- Blog
- 25 Apr 2018
Digitally Transforming an engineering / construction business – Part 1
“The challenge is not changing what people do, but what they think.”
Throughout human history, transformation has been a constant theme.
By changing the world around us, we changed ourselves.
By creating new stimuli we created new responses.
By inventing new technology, we invented new ways to think, work, and play.
It is this that defines evolution, to my mind.
I count my generation fortunate in this sense. In my own lifetime I’ve witnessed at least two technology-led global Transformations – the birth of the IT Industry (which gave rise to the Internet, the world wide web, smart devices and so on), and the birth of social media (which changed our culture as a species by creating new ways to socialize, new cultures and sub-cultures, and even new languages and behaviours). Such technologies don’t just change the world, they transform it.
I believe we are on the brink of another such transformation.
What is Digital Transformation?
Stripped of the hype, the term ‘digital transformation’ simply means using digital technology (ie Information Technology ie software) to optimize a business from the inside out.
You could think of it like switching from analogue to digital watches – it’s not about a different mechanism inside the watch, it’s about a different way to tell time.
As someone who helps engineering and construction companies ‘transform’ their business through IT, I began thinking about how my sector in particular could benefit from Digital Transformation.
So – what does digital transformation mean to a modern e/c company?
I’d say it means using the very best modern technology has to offer, like the cloud, smart devices, AI, drones, etc to ‘transform’ the entire process of project delivery and make it efficient, painless, and cost-effective. From my perspective, Project Delivery has 4 distinct components that need to be managed: Quality, Cost, Time, and Resources. In this first part of my ‘Digital Transformation’ series, I’d like to talk about Quality.
“Do things better, and do better things”.
I believe the industry needs to switch from manual/analogue methods of quality management to automated/digital ones. Quality needs to Go Digital.
And here we run into the main challenge: changing what people think.
First the mindset about quality need to change – and then everything else follows. In my experience, once a customer lets go his time-honoured ideas and traditions and processes, the door to transformation swings wide open…and the benefits come pouring in.
But that first step is the hardest. The rest is actually quite straightforward.
For example, today there is software available that can map a project’s predefined schedule to various ‘actuals’ like cost, data-management, and collaboration – all in real time. Which means that you can track what happens as it happens. And if you work in the cloud, all this can be made be visible to multiple stake holders across the globe. So what used to be the most expensive thing for a design firm ie managing resources, now becomes the easiest and most efficient. How? Because the process was automated. Quality enforcement ‘went digital’!
Let’s say your QMS defines how your people carry out your business procedures, with every step and sub-task clearly mapped out to the last detail. So far so good. Now – who makes sure everyone is following the QMS? Most likely a hierarchy of overworked human managers.
Compare that to a digitally-transformed organisation whose QMS is driven forward by a foolproof automated system.
Doesn’t seem much of a comparison, does it?
Once the various work processes and procedures are configured into the digital system (as per the company’s workflows), it is the system and not the human users that drive the process forward, step by step. Managers need not spend time in day-to-day housekeeping, instead they can use system-maintained check lists and audit logs to solve problems and advance work. Also, with compliance to industry standards almost guaranteed, risk management becomes much more effective.
And this transformation starts with one decision – to embrace the digital age and all it brings.
That is what I have seen happen with my customers, and is, I believe, what ‘digital transformation’ truly means.
Stay tuned for part 2.
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