5 Main Digital Transformation Challenges in Construction Industry

PART 1

Technological transformation that comes along with the innovated technologies comes in with an increasing pace day by day. This transformation entirely changes processes, disciplines and ways of doing business.

Increasing competition, costs and decreasing profitability, especially in the construction and engineering sectors, conduct companies to make investments which can increase efficiency. 

2 Global Construction Perspectives and Oxford Economics, 2015, Global Construction 2030 – A global forecast for the construction industry to 2030

 

This evolves company strategy and business models to adapt to new challenges. However, the construction industry lags far behind other industries when it comes to digital transformation. Due to the demographic and structural situation of the sector, resistance to transformation may occur or there may be insufficient funding to spare for digital investments. The way to break this challenge is to reveal the right examples, sector-oriented studies and benefits.

It is a fact that digital transformation has numerous advantages for companies:

  • Staying competitive
  • Protecting and increasing the market share
  • Cost reduction
  • Increasing efficiency
  • Security
  • On-time and within budget project delivery
  • Quality and good service

The nominal benefits of digital transformation are expected to be huge. The global cost savings that can be achieved with related systems are estimated to be around $ 1.2 trillion for 10 years.

The Boston Consulting Group, 2017, Shaping the Future of Construction: Inspiring Innovators Redefine the Industry                                                                                           

Although the construction industry is slow in this transformation process, companies investing in digital transformation have been reaping the benefits of this for years.

The software development adventure of ENKA, which started in the 1980s, will be by far the one of the best examples. ENKA Systems software, developed with years of experience, has been one of the important stones behind ENKA’s sustainable global success. ENKA Systems website

Difficulties and Resistances in Digital Transformation

Accepting the traditional structure of the construction industry is one of the most important issues to be considered in the digital transformation process. If you want to adopt digital transformation across the industry, the solution must be a practical one.

  1. Lack of Integration or Cooperation for All Stakeholders
  2. No Standardization and Tough Time Pressure
  3. Lack of Sufficient Competent Staff
  4. Cultural or Technical Resistances (Internet access, traditional staff)
  5. Return on Investment (ROI)
  1. Lack of Integration or Cooperation for All Stakeholders

One of the main challenges in the Digital Transformation process is the lack of communication due to the use of many disconnected and non-integrated systems, software, hardware and applications of many stakeholders spread across different locations. This increases operational costs, reduces efficiency and causes time losses.

Although the benefits of the right systems are clear; The diversity of the stakeholders, the non-standardity of the data created and the lack of integration can lead to obstacles and high costs if a good implementation study cannot be done.

For the solution of this problem, companies focus on network or web-based digital system investments. In this way,  main aim is to create a digital ecosystem and increase cooperation among stakeholders.

In the digital transformation process, investments should focus on technological solutions such as planning systems based on real data, IoT and analytically supported follow-up systems. With these tools, more data can be collected, thus the reliability and quality of the work can be increased, while the cost and duration of the construction can be shortened. Systems should work with an integrated, customizable and realiable authority mechanism. Communication is the prerequisite for the correct progress of this process.

This communication is only possible with web-based systems that support the Common Data Environment Platform (CDE) standards. With the CDE, all records created or shared throughout the project life cycle can be kept under control and the variable demands of the customer can be answered in the fastest and most accurate way.

In digital transformation, many countries require digitalization with new policies. For example, with the PAS1192 standard in the UK, data retention on 3D BIM (Building Information Modeling) models has been made mandatory in construction projects.

EDMS BIM Suite (Common Data Environment) 

Solutions:

  • Determin
  • ing the Strategy
  • Analysis of Stakeholders and Architecture
  • Analysis of File Types
  • Authorization
  • Integration
  • Support

ENKA Systems offers trend-setting solutions in the construction industry with solutions that include 60 years of ENKA experience in the construction industry.

You can access these and more from the ENKA Systems website.

ENKA Systems