Rapid technological advancement is drilling into nearly every industry. With the proliferation of cloud-based technology and artificial intelligence (AI), the construction industry stands at a critical crossroads. Traditional approaches are giving way to digital transformation in construction, requiring leaders to reimagine how technology can help drive operational excellence, improve communication, and provide strategic value.
The construction industry is undergoing a profound technological revolution. Enterprise resource planning (ERP) and business intelligence (BI) tools have emerged as pivotal technologies, enabling organizations to transform how they operate, communicate, and make decisions.
The Power of Data
There’s growing pressure for construction companies to work quicker and be more agile than ever before. For construction industry CFOs and technology leaders, data is a valuable currency. Real-time analytics can provide unprecedented insights that can transform decision making. By leveraging cloud-based ERP tools, BI, AI, and automation, organizations can help reduce operational risks, improve resource allocation, and forecast financial trends with greater accuracy.
The risk of not leveraging technology may lead to headwinds such as:
- $1.8 trillion in losses worldwide caused by bad data in construction projects1
- 3–8% average net profit margin for construction companies, leaving very limited room for operational inefficiencies2
- 70% of construction leaders believe that those who don’t adopt digital change will go out of business3
- 62% of construction data collected and analyzed isn’t used to make business decisions4
- Unreliable forecasting, using inaccurate project and sales data combined with uncertain economic factors such as supply chain constraints, labor shortages, tax rates, and inflation
- Fraud and cybercrime, including ransomware-as-a-service (RaaS), data-theft extortion, and malicious generative AI
Construction technology can help companies work more efficiently, inform decision making, and improve the bottom line by addressing these critical areas.
Technology & Organizational Transformation
Implementing new technology isn’t about chasing the latest trends—it’s about strategic, purposeful integration. Here’s how to help your technology adoption be effective and transformative:
Strategic Considerations
As you consider implementing new technology, consider these key elements:
- Business Strategy: Helps guide the direction and actions of a company to build sustainable growth and success in the market.
- IT Strategy: Aligns IT resources with the broader business strategy to enhance productivity, competitiveness, and efficiency.
- Data Strategy: Manages how data is collected, stored, governed, and used, confirming it supports decision making and drives value across the organization.
Cutting-Edge Technologies
These are some of the advanced technologies reshaping construction workflows today and how they can help:
- Real-Time Project Tracking Platforms: Provide up-to-date insights into project progress and resource allocation.
- Advanced Automation Tools: Streamline repetitive tasks and improve efficiency.
- AI-Powered Predictive Maintenance Systems: Anticipate and address maintenance needs before they become issues.
- Integrated Communication Technologies: Enhance collaboration and information sharing among team members.
- Sophisticated Data Analytics: Offer deep insights into project performance and operational efficiency.
Implementation & Adoption
To help drive organizational transformation, technology integration requires a structured approach:
- Clear Executive Buy-In: Check that leadership is committed to the technology adoption.
- Well-Defined Business Objectives: Set clear goals your organization aims to achieve with the technology.
- Detailed Implementation Plans: Outline the steps and resources needed for successful deployment.
- Ongoing User Training & Engagement: Provide continuous education and support to users.
- Measurement of Business Impact: Regularly assess the technology’s effectiveness and make necessary adjustments.
Redefining Financial Leadership in the Digital Age
CFOs are no longer just financial gatekeepers—they are strategic technology enablers. By embracing data-driven forecasting and innovative technologies, financial leaders can drive strategic decision making, identify cost-saving opportunities, mitigate financial risks, and support organizational digital transformation efforts.
Case Study Example
Founded in the 1960s as a family-owned construction firm, ABC has deep roots in the industry. Today, under the leadership of its third generation, ABC has achieved remarkable growth, boasting a robust portfolio, a broad demographic of team members with three generations within their workforce, and a strong presence across multiple locations. With revenues exceeding $300 million and a dedicated team of 250 employees, ABC continues to shape its regional construction landscape.
However, like many successful family businesses that experience substantial growth, ABC faced challenges. Its systems and processes remained rooted in tradition, failing to evolve alongside the firm’s growth. Despite the company’s success, the need for modernization became evident, and the importance of adopting digital transformation emerged to meet business demands.
Over the course of two decades, ABC’s ongoing practices gradually contributed to the accumulation of unused technology:
- Growth in different markets, service lines, and geographies influenced one-off software purchases to solve the issues at hand. The lack of a cohesive, long-term strategy around technology management created a spiderweb of ill-fitted integrations and manual processes across the entire business.
- Siloed departments—such as project management, finance, estimating, business development, and human resources—made individual software decisions without considering the bigger picture. These rogue purchases created a fragmented technology ecosystem where solutions-based stopgaps didn’t communicate effectively, leading to inefficiencies.
- Furthermore, these siloed purchases created a lack of control of ownership and costs of applications, software, integrations, databases, etc. There was little oversight on how much was spent on IT as the liability lived within the silos with no visibility.
- Investment in solutions-oriented software (for their promised functionality while overlooking how they aligned with business requirements and strategic objectives) led to the purchase of products with redundant capabilities.
- Maintaining outdated solutions-oriented software and putting projects “on the shelf” while still paying for support and maintenance led to spending money with vendors that were not adding value.
These practices had a lasting negative effect on ABC’s business, including:
- Lost Dollars: Throwing good money to bad solutions-based approaches and paying for technology and vendor services that were not adding value.
- Talent Retention: Legacy systems and disjointed applications created a divide among departments and project teams. Employees even left the company because getting their jobs done was “too hard” and required an advanced understanding of Excel. Their jobs were hindered rather than supported by technology.
- Attracting Talent: ABC sometimes was unable to attract strong candidates because it could not equip its people with efficient processes or leading tools in the market.
- Overworked Employees: With a lack of system integration, employees (especially in finance and project management) used tools like Excel, which involved manual entry. This manual entry led to unnecessary overtime for field workers inputting, approving, and assisting in time entry review, losing productivity.
- Lack of Data Integrity: Since the data existed in various disconnected systems, there was no trust in the data. The data was not accessible by shared departments. Data was pulled from numerous Excel spreadsheets and systems. Financial and project reporting was done after the fact; real-time reporting wasn’t available. This lack of integrity led to a breakdown in trust of the data.
To redefine financial leadership in the digital age, technology management necessitates a holistic approach:
- Develop a Clear Technology Road Map: Create an inclusive strategy that aligns investments in technology with core business objectives.
- Commit to Continuous Learning: Develop robust training programs that help team members adapt to and leverage new technology effectively.
- Prioritize Scalable Solutions: Select technologies that can grow and evolve with your organization’s changing needs, reducing the need to purchase or maintain siloed solutions-oriented software.
- Foster a Culture of Innovation: Encourage teams to experiment, learn, and continuously improve their technology skill sets.
How Forvis Mazars Can Help
Collaborations like the partnership between Trimble Viewpoint and forward-thinking technology consultants at Forvis Mazars demonstrate the industry’s commitment to innovation. These technology partnerships can provide construction companies with in-depth software assessments, tailored implementation strategies, and ongoing technical support.
The construction industry’s future will be shaped by organizations that view technology not as an expense, but as a strategic investment. By adopting a forward-thinking approach, leveraging data-driven insights, and fostering a culture of continuous technological adaptation, construction leaders can transform challenges into opportunities.
Robust software like Trimble Construction One can centralize data from various sources, providing accurate, real-time information to help reduce the risk of financial losses. It can inform decision making with real-time analytics and BI tools, enhancing resource allocation and financial forecasting. The platform can help improve operational efficiency by providing automation and AI, which can be critical tools for improving profitability. Its advanced forecasting capabilities help mitigate risks related to economic impacts, supply chain constraints, and labor shortages. In addition, it provides security features to help protect against fraud and cybercrime. Finally, it supports increased user adoption with intuitive tools and functionality, helping construction companies transform how they operate and avoid falling behind.
Digital transformation in construction is ongoing. Those who approach it strategically, with vision and commitment, can do more than just survive—they can thrive in an increasingly complex and competitive landscape.
Connect with a professional at Forvis Mazars today to learn more about our Construction Technology services.
- 1“Harnessing the Data Advantage in Construction,” construction.autodesk.com, October 18, 2022.
- 2“Construction’s Lifeline: Key Metrics for Measuring Financial Health,” cfmabponline.net, May/June 2024.
- 3“Future of Construction 2022,” raconteur.net.
- 4“You Have Data – But Do You Have Construction Insights?” autodesk.com, July 22, 2024.