‘ Tools-For-Trades ’ Approach Hinders Digital Transformation
by Quimby Bunce RIB CCS
Digital transformation of the construction industry in South Africa is slow , with the sector ranked 18 out of 19 , beating only agriculture as the least transformed industry . Margins in the industry are between 1 % and 5 %, lagging behind the rest of the economy . Surely this represents a case for change ?
There is no shortage of technology used in construction . While there are plenty of software programmes and technology used to support construction , this does not mean the industry is digitally transformed .
A shortcoming in construction , particularly in South Africa , is its ‘ tools-for-trades ’ approach where all players within a project ’ s lifecycle are served by particular tools in support of the roles they fulfil . In other words , project managers , architects , estimators and others each have their own tools that don ’ t necessarily talk to each other .
The real essence of digital transformation rests on three factors – people , processes and data – and how they operate together . The use of technology in a ‘ tools-for-trades ’ fashion
leads to failure in all three areas , because data ends up in silos associated with each of those applications , ultimately leading to a breakdown in construction processes .
This breakdown is evidenced by industry ’ s productivity challenges , including its inevitable time and budget overruns , rework and materials wastage . A McKinsey survey found that 80 % of projects are over budget and most take 20 % longer to be completed than initially anticipated , with 30 % of work performed being rework . In fact , the construction industry has almost flatlined in productivity terms for about a quarter of a century , with growth of a mere 1 %.
This is a third of what the total economy has achieved and , even more damning , scarcely more than a quarter of where construction ’ s sister industry , manufacturing , sits as a leader in transformation . The missing piece is integration . What is important is how all players on a project interact . For example , once the architects have completed the design phase , how are those outputs passed on to the next people in
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