DOLLARS AND SENSE
Digitization of the
Construction
Industry
Moving to a cloud-based system can
streamline company processes
By Kerry Mann, Partner, MNP LLP
While the construction sector
has been slow to adopt
process and technology
innovations, there is also
a continuing challenge when it comes to
fixing the basics. Project planning, for example,
remains uncoordinated between
the office and the field and is often done
on paper. Project management is manual
using cumbersome analog tools, performance
management is inadequate and
supply-chain practices are still unsophisticated.
The industry has not yet embraced
new digital technologies that need up-front
investment, even if the long-term benefits
are significant (Figure1, page 62).
Research and development spending
in construction runs well behind that of
other industries: less than one per cent
of revenues, versus 3.5 to 4.5 per cent for
the various manufacturing sectors. This
is also true for spending on information
technology, which accounts for less than
one per cent of revenues for construction,
even though several new software and
technology solutions have been developed
for the construction industry that
enhance profitability.
If construction companies fail to digitize
their business, they risk becoming
uncompetitive. There is an ample amount
of research pointing to the fact that productivity
enhancement is the key to thriving
in the digital economy. When looking at
technology adoption in the construction
industry, the difference between leaders
and laggards is so staggering that leaders
can bid a job below the cost of laggards and
still make a good profit. Quite the sobering
thought, right?
The time has come when construction
companies must view cloud construction
software as a competitive advantage in the
field – not merely an office tool. Bluntly
speaking, being competitive in this digital
economy while operating on a legacy
system is not possible.
Technology adoption in the construction
industry is diverse. The key to success
is to have the right people, in the right
place, at the right time – with the right
information. When running a business as
geographically dispersed as a construction
company, having access to real-time
data is always imperative. This is where
the cloud delivers. Leading companies
in the construction sector are leveraging
modern construction enterprise resource
planning (ERP) solutions and exciting new
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