction, where traditional understanding is dominant and which has its own difficulties.

“Transformation” is delayed due to the uniquely complex nature of construction projects, requirements that differ from project to project, difficult location and problems in accessing to the internet and technology. When we look at the researches and published articles on Digital Transformation, we realize that the sectors that do not act “very cautiously” and that have started to use automation, digitalization and information technologies-based systems in their processes, have begun to see the benefits of transformation.

According to the research given in the “Digitization in the Construction Industry” issue of Think Act Magazine published in 2016; In the last 10 years, while the productivity in the construction sector in Germany has remained at an insufficient rate of 4.1%, the productivity in the country’s economy has increased by 11% in the same period. According to the researchers, “digitalization” is among the reasons why the contribution of other sectors is much higher than the construction does.

In the same issue of the magazine, it is also stated that digital transformation in the construction industry is inevitable. One of the reasons is, undoubtedly that construction activities are one of the leading sectors that meet the most basic needs of other sectors. Construction companies that can meet the needs of other sectors, competitively in terms of profitability and time should benefit from the information technologies.

By using software solutions for business, in processes that require multi-stakeholder and personnel cooperation such as Engineering (Design, revision, approval processes), purchasing (bidding-tender, supplier network, logistics), human management, machinery-equipment management, finance – accounting management, it is possible to minimize human mistakes, save time and cost by carrying out systematic and transparent processes from a single platform.

It is inevitable that digital transformation will increase efficiency and profitability by providing a data-based decision-making mechanism. Directors, who know their companies and organizations well, can measure critical data without creating data density, detect errors soon and save time and money by using digital solutions.

We have shared the five common points that McKinsey & Company determined in its research on companies that have successfully completed their digital transformation, for companies that have intention to invest in digital transformation below:

1. Focus on fixing pain points, not installing IT solutions.
2. Implement digital use cases that promote collaboration.
3. Reskill and restructure engineering teams.
4. Adjust project baselines to capture value.
5. Connect projects to unlock impact across the enterprise.

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