Why Digital Transformations Fail: Top Construction Industry Mistakes

WHY DIGITAL TRANSFORMATIONS FAIL:

Top Construction Industry Mistakes

By Shelley L. Earsley

Construction companies continue to adopt more advanced digital capabilities to stay competitive in today’s market, and this has accelerated the use of technologies such as artificial intelligence (AI) and real-time data analytics.

The potential benefits of these technologies are great. Your data is a strategic asset, and good intelligence into that data can help your operations, your people out on the job site, and aid in better decision-making. But when you approach digital transformation with a narrow scope, patching you operations with technology to quickly meet demand, a lot can go wrong.

In truth, most construction companies need to digitally transform if they want to remain relevant. To ensure your transformation is meaningful and successful, consider these common failure points for construction companies on the same journey:

1. MISUNDERSTANDING WHAT DIGITAL

TRANSFORMATION IS.

You might assume that implementing a technology or making a digital change in operations is transformative, but that doesn’t necessarily qualify as digital transformation. A true digital transformation is holistic and accounts for total business impact. It transforms the original business model, involving a culture change and training. You can’t be hesitant about overhauling your business model and operations to achieve success.

2. NOT HAVING LEADERSHIP IN THE DRIVER’S SEAT.

For the entire company to adopt and execute change, the initiative must have the support, energy, and drive of all key leaders. This will help ensure a culture shift. It also means the initiative will get the support and attention it requires when decisions and course corrections are called for. And leadership can be champions for changes with customers, vendors, and employees.

3. BEING UNWILLING TO INVEST WHAT

IT TAKES TO GET IT RIGHT.

A digital transformation will most certainly fail if you cut corners and go for the lowest price point versus investing in the right solutions, providers, and implementers. You get what you pay for. You must be willing to invest what it actually takes to make the changes you want to make – and do it right. This includes hiring the right professionals who will ensure success, as opposed to trying it on your own.

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4. FOCUSING ON TECHNOLOGY, NOT

PEOPLE AND PROCESSES.

When you get cross-functional team members together to discuss their processes, you’ll likely find there are areas of waste, redundancy, and inefficiency that can be corrected and have tremendous outcomes even before introducing technology. People and processes are even more essential to digital transformation than any digital component. You must assess people’s willingness to change, their current skillsets, their potential, and more. And you must assess your current business processes before you can map out next moves and transform.

5. NOT HAVING A THOROUGH

STRATEGY.

If you’ve done your due diligence on the steps laid out thus far, you have the makings of a digital transformation strategy. Now, you must map how you’ll get from your current state to your transformational goals with the resources you have, and which resources you’ll need to add. And you’ll need to define what success will look like by determining metrics that are key to your goals.

Digital transformations are a big undertaking. Avoiding these common mistakes will help ensure your transformation sets you up for the type of growth that is critical for meeting your business goals.

Learn more about digital transformation at eidebailly.com. l

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