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As construction companies chase digitization, it's important to mitigate the risks of software implementation failures. Most construction software implementations fail outright and often for reasons that could have been avoided. To ensure your tech implementation is a success follow these three steps:
- Get buy-in from top to bottom. This can prevent employee resistance to change management.
- Avoid point solutions. That is unless you want to deal with a hefty, non-integrated tech stack.
- Prioritize demos and research during the purchasing process. You and your team need to understand what you are buying and why.
According to McKinsey, construction has the lowest digitization of nearly any other industry. Between change management, uncertain economic conditions, razor-thin margins, and productivity/labor woes, staying "up-to-date" on the latest tech hasn't been top-of-mind for many CFOs. But this is rapidly changing. Recent surveys suggest that over 90 percent of leading construction firms believe the industry will heavily invest in technology over the next half-decade, with 80 percent saying that construction will seem unrecognizable in the next 20 years.
There's a "gold rush" towards digital transformation. And with over $7 trillion up for grabs, the global construction value chain is begging for competitive and digitally-prepared companies to reap the rewards. But there's a problem: 70 percent of software implementations outright fail. This article will discuss why construction firms struggle with software implementation. As more CFOs and subcontractors chase the digital dragon, it's important to avoid making these critical mistakes. After all, you're investing in digital tech to improve your company — not set you back.
1. Get buy-in from stakeholders
Construction is a relatively static industry, and some employees may treat changes as hostile. As a whole, construction is incredibly fragmented and project-based. So, many employees settle into specific workflows with the expectation those workflows will remain constant. But tech shakes things up. Suddenly, you have to grapple with complex issues like change management and tech training. For any implementation to succeed, you need buy-in. This is especially true for transformative technologies like CPM solutions.
So how do you get buy-in? You tell the truth and pinpoint the benefits of new tech. Sure, employees may need to learn a few new tricks. But if it means keeping the lights on in a hyper-competitive bidding environment, it's worth the extra effort. Keep your eyes open for any "digital stragglers." Employees struggling to digitize may need more one-on-one time, and you should make a point to show them how this new tech will improve their day-to-day.
2. Avoid point solutions
The construction industry is peppered with point solutions (e.g., blueprint digitization, scheduling software, etc.) As a whole, these point solutions are incredibly easy to digest, implement, and utilize in day-to-day practice. So, many CFOs rush towards these solutions, hoping to quickly scoop up some of that sweet, sweet "digital transformation." But there's a monster behind the mask. These solutions rarely integrate, many come with costly customizations, and they rarely tackle comprehensive issues like project management or finances. In fact, point solutions aren't digitally-transformative at all. They're simply tools used to help with small — though sometimes important — tasks.
Point solutions can also destroy your implementation goals, especially as you start to digitally mature. As an example, Briq is an end-to-end financial automation platform. Our software automates WIPs, gives you real-time insights into your financials, leverages thousands of data streams to deliver accurate project information, and helps you automate redundant (and frankly time-wasting) tasks. If your tech stack is filled with 15 non-integrated point solutions that accomplish some of the same tasks, implementation is obviously more difficult for you. Employees are dealing with 15 windows and 15 new workflows.
3. Test and research to find the right fit
Finding the right tech solution is equally as important as performing the right training. Once you finally wade through the never-ending ocean of point solutions, you'll find relatively few integrated platforms. Now, it's up to you to do some research, make some calls, and test some demos. Let's stress that last part. Demos are hugely important. You get to see how workers like the software, discuss any pros and cons with your team, and really dive into some of the deeper software details.
Don't throw money at construction tech without taking it for a ride first. At Briq, we prioritized creating a hyper-functional and user-friendly demo process. Remember, platform-like construction tech often impacts many roles. Demos and research help you and your employees understand how the tech is impacting everyone. Check out what Briq can do for your business.
