Advocating IT Digitalization in Construction Industry

Ts. Mohamad Khalis Zaim (Khalis) Zainal, Head of Information Technology Services, JOHAWAKI GROUP OF COMPANIES

The engineering and construction industry accounts for USD 10 trillion globally. It is expected to increase to USD 14 trillion by 2025 and has a large contribution to the world economy. This sector has been slow in adopting digital technologies compared to other sectors and generally still operates with traditional methods of implementation. The low adoption of digital technology impacts productivity through manpower challenges, poor project progress tracking, high volume of rework and poor quality control, and above all, safety measures.

Barriers to Adoption of Digitalization

The cost of software subscription and hardware is the biggest barrier to adopting digitalization. The total price of migrating from manual process into digitize format seems unbearable for small and medium construction companies to absorb into their operational cost budget. The other reason is the lack of government intervention in supporting funding and incentives to the company that embarked on digitalization. There are also concerns about the requirements for frequent software updating/upgrading, which in turn relates to cost. Digitalization is an ongoing process whereby the construction industry is based solely on project quantity. It is quite challenging to budget a digitalization cost base on uncertainty of the future project awarded. 

Many construction companies are keen to adopt digitalization as they feel it would make them more competitive but are unsure how to proceed within the budgetary constraints of their organization. The skill shortage of using digital tools in the job market plays a part in the digitalization challenges. By that point, hiring a digital skill relevant employee might increase a company’s overhead.

The Needs of Digital Transformation

Centralization of processes and data management in one single source of truth can lead to reducing human errors in engineering and architecture tasks. To be able to quantify the workforce’s productivity and better hiring decisions based on project management system. As a result, better productivity can be gained due to technology accessibility and implementation. Alleviating construction risks due to miscommunications among relevant parties because of decentralized communication tools. Digital transformation can improve reporting capabilities for construction companies. It can also improve budgeting, forecasting, and financial management. Mitigating the risk of going over budget and disrupting project timeline and operations. The need to enhance collaboration capabilities for timely delivery and collaboration between subcontractors and suppliers in a construction supply chain to speed up the workflow, therefore, optimizing time efficiently.

Overcoming Challenges

Overcoming challenges in construction digitalization demands a multifaceted approach. It is important to cultivate a digital culture throughout the organization through change management. Educating and training employees on new technology awareness, such as Building Information Modelling (BIM) and project management software, will enhance their adaptability and job market competency. 

Investing in robust cybersecurity measures and enforcing strong security policy safeguards sensitive data from potential breaches. Collaboration among stakeholders is crucial for the seamless integration of digital tools into existing workflows.Embracing open standards and interoperability ensures smooth data exchange between systems. Lastly, a proactive stance toward addressing resistance to change will facilitate a successful transformation. The generation gap and digital knowledge between employees needs to be addressed accordingly. By embracing these strategies, the construction industry can navigate challenges and reap the rewards of a digitally empowered future.

" Centralization of processes and data management in one single source of truth can lead to reducing human errors in engineering and architecture tasks "

Bridging Gap in People, Process & Technology

In general, these are basic IT foundation pillars on which we need to overcome and focus. People’s mindsets need positive shifting and accept changes in the environment. Processes and procedures must be reviewed regularly to adapt to the industry standard. Technology and tools only assist in providing efficient outcomes and decision making. By integrating with each other rather than a silo structure, it will create a holistic impact on the digitalization execution level. To summarize, digitalization in construction industry has vast potential to develop, provided all parties participate with similar mindset and attitude