Digital transformation in construction sector

The construction industry, often regarded as one of the most traditional sectors, is currently undergoing significant changes due to the rise of digital transformation. So, in a glance, how digital transformation can add value to construction companies? Well, by focusing on areas that align with Industry 5.0 and Business Process Management (BPM). I will try to explain the impact of User Experience (UX) activities and tools, such as wargaming, research, ethnography, workshops, and facilitation of requirements, in driving organizational change.

So, let’s go!

The impact

Digital transformation involves the integration of technology into all areas of business operations, resulting in fundamental changes in how companies deliver value to their customers. In the construction industry, it can be observed through various initiatives, such as automation, the use of cloud-based platforms, IoT integration, and data-driven decision-making processes. Digital transformation efforts help construction companies enhance operational efficiency, optimize workflows, and foster collaboration among stakeholders.

In architecture and construction, very often transformation is understood as engagement in non-collision processes design. This is strongly related to the construction process itself, while the organizations do not invest too much into other areas like:

-????????????? Process management among stakeholders, partners (B2B),

-????????????? Semi e-commerce, especially when it comes to B2B relations,

-????????????? Optimization oh knowledge flow.

The second area is related with strong project management layer, where on the top is communication and proper data flow, with prediction.

One significant example is a re-design of a software used by engineers and strong focus to have an in-field data on mobile devices, where construction conditions are often very tough. Or a quick access to maintenance data on the construction area, facilitated by an LLM model (as a personal voice assistant).

The added value

Digital transformation initiatives in construction have the potential to bring a wide range of added values:

1. Automating repetitive tasks, such as documentation, supply chain tracking, and inventory management, leads to faster project timelines and reduced costs. The example of ERP software redesign demonstrates how digital transformation optimizes complex software systems, elevating user experience and enhancing efficiency. This transformation may touch areas that are broader than typical RPA usage, engaging AI engines to support specialist of different departments, depending of Single Source of Truth, for example.
2. Cloud-based solutions and integrated communication tools are transforming how project teams communicate, share information, and make decisions. For instance, the case of development of internal communication tools, which has improved collaboration among stakeholders across global locations.
3. Digital transformation can open new business models and revenue streams. For example, an e-commerce platform for selling concrete or internal trade among B2B partners is an example of how construction firms can leverage digital channels to reach new customer segments and create innovative offerings. The same situation may be constructed among B2B relations, where trade mechanisms may be implemented in the procurement process or – to use actual prediction of prices when constructing a budget by architects, project managers or property appraisers.
4. The integration of digital tools such as IoT devices and analytics platforms helps construction companies gather data to make informed decisions. For example, system for tracking shipments of construction elements and monitoring parameters inside containers (on-the-road; adding digital twins) showcases how digital transformation can enhance data visibility and enable better decision-making if the parameters were maintained as designed.

Industry 5.0 in construction

Industry 5.0 is characterized by the synergy between humans and advanced technologies, aiming to enhance productivity while ensuring human-centric outcomes. In construction, Industry 5.0 is about empowering workers through automation, robotics, artificial intelligence (AI), and connected devices.

One of the cases is upskilling staff to work with advanced technologies, such as robotics and AI, is essential. Training programs that equip workers with skills to operate collaborative robots (cobots) are vital for Industry 5.0. For instance, a special training program to use roentgen equipment for concrete parameters check. Another idea is to use IIoT to monitor levels of structural stress. Other elements, that are related to non-collision design and work – for example real time data of path tracing of dedicated stage of build realization. Also, the data may be centralized and give additional feedback to the architectural or PMOs departments in future. This is achieved by leveraging advanced data analytics to understand the unique needs of each client and providing solutions accordingly.

Industry 5.0 emphasizes human-machine collaboration rather than just automation. This collaboration is evident in projects like, where IoT technology was deployed to support processes within construction, factories, and electronics, with a focus on Industry 4.0 and 5.0 frameworks. Such projects involve the integration of AI tools to work alongside human operators, enhancing productivity and decision-making capabilities.

BPM vs. UX

?BPM in construction involves the analysis, improvement, and automation of business processes to enhance efficiency and adaptability. When combined with UX methodologies, BPM can lead to substantial improvements in construction companies' workflows and customer interactions. Some key areas in which BPM consultancy can bring added value include:

1. Conducting in-depth research and ethnographic studies allows companies to understand the pain points in their current processes. Ethnography, for example, helps identify inefficiencies and areas where technology can be leveraged to improve outcomes. There may be done an extensive stakeholder research across global regions, leading to the optimization of internal processes and the creation of effective communication tools.
2. Requirements gathering workshops and wargaming sessions help stakeholders envision future workflows and identify critical areas for transformation. Facilitating such sessions enables cross-functional collaboration, allowing companies to map processes and envision technological solutions that align with their goals.
3. Workshops that focus on assessing digital maturity and defining roadmaps for digital transformation are crucial. These workshops not only identify the current state of digital adoption within the organization but also help create a clear plan for the future, including milestones and performance metrics.
4. Surveys are used to gather insights from different levels of the organizational hierarchy. Engaging stakeholders ensures that the BPM and digital transformation strategies address real-world challenges faced by the workforce. This approach was seen in the projects, where global surveys with stakeholders provided recommendations that shaped the development of digital tools and a communication strategy.
5. Wargaming exercises, which simulate real-life challenges, are used to stress-test the resilience of newly implemented processes in a semi-laboratory condition which are very close to real ones. Such activities allow construction companies to identify potential risks and areas for further improvement before full-scale implementation.

Practical steps – control list

Typical workflow looks like this:

1. Identify current processes that can be improved or automated. Utilize ethnographic research to understand workflows and pain points (as-is analysis).
2. Based on the findings from mapping exercises, determine the technological tools required to support digital transformation. This could include ERP software for project management, IoT devices for site monitoring, or AI for predictive analytics (technological analysis).
3. Provide workers with training and development opportunities to ensure they can adapt to new technologies, thus fostering a culture of continuous learning (upskilling program construction)
4. Run pilot programs to test new digital tools and processes before large-scale implementation. Workshops can be used to gather user feedback and refine the solution (MLP construction or laboratory exercises like wargaming).
5. Engage both internal and external stakeholders throughout the process, using surveys, interviews, and collaborative workshops to ensure the solution addresses all relevant needs (open digital transformation program).

Summary

Digital transformation is creating unprecedented opportunities for the construction industry to evolve and adapt to new challenges. Business Process Management consultancy, combined with UX methodologies such as ethnography, workshops, and wargaming, provides a structured approach to navigating this transformation, ensuring that changes are user-centered and add tangible value.

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