Digital transformation a hot topic of discussion.
By Professor Louis Fourie
Due to the Covid-19 pandemic and the difficult economic times, the quest to remain afloat and competitive in a digitalised world has made digital transformation a hot topic of discussion.
However, research indicates that the construction industry has been relatively slow in embracing the opportunities presented by emerging technologies to improve operational excellence, productivity, cost efficiency and customer engagement, and therefore ranks very low in terms of digital maturity.
This has led to dissatisfaction among clients, partly due to the fragmented nature of project delivery, labour intensive processes and the apparent difficulty in adopting new technologies.
This problem is further exacerbated by the complexity of the construction industry due to competition, availability of resources, logistical problems after the COVID-19 pandemic, and the disruptive nature of technological innovation.
Digital transformation is of the utmost importance for the construction industry to improve its competitive advantage and overall contribution to economic growth.
It could also contribute to the improvement of the service and product, and eventually the profitability of the business.
But what does digital transformation entail in construction? It is the integration of digital technology in all areas of a construction company, optimising operations and value delivery, and investing in technology and new business models to more effectively engage digital consumers at every touch point in the customer experience life cycle.
Construction projects also need to run incredibly efficiently due to pricing pressures as a result of geopolitical tensions and the trade wars between nations, resulting in increases in the cost of materials. Rising inflation has further contributed to the rising costs.
The slow recovery in certain supply chains after the COVID-19 pandemic and now also due to the Russia-Ukraine war, is causing major disruptions to schedules and increasing material costs. Many raw material suppliers have been unable to keep up with demand.
To mitigate some of these challenges, there are numerous benefits that come with digital transformation and the use of technologies such as: Wearable Technologies - Construction workers can be equipped with wearable technology that can help monitor site conditions, physical stressors, as well as site capacity to improve site safety and also to track worker productivity.
Virtual Reality can help site supervisors to “walk through” construction sites from remote locations. It can also be used for client demonstrations and updates, as well as safety training.
Drones and Unmanned Aerial Vehicles (UAVs) can be used to survey land, provide aerial photography, and map tough-to-reach topography. Drones can also be used to safely inspect sites for hazards such as structural damage.
The data collected by the drones can be transformed by artificial intelligence (AI) into useful information and make safety recommendations to construction managers.
3D printing techniques can be used to construct major building components and in some cases, entire structures with little to no waste.
3D printing, for instance, has been used in the construction of concrete since the mid-1990s.
Cloud Computing and Big Data Collection are allowing construction companies to move away from traditional methods of gathering and sharing data across construction sites.
The massive amount of data gathered can be fed into analytic tools to help with real-time decision-making and more accurate estimations.
Sensor Networks and the Internet of Things (IoT) enable real-time monitoring and can quickly detect unsafe conditions and alert workers, as well as enhance efficiency and productivity when integrated with building information modelling (BIM).
Blockchain technology can be applied in building information modelling (BIM), intelligent transport, and the construction supply chain to remove bottlenecks and to increase confidence.
Technology can thus create significant improvements within the construction industry. I recently had the privilege to attend the opening of a new construction start-up in the Cape Town Metropole, Sherwood Construction. From the beginning it was apparent that they take digital transformation very seriously. This can probably be attributed to the CEO, Ghalieb Jardien’s extensive experience as an international technology expert.
Noticing that many construction projects were plagued by late delivery, lack of customer insights into their projects and escalating costs, Jardien uses leading software to drive a seamless process from marketing to project conclusion with total near real-time visibility by the customer via a customer portal.
The Zoho Suite of software products used by the company allows it to manage every aspect of the business seamlessly from beginning to end.
The integrated solution includes sales, marketing, finance, human resources, contract management, security and information technology management, communication, collaboration, building information modelling, business intelligence and analytics, project management, and a customer portal.
Through these systems the customer is constantly kept in the loop. After the completion of a project, Sherwood offers a preventative maintenance programme where regular inspections are performed in order to identify preventative maintenance requirements.
Digital technologies are gradually disrupting and transforming business practices and procedures globally. The South African construction industry is not immune to this disruptive and transformative effect, and can no longer ignore the importance of digital transformation.
Prof Louis C H Fourie, is Extraordinary Professor at the University of the Western Cape.
BUSINESS REPORT