A story of an unlikely pair, the Construction Industry, and the Platform Economy

November 12, 2021

Platform economy in the construction industry is not the future, it’s what is happening right now.

The formerly so-called “brick and mortar” industry is entering the digital age. The digital push is accelerating and even if construction industry players are still confused and hesitant about the change and new technologies, the time has come for them to develop a real digital strategy. Many players have created innovation labs and launched “proof of concept” (POC) explorations, often through local business unit initiatives, to test possible options and to remain open to possibilities without investing too heavily. Those local experiences are not sufficient anymore to ensure success in the future and to be on top of the wave for the years to come. It is important to note that while the necessary digital evolution can be a threat if not approached properly, it is mainly a land of opportunities both regarding cost efficiency, as well as regarding top-line client experience improvement and offer differentiation. Market player positions and values will be deeply impacted if today’s leading players don’t catch the ball in time.

  1. The Digital Platform Economy
    A digital platform economy is emerging. Companies such as Amazon, Etsy, Facebook, Google, Salesforce, Uber and eBay are creating online structures that enable a wide range of human activities. This opens the way for radical changes in how we work, socialize, create value in the economy, and compete for the resulting profits. Their effects are distinct and identifiable, though certainly not the only part of the rapidly reorganizing global economy. Digital platforms are multisided digital frameworks that shape the terms on which participants interact with one another. The initial powerful information technology (IT) transformation of services emerged with the Internet and was, in part, a strategy response to intense price-based competition among producers of relatively similar products.
  2. Platforms – Digital Tools
    Platforms that make digital tools available online and support the creation of other platforms and market places: Sans Paper Hub, for example, is becoming the repository of best-of-breed construction focused platforms. This dramatically reduces the cost of software tools and building blocks. Moreover, tools and software, such as sales support, human resources, and accounting, which previously were sold or leased by companies such as Oracle and ADP, are now available in the cloud from companies such as Sans Paper, Upvise, Google, Myki and Microsoft.
  3. Platforms meet Construction, Construction meet Platforms
    The construction industry has been slow to adopt digital initiatives. This situation has allowed other sectors to take advantage of the new digital solutions and improve their economic productivity as digitization can potentially improve the business’ productivity between 30% and 40%.
    Although the benefits of this practice are established, many decision-makers still consider innovation as an optional investment rather than an essential instrument to business growth. Several top-level managers and executives focus all their efforts on the optimization of the business’ operations rather than developing innovation, threatening long-term productivity.
    Here, we will explain six different ways in which digital tools help your business’ long-term growth and profitability.

3.1 Fast-forward to your productivity objectives

3.2 Stop delivering your projects late

3.3 Forget about accidents

3.4 Prevent labor shortage from affecting your business

3.5 Identify your most valuable assets

3.6 Always stay one step ahead

Technological Implementation On Construction Industries

Construction is by no means the most technological industry as over 50% of businesses in this sector report spending only 1% or less on technology per year. In addition to this, nearly 40% of companies in the sector mention that no technological implementation has been achieved due to the lack of support given to this type of initiative.
This situation creates excellent opportunities for businesses that are aiming to improve their productivity and stand out from the competition as productivity in the sector is idle, and in countries such as France, Italy or the U.S., it has even decreased. According to the World Economic Forum, full digitization of the industry within ten years can save businesses worldwide between 0.7 to 1.2 trillion dollars, jumpstarting their profitability and productivity. For this reason, digital tools create a great business opportunity to stand out from the competition and considerably improve results.

The Platform Economy and the Construction Industry belong together.

The team here at Platformers is dedicated to driving continued improvements in businesses with remote field-based teams, using the world’s best remote team mobile and cloud platforms. Contact us today.

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