The challenges of digitization in construction and engineering
The smartest use of digital solutions in the field of engineering or construction it has the potential to become one of the most important and profitable hubs, especially in terms of project design, procurement, manufacturing and delivery. At the same time, it is also one of the main obstacles to the needs that companies acquire for a stronger digital investment, the approach to new automation processes or the integration of information and communication technologies.
We must remember that we were already talking about artificial intelligence in the construction and architecture sector and how it will strongly affect the sector. Furthermore, if we review the latest report issued by the Midwest Economic Policy Institute (MEPI - University of Illinois), it is found that, for example, automation of the construction industry - in the US by 2057 - could displace or replace up to 49% of workers that we can find in a traditional work today. (See report HERE)
As with so many industries, the business model of construction companies and engineering firms it is not exempt from the challenges posed by the adoption of new digital technologies.
New technological challenges that must be considered and adopted if they want to survive in such a competitive market and in an area in which it has historically lagged behind, creating a significant productivity gap:
- 93% of the construction sector agree that digitization will affect all processes.
- Less than 6% of construction companies make full use of digital planning tools.
- 100% of construction and engineering companies believe that they have not yet exhausted their digital potential.
Remembering that in the technological field of automation we already have real examples of important advances such as:
- The self-contained, self-contained bulldozer for excavating construction sites
- Robots to build complex armed structures in a short time
Keys to digitization
There are four key aspects of digital transformation that are helpful in kickstarting digitization. Its importance extends to all links in the value chain:
- Digital data. Electronic data collection and analysis.
- Automation. Use of new technologies to create automated systems.
- Connectivity. Connection and synchronization of activities so far separated
- Digital access. Access to mobile, Internet and internal networks.
Although in reality those involved in the construction industry do not see the same potential for digitization in all areas.
The two previous graphs belong to the Digitization in the Construction Industry report …
5 Challenges for the implementation of digital technologies
The Global Industry Council (GIC) recently published a report that highlights five challenges for the adoption and implementation of digital technologies in the area of construction and engineering, in addition to offering real solutions and case studies to help other companies to adopt digital technology.
1.- Integration in digital ecosystems
Thanks to digitization we have access to more information and new technologies. The challenge is to remain efficient and to be able to consistently integrate all this information and technology into the company's ecosystem without losing competitiveness.
Without an integrated digital platform, users share scattered files through email, for example, or through warehousing services, leading to loss of documents, reprocessing, lack of accountability, and delayed productivity.
2.- Rationalization and standardization of all projects
Streamlining is what helps drive efficiency. Remember that having multiple technologies or systems is actually time and resource consuming.
We should learn to focus on a system or technology that guarantees greater value and better efficiency, reduces costs or optimizes the business, and reject technology that does not add value.
Construction companies use a wide range of processes and procedures to get the same job done. The lack of standardization in expansion projects can become a big headache for everyone involved; promoters, partners, subcontractors … etc.
3.- Lack of expert talent in technology
As technology enters the company, it must have enough equipment or experts who can handle the technology in a professional way. A challenge that is sometimes not understood by the employer and that undoubtedly represents an absolute necessity.
There is an unfortunate lack of technology expertise in many companies, but certainly not every employee needs to be a tech whiz to work with these new tools.
4.- Resistance to software adoption
It takes a work effort, both cultural and technical challenges that can delay and guarantee the adoption of new technologies. Time and resources must be invested in supporting solid training.
For example, as we saw in the new augmented reality applications for construction and decoration with different examples.
Digitization can cause apprehension, particularly among senior employees. If the solution has too steep a learning curve or doesn't meet promised goals right away, employees will ignore or abandon the technology entirely.
5.- Establishment of value and return on investment (ROI)
Companies find it difficult to measure and communicate the benefits obtained from digital investments.
Dramatic changes in technology and processes are often daunting and challenging, especially if the return on investment is unclear. A clear and well-defined "roadmap" or strategy should be established.
Companies must emphasize concentrating on the capabilities necessary to be successful in the new market dynamics. Although this may seem like a difficult challenge, companies that change their internal processes, become more flexible and efficient are the ones that will survive in a world where competition is increasingly fierce.
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