Digital transformation – get on board or get left behind

Embracing digital change is not just a job for the IT department, business leaders need to play a proactive role too writes digital transformation specialist Matt Forbes.

The construction industry is notoriously risk averse. New tools, technologies and techniques are usually viewed with a degree of suspicion. However, the convergence of technology, infrastructure and the built environment is taking place faster than ever, and there is no going back.

Competitive advantage

This combination of innovation and digital data is a powerful one offering a world of opportunities. And its impacts are so wide reaching – from supply chains to asset management, that business management teams need to understand the potential and grab every opportunity. After all, where it is possible to work faster, smarter and better there is competitive advantage.

Shock of the new

Taking the construction industry as an example, with its widening infrastructure gap and productivity at a low, digital transformation is being hailed as the key to unlocking the power of integrated delivery and accelerating the progress of the critical infrastructure that is essential to economic growth.

But despite the rapid pace of technological change, many companies are struggling to adapt and embrace the lengthy and demanding change management project that is digital transformation. For mission success, it is crucial for management teams to play a leading role.

Here are my three key solutions to leading a successful digital transformation:

1. Embrace change – Digital tools and technology are already making a difference

The construction industry has had its fair share of criticism for being slow to adapt to technological change. In AECOM’s recent Future of Infrastructure report 84% of industry leaders said that the industry is not evolving fast enough to meet society’s changing needs. But while we have a long way to go, we must celebrate our successes too. Technology is already making a huge difference. It’s our job as leaders to recognize the progress we’re making – and champion it.

One example of this progress is our incorporation of digital tools and technologies into our design reviews. By adopting 3D design review software we’re already streamlining the design process and creating efficiencies of 5-10%. We’re now starting to expand this by making immersive technologies (virtual and augmented reality) an integral part of the design process, bringing digital models to life and enabling stakeholders to intuitively interact with a design in real time, wherever they are.

But enterprise-wide adoption of new technologies doesn’t happen organically. It takes visible and vocal leadership support. To make immersive design reviews commonplace, our small VR team has strong leadership backing. We’ve championed their work at the highest levels of the organization, helping them spread the word, engage teams worldwide and encourage others to get on board or risk being left behind.

Use your leadership position as a platform to champion digital success. Find your digital stars and build a movement behind them. Encourage others to follow and help them to spread the word about the opportunities and advantages.

2. Optimise your opportunities – Make sure you’re getting the most out of what you’ve got

It’s easy to get distracted by the pace of technological change. With new techniques and tools available all the time, take care not to rush onto the next thing before fully exploring and embedding the technologies available today. Manage your digital transformation project just like any other business growth initiative. Progress trackers, KPIs, adoption and standardization might not be as exciting as artificial intelligence or virtual reality, but they are the keys to success.

Don’t be afraid to break the mold – explore new applications and ways of overcoming barriers to change. One of the areas we’re exploring at AECOM is the move from descriptive to prescriptive design. For example, we are creating fabrication-ready digital libraries that build standardized detail into a design up front. This promises to dramatically improve the efficiency and quality of the design process, streamlining project delivery. But the concept requires a whole lifecycle approach, breaking down barriers and silos and creating a smoother, streamlined supply chain. Success requires cross-industry collaboration, throughout the supply chain.

Align digital outcomes to business results and track the benefits. Many firms are already seeing positive results from their digital transformation efforts, but before moving on to the next new thing, take a step back and make sure you’ve realized all of the benefits from the tools available to you.

3. Fast forward – Tomorrow’s technology will be transformative – plan for the future

Once the path is set to getting the most out of today’s technologies, it is possible to start embracing digital solutions that are genuinely transformative. The key to success is creating a portfolio that balances short-term gains from existing tools with longer-term initiatives that embrace new and emerging technologies.

Programs such as AECOM’s Global Challenge are a great way to inspire employees and create new sources of ideas to tap into. Since our company-wide innovation competition launched in 2016, it has received more than 1,000 entries from our employees who are inspired to collaborate, try something new and bring their best ideas to the table. As part of this push we are exploring the potential for emerging technologies to transform how we deliver projects. Already work includes developing machine-learning algorithms that can detect design anomalies, mobile data-capture techniques that are shaving weeks off project timelines, and technologies like 3D printing that are fundamentally changing how we build.

It’s crucial to give people the space to try new things. Make sure you create the right environment for innovation to flourish and for people to experiment. Leaders have a role in seeking out innovation and digital excellence across their organizations and surfacing untapped genius that has the power to transform. But remember, there’s no sense in pursuing digital solutions for their own sake – just as with existing technology, track progress, demand interim results and recognize when an idea, however exciting, has run its course.

Next stop the future

For businesses navigating the excitement and disruption of technological change, good old-fashioned leadership will be key to success. While digital transformation promises to fundamentally change how we work, the basic tenets of leadership and business hold firm. It is part of every leader’s role to guide business through its digital transformation journey and shape a future that is exciting and sustainable.

A version of this article was originally delivered at ENR’s Futuretech conference on June 6 2018. For more on Matt’s thoughts on the benefits technology can bring to infrastructure project delivery click here.