Denmark´s CONTECH Journey (with Ole Berard from Molio)
Watch the episode on YouTube right here!
How do you convince people that there´s value in something they haven´t used before?
In this podcast episode: ”Denmark´s CONTECH Journey” we discuss the need of investment in technology within the Construction Industry, and what we can learn from the inspiring and digitalized Denmark.
You should have started 5 or 10 years ago…
The only way to see the value in technology is by using it. Using it on site, where people can connect with it. It has to be project orientated because most software are born at projects. And this is where it makes sense to look at Denmark. They have collected this type of data in many years.
A lot of countries haven´t followed Denmark’s footsteps.
Our best advice is to start collecting data now if you didn’t start 5 or 10 years ago.
At least if you want to make sure to catch the next wave of AI. The second wave will be more construction specific. The fuel of AI is data. It´s well-structured data. Data depending on what software you use, and how you use that software in the process.
Data which currently isn´t good enough in the Construction Industry.
This lack of data causes singular and linear projects.
Singular and linear because:
- We can´t look across portfolios.
- We can´t look to connect information.
- We only look at the project type, and it´s isolated in its own environment and world.
Why is this the case and what improvements would we gain from changing it?
Even more important: How do we change it?
To dive deeper into these questions, this article will discuss:
- The biggest blocker towards a more data driven Construction Industry.
- Inspiration from Denmark.
- Why we need the long-term strategy.
As previously mentioned, it can be quite difficult to convince a group of people to try something new.
But what is the biggest blocker in the Industry right now?
The biggest blocker towards a more data driven Construction Industry
A part of the blocker is the lack of money in making good technology solutions.
The budget spend on technology is not large enough. The software we are using are not specific enough for the Industry. It´s often a trusted software from other industries, which we integrate into our projects.
We need companies to invest in order to get better technology to our specific industry.
We´re in such a large industry – yet so inefficient.
The margins are so small, that we can´t invest in improving efficiency in order to increase the same margins.
It´s a vicious cycle, right?
If we could break the circle and invest in the Industry:
- Our planning would improve.
- We would get better software.
- With better software, we would be able to share information and communicate more efficiently.
Previously, we mentioned Denmark as inspiration on this specific topic. However, why is it obvious to look at Denmark?
Inspiration from Denmark
We think many countries could learn from the path Denmark has taken the last 20 years.
In our Industry, we often hear phrases like:
- We´re not investing.
- We have always done it this way.
- Let´s continue the way we´re working.
Somehow, the Danish Industry have changed this discussion.
It has become clearer that we need to invest and innovate.
Denmark is a digitalized country. They have already taken the risk of digitalization and sharing of information throughout the public infrastructure. Taking steps towards a more data driven process in the Construction Industry, seems only a natural progress.
The public authorities in Denmark have tried to implement digital strategies on pilot projects. With help from unbiased organizations, they experimented with the value of better digital solutions.
Why we need the public authorities around the world to invest in digital strategies like Denmark:
- They´re able to set aside finances on public projects.
- With finances, they can allow a project to develop and record that development.
- They´re not only making value for themselves – they have a broader foundation.
- They can openly share the new gathered information and data with the public without fear of losing profit.
- Thereby it allows people to learn from the good and the bad of the process – It benefits the whole of society.
You could go to the extreme and say:
In every government project above a certain value, there should be an innovation fund.
If you´re serious about developing the Industry, then you need to lead the way. Especially because it´s a long term strategy.
You may not see the success immediately.
Is it a waste of time, then?
Why we need the long-term strategy
The benefit of investment in data may not be on the singular project.
The benefit will be in project two, three, four…. or maybe five.
Firstly, people have to be trained in the understanding of how the technology operates. Moreover, how the piece of software operates on your project.
As previously mentioned, it probably needs to happen at a strategic business level rather than down at the individual project level. The project budgets won´t be able to finance it themselves.
We need to share cost information within the Industry. Very few do that. Hopefully it will change in the future.
The data gathering and the evolvement in our industry, not only makes it more efficient, but there is a whole other aspect of improvement if we look towards the more human part of the job.
Positive side effects of data driven processes:
- Robotic products can replace hard labor (Labor that creates health issues for the workers).
- With better work conditions, we can hope to keep people within the Industry for a longer time of their career.
- The evolvement of the technology will also attract a larger group of people (Thereby prevent the lack of workforce we experience right now within the Industry).
So…. Let´s evolve the Industry now.
Let´s discover the value together.
It won´t be a waste of time!