Upending Economic Disruptions In Construction Industry Through Digital Transformation
A slew of challenges exists in the AEC industry that are begging for revolutionary solutions. We know that this industry is best known for working in silos. Although technology adoption to break away from the silos has picked pace, it is far from realising the true prospects of digital transformation. In the face of constant uncertainty, traditional approaches to strategic planning, especially in the construction vertical, can be detrimental for risk-averse plans.
Today, to design, build, and operate at scale, the inevitable requisites are integrated work environments and connected data. Visionaries believe in setting up a platform that includes industry clouds and a set of common platform services that are scalable, sustainable, and secure. And, the scope for innovation lies in cloud-based platforms with open ecosystems that bring about a collaborative environment. Since fractured supply chains need a fix too, establishing cloud architectures can make data more granular, which ultimately turns around the economic stability of businesses.
In this context, well-known leaders and decision makers of the AEC sector recently connected virtually to brainstorm over what it means for an organization to digitally transform itself to see a prosperous future. The participants, who are experts in this sector, gave brilliant responses that validate the fact that the AEC industry must accelerate its process of digital transformation to see faster growth and prospects in the coming years.
Adopting digital transformation: A requisite for AEC
It is well known that the AEC industry is rather slow at adoptingdigital transformation. One reason is that the industry is highly fragmented, with many small businesses. This fragmentation makes it difficult for companies to agree on standards and to share data. Another reason is that the industry is very labour-intensive, and there is a reluctance to automate jobs that are currently done by people. Finally, the industry is very conservative, and there is a reluctance to change the way things have been done for many years. So, digitization and automation in the AEC industry has not happened at a pace that it is expected to when being compared with several other industry verticals. In this scenario, what challenges are posed to this industry and how can the decision makers be convinced about digital transformation despite its challenges?
Deepak Bashetty, Regional Director, KPM Design Services, answers this question first. In his opinion, he says there is no one solution that might work for all construction related projects as digital transformation happens at a particular scale. According to him, “A lot of factors need to be taken into consideration for constructing a building. The construction site’s geography, the logistics, supply chain, all needs to be factored for this. Let me give an example, A 500-meter-tall building can be easily constructed using structural steel anywhere, but in Saudi Arabia the same 500-meter building cannot be built using structural steel. Procuring steel is a huge challenge in this location and we need to resort to locally-available concrete for 100 meters and then consider steel for the remaining height. So, the demands vary from project to project, making digital transformation tough and cost-intensive. There has also been a very slow adoption of 3D/4D technology. Of course, during the pandemic, this worked well. Property developers still prefer 2D modelling. The progress though slow there have been adoption of digital tech in some use cases like implementing QRcodes in drawings. The site engineer will scan the code, follow the design instructions and blueprint provided on the App and then execute it. Post completion of the structure, an image can be uploaded against the QR code to match the drawing. Such developments have proved to save time and cost.”
Although leaders in the AEC sector know that digital transformation for their companies is inevitable, Nikhil Kharade, GM - Design & Development, Kolte Patil Developers, says, that there is a lot of resistance in its adoption. “People are weary of the transition because it involves monetary investment in the software, skilled manpower for the digital transformation and also investment of time. Sometimes developers trust a person’s decision, who has more than 30 years of experience in this field. It also calls for different professionals to be on the same platform for completing a large-scale project. Companies are still unsure how all the stakeholders can be brought into a single platform,” says Kharade
So, it goes to say that there are several operational challenges that exist in the AEC industry which hampers productivity. If digital tools were rightly applied to ease the challenges, will it bring about a substantial difference to the productivity?
K.Raheja Corp’s, Sudipta Ray, Sr. VP and Head – Residential Projects, Design and Construction, believes that digital transformation is an inevitable process which the real estate companies can only ignore at their own peril. Over the past decade, it has been proven that the cost of capital investment in digital business operations has become more affordable and resulted in greater ROI. Implementing digital tools in difficult environments within the real estate industry is challenging and requires organisational and industry wide mind shifts. Investing in technology today sets the foundation for the future to come.
Ray adds- “At our organization we have been at the forefront in using a lot of digital tools to enhance building design efficiency and co-ordination, monitor construction progress and quality & enhance other business operations. Further focus is being put on managing EPC operations with digital solutions from Concept to Completion. I can say the productivity has increased tremendously with the application of new-age digital tools and the future possibilities are endless and exciting.
Sharing another opinion is Director Technical Services of Cushman & Wakefield HLDG INC, Devesh Gupta. He says he is content with the digitization of the AEC industry. He says digitization has helped in business growth mainly because it adds value and empowers its employees with data that leads to informed decision making. This, according to him, has saved time and money. It has also help bring a collaborative environment where the 3 disciplines of AEC can cometogether on a single platform, where cloud technology helps in taking informed decisions. It also helps in quickly adopting to a Plan B in instances where Plan A fails. This confidence to change to plan b comes from informed decisions supported by technology. The product management, supply chain management, human resource management, have all become easy with digitization, indicates Devesh.
The construction industry is unique because it is constantly changing. There are always new projects and new challenges to face. The AEC industry is complex as it is made up of many different types of businesses that all work together. There are many different types of businesses involved in the AEC industry, including architects, engineers, construction companies, and materials suppliers. The industry demands a collaborative environment for smooth execution of projects.
My Home Constructions’ AVP (Architecture & Design), Sandeep Kumar says that establishing a collaborative work requirement culminates in quality of work, reduced coordination and production time, and cost. “End-to-end digitalization is recommended to be done starting from the pre-design stage to production stage. Digital tools can either be applied both at individual stages and for the whole for the entire process. The wholesome digitalization approach can brings together all the stakeholders involved in the project, for more creative, coordinated and environment friendly design. If digital technology is used in the right manner, smoother and transparent process flow can be expected. Of course, there might be challenges in its implementation but overcoming them will prove it worthy. Design and facility management can all be done using a single platform, further extending it for sales. We are using digital technology in one of our flagship project, by leveraging end to end BIM 360 kind of software through which many of our process challenges are simplified and we are able to deliver good quality projects on time.”
Cloud-based operations are regarded as a boon to overcome operational challenges. Not only that it brings together people, data, and technology; Sandeep Kumar says that his organization leverages cloud technology to a large extent for smoother operations and improved experience for the clients. For his company, mapping in the 3D tool BIM 360 is being used extensively. Survey and GIS is done digitally he says. “We look at cloud to help us at a very early stage. At the design stage, initially when the software was installed there were technical challenges, and the turnaround time was high. With overcoming the learning curve, we are dealing with it better now and the turnaround time has reduced. With 1000s of precast elements involved in the construction, the designs of all of them are linked digitally. This makes the process smoother, with tracking and troubleshooting becoming simpler, resulting in fewer errors and reduced construction time”.
The need to pick up pace
Agreed that the AEC sector is slow in adopting digital technology. We can attribute several reasons to it. Mainly because it is a highly regulated sector with complex workflows and data sharing requirements. It is traditionally slow to adopt new technologies becauseone of the biggest challenges is getting everyone in the sector on board to make the change. Another challenge is making sure the technology is reliable and can handle the demands of the sector. This confidence is lacking and decision makers are hesitant to sanction the investment not knowing how the organization as such will be able to adopt to the technology change.
Crushing all these doubts and clarifying the need for digital transformation in the AEC sector, Strategic Territory Business Head of software giant Autodesk India, Rajgopal Nair, asserts that the AEC industry has been a laggard in digital adoption when compared with other industries like automotive manufacturing. He says, “The biggest challenge was to accept CAD drawing in place of pencil drawings. The other challenge is that AEC is a labour- intensiveindustry. We still believe that mundane jobs can be done by labour rather than investing into technology to do it. Technology may be cloud, mobile anything that has to be coupled with a business’ operational model. At Autodesk, we have identified that many organizations lie at various stages of digital transformation. They could be classified as ad hoc, opportunity strict way of adopting tech and finally a complete willingness to transform end-to-end business workflows. Since there is no scope for repeatability in construction, the software needed varies from project to project. Similar thought process exists while moving to 3D or 4D or even 5D and 6D. There is a need to develop digitally enhanced customer engagement processes, where everybody in the organization has to play a part in the process of digital transformation. Integrated approach within and outside the organization needs to be factored. Digital transformation cuts across all the stages of the project life cycle.”
It may be easy to say that digital transformation is a must. Getting this done may be a herculean task for many organizations in the AEC industry. A full-scale digital transformation is needed but what does it involve?
According to Autodesk’s Nair, there is a long list of advantages of digital transformation in the AEC sector. By automating processes and using digital tools, construction companies can achieve increased efficiency and productivity. This can result in reduced construction time and costs, and improved quality. Using digital tools such as cloud-based collaboration platforms, construction companies can improve communication and collaboration between team members, subcontractors, and clients. It can also lead to a more streamlined and efficient construction process and construction companies can improve safety and security for workers.
Achin Kumar Das, Director Projects, The Uralungal Labour Contract Society says that utilizing newer and emerging technologies is a must. “Agreed that technology is playing a major role in the AEC industry, a lot of digital tools have helped us connect to the construction site in real time. Let’s take drones as an example. High speed laser scanners are used to track the progress of the constructions. Real time feedback is now possible from the site into the BMS tool, that data can be recorded and processed further. So, we can keep track of the construction in real time in correlation with the design available in BMS. Actions can be taken based on the input provided by the digital tool. Further intelligence from the data collected to optimise waste and other construction costs in a secured way is possible leveraging new tech like AI, blockchain, ML, AR/VR, etc. These help in better informed decision making. Advanced BMS helps in cost and time optimization as 4th and 5th dimensions of Construction
Engineering. So, the technology stack if adopted properly can transform the industry to a large extent. BIM 360-degree software like products are providing the required edge for the construction companies.”
Cloud: The vital game changer
Cloud-based operations is regarded as a boon to overcome operational challenges. Not only that it brings together people, data, and technology. Sandeep Kumar says that his organization leverages cloud technology to a large extent. For his company, mapping in the 3D toolBIM 360 has been used extensively. Survey and GIS is done and it is digitally recorded and stored and shared with various stakeholders, he says.“We look at cloud to help us at a very early stage. At the design stage, initially when the software was installed there were challenges, the turnaround time was high. But we realized that it was a learning curve and we needed to be patient. We are much better now and the turnaround time has considerably reduced. There are 1000s of elements in the construction design all of them are linked to a design digitally. This makes the process seamless and troubleshooting situations are fixed in no time.
Chief Information & Digital Officer of Prestige Group, Vishesh Kaul says the cloud has helped in the standardisation of capabilities and processes and also forms a seamless omni-channel strategy for his company. Cloud has fast-tracked the development and deployment timelines. Vishesh also admits that hyper-scalability is possible with the cloud. Any sudden cyclic variations, the cloud can handle with ease meeting customer expectations in a better manner.
LK Vyas, Morph Design Co, Director - Design Principal, says, “Earlier when no mobile devices were available and even when the mobile were introduced it's usage were limited to high tariff and non-smart hardware were seen on such phones, we had to set up 100s of offices across the world to ensure projects complete on time with access to resources. But now, thanks to the SMARTPHONEs equipped with smart hardwares and sensors and messaging and conferences apps on the go has helped construction industry to connect seamlessly with fastest speed of resolving queries and issues.
This digitization has brought about tremendous advantages to our industry. Eg. I use a tool called Lidar that maps a construction site. Lidar is fast becoming one of the most important tools for construction companies across the world, and it can be deployed in every stage of a project’s life cycle. This technology has helped us to speed up construction projects by increasing not only the procedure productivity but the cross communications between teams as well.”
Cushman & Wakefield’s Devesh too expresses the same about cloud. “Cloud computing has largely helped the mid sector players than the large construction players. The big players were already ready with large data centres, whereas for the mid-segment players cloud seemed an easier way to transform. Cloud also helped launch a virtual business model, which is very useful in large projects like super luxury hotels, etc. This is because in projects like the luxury hotels, projects begin with interior designs and then the architecture. So, it is important to visualize the designs and cloud proves beneficial for this. Also, we relied on several data at the back end to quickly change our decisions and switch plans. Although the multiple stakeholders in the project were able to execute with good coordination cloud assisted in storing the information on a common platform. Collaboration was enhanced and made decision making faster. Cloud has also made possible to define the nuances of the project. Its time limes, resources, manpower etc., all seemed to fall in place.Since the transparency is evident, the future will be Construction-As-A-Service, enabled by cloud computing. This is what the developed countries are adopting and I guess India should get going faster on this.”
As cloud brings scores of benefits to the AEC industry, Rajgopal Nair says Autodesk’s Construction Cloud has been designed to plan for uncertainty; a platform to design, build, and operate at scale. Autodesk helps companies increase efficiency and productivity by moving to the cloud. He says AEC professionals can access their files and applications from any device, anywhere and this improved flexibility and mobility leads to increased efficiency and productivity. The other significant advantage with cloud is reduced costs. Cloud-based solutions are often more affordable than traditional software and hardware-based solutions. This can lead to significant cost savings for AEC firms, he says. Cloud also enables seamless collaboration between team members located anywhere in the world. This improved communication and collaboration can lead to better project outcomes and of course cloud offers more security.
While there is so much talk about cloud, Generative Design is another tool that is proving useful in large scale projects. Generative design is a type of computer-aided design (CAD) that allows one to create 3D models and animations of your designs. With generative design, one can not only create more complex designs but design iterations can be enhanced with the input data.
In conclusion it can be said that the AEC industry must adopt a faster pace than what exists today. Currently the AEC industry is rapidly evolving with the advent of digital technology but that scale is not fast enough to meet the growing demands and circumstances. By tapping into digital technology, a progressive industry can be envisioned with the development of new design and construction methods that are more efficient and cost-effective. Additionally, the use of digital technology will make it easier for architects, engineers, and contractors to collaborate and communicate with each other in a more reliable and trustable manner, easing work flow constraints. As a result, the overall quality of projects will improve and ensure that a connected AEC industry is truly accomplished.
