Digital Transformation in the Construction Industry – Why So Much Hesitation?

Why are so many construction companies still reliant on manual processes?

Since investing in enhanced processes and technology most likely means spending money, time and human capital, it’s easy for companies to become complacent. However, changes, especially technological changes, are a critical avenue to growth in all aspects of business. 

One of the most beneficial measures for catalyzing growth involves using technology to deliver strategic transformative solutions to drive business processes. This is also called digital transformation. 

Although this phrase may seem intimidating, this article is intended to demystify the term for Construction professionals. Specifically, we will cover management challenges, technology implementation challenges and the long-term advantage of embracing digital transformation. 

Construction clients are traditionally slow to change their processes. Owners generally hesitate to invest resources into new technology, especially if they think their traditional processes are still working. In fact, nearly 40% of construction companies are still using manual methods, including spreadsheets, whiteboards and printed paper. 

To illustrate the toll manual processes take on resources in the construction industry, we have listed some of the most common cost management and resource gaps construction companies face due to a lack of investment in digital transformation. 

Based on the responses of trade contractors that utilize more than one primary tool, their top five cost management challenges include:

1. Managing change orders and documentation through the whole approval process
2. Status reporting during the project
3. Effectively integrating cost and schedule information
4. Tracking costs for every aspect of the job to determine how they impact overall project costs
5. Tracking units of work completed in the field

Though there are several challenges associated with adherence to manual processes, a poor technological implementation can bring its own trials. When it comes to implementing construction technology, some of the main challenges include resource availability and capability gaps.

The top five challenges include:

1. Too much training required
2. Lack of time to evaluate technology options
3. Lack of internal capability to implement/manage technology
4. Resistance from field staff
5. Lack of senior management support

Given the very real challenges that can come with implementing a new technology, there are certain best practices we use to help make your life easier as you consider and undergo a technology change.

These include: 

1. Identifying business needs and confirming the technology meets requirements before implementation
2. Developing and following a phased rollout plan that allows for incremental corrections a structured process for engaging all stakeholders
3. Using metrics to determine success against identifiable needs
4. Openly communicating about progress towards mutually understood goals  

Due to the expanded capacity afforded by digital transformation, the upfront ‘investment’ of time needed to implement technology will often ultimately save you time in the long run. 

If you have any questions on how digital transformation may benefit your organization, please contact our team or visit our website.

Digital Transformation Resources

• Schneider Downs Digital Transformation Articles
• Schneider Downs Digital Transformation FAQ Guide
• Schneider Downs Digital Transformation Solutions Overview
• Schneider Downs Whitepaper: Key Indicators Your Organization Can Benefit From Digital Transformation
• Schneider Downs Whitepaper: Navigating the Digital Transformation Roadmap

About Schneider Downs Digital Transformation

The Schneider Downs Digital Transformation team leverages technological innovations and our business expertise to develop strategic transformative solutions that drive business process improvement for organizations of all sizes.

To learn more, visit our dedicated Digital Transformation page.

About Schneider Downs Construction Services 

Led by a diverse group of shareholders and managers, Schneider Downs provides strategic and practical solutions for our construction clients in all facets of their business. Our dedicated team of more than 350 professionals have a wide background of tax, accounting, technological and business experience in the region, specifically in Pittsburgh and Columbus. 

To learn more, visit our Construction Industry Group page.