Digital transformation in construction: Benefits, difficulties, and solutions

Digital transformation in construction is a way to create competitive advantages, increase revenue and profit, and create quality works with optimal performance. In this article, Viindoo summarizes detailed information about the benefits of digitalization, difficulties, and solutions to effectively implement the digital transformation process in the construction industry.

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What is digital transformation in construction?

Digital transformation is the process of applying digital technology to business operations. In the construction industry, digital transformation is the use of advanced software and modern technology to optimize operational efficiency, increase construction safety, and help construction businesses develop sustainably.

What is digital transformation in construction?

Digitization in Construction

Benefits of digitization in construction

There is a strong investment in the construction industry to develop and digitalize. The amount of capital for the construction industry from 2021 to 2025 is more than 40 billion USD/per year. The digital transformation trend in the construction industry will create a huge surplus value, helping businesses optimize operational productivity and increase competitiveness.

Digital transformation in businesses operating in construction is meaningful. The application of modern technology brings businesses these benefits:

  • Increase operational productivity: Science and technology help businesses improve the productivity of operational processes through the optimization of planning. Personnel should clearly understand the business plan and coordinate for a smooth and right process, creating value throughout the operation process.
  • Enhance management efficiency: The application of digital transformation also helps businesses improve the management efficiency of human resources, materials, finance, etc. As a result, managers can plan to appropriately allocate resources and make accurate decisions.
  • Optimize operating costs: Science and technology will support businesses to automate work processes, reducing pressure on personnel. As a result, operating costs are optimized.
  • Improve collaboration: Digital transformation in construction businesses will create a professional and connected working environment by sharing data synchronously. Since then, the coordination between components in the supply chain has improved significantly.

Difficulties in digital transformation in the construction industry

Digital transformation in construction generates many benefits. However, to complete this transformation journey, businesses face many challenges.

Rapid market change

The market changes day by day, more rapidly and unpredictably, especially in the current digital age. Factors such as inflation, economic crisis, natural disasters, pandemics, etc. contribute to unpredictable changes in the business environment. Businesses are forced to operate remotely, and plans and schedules fail to keep up with the changes of the times.

The consumers' behavior has also changed dramatically. This requires construction businesses to constantly transform to keep up with it. At the same time, failing to utilize big data and being unable to manage multiple projects at once cause obstacles for business leaders.

The Covid 19 pandemic has brought great changes. Many businesses failed to adapt to changes when the new normal comes. This is the pressure for businesses, but it is also the driving force for stronger development in the future.

Digital transformation in construction

Rapid change makes businesses face difficulties

Lack of tech-savvy human resources

People and technology are two key factors making the potential to successfully implement digital transformation in construction. Businesses should look for high-quality technology-savvy human resources for the smooth digital transformation process.

Construction businesses are now spending a lot of money to train and attract talent. However, the number of qualified human resources who can apply technology is limited. This causes great pressure on businesses to survive and develop in difficult times, especially after the pandemic.

Construction employees must understand the importance of digital transformation in business growth. This is the change from the root, in business thinking and business building. For a successful transformation process, employees must have a positive attitude to learn, progress, and create.

Digital transformation in construction

The demand for high-quality human resources is high

Lack of investment in technology platforms

A technology platform is essential for the success of digital transformation in construction. If businesses do not have enough good personnel, digital transformation cannot succeed. If the technology platform is poor, digital transformation will be an illusion.

Businesses must focus on building technological infrastructure, machinery, and equipment to meet the requirements of digitalization in construction. The hardware machines must fulfill the requirement of integration with other software.

Technology platforms must fit the business model, operating field, and digitalization plan. Businesses should perform meticulous calculations for detailed digital transformation planning, thereby finding the most suitable direction for their organization.

Digital transformation in construction

The technology platform has not been properly invested

Cost issue

Cost is a critical issue for every business. The digital transformation process requires the application of many modern technologies. Therefore, businesses have to spend a lot of money to invest in hardware and equipment as well as train and attract talent.

According to the latest survey in the "Annual report on enterprise digital transformation 2021", up to 60.1% of companies said costs for investment, implementation, and maintenance of digital solutions are challenging.

Changes in working methods also cause difficulty in the digital transformation process, especially for SMEs with limited financial capacity.

Digital transformation in construction

Cost is a dilemma

Stagnation, lack of drastic

To win success in the digital transformation process requires businesses' great determination. If the construction business leaders lack commitment and determination, the digital transformation process will be difficult. In addition, the lack of learning spirit in the company, fear of risks, and unwillingness to change working methods are other reasons for struggles in the digitalization process.

Digital transformation in construction

Stagnation and lack of decisiveness are challenges for the digitization process

Current digital transformation technologies in construction

Building Information Modeling (BIM)

Building Information Modeling (BIM) helps track relevant data over the lifecycle of a building. All of these data are interrelated.

BIM supports businesses to map construction in each phase like designing, testing, planning, and demolishing 3D models. 5D and 7D models are also widely used in construction projects.

The application of information modeling allows businesses to build digital simulations as they plan. Businesses can now visualize the phases or structure of a project. Besides, BIM helps businesses track all information about the progress, status, and cost of construction works.

The information is not in the form of tables or diagrams but is visualized according to the 3-D BIM model. This helps construction businesses closely monitor all information, thereby improving weaknesses in the original plan and identifying additional costs.

Building information modeling BIM greatly contributes to the successful digital transformation of businesses. This model is effective for other engineers, construction managers, architects, technicians, etc.

Unmanned Aircraft System

The system is gradually becoming popular in the process of digital transformation in construction. Aircraft with maneuverability, small size, and lightweight like drones are often getting interested in.

Site managers, construction supervisors, and management representatives should pilot and control the unmanned aircraft systems. The system supports detecting potential risks, monitoring construction progress, controlling construction safety issues, etc.

One of the main reasons for delayed or interrupted construction projects is the space issue. Drones can optimally solve the problem.

Differences in geological conditions from the original estimate can lead to major changes in the project implementation plan. Drones when integrated with modern technologies such as high-quality images, 3D laser scanning systems, and geographic information can significantly improve accuracy and speed.

Virtual Reality For Site Inspection

Another widely applied technology to digitalization in construction is VR virtual reality. This technology has created a revolution in the construction industry.

With this technology, construction workers can prepare for work on-site even before construction has started. This is thanks to simulated images of virtual reality technology. They can prepare in advance for dangerous situations such as fire, earthquake, etc. to take countermeasures.

Digital transformation in construction

Virtual Reality Technology VR

Augmented Reality

Reality AR technology has blown a wind of change to the construction industry. This technology supports more automated and accurate measurements.

The technology quickly detects and warns of errors in planning or conducting construction for prompt measurements. AR technology has made construction activities more efficient, cutting costs and increasing safety at the on-site place.

Digital transformation in construction

AR Augmented reality technology

Construction management software

Software is gaining more popularity during the digital transformation process. The application of software will help optimize construction activities. Along with that, costs greatly reduce while operational efficiency increases.

Digital transformation in construction

Applying construction management software to help businesses digitally transform

Digital transformation in construction for Vietnamese businesses

Technology vendors play a key role in the digital transformation process. These businesses should bring technology solutions and services for the smooth digitalization process.

Viindoo Technology Joint Stock Company is among the prominent units implementing and supporting digital transformation consulting for businesses in Hai Phong and Vietnam. Providing comprehensive and advanced digital transformation solutions, Viindoo has been honored twice with the Sao Khue Award - the leading prestigious award in the field of IT and Software in Vietnam.

Viindoo has also be granted the Vietnam 2022 digital transformation award on October 9, 2022. This is a prestigious award given to businesses with the most outstanding achievements in Digital Products, Solutions, and Technology.

Centrally manage construction with Viindoo Project

Viindoo Project the construction management software allows businesses to plan specific construction and optimally control construction progress. Besides, the software helps businesses closely grasp construction tasks, save a lot of time and costs, and optimize work productivity.

Digital transformation in construction

Viindoo Project - the construction management software

Transparently manage finance with Viindoo Accounting

Finance is a decisive factor in the success of any project. In the same manner, financial management plays a key role in the digital transformation in construction. Viindoo Accounting & Finance will offer businesses an effective financial management solution.

Viindoo software helps businesses proactively manage financial factors such as cost, debt, etc. in the construction process. Businesses can perform construction activities automatically, thereby reducing errors in data entry, cutting down on human resources costs, and saving more time.

Digital transformation in construction

Viindoo Accounting - The financial management software

Digitize all documents with Viindoo Documents 

Document management is really an issue. In the process of digitalization, construction businesses need to store a huge amount of data. Viindoo Documents - the comprehensive document management software will be an effective method. The software helps store documents conveniently on a digital platform.

Viindoo Documents helps businesses automatically classify and share documents with partners. Besides, this software allows businesses to appropriately grant access to internal documents to employees. As a result, Viindoo software is an optimal solution, helping construction businesses save a lot of time and costs on document storage.

Viindoo Business Management Software Solution integrates with all of the outstanding features above. This supports the synchronization of all operating, collecting, and using information processes within the business on the system.

More specifically, the price of Viindoo Project the construction management software is reasonable for Vietnamese businesses. From $8/month, businesses can fully use the features in Viindoo’s application store.

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The above article has introduced to you information about digital transformation in construction. Hopefully, the article will help you have a better overview of digital transformation and find the right digitalization method for your business. Stay tuned for more Viindoo articles about digital transformation for businesses in today's rapidly changing era.

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Digital transformation in construction: Benefits, difficulties, and solutions
Công ty Cổ phần Công nghệ Viindoo, Nguyễn Anh Thư 13 January, 2023

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