Ingenieur Vol.79 July-Sept 2019 ingenieur 2019 july-sept | Page 81

Strategies for deploying construction technology at Engineering & Construction (E&C) firms: The journey to a next-generation operating model (Source: Mckinsey) Although most E&C firms have already deployed construction-technology software tools for multiple use cases, many fail to obtain full value from them. Even when a company successfully pilots a new tool, large-scale adoption may be difficult or quickly lose steam. In other cases, technology initiatives fail to produce noticeable improvements in key performance metrics. Our review of data from McKinsey Global Institute’s Construction Productivity Survey revealed that three factors may be responsible for these issues: Insufficient commitment. Many E&C companies feel pressured to adopt digital solutions, especially if their competitors deploy them, because they want to demonstrate their commitment to innovation. But leaders often struggle to sustain their digital initiatives once they are past the excitement of the launch stage because their attention and resources are pulled in many different directions. That means companies often see lower than expected returns from their digital investments and thus have little incentive to keep funding them, especially if budget pressures increase. Difficulties with company-wide rollout. As with any new technology, E&C companies generally evaluate construction tools in pilots, determining their impact and identif ying any glitches before investing in large-scale programmes. While these pilots typically proceed smoothly, companies often encounter obstacles during large-scale rollout because leaders ask employees to introduce new tools into work flows without explaining the benefits or providing sufficient training. On- site crews and foremen therefore consider the tools a headquarters-driven imposition that complicates their jobs. Frontline workers may have these misconceptions because E&C software programmes have traditionally focused on improving back-office functions, not on-site productivity. In other cases, E&C companies struggle to move from the pilot phase to large-scale implementation because they do not invest in training field workers, especially general contractors and subcontractors. Lack of compatibility with legacy systems. New technologies deliver the greatest value when they seamlessly integrate with existing enterprise systems. For example, field-data- collection applications that automatically connect to cost systems can provide real-time visibility into productivity, allowing managers to make immediate adjustments. Although some third-party providers can help E&C firms incorporate new tools into legacy systems, most do not provide complete solutions. In other words, companies must ask different providers to complete various parts of the integration process. To get past these common challenges, companies should follow a next-generation operating model that incorporates the following elements: A focus on the client journey. Rather than developing digital solutions for specific functions, such as back-office workers or front-line employees, companies should focus on optimizing the entire customer journey. They should also ensure their organisations are well equipped to provide customer support that aligns with how customers want to interact with the organisation. This may require redesigning existing roles or creating new ones. A full suite of digital levers. Companies will obtain the most value if they implement multiple digital levers in combination—for instance, a mix of digital tools, robotics, and advanced analytics. A new management system. An embedded management system will ensure the sustainability of the new operating model. Incentives and digital-enabled transparency are critical tools to help managers accelerate the adoption of new technologies. A cultural transformation. Cultural t r an s format ion and c ap abili t y - building programmes enable E&C companies to become more agile and quickly adapt to evolving client needs. 79