Low-code Apps are evolving Construction Management
The construction industry has been notoriously slow to embrace digital transformation and modern technology, so with many contractor companies sticking to outdated, paper-heavy processes we asked Eli Greenberg, founder and CEO at EnM Contracting, and Subrah Iyar, CEO and co-founder at Moxo, to share their views on the future of the construction industry.
1. Why have contractors been slower to adopt new digital technologies?
Eli Greenberg, replied: “The construction industry has been booming over the last few years, but unfortunately, most construction companies can barely keep up with the current demand. As organizations are pressured to meet this demand, they are being faced with additional challenges like labor shortages and project delays.
“Due to these competing challenges, a lot of companies have become complacent in their ways, regarding how their businesses are run. Many construction companies don’t feel the need to change, and believe that undergoing digital transformation could potentially create more bottlenecks in their operations, as internal employees have to undergo training to learn new technologies and business processes. However, as the need for construction will only increase, construction companies must be prepared to adopt new technologies to help them keep pace with the increased demand for their services.”
2. What issues do paper-based processes present to project managers and contractors?
Eli, commented: “Construction has been seen as a relatively old school industry in terms of digitizing. The reliance on paper-based processes in construction has created severe communication issues, especially as construction projects must move at a much faster pace than they used to due to demand. With paper-heavy business processes, it’s easy for communication overload to occur, and for individuals to miss important information.
“Even for construction organizations that have moved to digital communications like text, email, and chat apps, these disparate channels of communication can cause critical data and information to be lost. In addition, due to the fact that there are multiple internal stakeholders and contractors involved in every construction project, it is necessary for information to be easily accessible to every individual involved in the process.”
3. To what extent do these inefficiencies on the back-end affect clients?
Eli, replied: “Inefficiencies in communication by internal stakeholders and project managers can potentially translate to a negative client experience. Communication issues are even more amplified in this day and age, as consumers today expect efficient and timely service from all the businesses they interact with.
Issues of inefficient communication in construction not only affect the client’s perception of customer service, but it can also cause unnecessary mistakes as projects proceed. This in turn causes projects to have unanticipated timeline delays, as well as go over budget.”
4. Why is it important for construction companies, and the construction industry as a whole, to commit to digital transformation today?
Subrah Iyar, commented: “Construction companies are continually under pressure to balance the costs of building, schedules of contractors, and quality of work. The processes involved in construction typically involve coordinating several complex activities among plenty of third-party subcontractors, with a lot of paper-based processes.
“With the recent passing of the infrastructure bill, severe labor shortages, and inflationary pressures, the construction industry has to adapt to stay competitive in this environment. Going digital can help construction companies change their game by modernizing and bringing structure to the economics of how they do business.”
Eli, also replied: “As all other industries are evolving digitally, construction cannot be an exception. Clients expect a much more seamless and efficient way to interact with their service providers, regardless of industry. With construction being such an integral industry, now more than ever with demand continuing to increase, construction companies must work to stay up to date with technology to accommodate consumer preferences and better the client experience.”
5. What technological solutions can help construction companies alleviate these pain points and optimize their business processes?
Subrah, replied: “Most construction projects involve a lot of paper interactions with a wide range of internal and external personnel. Today, the business interactions happening over fragmented disparate channels, whether paper, email or text, are creating friction and serious inefficiencies in construction business processes.
“The key element that will ultimately bring structure to these paper-based processes is a digital interaction hub to support the entire lifecycle of the construction project. Organizations should implement a digital hub that incorporates workflows to manage the end to end processes spanning the entire project. A digital hub allows businesses to properly leverage a range of interaction capabilities such as messaging, online meetings, document sharing, virtual data rooms, as well as integrate any key third-party solutions that are needed in the completion of the construction project.
“Ultimately, by having access to all this information in a one-stop client interaction hub, construction companies can eliminate the inefficiencies in communication, and help streamline the processes in the management of their projects.”
6. What is your advice to construction organizations looking to start their digital transformation journey today?
Subrah, commented: “The first step for construction organizations looking to begin their digital transformation journey is to find a solutions partner who has a future-proof, next-generation digital solution. It is key to ensure that your solution provider’s depth and experience can help you in your journey as a partner. It can also be extremely beneficial to talk to other customers in the same industry that have undergone this journey before.
“In addition, it’s critical to identify key metrics your business is looking to affect as a result of this transformational exercise, so that you can prove the impact of your investment. By measuring and continually adapting against these metrics, you can ensure that your organization absorbs the best practices and is getting the most out of your digital transformation efforts.”
