Integrated Tech Stacks Can Supercharge Growth for Construction
The construction industry is facing a major growth challenge. Business leaders have struggled with delayed payments, a shrinking workforce and inconsistent administrative processes. This has led to productivity growth in the U.S. dropping consistently in the last decade. The construction sector has only averaged a 1% increase in productivity each year for the last two decades. As a result of this sluggish growth, business leaders have turned to technology to unlock new levels of efficiency and productivity.
While the use of technology is definitely on the rise among construction businesses, the level of access that each employee has to such solutions is inconsistent at best and non-existent at worst. According to research by Dropbox, 75% of construction businesses use some form of cloud-based document storage solution.
Despite this, paper still reigns supreme at many construction sites, with contractors preferring the tactile nature of paper forms over tablets or other software solutions. This ends up costing the business in lost forms, confusing processes and multiple versions of documents stored in different locations. To combat this, construction businesses have to deploy integrated technology stacks, which can help ensure consistent access and usage across different business divisions.
What Are Integrated Technology Stacks?
Construction companies that wish to embark on a digital transformation journey can be bombarded by a barrage of software and hardware solutions vying for their business. Digital collaboration and mobility solutions account for 60% of all investment in construction technology. Business leaders have to navigate a complex and saturated market to find the solution that works best for their organization.
The needs of each business department can vary greatly from one division to another and software providers are providing increasingly targeted solutions for disparate use cases. Consequently, businesses often fall into the trap of signing up for multiple solutions that do not work with each other and consider that a technology stack.
It is estimated that approximately a quarter of construction businesses use applications that are not integrated with the rest of their business. To achieve increased productivity and efficiency, an integrated solution should be implemented.
There are three reasons integration is the key for construction businesses to improve growth and get the most out of their digital solutions.
Why Integrated Tech Stacks Are Crucial for Any Growth-Oriented Construction Business
1.Integration Removes Inter-Departmental Barriers to Collaboration
Between contractors, subcontractors, suppliers and office staff, the construction business is inherently broken down into information silos. Before the digital revolution, communication among these stakeholders was limited to the sharing of essential files and forms via email or text. However, with integrated software, files that are required for compliance or administration can be maintained in a centralized space that is accessible to everyone who is working on a particular project.
Communication is also conducted on this integrated platform rather than separate text and email chains that provide limited contextual information. This makes it easier for individuals to provide feedback or contribute to ongoing discussions.
2. Improved Data Management Provides Better Insight for Decision-Making
Decision-making requires a significant amount of deliberation and research. However, a lack of data can make this process little more than guesswork. Improved data collection and analysis using integrated technology stacks allows business leaders to gather operational and administrative information at a level that was not possible before digitalization.
To effectively employ decision analytics, managers need to be able to collect large amounts of data, extract actionable insight and present this information in a visual and easily understandable manner. Integration, when executed well, can combine data from different departments to give business leaders a holistic view of their entire operation and ensure that each decision is informed by the latest available data.
3. Enable Higher Levels of Productivity and Efficiency With Standardized Processes
Construction companies often view projects as one-offs and unique. This creates the misconception that it is difficult to standardize processes across different projects. However, many individual tasks and compliance requirements are identical across most projects. Integrated software can help companies reduce the amount of time spent on repetitive tasks that take up a significant chunk of an employee’s day. With integrated productivity software, employees can recoup over five hours each week to spend on higher-value tasks rather than repetitive processes that can be automated or streamlined.
How Businesses Can Choose the Right Stacks for Specific Use Cases
Digital transformation in the construction industry will continue to grow. Construction companies have to ensure their investments are suited to their unique business needs. As software offerings become increasingly specialized and targeted, business leaders need to ensure that each component of their transformation adds value to their existing stack of solutions. Here are three things business leaders should do to ensure their tech stack consistently provides a high level of efficiency and effectiveness:
- communicate with on-site, office and remote employees to gain insight into their specific needs;
- ensure that each software or hardware inclusion is aligned with overall business objectives; and
- minimize redundancy through regular evaluations of the technology stack.
Technology breaks barriers to communication, improves productivity and increases collaboration across business divisions. Integration allows these benefits to exist throughout the business rather than in individual departments that embrace these solutions. Construction companies can choose from a practically endless list of software solutions and integration is the key to unlocking the true potential of these applications.