When it comes to sparking innovation and driving technology adoption, the construction industry can learn a lot from other industries that are further along the path of digitalization.
While historically the multi-trillion-dollar construction industry has been slow to adopt technology, relying on paper records, manual processes and point solutions to track and report project progress, that has been changing in recent years. Strong investment has been fueling innovation, with nearly $3.1 billion invested in U.S.-based construction tech start-ups in 2018, according to Crunchbase.
With 2019 well underway, the industry finds itself in the middle of a digital journey that shows no signs of slowing down. At the same time, contractors are struggling to capitalize on the influx of solutions to drive transformation at their firms. To determine the best path forward, it’s helpful to look at some of the challenges other companies have faced on their digital journeys and the best practices that they’ve developed.
The main impediments to successful tech implementation are problems with focus, leadership and process, according to a February 2019 Oracle survey of more than 5,000 decision makers in cloud solutions and software. The survey found that more than half of innovation projects fail.
So, what are the common pitfalls when it comes to innovation projects, and what can construction leaders learn from other industries to maximize digitalization at their firms? There are some key practices that the construction industry can learn from.
Stay Focused
Thirty-eight percent of respondents in the same Oracle survey reported an excess of “parallel initiatives” at their organizations—a particular risk for very large companies, which are naturally more siloed. With new solutions hitting the market seemingly every week, maintaining focus can be very challenging. It’s tempting to want to find one solution to address every business problem simultaneously, but unfortunately that’s impractical for driving measurable action and change.
Instead, to create the best environment for success, organizations should be as specific as possible, focusing on one key business problem—at least at the start. Have a good understanding of the issues by engaging different departments and functions in identifying and defining the problem. For example, if rework is an issue, try to identify the total amount it is costing the business today and the key contributors, such as working from outdated blueprints or consistently miscalculating the organization’s needs for scheduling and planning. If improving safety is the goal, then identify, prioritize and address the factors causing safety issues as well as potential solutions, such as engaging workers in jobsite hazard reporting and analysis or standardizing safety incident documentation.
Half-baked tech initiatives, often stemming from the desire to implement more technology or digitize current, often ineffective, workflows, not only waste limited resources, but can also erode employee trust and confidence in leadership. When new solutions are quickly adopted and just as quickly forgotten, employees may disregard future directives before these even have a chance to get off the ground. Additionally, without laser focus and a clearly defined implementation path from the beginning to the end, employees are likely to get overwhelmed and can often lose interest before a solution can be properly introduced.
Ensure executive commitment and create the infrastructure
Without a clear purpose and a well-defined implementation roadmap, organizations will struggle to develop and support the internal processes that are needed to unlock value from new technology. Once a solution has been identified, it’s essential to outline steps for roll-out across an organization.
Executives need to consider internal infrastructure and responsibilities. What does initial training look like? Who will oversee administration and compliance in those first weeks? What new data will be collected and how will it be used? It’s okay to start slow, and it’s natural for processes to shift as employees get accustomed to the system and more features are utilized. With attainable short-term goals, long-term vision and the right frameworks in place, organizations can adapt and support the application and use cases that make sense for the firm’s evolving needs.
Importantly, establishing these processes requires dedicated time, staff and budget. Executives committed to digital transformation need to promote a culture where challenging the status quo is encouraged and also provide the training and tools to enable staff to try new solutions and processes. Whether it’s offering professional development, increasing the IT budget or providing the time and space to roll out a new system, it’s important for firms to enable workers to evaluate processes and refine them over time. Executives must provide the funding and resources to support this innovation process.
Find a tech champion who promotes innovation successes
Lack of ownership is another key barrier to successful tech adoption. The most successful firms, regardless of size, find one or two tech champions who serve as system experts and primary contacts with internal and external stakeholders. These individuals should own the relationship with the technology provider as well as the solution’s ultimate use and value across the company. With the right structures in place, these champions should be given the trust and autonomy to implement the solution as they see fit. Their role also includes clearly communicating news and developments about the new system, such as why it’s being used and early successes and challenges.
Change is never easy, especially in an industry that has been doing things the same way for decades. However, as technology becomes more embedded in the project lifecycle, impacting daily resource management and decision-making, construction executives can choose to embrace change today, instead of facing greater obstacles in the future when the competitive gap has widened. With buy-in from senior leadership, frameworks to navigate new technology adoption and avenues to promote early successes, construction firms can ensure alignment and scale new innovation initiatives—positioning their firms for long-term success.
