Disruption and opportunity: How has your construction business adapted to the digital revolution?
The architecture, engineering and construction industries are notorious for their complex and often dated communication processes. Ironically all three also depend on and require more collaboration than most other industries. This has a serious impact on the bottom line because at the end of the day cost overruns are often linked to gaps in the design and implementation phases. The low hanging fruit? Improve how information is shared among project stakeholders and how it is digested internally. A strong ERP implementation will set you on the path towards standardized and automated building information protocols. For small to medium sized companies Vista construction software could be an excellent fit.
The rewards, the ROI, from starting this journey are consistently excellent not to mention the potential for incredible returns in the coming age of big data and IOT. Currently, the industry is divided. Almost half, about 41%, of construction companies world wide admit that they either do not have a plan or have only just begun to adapt to the digital revolution that has already transformed aerospace, manufacturing, finance and nearly every other human endeavour. 46% report that they have begun in earnest because there is so much ground to make up. The construction industry represents nearly $10 trillion in annual revenue or 6% of global GDP and yet the average big construction project takes 20% longer to complete than planned and runs a staggering 80% over budget. This fact isn't surprising when consider that some of the world’s largest firms still do everything on paper: from managing supply-chain orders and blueprints, to keeping track of employee hours and pay. Technology has evolved but the industry clearly has not. The complexity of the modern construction project has outgrown organizational systems based on paper and will strain any analogue accounting system. To thrive in the modern environment your company needs friction-less digital communication and data organization.
There's a huge opportunity here to strengthen project-performance assessments with digital tools and tracking. It's also true that financial risks from new technologies are greatest when they are first introduced. However with proper cost-benefit analysis those risks can be contained. How will you measure your projects performance and how will you share that information with stakeholders? It all starts with your ERP software. You need a consultant that will not only build solutions for your exact circumstances but will also fit them into your existing practices, processes and procedures. All while teaching your team about the true capabilities of your ERP system and giving them the skills to realize the incredible efficiencies that can come with it.
How will your company cope with the changing technological landscape? What can you do to prepare? The first step is to get control of your ERP software.