As many construction leaders have already seen for themselves, modernizing management frameworks for projects, accounting and other activities throughout operations can be a highly challenging and sometimes frustrating ordeal. First, they are expected to select the right solutions in accordance with the specific needs and missions of their companies. Then, they have to find ways to keep implementation costs down and complete the deployment as quickly as possible.
“Leaders need to focus on user adoption.”
Finally, leaders will need to focus upon user adoption, which can be the trickiest problem of all when going through a digital transformation. Should users simply balk on using the technologies that the construction firm has invested in and implemented, the chances of experiencing high returns on investment are extremely low, if existent at all. Construction firms must ensure that they are doing everything in their power to maximize employee engagement specifically as it relates to new accounting, project and other management solutions.
So far, organizations in virtually every industry have experienced plenty of setbacks when trying to cover that third component of new solution deployments, but certain reports have begun to shed some light on how best to avoid these issues. Other studies have shown that investments into these technologies are going to continue to rising for the foreseeable future, meaning the time is now to get moving on management overhauls and user-focused deployment efforts.
The spending trend
International Data Corporation predicted that digital transformation technology markets will accrue more than $2 trillion annually in revenues by 2019 following relatively strong growth for five straight years. The researchers called for a 16.8 percent compound annual growth rate in total spending on solutions that are specifically used to transform business processes, management frameworks, IT infrastructure, workflows and much more.
“Digital transformation is not just a technology trend, it is at the center of business strategies across all industry segments and markets,” IDC Group Vice President Robert Parker explained. “Enabled by the 3rd Platform, digital transformation represents a critical opportunity for companies to redefine their customers’ experience, achieve new levels of enterprise productivity, and create competitive advantage. Enterprise investments in digital transformation will constitute the majority of growth in technology markets over the next five years, making it a priority for technology vendors as well.”
As a note, IDC stated that the United States will account for just about one-third of total global spending by 2019, with American businesses and organizations forecast to spend $732 billion annually by the end of the study period. Construction firms have been traditionally behind the curve when it comes to technology investments and modernization efforts, but this cannot remain the case for much longer should leaders therein hope to maximize their profit margins.
The end-game
One of the more valuable aspects of modern IT solutions is the ability to automate far more processes, workflows, accounting tasks and other activities across the construction firm. This particular component can bolster the accuracy and efficiency of project accounting, all while better enabling optimal productivity among all employees both in the workplace and in the field.
CIO Magazine recently stated that strong IT automation can directly translate to more sustainable and eco-friendly technology practices, an enhanced ability to innovate and modernize in stride alongside emerging trends, and boost transparency of information. In fact, the source was citing comments from one country government that has focused its efforts on automating a wider range of processes and achieving greater performances.
According to the news provider, accessibility can be bolstered by more automation in the IT department, and this particular advantage should be savory for the average construction project manager. Being able to pull up all information relevant to a project while in the field – and at any time – can mean the difference between successful completion and either setbacks for failure.
“Issues are likely to arise in more complex processes.”
Overcoming the obstacles
Gartner analyst Marc Kerremans recently explained some of the top challenges businesses need to overcome when modernizing their process management frameworks. He argued that the most difficult issues are likely to arise when targeting processes that have more than one function and are handled by a larger variety of employees. In construction, many modern solutions for project and accounting management will fall into this category.
Kerremans did have some advice for those going through these challenges, though.
“BPM programs reach a critical transition point when they start to tackle cross-functional processes,” Kerramans mused. “BP directors need to build the right level of transformational, operational and technical competence across the BPM program team to improve cross-functional process performance. They must also improve communication skills to clarify how BPM projects align with strategic business outcomes, so that process participants understand the benefits. Finally, they need to hone negotiation skills to implement effective BP governance that provides project prioritization and process owner accountability.”
Construction firms that are struggling with deployment, implementation and integration efforts should always consider leveraging the support of a trusted solution provider.