Digital transformation of the construction industry: Challenges and necessary solutions

Digital transformation of the construction industry can be said to be an important strategic step, determining the sustainable development of the business. However, there are still many businesses struggling to remove bottlenecks and enter the integration process of digitalization. So what are the specific challenges and solutions for the construction industry in the digital age? Let's find out with 1C Vietnam in the article below.

1. What is digital transformation in the construction industry?

Digital transformation of the construction industry is the process of exploiting the power of data and applying digital technology to construction activities to increase management and operational efficiency, labor productivity and ensure work safety. job.

Priority fields and subjects in digital transformation of the construction industry include: Databases on regulations, standards, unit prices, and norms to serve State management according to the Ministry of Construction; Construction activities such as design consulting, appraisal, verification consulting, project acceptance, construction and installation; Planning for construction and development of urban technical infrastructure; Exploitation and production of materials; Housing and real estate market.

2. The role of digital transformation for construction businesses

In Vietnam, the application of digital transformation for the construction industry still faces many difficulties due to the specific nature of work as well as human resources. However, in developed countries, digital transformation plays an extremely important role in the development of the industry. Below are the important roles of digital transformation in the construction sector:

• Increase productivity: Digital technology helps increase labor productivity many times through automation. Robots and machines can work accurately, quickly and continuously. From there, the process is optimized, saving time on manual tasks.
• Increase management efficiency: Project management software effectively supports planning and monitoring work progress. Based on the aggregated results, administrators can come up with a more effective resource allocation plan, ensuring timely implementation of the project within the prescribed budget.
• Optimize the design process: 3D simulations and information management systems will help designers optimize the actual construction process. Besides, this technology also helps minimize errors as well as create highly demanding projects.
• Focus on labor safety: Sensors and monitoring systems help closely monitor the work process, issue dangerous warnings during construction, and minimize the risk of injury and accidents.

3. Current status of digital transformation in the construction industry in 2023

Digital transformation of the construction industry is one of the strategies receiving the attention of the State, Government and agencies. Therefore, this process has also achieved some remarkable results, positively contributing to improving management capacity, direction, administrative reform, administration,... Since then, Facilitate businesses in solving problems related to administrative procedures.

However, digital transformation of the construction industry in Vietnam is still in the stage of building databases and continuing to perfect information systems to serve the direction and provision of services to businesses. industry and people. The sharing of data resources in the construction industry is still limited, so this process has not created a breakthrough.

4. Challenges in digital transformation of construction businesses

Digital transformation of the construction industry is a key step that determines future development. However, this process has many potential challenges due to the specific characteristics of the construction industry:

• Temporality and fragmentation in construction: A construction company can carry out many projects with completely different natures at the same time, and requirements for staff, engineers, and designers are also needed. change. Therefore, training new employees in applied technologies will take more time and effort than in other industries.

• Narrowing profit margin: In 2023, the fluctuations in the economy, along with rising inflation, will directly affect the operating results of construction companies. Therefore, it is inevitable that the company must accept reduced profits and reduced risk levels.
• Poor data management: In most of Vietnam and developing countries, bidding documents and contracts have been made manually for decades. Therefore, when applying digital transformation, companies encounter many difficulties in managing data effectively.
• Industry culture: The construction industry is one of the industries that has had a traditional way of operating for many years. Companies use mainly manual processes and mechanical technology. Therefore, when conducting digital transformation, it is inevitable that employees or managers will feel skeptical about new knowledge.

5. Digital transformation trends in the construction industry

Although many challenges still exist, digital transformation of the construction industry is still a strategy that the State is interested in investing in and is likely to develop strongly in the near future. Below are some digital transformation development trends in the construction sector:

5.1 Automation

One of the problems of the construction industry is the high employee turnover rate. Digital transformation solutions solve this problem by applying automation processes to reduce the amount of labor to a minimum. Among them, we can mention design machines that automate the construction process.

5.2 Using mobile applications

The trend of digital transformation in the construction industry is to build phone applications that help employees perform simple operations, track immediate progress reports, timekeeping and collect data in real time,... Application This helps the project implementation process become smoother.

5.3 Centralized data management

One of the problems most businesses encounter when implementing digital transformation is not handling data well. Aggregating data from many sources makes it difficult for businesses to produce accurate results. Digital transformation allows administrators to centralize data on one platform and access that data warehouse at the same time. This saves time and reduces manual tasks.

5.4 Enhance collaboration

Digital transformation of the construction industry allows companies to manage many different projects in teams at the same time. In particular, businesses can synchronize between departments and change orders to simultaneously solve problems faster and more effectively.

6. Comprehensive digital transformation solution for construction businesses

To overcome the biggest challenge in data management capabilities for construction companies, 1C Vietnam offers a comprehensive digital transformation solution on a single platform. Specifically, 1C Vietnam has researched and developed Digital Office software 1C:Document Management to help businesses build comprehensive document data management and processes. This is the core digital transformation solution for construction businesses, helping to optimize operating processes and improve performance.

• Process management: 1C:Document Management supports optimal operating processes throughout from assignment, monitoring, reminders to completed evaluation. Managers can monitor and control all assigned work as well as the process of processing and approving documents and reports easily.
• Document management: 1C:Document Management provides support for centralized document storage, helping managers easily search, classify and manage necessary documents.
• Mobile application: Office Solution No. 1C:Document Management also has a mobile application, allowing supervisors to approve work remotely, anytime, anywhere, even while at the construction site or on a business trip. according to the project.

Digital transformation of the construction industry is an important step in improving productivity as well as determining the development of the entire industry. Due to unique characteristics, digital transformation in the construction sector still faces many challenges, especially for companies that do not have much experience in data management. If your business is looking for a comprehensive digital transformation solution or has concerns about data management, please contact 1C Vietnam for the best support.