In today's rapidly evolving technological landscape, understanding the
business impacts of technological initiatives is crucial for making the right technology
decisions. Identifying the problem to solve should come before any tech landscape
exploration. A disciplined approach to building the right road map for exploring tech
provides direction for vetting and selecting tech partners and ultimately enhances the
ability to measure the success or return on investment (ROI) of any implementation.
Construction Tech Evolution
Tech continues to grow in importance in the business of
construction. The global construction tech software market was valued at $12 billion annually in 2024 and
is projected to reach $20 billion in 2025. One of the most challenging aspects of
having such a large field of potential solutions is prioritization and discipline in
keeping a business-needs focus.
It’s important that the construction industry view tech through a
very savvy lens, sifting through the sea of available tech to focus on solutions
that will actually solve their real problems most
efficiently. The construction industry has caught onto this, and we are seeing the
industry's shift toward more integrated and efficient solutions, which all starts
with understanding the specific business case for any tech being considered. This
business case can be developed through the process below.
Business Case Review
Before you go looking at tech, your first question should always
be: "What problem are we trying to solve?" This critical step allows you to explore
why a tech solution is needed and makes sense for your organization, then
start from there. This requires some organizational soul-searching, but it is always
worthwhile.
This focus does a couple of things: It helps to make it clear
why you are adding the technology to your process (which will also be
compelling to the people who are responsible for making the tech work for you), and
it ensures the outcomes and data you get from the tech will be meaningful to your
business. Before exploring any technology solutions, it's essential to understand
your specific business case for it. So, start with the problem. Start with
why.
Business Case Development
Several critical steps and considerations are involved in
developing a robust business case for a tech solution and ensuring it passes through
the necessary gates.
Problem identification. Clearly define the
problem or opportunity that the tech solution aims to address. This involves
understanding the current challenges and the potential benefits of implementing
the technology. Engage all stakeholders—think big here—for the best results. The
larger and more diverse this group is, the more comprehensive the result.
Include field operations, preconstruction, HR, marketing, etc.—anyone who will
have any point of contact with the system and all those it may affect. This may
seem cumbersome, but it will produce the best result.
Objectives and goals. Using what you
learned in step 1, outline the specific objectives and goals that you aim to
achieve via a tech solution. These should be measurable and aligned with the
overall strategic goals of the organization.
Solution description. Provide a detailed
description of the tech solution that you need, including its features,
functionalities, and how it addresses the identified problem or
opportunity.
Cost-benefit analysis. Conduct a thorough
cost-benefit analysis, including initial costs, operational costs, potential
revenue generation, time savings, and other benefits. This analysis should
provide a clear picture of the expected ROI and tie directly to your why
as defined in step 1.
Risk assessment. Identify potential risks
associated with the implementation of the tech solution and propose mitigation
strategies. This includes technical risks, operational risks, and financial
risks. Ask yourself and your team, "Why will this fail?" This is not to say it
will fail, but to identify potential obstacles before they arise.
Implementation plan. Develop a detailed
implementation plan, including timelines, milestones, resource requirements, and
responsibilities. This plan should ensure that the tech solution is implemented
smoothly and effectively. It will also be crucial to frame the right
conversations with potential vendors about their capabilities.
Build or Buy?
Now that you know what you are looking for, the next critical step
is to ask whether to build that solution in-house or buy an existing solution.
Construction has a long history of creating its own tools, and this is very true
when it comes to technological solutions. If you need evidence of this, just think
about all of the specialized spreadsheets created for distinct uses.
The industry has gotten significantly more sophisticated in capabilities, with many construction companies creating apps or programs that serve their own purposes, sometimes even spinning these solutions off to the larger market. But this approach is not for every challenge or every firm. Factors to consider include internal resources and talent, not just for development but also for ongoing maintenance, and time to usefulness. An off-the-shelf solution can be stood up quickly, but a bespoke tech may be a better fit.
Both strategies have their benefits, cost of ownership, features,
functionality, expertise, core competencies, and change management. It is important
that the full spectrum of these factors is considered when making these
decisions.
Explore What You Already Have
There is a saying that "good times create bad habits," and this is
especially true when looking at tech solutions. When times are good and money is
flowing, there is a tendency to look for point solutions very specific to the
problem that you need to solve without regard to what you may already have "on the
shelf." But it may be wiser to pause and assess first by asking whether a tech that
you are already using has a solution that you aren’t utilizing; the best ROI could
certainly come from untapped capabilities within technologies you already buy.
This sounds obvious, but tech solutions are often reviewed in
something of a vacuum. Many are purchased to solve one problem; they may have
additional functions that just aren’t a priority at the time, so they get
overlooked. Sometimes, new functionality gets added to a tech over time. Audit the
functions available within already in-house techs before looking outside. To do
this, you will need a comprehensive view of what you currently buy. At best, this
could be a unified resource providing information on all available solutions within
your tech ecosystem.
In addition to providing visibility, a solution like this can streamline access to various software solutions, enhance efficiency, and lead to collaboration. Does your organization have a solution for this? If not, consider the value of a project to create visibility as a priority, as it could potentially inform all decisions going forward.
Conclusion
By strategically implementing and leveraging technological
advancements, companies can enhance operational efficiency, drive innovation,
differentiate themselves, and achieve significant cost savings. Done well,
preparation for understanding the specific problems to solve and potential ROI of a
tech starts well before you even look at a single vendor, allowing you to evaluate
technology investments not just in terms of immediate impacts but also in their
long-term impact on business growth and sustainability. Considering the why
of any tech solution first builds potential for meaningful results.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.
In today's rapidly evolving technological landscape, understanding the business impacts of technological initiatives is crucial for making the right technology decisions. Identifying the problem to solve should come before any tech landscape exploration. A disciplined approach to building the right road map for exploring tech provides direction for vetting and selecting tech partners and ultimately enhances the ability to measure the success or return on investment (ROI) of any implementation.
Construction Tech Evolution
Tech continues to grow in importance in the business of construction. The global construction tech software market was valued at $12 billion annually in 2024 and is projected to reach $20 billion in 2025. One of the most challenging aspects of having such a large field of potential solutions is prioritization and discipline in keeping a business-needs focus.
It’s important that the construction industry view tech through a very savvy lens, sifting through the sea of available tech to focus on solutions that will actually solve their real problems most efficiently. The construction industry has caught onto this, and we are seeing the industry's shift toward more integrated and efficient solutions, which all starts with understanding the specific business case for any tech being considered. This business case can be developed through the process below.
Business Case Review
Before you go looking at tech, your first question should always be: "What problem are we trying to solve?" This critical step allows you to explore why a tech solution is needed and makes sense for your organization, then start from there. This requires some organizational soul-searching, but it is always worthwhile.
This focus does a couple of things: It helps to make it clear why you are adding the technology to your process (which will also be compelling to the people who are responsible for making the tech work for you), and it ensures the outcomes and data you get from the tech will be meaningful to your business. Before exploring any technology solutions, it's essential to understand your specific business case for it. So, start with the problem. Start with why.
Business Case Development
Several critical steps and considerations are involved in developing a robust business case for a tech solution and ensuring it passes through the necessary gates.
Build or Buy?
Now that you know what you are looking for, the next critical step is to ask whether to build that solution in-house or buy an existing solution. Construction has a long history of creating its own tools, and this is very true when it comes to technological solutions. If you need evidence of this, just think about all of the specialized spreadsheets created for distinct uses.
The industry has gotten significantly more sophisticated in capabilities, with many construction companies creating apps or programs that serve their own purposes, sometimes even spinning these solutions off to the larger market. But this approach is not for every challenge or every firm. Factors to consider include internal resources and talent, not just for development but also for ongoing maintenance, and time to usefulness. An off-the-shelf solution can be stood up quickly, but a bespoke tech may be a better fit.
Both strategies have their benefits, cost of ownership, features, functionality, expertise, core competencies, and change management. It is important that the full spectrum of these factors is considered when making these decisions.
Explore What You Already Have
There is a saying that "good times create bad habits," and this is especially true when looking at tech solutions. When times are good and money is flowing, there is a tendency to look for point solutions very specific to the problem that you need to solve without regard to what you may already have "on the shelf." But it may be wiser to pause and assess first by asking whether a tech that you are already using has a solution that you aren’t utilizing; the best ROI could certainly come from untapped capabilities within technologies you already buy.
This sounds obvious, but tech solutions are often reviewed in something of a vacuum. Many are purchased to solve one problem; they may have additional functions that just aren’t a priority at the time, so they get overlooked. Sometimes, new functionality gets added to a tech over time. Audit the functions available within already in-house techs before looking outside. To do this, you will need a comprehensive view of what you currently buy. At best, this could be a unified resource providing information on all available solutions within your tech ecosystem.
In addition to providing visibility, a solution like this can streamline access to various software solutions, enhance efficiency, and lead to collaboration. Does your organization have a solution for this? If not, consider the value of a project to create visibility as a priority, as it could potentially inform all decisions going forward.
Conclusion
By strategically implementing and leveraging technological advancements, companies can enhance operational efficiency, drive innovation, differentiate themselves, and achieve significant cost savings. Done well, preparation for understanding the specific problems to solve and potential ROI of a tech starts well before you even look at a single vendor, allowing you to evaluate technology investments not just in terms of immediate impacts but also in their long-term impact on business growth and sustainability. Considering the why of any tech solution first builds potential for meaningful results.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.