Will you continue building the way you did yesterday, or take the leap toward a more profitable, future-proof approach today? In this blog, we explore why digital transformation has never been more strategically important.
For too long, digitalisation was seen as an IT party. But it has long since ceased to be an IT project. Digitalisation is a strategic choice that directly influences the profitability, manoeuvrability and continuity of companies. Yet, many organisations in the construction, civil engineering, infrastructure, and installation sectors are still lagging behind. The explanation is logical: companies are still too heavily influenced by current issues. But in the meantime, you are losing margin, efficiency and grip every month.
The reality is that those who continue to cling to the way we worked yesterday are putting their future at risk.
According to the European Commission’s DESI Index, the construction industry is structurally lagging behind in digitalisation. While other sectors are fully embracing cloud software, utilising data for strategic decision-making, and leveraging artificial intelligence to automate processes, many construction companies are still relying on familiar Excel sheets, paper receipts, and fragmented information.
And that costs money. According to research by McKinsey, companies that make smart use of digitalisation manage to increase productivity by 14-15% and reduce failure costs by more than 5%. In a market where margins are often very narrow, that can make the difference between turning a profit and going bankrupt.
In 2024, McKinsey emphasised the importance of digitalisation in the construction industry in the article Realising productivity in construction is no longer optional. In it, they once again confirm the key role of technology for a successful future in the construction sector.
Companies that make strategic use of digitisation do so not only to speed up processes or reduce paperwork, but above all to gain a better understanding of planning, budgeting, and implementation.
Data and digital tools help you identify where a project is likely to go wrong. This allows for adjustments to be made where necessary. This way, you avoid extra work, increase your predictability towards customers, and your professionals can focus on what really counts: delivering high-quality projects.
What holds many companies back from taking the next step in digitalisation isn’t the technology — it’s already familiar to us. It is the tangle of fragmented systems, islands of information and the lack of a digital strategy that enables growth and integration. Companies that get this right reap the rewards: lower failure costs, quicker turnaround times, and smoother project delivery. And, perhaps most importantly, the assurance that the organisation is prepared for whatever the future holds.
💻Take the Siers Group, for example. This multidisciplinary infrastructure company strengthened its grip on a growing project organisation thanks to digitalisation:
‘Real-time insight into project data, purchase orders and finances is crucial. Thanks to the centralised environment of 4PS Construct, the right people always have direct access to the right information.‘ Jeroen Kloppers, ICT Project Manager / Application Manager at Siers Groep
Digitalisation not only helps now, but also prepares you for what is to come:
And perhaps the greatest risk of all: an increasing dependency on outdated systems or employees who ‘still know it all’. That makes your company very vulnerable!
Fortunately, digitalisation is not an all-or-nothing story. It is good to start small. For example, start with our quick scan that maps out the digital maturity of your organisation. Investigate areas where inefficiencies exist in your business processes, identify missing data in the decision-making process, and pinpoint where processes become stuck.
Then, investigate what logical and strategic follow-up steps you can take. For some companies, this may mean better integration of the IT landscape, while for others, it may involve automating financial processes or setting up real-time reports and dashboards.
What really counts is that you start further digitalising your company. Because the companies that invest now will be the companies that make the difference in the future.
In our eBook Digitalisation in the Construction Sector, we share insights from leading industry experts and innovative construction firms, among others. What trends and developments do they see in the market? How have they tackled their digital transformation? What worked, what was disappointing, and where is the profit? Discover what digitalisation can mean for your organisation!
Want to learn how digital transformation can boost your profitability and efficiency? Contact our experts to learn how 4PS Construct can support your growth. Take the first step today using the button below!
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