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How digital construction changes the supply chain | Article

Step 1: Awareness and mindset are key to further digitalisation

To digitalise, awareness, the right mindset, and full commitment from the entire staff and management are essential. Everyone in the company must realise that digitalisation makes processes more efficient. Digitalisation therefore often requires a culture change that everyone has to commit to.

Step 2: Purchase software or in-house development

Construction companies can buy or self-develop digital tools. The advantage of purchasing is that the costs are often relatively limited. The disadvantage is that it makes contractors (very) hooked on one specific IT service provider. Furthermore, purchased software is often a standard package which most of the time can be difficult to adjust to specific needs. 

The advantage of self-software development is that it makes customisation possible. However, the drawback is that the costs are often much higher. Furthermore, well-qualified IT staff are necessary for the development and, in many countries, this is hard to find.

Continued non-digital building is not a real option

Construction companies can of course choose not to go digital. These companies can focus on niches where personal contact, customisation for their clients, and less standardisation is required. This may perhaps work in the short run. Yet, these companies must take into account that the construction sector (and the world around them) will continue to digitalise. Sooner or later they will be confronted with digitalisation, for instance, with digital designs from architects and/or suppliers or subcontractors that want to exchange digital data. Therefore, in the long term, we think this strategy is not an option.

Step 3: Towards a different business model

Construction companies that have built their own successful digital platform can ultimately choose to sell it to other contractors. In that case, they transform their business model from construction to IT service provider. Nevertheless, this absolutely doesn’t have to be the ultimate goal for every construction firm that wants to digitalise. In practice, only a few will make this final step and it is not necessary to be successful with digitalisation.

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