Implementing Technology and Data Solutions to Drive Strategy
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BY SARAH DUBETZ AND STEVE COUGHRAN
COLTIVAR GROUP, LLC
The emergence of construction technology has sparked an overdue industry-wide revolution. As technology companies attempt to capitalize on the unspoiled market, the industry is becoming infiltrated with a slew of enticing new options. Innovative project management and scheduling software, BIM, Lean tools, VSM, and 3D printing, among others are flooding the market. These solutions present enormous efficiency opportunities to an industry that has suffered a productivity decline of 19 percent over the last half century. Realizing the full potential of industry digitalization, however, requires companies to go beyond the nuts and bolts of operations. Long-term success demands the marriage of technology and strategy; it entails an innovative approach to one of the oldest industries on earth.
MERGE STRATEGY AND TECHNOLOGY
Too often, strategy and technology operate in organizational silos.
Example:A company’s outdated project management and accounting system was understood and operated by only two employees in the IT department. This bottleneck not only presented an internal threat to the company due to the heavy reliance on a few individuals, it also prevented the company from establishing a modern strategy. The company failed to merge innovation efforts with its overarching plan. Employees failed to understand how systems were supporting the organizational vision, how technology was propelling the company toward better serving the customer and reducing the company’s cost structure.
Strategic transformation and organizational innovation should work in tandem or they begin to compete with one another. Successful initiatives begin by evaluating how the technology will impact the strategy. This first requires the company to define its strategy. Where does the company want to go, how will it differentiate itself, and how will it build in adaptability to sustain a competitive advantage?
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EVALUATE CRITICAL TRADEOFFS
Next, a company must assess the viable technology solutions and understand exactly how each option supports the strategy. Technology implementation is neither cheap nor easy. Too much adoption at once will overburden systems, confuse employees and result in inefficiency. Every company must articulate how each technology option will impact the business and establish a step-by-step plan that coincides with the strategy.
Example:One company attempted to integrate Lean construction principles without investing in the proper technology. Its competitive advantage relied on achieving an advantageous cost structure through minimizing waste and maximizing value. Management failed to implement the appropriate tools to execute, however. By integrating Lean technologies, such as a last planner device, the company could have optimized pull planning to reduce process redundancy.
EFFECTIVE IMPLEMENTATION
Bringing in key players who understand the business and will be responsible for using the software is crucial.
Example:A firm planned to expand geographically in the coming year. The company determined to implement and train employees on a new project management software anticipating territory growth. As the company migrated to the new location, current employees were comfortable with the systems and processes in place and able to coach new hires. It optimized its processes (such as RFI submittals) and enhanced communication at its core. The company was able to seamlessly transition into a new stage of technology adoption and strategy by blending the two business functions.
Since the success of implementation will be largely determined by the key users of the technology, it is important that management understands the perspectives of different company players. The technology functions for each group must be related to each individual’s operations and the strategy at large. Onboarding a new system requires employees to change their ways of thinking and processes that are often engrained after many years on a job. Introducing the technology as more than a technical platform will incite organization-wide acceptance of the solution. The supportive reaction will motivate employees to get the most out of the technology and the company to advance its strategic objectives.
