Digitization is the future of doing ‘smart’ business in the Construction arena. Any industry in the Middle East that predominantly deals with the 5M’s has to be digitized for its long term footing in its area of operation. This is mainly because of the fact that all these industries are extremely expensive to run without a proper understanding of what’s going on inside the company. Digitization is nothing but a third eye into the organization and its field and office operations to help the employer know in detail what’s going on within the industry than what actually meets the naked (non digitized) eye.
A proper digitization plan can help reinvent processes, improve quality, and promote consistency to scale up revenue. According to a recent study published by McKinsey shows that the Construction industry is the second least digitized industry despite having a disproportionately huge contribution to the overall economic share of the world. Digitization as per the research paper released by Mckinsey Global Institute clearly shows that Construction companies going digital can increase productivity gains by 15% while also reducing expenditure by 5%. This helps your business grow at a fraction of the cost.
The McKinsey Global Institute estimates that the world will need to spend $57 trillion on infrastructure by 2030 to keep up with global GDP growth. This is a massive incentive for players in the Dubai, UAE construction industry to identify solutions to transform productivity and project delivery through new technologies and improved practices.
Start-ups have taken advantage of the market opportunities induced by some of these digitization trends to fill newly created added-value gaps. Oliver Wyman has identified nearly 1,200 start-ups worldwide since 2010 in real estate and construction. These start-ups have received around US$19.4 billion in funding over the period, half of it in 2017.
Tactical advantages of digitizing a construction company
- Rectifying transcription errors.
- Introducing electronic workflow processes.
- Managing audit trails.
- Executive security protocols.
- Creating one source of truth for each document/item of data.
- Improving the availability of reliable information.
- Integrating business modules.
Now it doesn’t take a genius to figure out how digitizing can help the construction industry grow strong in terms of revenue in the long run. Listed down below are a couple of unique features of going digital in the construction sector.
Autonomous Crew: A whole new concept that rose to prominence in the ’90s, is all about empowering construction teams to plan, design, and execute a course of action autonomously. This has proven to save time, eliminate pilferage, avoid overlapping of decisions and duplication of work, and many more to improve output.
Easy and Seamless Micromanagement
Digitization helps the employer of a construction company to micromanage his/her subordinates without actually making it obvious to the employee so that they don’t actually feel the grunt of being micromanaged. This is accomplished by letting the software such as Tactive Construction ERP to do all the monitoring and controlling tasks and electronically generate respective reports on a daily basis and many others including job cost reports, employee performance audits, Daily progress/work done reports, etc.
Inventory management and warehousing seemed to be a never-ending problem with our parent organization until the adoption of Tactive’s Construction ERP that streamlined all the scattered manual reports into a digital format. After that, the project managers and the respective allied staff members knew for the first time very precisely where each and every material had been stored, and how much stock was available at their disposal. This has helped them save large sums of money by streamlining the purchase order of materials that already existed in the inventory.
Like in any other sector and region, technology will fundamentally reshape construction around the world, more so in Dubai, UAE – driving productivity and efficiency, redefining the project life-cycle, and creating new winners and losers. The question is when, and which firms will be willing to spearhead the transformation?
If you wish to know more about the advantages of digitizing your construction firm using Tactive Construction ERP Software then please check out the link below to book a free live demo that is sure to change the course of your business for the better.