An Analysis Of Digital Transformation Strategies In Construction

This dissertation explores the obstacles and barriers for the implementation of digital technologies in the construction industry and proposes a digital transformation roadmap defining the appropriate technologies and how to overcome their implementation challenges. The study defines the meaning of digital transformation, investigates the current available digital technologies and their benefits, examines digital awareness of employees in the UAE, investigates the challenges of the implementation of digital transformation strategies in the construction industry, and proposes a digital transformation strategy roadmap. The research methodology includes positivism research philosophy, deductive research approach, and mono method research choice. The study is significant for the construction industry to acquire benefits in their business and to develop their functions as well.

Dissertation
An Analysis Of Digital Transformation Strategies In Construction

Table of Contents
1 Introduction...................................................................................................................4
1.1 Aim................................................................................................................................4
1.2 Objectives......................................................................................................................4
1.3 Significance of the study...............................................................................................5
1.4 Rationale of the study...................................................................................................5
2 Research Methodology.................................................................................................6
2.1 Research Philosophy.....................................................................................................6
2.2 Research Approach:......................................................................................................7
2.3 Research Choice:...........................................................................................................8
2.4 Research Strategy:.........................................................................................................9
2.5 Research Design:.........................................................................................................10
2.6 Data Collection:..........................................................................................................11
2.7 Time Horizon:.............................................................................................................12
3 Literature Review........................................................................................................13
3.1 Meaning of digital transformation..............................................................................13
3.2 Current available digital technologies and their benefits in construction...................14
3.3 Digital awareness in the UAE.....................................................................................16
3.4 Challenges of the implementation of digital transformation strategies in the construction
industry.................................................................................................................................17
4 Questionnaire..............................................................................................................20
4.1 Questions.....................................................................................................................20
4.2 Results.........................................................................................................................20
5 Construction Company Value Chain..........................................................................20
6 Construction Company interviews..............................................................................21
6.1 Supporting Activities..................................................................................................21
6.1.1 Human Resources...................................................................................................21
6.1.2 Finance...................................................................................................................22
6.1.3 Procurement...........................................................................................................23
6.1.4 Purchasing..............................................................................................................25

6.1.5 Technology.............................................................................................................25
6.2 Primary Activities.......................................................................................................25
6.2.1 Quality Control.......................................................................................................25
6.2.2 Business Development...........................................................................................26
6.2.3 Bid Management....................................................................................................27
6.2.4 Contract Management............................................................................................28
6.2.5 Health & Safety......................................................................................................29
6.2.6 Technical................................................................................................................29
6.2.7 Project cost control.................................................................................................30
7 Findings’ discussion & Roadmap...............................................................................31
7.1 Findings Discussions...................................................................................................31
7.2 Roadmap.....................................................................................................................32
7.2.1 The Vision..............................................................................................................32
7.2.2 People.....................................................................................................................32
7.2.3 Strategy...................................................................................................................33
7.2.4 Future Proofing......................................................................................................34
7.2.5 Current business optimization................................................................................37
7.2.5.1 ERP....................................................................................................................37
7.2.5.2 RPA...................................................................................................................38
8 Conclusion..................................................................................................................38
REFERENCES..............................................................................................................................40
APPENDIX....................................................................................................................................42
QUESTIONNAIRE..............................................................................................................42

1 Introduction
Digital technologies are defined as such electronic tools, systems and devices which is
used within an organisation for the major purpose of gaining digital insight into the business
(Vishnivetskaya and Ablyazov, 2020). Digital technologies are also associated with developing
digital platforms in such a manner that better solution for various business problems in which
rapid and advanced aspects can be given to the business and in the same manner prominence can
be attained (Hossain and Nadeem, 2019). The focus of this report shall be based on the
construction industry which is one of the biggest industries in the world. There is an increase of
construction companies that are investing in innovation and new technologies to be more
competitive in the market (Zaychenko, Smirnova and Borremans, 2018). This report is based on
the UAE market as UAE has always been associated with major construction projects. This
report shall provide various aspects in which construction industry is linked with digital
transformation in which various benefits are undertaken by the industry in such a way that
various challenges can be mitigated in optimal manner. Besides this the study is proposing a
digital transformation strategy which is required to be used by construction companies.
1.1 Aim
Highlighting the obstacle and barriers for the implementation of digital technologies in
the construction industry and propose a digital transformation roadmap defining the appropriate
technologies and how to overcome their implementation challenges.
1.2 Objectives
 Define the meaning of digital transformation.
 To investigate the current available digital technologies and their benefits.

 To examine digital awareness of employees in the UAE.
 To investigate the challenges of the implementation of digital transformation strategies in
the construction industry.
 To propose a digital transformation strategy roadmap.
1.3 Significance of the study
The major significance of the study is to study the aspects in which digital transformation can be
applied within construction industry. Digital Innovation and Transformation has been found in
recent years one of the most significant dimension which is holding higher degree of
effectiveness as these are the efforts which helps the organisation to attain higher customer
attention, increase efficiency, reduce waste and to deal with their competitors (Aghimien and et.
al., 2018). Similarly information can be gathered within this research and can be used by
construction companies so that to acquire benefits in their business and to develop their functions
as well.
1.4 Rationale of the study
The research study is associated with developing information related with digital
transformation within construction industry. As the research is revolving around digital
transformation used within construction institutions in which various aspects are used to develop
the business and to acquire sustainability as well (KUMARI, 2021). This is examined that in
construction industry innovation and digital transformation is needed as its priority as the
industry is dealing with new concepts and determinants in such a way that appropriate edge can
be attained within the business. This research is related with dual perspective such as personal
and professional perspective (Klinc and Turk, 2019). In terms of professional preceptive this
research is going to assist researcher in future researches which will lead into executing future
researches in appropriate manner. On the other hand in terms of personal perspective this
research is going to assist in developing various skills of investigator such as research skills,
analytical skills, communication skills and many more. These sharpened skills can be used by
investigator in their future researches so that to attain overall objectives of their study.

2 Research Methodology
Research methodology is defined as such techniques and processes which are used within
research in order to recognise such aspects in which process of analysis, selection and data
processing is undertaken. With the help of appropriate research methodology information related
with research can be acquired and at the same time research objectives can be attained. In the
context of research methodology this allows the researcher to investigate the research topic in
prominent manner along with developing reliability and validity within research. This chapter
clearly defines the manner in which information could be gathered and in the same manner
research objectives can also be attained. Under this research, some methodologies which are
considered are elaborated as under:
2.1 Research Philosophy
Research philosophy is defined as such beliefs which are used within research for the major
purpose of developing nature of reality within research. This is regarded as the definition of
gaining knowledge in such nature by which research can align their efforts in accomplishing
aims and objectives within research. Research philosophies are such set of beliefs which are used
within research for the major purpose of minimising gap between reality and research topic so
that the real information. In general terms this is associated with concerning principles related
with research topic and to develop and manage study appropriately. Research philosophy is
divided into three major types such as ontology, epidemiology and axiology. Each philosophy is
highly effective in nature which means that using significant research philosophy this will be
easier for researcher to analyse and gather information related to research topic. Each and every
philosophy is related with developing apt justification in which research thesis can be executed.
Research philosophy in context of this relation is elaborated as under:
 Ontology: This is defined as such philosophy which is associated with explaining of
nature of actuality and reality. There are three major philosophies within ontology such as
objectivism, constructivism and pragmatism. Each type of research philosophy is helpful
in collection of valuable information and to align efforts in attaining research objectives.

 Epistemology: This is regarded as another type of research philosophy which helps
investigator in collecting such information which is related with chosen research topic.
Further epistemology research philosophy is divided into three type such as positivism,
interpretivism and realism. These are helpful in process of collection and analysis of
information which is related with research topic in optimal manner.
 Axiology: This type of research methodology is helpful in learning of valuables and such
views which are having direct or indirect impact over research study. This research
philosophy helps the researcher to understand opinion on research topic so that accurate
information can be analysed.
Justification of the selected philosophy
From the above-mentioned information this is being observed that all the research
philosophies are having their own importance and essentialism. By analysing nature of research,
researcher may select research philosophies in appropriate manner. Under this research,
positivism research philosophy is used as this is helpful in gathering, using and evaluating of
quantitative data so that whole research can be executed without taking huge time for
completion. This is observed that positivism research philosophy is cost and time effective in
which pre-defined research objectives can be attained in easy manner. On the other hand
positivism research philosophy is highly emphasised over evaluation of information in which
numeric information can be gathered and at the same time research results can be analysed.
Using positivism research philosophy within the current research overall research project can be
executed in systematic and appropriate manner.
2.2 Research Approach:
Research approach is defined as such aspects and processes which are used within research in
order to evaluate collected data in such a way that efficient and effective manner. Research
approach is divided into two types such as inductive and deductive research approach. Both of
these research approaches are prominently used and can help researcher to facilitate aims and
objectives within research. Research approaches are used by researcher for the major purpose of
analysing data in such a way that overall results can be attained, and research process can be
executed as well. Research approach is one of the greatest dimensions within research which is
helpful in describing of processes and plans which are to be used within research. These

processes are associated with taking various decisions within research in which plans can be
exerted and at the same time research may come to an end in efficient manner. These research
approaches are as under:
 Inductive Approach: Inductive research approach is defined as such aspect which is
used within research for the major purpose of developing a theory within research which
has already been published. This is regarded as the approach which is used in order to
develop qualitative information in significant manner.
 Deductive Approach: Deductive approach is one of the most prominently used
research approach in which useful information can be collected in numeric manner and
at the same time quantitative information can be gathered in effective manner. This
approach is emphasised over number format and using statistical information within
research so that pre-defined research objectives can be attained in easy manner. This
also examines primary information in a way that data can directly be gathered through
sources.
Justification of the selected approach: According to the above mentioned information this can
be summarised that both of these methods of research approaches are helpful and efficiently
associated with filling up the requirement of research. In the current research deductive research
approach is selected so that to develop research in quantitative manner and to develop numeric
information within research. With the help of this deductive research approach investigator may
evaluate quantitative information in which differential information related with research topic
can be gathered. In comparison of inductive approach, deductive approach is deemed to be more
specific and practical as this is wholly focused on to evaluation of data in statistical manner.
Deductive approach is regarded as time saving and helpful for researcher in attaining aims and
objectives within research.
2.3 Research Choice:
Research choice is regarded as such processes which are helpful for researcher to develop their
knowledge regarding research topic and related subject. This is associated with facilitation of
reliable and authentic information so that researcher may develop research in significant manner.
There are three methods within research choice such as mono method, mixed method and multi-
mixed methods. These are the methods which are useful in developing the way of research and

could be helpful to gather information related with research topic. Research choice is one of the
necessary type of research methodology which helps the researcher to make choice between
quantitative and qualitative so that dissertation can be completed in effective manner and at same
time objectives can be attained. These research choices are described in systematic way as under:
 Mono method: Mono method are defined as such choices in which investigator need to
have information of single sort. The researcher is required to make choice from
qualitative and quantitative so that overall results can be developed in appropriate
manner. This choice is selected by researcher in case where they know that research
objectives can easily be attained using either qualitative or quantitative methods.
 Mixed method: Mixed methods are regarded as such research choices in which both
quantitative and qualitative research methods are used. This is defined as one of the
effective method in which both kind of information is gathered by researcher in order to
acquire aims and objectives within research.
 Multi method: Multi methods are regarded as such research choice which is having
similarity with mixed methods and could help research to develop quantitative and
qualitative information in appropriate manner so that research objectives can be attained
in easy manner.
Justification of chosen research choice: As accordance with the information described above
this is analysed that investigator is taking assistance of mono method so that to develop research
and to acquire prominence within research. Mono method is divided into two types such as
qualitative and quantitative. Under this type of research choice in numerical manner research
objectives can be acquired and at the same time more accurate information can be gathered. In
the present report researcher is going to collect quantitative information so that without facing
any delays.
2.4 Research Strategy:
Research strategy is regarded as such aspect which is used in the process of collection of
information in such a way that relevancy with project can be enhanced. There are various types
of research strategies such as experimental research, grounded research, survey method and
action research. With the help of significant research strategy researcher is able to develop

overall research in advantageous manner. Some of the research strategies are elaborated as
under:
 Case study: This is the kind of research strategy in which emphasis is rendered over
organisation and their related information. This is regarded as the strategy which is used
in order to develop secondary information within research so that objectives can be
attained.
 Experimental: This is associated with such research in which introduction related with
development of research process. This is such kind of research strategy in which potential
results can be acquired. This strategy may take higher time in order to develop
information in significant manner.
 Survey: This is regarded as another strategy in which information can be gathered in
which researcher tend to collect numerical information in appropriate manner. With the
help of survey investigator tend to collect numerical information using first hand
information can be gathered so that larger representatives can be analysed.
 Action Research: This is regarded as such strategy which is exerted within research so
that understanding related to research topic.
Justification of the selected research strategy: As per the above gathered information this can
be said that such strategies help in developing the research in appropriate manner. There are
various reasons for which this research strategy is selected and one of them is access to reader.
There are different benefits related to survey as respondents get easy access within population.
Hence this is seen that action research, experimental research and case study out of this survey is
the most usable research strategy which is required to be used.
2.5 Research Design:
Research design is regarded as that framework in which process in which research try to gather
information in such a way that evaluation process can be exerted appropriately. Basically there
are three types of research design such as descriptive, experimental and exploratory. There
research designs are elaborated as under:
 Descriptive: This is one of the common design which is associated with describing
problem and its solution as well. This has the major motive of developing research in
quantitative manner.

 Exploratory: This is regarded as another type of research design which is associated
with identifying research problems and their solution using several references.
 Experimental: Experimental research design is related with how participants are
allocated with differential groups and experiments as well.
Justification of selected research design: As per the above mentioned information it can be
said that there are various types of research design which are helpful for researcher in order to
develop the research. Under this research descriptive research design is being used in which
situation and population is being exerted in appropriate manner. With this researcher is focused
in gathering of quantitative information so that pre-defined objectives can be attained in
appropriate manner.
2.6 Data Collection:
Data collection is associated with such strategy in which researcher is able to develop their aims
and objectives in appropriate manner. For every investigator this is essential for researcher to
choose and develop research in accurate manner. Data collection is majorly classified into two
types such as primary and secondary.
 Primary data collection: Primary data collection is related with facilitating the
investigator so that they can developing and accumulating raw information which is first
hand. This is regarded as the data which is gathered through direct manner so that
accurate information can be gathered. This is related with carrying out the research by the
view point of various people.
 Secondary data collection: These are the manner in which focus is rendered in such a
way that already published data can be used. This is the information in which already
published data is used which are related with managing research gap. Using books,
journals and other articles data is being gathered within research.
Justification of selected data collection method: As per the above mentioned information this
is analysed that under this research primary and secondary both of these methods are used so that
to develop research in overall manner. Under primary data collection method questionnaire is
used and in the same manner in terms of secondary methods books and journals are used in order
to acquire overall benefits within research.
Sampling:

Sampling is defined as the process in which appropriate samples are drawn out of overall
population so that objectives within research can be attained. This is regarded as one of the
essential for researcher that to develop their process of sampling in such a way that large
population can be covered in appropriate manner. Sampling is bifurcated into two types such as
probabilistic and non-probabilistic sampling.
 Probability Sampling: Probability sampling is defined as such method in which
respondents are selected from specific area so that to acquire research objectives. This is
the sampling which can be chosen by the investigator so that to develop research in
timely manner.
 Non-probability sampling: Non probabilistic sampling is regarded as such sampling
under which acquiring some requirement respondents are selected. This is the process in
which helps in collecting of some information which is working on non-random basis.
Justification for sampling: Under this research, the researcher has selected probabilistic
sampling as this will lead the researcher to acquire significant information within research and
lead to develop conclusion as well. Under this research 50 respondents are taken which are
employee within construction industry.
2.7 Time Horizon:
Time horizon is regarded as the method which is used by the research in order to schedule
overall research in such a way that delays can be avoided and aims and objectives within
research. This helps the researcher to minimise delays and acquire edge within research. There
are two types of time horizon such as cross-sectional and longitudinal. n
 Longitudinal time horizon: Longitudinal time horizon is associated with scheduling of
research in such a manner that in longer duration research can be executed.
 Cross sectional time horizon: Cross-sectional time horizon is related with developing
the research is lesser time.
Justification of selecting time horizon:In the present research cross-sectional time horizon is
used which helps the research to develop research in effectiveness

3 Literature Review
3.1 Meaning of digital transformation
Digital transformation can be defined as the integration of the digital technology into the
various areas of a business to ensure that the operations are conducted in an effective as well as
efficient manner. It can be said that digital transformation has enhanced the way in which
different businesses conduct their operations effectively (Al-Sehrawy and Kumar, 2020). In other
words, digital transformation can be referred to as the usage of different types of digital
technologies in order to create new or even modify the existing business processes, the
experiences of the customers as well as culture of the organization. The trends within the market
as well as the market requirements have changed a lot and hence, there is a need for the overall
change of the technology in the businesses. This is because customers are now moving towards
digital ways of payments as well as modes of shopping. And hence, it can be said that digital
transformation can help in improving the business operations of the different departments such
as procurement, HR ….etc. Digital transformation allows a company to stay relevant as well as
keep up with the customer demands that may emerge from time to time. Also, digital
transformation allows the company to compete in an economic environment and gain a
competitive advantage in the market. Because of the outbreak of the pandemic, the customers
have become more inclined towards digital ways (The importance of digital transformation for
the industry, 2020). Also, there are different benefits of digital transformation for a business such
as it increases the overall speed of response of a company to the changes in the demand within
the market.
Apart from this, digital transformation also drive innovation as well as prepares the
company for any kind of change or disruption that can take place within the market. With the
help of effective implementation of the digital technology, companies can attract new talented
people, who are specialized as well as experienced within their respective fields. The company is
also able to save a lot of amounts on the business processes. It can be said that digital
transformation is going to be one of the most significant aspects for any company in the future. It
has been observed that by transforming their business digitally, many companies have been able
to attract as well as retain high performing employees as well as a greater number of people.
Artificial intelligence, Cloud Computing and MixedReality are some examples of the different

types of digitally innovative ways that can be implemented by businesses in order to conduct
their business operations in a smooth as well as efficient manner. Not only this, it is also able to
attract a greater number customers in an effective manner. Apart from this, with the help of
digitalization, the companies can gather large amounts of data related to the customers and make
sure that effective decisions are developed and that the strategies that are made (Echeberria,
2020). There is an increase in the overall efficiency as well as profits of the company and hence,
the goals as well as objectives are achieved to a great extent. The productivity is improved, and
the businesses are able to conduct the business processes in an appropriate manner.
3.2 Current available digital technologies and their benefits in
construction
The construction industry has always been known to be resistance to change and digitization. In
2016, a McKinsey & Company report studied the level of digitization in different industries. It
found that the construction industry has an overall low digitization level (refer to figure xx).

However, since 2016, many technologies have evolved rapidly which encouraged many
construction companies to invest in them (Ibem and Laryea, 2014; Koch et al., 2019; Singh,
2019). Some of main technologies that are revolutionizing the construction industryare:
 Building Information Modeling (BIM) which uses 3D modelling with nongraphical
information to manage the project deliverables across the whole project life cycle, from
Design stage and to Handover stage.
 Augmented and Virtual reality (AR/VR) which is being used to either project the 3D
models of the construction into the physical world or to have a more immersive
experience being inside the construction.
 Laser scanning which is being used to accurately capture the existing conditions of
building and sites to reduce any inaccuracies that could affect the project progress.
 3D printing which is currently being researched to directly cast concrete structures from
the 3D models and several pilot projects has been already setup in UAE (Businessinsider,
2019).
 Prefabrication which allows for constructor elements to be built offsite and then
transferred to the construction site for installation. This process allows for a faster
construction and eliminates delays at site.
 Internet of things (IoTs) which is being to collect data from sites and machines which can
be used for better decision making (Morgan, 2019; Pan et al., 2020;).
 Machine learning which is used to analyze the data collect from sited to provide
predictions on project progress and areas of risks (Oesterreich and Teuteberg, 2016;
Zabidin et al., 2020).
Due to the continuous development of the above technologies and more; governments,
construction companies and unions have been focused on leveraging the benefits of said
technologies. For example, McKinsey & Company has reported that construction companies
believe that digital technologies are key element for their competitiveness and existence in the
market (Buisman, 2018; KPMG, 2019).
Also, in the case of BIM, governments’ initiatives and policies have ensured the adaption of the
technology and its development. For example, the introduction of the British Standard BS1192 in
2007 and the introduction of UK BIM Level 2 initiative has pushed the adoption of BIM in

construction and development of the ISO19650 BIM standard in 2019 which led to the use of
BIM becoming the norm in construction (Maskuriy et al., 2019b; Zabidin et al., 2020).
Also, it is very important to differentiate between digitization and digital transformation (DT).
Digitization is just concerned to transforming analog information into digital information that
can be processed by a computer. While DT is the use of digital technologies to optimize or
transform a process, provide new opportunities and enhance collaboration (Verhoef et al., 2019;
Berlak et al., 2020).
For example, the use of BIM can be considered a transformative technology as it has transformed
the process of production of technical documents and project management and control.
3.3 Digital awareness in the UAE
The government in UAE has been investing heavily in digital technologies (Vial, 2019)
and the UAE government has a deep focus in transforming many of its cities into Smart Cities.
According to the UAE’s official government portal (u.ae),there are 4 main goals that the UAE
government has setup: “Enhancing the UAE rank in the online service index (OSI) Promoting the UAE digital transformation Motivating positive competitiveness among the seven emirates in digital transformation Enhancing the UAE trend towards adoption of the 4th industrial revolution technologies
and artificial intelligence”
That had lead to the tech and digital market in UAEto presently be worth of 5.5 billion
dollars that is continually credited as fastest growing industries(Dobrolyubova, 2021).
Accordingly, It is important to make sure that the employees are aware of the different
digital technologies. This is because if the employees are aware of the different technologies,
they will be able to conduct their respective jobs in an effective manner as well as develop new
skills that will ensure that the overall operations are conducted effectively as well as
productively. It can be said that the employees in the UAE are certainly digitally aware of the
latest technologies(Lau and et.al., 2020). The reason for this, and as stipulated above, is that the
country is technologically advanced. The employees within the country are interested in learning

about the different trends in the technology and they are ready to adopt the different technologies
as well as learn how they implement them.
3.4 Challenges of the implementation of digital transformation
strategies in the construction industry
The construction industry has reputation for adoption of resting technology. Decision
makers in this are quickly resulting that it is inevitable. Construction requires moving parts and
partners as more organisations are embracing the digital transformation for the purpose of
coordinating with streamline business operations and people (Schwertner, 2017). It is related
with pusging of analogue systems. Digital transformation is the process of integrating the digital
technology in facts of business operations. It is related with implementing of digital technology
and tools to harness the owner of data for making the operation's more productive, efficient and
safe.
Digital transformational is a key investment for any business in last few years. The pandemic has
accelerated the trend. One of the challenge is that optimisation across department becomes
inconsistent that is construction organisation are becoming notoriously adopting new
technologies that is considered as massive business opportunity for various technology providers
is because of the untapped potential (Hanelt and et.al., 2021).
Another challenge is workers are resistant for learning of new skills. There is implementation of
new process & in workers are very resistant in the process of learning new skills. It is very
challenging that construction industry relied on ageing workforce as compared to other
industries. If this aspect is not managed then it may lead to reduction in employee morale, there
can be ineffective use of new systems and there can be high human errors that may arise because
of improper use of new systems (Perkin, and Abraham, 2021).
In construction industry there is situation when data management plans may be missing before
the starting of the digital transformation projects. A effective digital transformation plan will
result in the process of collecting the data.

As already mentioned, there are different benefits of digital technologies for the construction
industry. Similarly, there are also a lot of different challenges that can be faced by the
construction industry (Rossikhin and et.al., 2020). Firstly, there can be a lack of standardisation
of work within the industry creates risks on the sector basis. Apart from this, this can lead to an
increase in the time pressure on the construction company. Another challenge that can be faced
within the construction industry is that there can be a lack of sufficient as well as trained staff
member. It can be said that this is one of the biggest challenges that can have an impact on the
overall performance as well as productivity of the team members and the project outcomes will
suffer. It can be said that a lack of specialized as well as trained staff members can have an
impact on the overall effectiveness of the outcomes of the project (Salehipour Bavarsad and
Kazem Pourian, 2021). A lack of integration or cooperation from the different stakeholders as
well as team members is also one of the challenges that can also have an impact on the overall
performance of the project. It is important for the stakeholders as well as the different team
members to identify as well as analyse these different challenges so that effective strategies can
be implemented in order to achieve the overall goals as well as objectives. Another challenge
that can have an impact on the implementation of digital transformation strategies in the
construction industry. The different challenges have to be taken into account so that there is an
increase in the overall efficiency as well as output of the construction industry.
It is important to take the different challenges into account while developing the
strategies so that the effective decisions can be developed. One of the other challenges that can
be faced by the construction industry include a lack of IT skills. This can affect the overall
outcomes as well as affect the productivity of the project as well. Thus, it can be stated that it is
important for the industry to make sure that these challenges are considered beforehand. Not
taking into account the same can have a potential impact on the overall outcomes of the project.
If the construction industry does not take into account the needs of the clients as well as the
customers, it won’t be able to conduct its operations in an effective manner. Similarly, the needs
of the customers are also evolving and hence, it is important to make sure that these are met. This
can make sure that these are satisfied so that the customers’ needs are satisfied. A lack of
effective strategy can also have a negative impact on the overall performance of the different
organizations within the industry (Sebastian and et.al., 2020). A lack of defined strategy is one of
the most important challenges because it can affect the overall performance of the same in the

industry. There can be a lot of data that is available when a construction project is undertaken
and this can be of the suppliers, the owner of the project etc. Ineffective handling or management
of data can lead to a decline in the overall efficiency of the output. This is because managing the
data in a proper manner is very important otherwise it can lead to a change in the performance of
the same. Business processes play a significant role in the overall performance as well as success
of any organization operating within the construction industry. This is because the business
processes have to be carried out in a smooth as well as structured manner. Failing to do so can
lead to an impact on the overall efficiency of the firms as well as the construction project is also
impacted to a great extent.
Digital transformation has changed the way in which a company conducts its business
and other different activities. It is important to make sure that the challenges are addressed in an
effective manner so that there is a reduction in the overall efficiency of the output. Digital
transformation can have an impact on the way businesses conduct their operations and make sure
that the goals are achieved in a much more productive manner and that too by putting in less
amounts of manual labour (Stetsenko and et.al., 2020). When digital technologies are
implemented within any project within the construction industry, it is important to make sure that
the implementation process is carried out in a smooth manner. This is usually done to make sure
that the goals as well as objectives are achieved in an effective manner and also, the client is
satisfied. It is important to make sure that the challenges are addressed in a much more effective
manner because they can largely have an impact on the overall goals as well as objectives of the
construction project. Security of the data is another significant challenge that can have a potential
impact on the outcomes of the project. If the data is not secure, it can lead to an impact on the
overall project because the data can be misused or mishandled. Thus, it is important to make sure
that the potential challenges related to digital transformation are identified and addressed in an
effective manner so that the projects that are undertaken by the construction organizations, are
conducted in an effective manner.
4 Questionnaire
Q1) Do you understand the meaning of digital transformation?
A. Yes
B. No

Q2) according to you digital transformation is beneficial for the company or not?
A. Yes
B. No
Q3) Do you think that digital transformation in context of company is affecting because of
covid-19?
A. Yes
B. No
Q4) What kind of problems which are facing by the company in context of digital
transformation?
A. Lack of dedicated IT skills
B. Evolving consumer needs
C. Inefficient data management
D. Budget concerns and constraints
Q5)Do you think that digital technologies is helping the company to achieve their goals and
objectives and improve the productivity of the company?
A. Yes
B. No
Q6) what are different challenges of implementation of digital transformation strategies in the
construction industry?
A.The Agility challenge
B. Digital Challenge
C. provision of electricity
Q7) what are the strategies that will going to support the company in order to overcome the
challenges in context digital transformation
A. Handling employee Pushback during digital transformation
B. Managing the budget by digital transformation
C.both
Q8) Do you think that these strategies are beneficial for the company in order to get competitive
advantage ?
A. Yes
B. No

Q9) Digital awareness of employee is important for the company or not ?
A.Yes
B. NO
Q10). Do you understand the concept and importance of digital transformation strategy roadmap.
A.yes
B.No
Q11.What are main area of digital transformation?
A.technology
B.data
C. process
D. All of the above
4.1 Questions
5 DATA SHEET
Theme: Kind of understanding about the meaning of digital transformation
Q1) Q1) Do you understand the meaning of digital transformation? Frequency
A. Yes 46
B. No 4
Theme: digital transformation play an important role in order to improve the
productivity
Q2) according to you digital transformation is beneficial for the company or not? Frequency
A. Yes 45
B. No 5
Theme: digital transformation in context of company is affecting because of covid-
19
Q3) Do you think that digital transformation in context of company is affecting
because of covid-19?
Frequency

A. Yes 48
B. No 2
Theme: kind of problems which are facing by the company in context of digital
transformation
Q4) What kind of problems which are facing by the company in context of digital
transformation?
Frequency
A. Lack of dedicated IT skills 15
B. Evolving consumer needs 15
C. Inefficient data management 10
D. Budget concerns and constraints 10
Theme: digital technologies is helping the company to achieve their goals and
objectives and improve the productivity of the company
Q5) Do you think that digital technologies is helping the company to achieve their
goals and objectives and improve the productivity of the company?
Frequency
A. Yes 40
B. No 10
Theme: different challenges of implementation of digital transformation strategies
in the construction industry
Q6) what are different challenges of implementation of digital transformation
strategies in the construction industry??
Frequency
A. Offer the right benefits 25
B. Leverage technology 15
C. Both 10
Theme: strategies that will going to support the company in order to overcome the
challenges in context digital transformation
Q7) What are the strategies that will going to support the company in order to
overcome the challenges in context digital transformation
Frequency
A. Handling employee Pushback during digital transformation 11
B. Managing the budget by digital transformation 9

C. C.both 30
Theme: these strategies are beneficial for the company in order to get competitive
advantage
Q8) Do you think that these strategies are beneficial for the company in order to get
competitive advantage?
Frequency
A. Yes 35
B. No 15
Theme: Digital awareness of employee is important for the company
Q9) Digital awareness of employee is important for the company or not ?
?
Frequency
A. Yes 34
B. No 16
Theme: concept and importance of digital transformation strategy roadmap?
Q10). Do you understand the concept and importance of digital transformation
strategy roadmap?
Frequency
A. Yes 30
B. No 20
Theme: main area of digital transformation
Q11.What are main area of digital transformation? Frequency
A.technology 5
B.data 4
C. process 6
D. All of the above 35
5.1 Results
Theme: Kind of understanding about the meaning of digital
transformation
Q1) Do you understand the meaning of digital transformation? Frequency
A. Yes 46
B. No 4

Frequency
A. Yes
B. No
Interpretation: Digital transformation is the strategy that helps the organization to adopt the
technologies so that they can improve the productivity and improve the organizational culture in
order to achieve their goals and objectives. This is the process that helps the organization to
create a new business procedure culture in customer experience in order to meet the modification
business in the market requirement. From the above mentioned graph it has been analyzed that
according to the 46 applicants they understand the meaning of the digital transformation that
support the organisation to improve their capabilities. According to the rest of the people that is
four they did not understand the meaning of the digital transformation and any idea regarding the
digital transformation.
Theme: digital transformation play an important role in order to improve the
productivity
Q2) according to you digital transformation is beneficial for the company or not? Frequency
A. Yes 45
B. No 5

Frequency
A. Yes
B. No
Interpretation: Digital transformation is the concept that support the organization to meet with
the requirements of the customer and this is the also the concept that include optimizing the
procedure and develop workflow is faster and easier and more efficient because it support the
organization to overcome the paperwork and develop the digital work force that support the
organization to improve their efficiency and allow the workers to concentrating on the other
activities. From the above mentioned graph it has been analyzed that according to the 45
applicant’s digital transformation strategies and the concept is very important and beneficial for
the organization in order to make the workflows more easier and smooth. According to the five
applicants digital transformation strategy is not beneficial for the organization in order to
improve their capabilities and achieve the requirement of the consumers in the marketplace
Theme: digital transformation in context of company is affecting because of covid-
19
Q3) Do you think that digital transformation in context of company is affecting
because of covid-19?
Frequency
A. Yes 48
B. No 2

Frequency
A. Yes
B. No
Interpretation: Due to COVID-19 pandemic it creates huge impact on the internal operations of
the organization in context of the digital transformation. Due to COVID-19 pandemic and due to
lock down the supply chain in traction has been impacted and it create huge impact on the
organization. During the pandemic the customer has moved dramatically towards the online
channels and somehow it creates positive as well as negative impact on the organization. From
the above mentioned Graph it has been analyzed that according to the potty eat applicants Covid
19 create impact on the organization and according to that to applicants copied 19 does not create
any kind of impact on the organization activities and their practices
Theme: kind of problems which are facing by the company in context of digital
transformation
Q4) What kind of problems which are facing by the company in context of digital
transformation?
Frequency
A. Lack of dedicated IT skills 15
B. Evolving consumer needs 15
C. Inefficient data management 10
D. Budget concerns and constraints 10

Frequency
A. Lack of dedicated IT
skills
B. Evolving consumer
needs
C. Inefficient data
management
D. Budget concerns and
constraints
Interpretation
Theme: digital technologies is helping the company to achieve their goals and
objectives and improve the productivity of the company
Q5) Do you think that digital technologies is helping the company to achieve their
goals and objectives and improve the productivity of the company?
Frequency
A. Yes 40
B. No 10
Frequency
A. Yes
B. No

Interpretation: Digital transformation is this strategy that are very beneficial for the
organization but because of different kind of issues the organization is facing different kind of
problems in context of the digital transformation. There are different kind of challenges like
budget concern and constraint in the organization, inefficient data management that create huge
problem in the organization, evolving customer requirements, deficiency of dedicated IT skills
individuals and many more. According to their 15 applicants deficiency of the dedicated and
talented IT skills individuals is the major problem which are facing by the organization and it is
become very difficult for the company to hire more talented people in this pandemic. According
to the remaining 15 applicants evolving customer requirements is the major problem which are
facing by the company and according to the rest of 20 applicants in efficient data management
and budget concern and constraint are the problems that are facing by the company that are
associated with the digital transformation and technologies
Q6) what are different challenges of implementation of digital transformation
strategies in the construction industry??
Frequency
A. Offer the right benefits 25
B. Leverage technology 15
C. Both 10
Frequency
A. Offer the right benefits
B. Leverage technology
C. Both
Interpretation: There are different kinds of challenges which are facing by the construction
industry while at ducting transformation digital technologies or digital transformation strategies
so that they can improve their capabilities. As there are different kind of strategies and activities

that is adopted by the company so that they can improve their productivity but because of some
problems like leverage technology and now provide the appropriate benefits towards the workers
create huge impact on the organization and this these are the challenges which are the facing by
the organization. According to the 25 applicants of provide the right benefits in the organization
is the major challenge which are Facing by the organization and according to the 15 applicants
leverage technology is that another challenge which are facing by the company
Q7) What are the strategies that will going to support the company in order to
overcome the challenges in context digital transformation
Frequency
A. Handling employee Pushback during digital transformation 11
B. Managing the budget by digital transformation
C. C.both
9
30
Frequency
A. Handling employee
Pushback during digital
transformation
B. Managing the budget by
digital transformation
C. C.both
Interpretation: It is Become very important for the organization to implement digital
transformation strategy in order to achieve their goals and objectives and overcome the problems
which are facing by the company. Digital transformation strategy supports the organization to get
more competitive advantages and meet the requirement of the consumer so that they can improve
their productivity and improve their effectiveness in the marketplace. There are different kind of
challenges of implementation of digital transformation strategies like handling the workers push
back during the digital transformation, managing the budget by digital transformation and many
more. According to the investigation it has been analyzed that hunting workers push back during

the digital transformation is the major Strategy that will going to support the organization to
overcome the challenges. Apart from this managing the budgeting Digital transformation support
the organisation to achieve their goals and objectives and overcome the problem in context of
digital transformation
Theme: these strategies are beneficial for the company in order to get competitive
advantage
Q8) Do you think that these strategies are beneficial for the company in order to get
competitive advantage?
Frequency
A. Yes 35
B. No 15
Frequency
A. Yes
B. No
Interpretation: Digital transformation strategy provides different kind of advantages to the
organization so that they can achieve their targets and improve the capabilities and deficiency of
the organization in an appropriate manner. Apart from this digital technologies and strategy
support organization to overcome the challenges which are facing by the company and also
support the company to get more competitive advantages so that they can improve their
efficiency and brand image in the marketplace. According to the 35 applicants the strategies
which are adopted by the organization are very beneficial in order to get competitive advantages.
According to the 15 applicants these strategies are not effective for the company in order to
overcome the challenges and get more advantages.
Theme: Digital awareness of employee is important for the company

Q9) Digital awareness of employee is important for the company or
not ?
?
Frequency
A. Yes 34
B. No 16
Frequency
?
A. Yes
B. No
Interpretation: Digital awareness of the employs is very essential and important for the
company in order to provide different kind of benefits to words the market place. For every
employees it has become very important to adopt digital transformation and digital technologies
in order to become more effective and talented. It helps the organization as well as every worker
to work in a smart manner so that they can maintain their time management capabilities and
complete the task in an appropriate time frame. It also helps the individual to improve their
capabilities and their efficiency so that they can work in an effective manner in order to bring
more opportunities in positive outcomes for themselves as well as for the organization.
Theme: concept and importance of digital transformation strategy roadmap?
Q10). Do you understand the concept and importance of digital transformation
strategy roadmap?
Frequency
A. Yes 30
B. No 20

Frequency
A. Yes
B. No
Interpretation: Digital transformation roadmap is a group of steps that company can follow so
that they can accomplish their short-term as well as their long-term organizational goal by the
use of digital technology. The roadmap is the strategy that is begin by understanding and
analyzing the organization requirement and analyze and finding the gaps in the existing system
so that the company can build an appropriate strategy that avoids the gaps which are analyzed by
the organization. It is very important for the company to build a digital transformation roadmap
by establish in their vision, mission and their values and also get individual on board with the
digital transformation plan so that they can priorities those issues and set KPIs in order to
establish the accountability and allocate the time in budget so that they can take a face approach
in order to take feedback. According to them survey it has been analyzed that there are 30
applicants who understand the concept and significant of the digital transformation strategy
roadmap and according to the 20 applicants they did not understand the significant as well as the
concept of digital transformation strategy Road map.
Theme: main area of digital transformation
Q11.What are main area of digital transformation? Frequency
A.technology 5
B.data 4
C. process 6
D. All of the above 35

Frequency
A.technology
B.data
C. process
D. All of the above
Interpretation: There is different kind of area of digital transformation and it is very important
for the company to analyze and determine the every area of the digital technology so that they
can develop the digital strategies in order to achieve their goals and objectives. There are mainly
Four main areas of digital transformation strategies which Are very important for the company to
concentrating on that and that is technology, data, process and organisational change. These all
area support the organisation to adopt the digital technology in an appropriate manner.
According to the five applicants technology is the main area of digital transformation, according
to the food applicants data is the main area of the digital transformation and according to the six
application process is the mean area of the digital transformation and according to the 35
applicants all these are the main area of the digital transformation that support the organization to
achieve their tasks and improve their capabilities and efficiency in order to bring more positive
outcomes and opportunities.
6 Construction Company Value Chain
The construction industry’s value chain is different from typical manufacturing or services
companies as illustrated in the below diagram. The typical construction company processes can
be grouped into 2 groups; primary processes and supporting processes. Primary processes are:

 Business Development: which is the process ofmanages the public relations, marketing,
clients relations management….etc
 Bid management: which is the process bidding for new projects.
 Contract Management: which deals with managing the contractual obligations between
the company and its supply chain.
 Project management and Planning: which deals with the creation construction time
programs and sequence the construction tasks.
 Project Cost Control: which manages the different cost aspects of projects.
 Design & Technical: which deals with the production of technical documents (e.g. shop
drawings, material submittals, etc…..)
 Quality Control: which deals with ensuring that construction process is meeting the
expected quality.
 Health & Safety: which deals with ensuring the project is being constructed without
accidents.
As for supporting process, they are:
 Plant & Equipment Management: which manages the construction equipment, its
maintenance and its distribution.
 Human resources Management: generally it deals with managing employees
requirements and talent acquisition.
 Finance Management: Which deals with the organisation’s overall finances including
payrolls and supply chain payments.
 Procurement: which deals with procuring materials and contractors.
 Technology: Which deals with providing the technology infrastructure that will facilitate
the other processes.

7 Construction Company interviews
In this section, a construction company has been chosen as a sample (it shall be referred to as AG
in this report) and interviews have been conducted with its different value chain departments, as
mentioned in section 5, to determine their current processes, the level digitization in their
department and their challenges.
These interviews shall be used as an insight to the digital level of maturity in a typical
construction industry and will be used to develop a high-level roadmap to digital transformation.
7.1 Supporting Activities
7.1.1 Human Resources
In AG, there are a total of 1650 staff, 4500-5000 workers, 400-500 drivers/machine operators
(plant business unit). The HR department is using a system provided by Oracle HR and Payroll
for staff and home-grown solutions for workers and drivers.
Would prefer if everything was in one system. Time and Attendance is also a home-grown
solution. Organisation development includes Induction, Status Changes, Certifications,
Performance and Exit.
HR department is 10 staff plus 15 people focussed on PR.
Performance Management is currently done in Excel so is an area where a better solution is
needed. (currently looking at options such as Success Factors, Cornerstone…).
There is no link in the performance process to the job role definition. Only currently do job
performance on 750 staff. There is a need to be able to evaluate performance more than once a
year. The process should be two-way employer and employee.
The management of deductions is not ideal as there is some duplication of effort required.
Training, Competencies and licenses are not managed in Oracle today -done in Excel -something
that needs to be improved.
The workers have an academy so this is a big requirement for this business unit.
To keep their high reputation, AG employ highly qualified staff. They also give their employees
the chance to own shares of the company which increases employees’ satisfaction and
performance.
No real time visibility of labour availability if project was trying to plan resources –very manual.

Oracle self-service is used for leave management, but the solution is not available on mobile
devices.
Managers cannot see what the employee absence plan is so there is a risk that they could agree to
their whole team being on holiday at the same time without realising it.
No electronic expense module is in use –finance process expenses as invoices in the purchase
ledger.
Sub-contract employees are not included in the HR system so there may be an opportunity to
manage all labour resources in one system. The recruitment process is not managed in Oracle
HR. They are looking for a new system to manage this process.
2 people manage the recruitment process. (recruiting about 4-5 people per month)
There is no report that shows the recruitment status and Onboarding process is not very
automated while Offboarding process is manual.
7.1.2 Finance
Project Costing is manual. Project Activity Codes not tracked in General Ledger. Would be a big
improvement if we could have the Project Cost Coding, WBS and Accounting Coding Structure
aligned.
The GL has some issues –usability, integration with other feeder systems and reporting could be
better.
There are multiple entities in this business unit (e.g. plant business unit is separate)
Main & Sub-Contract Management is managed by the contracts department in Excel which is a
challenge as 7 departments are involved.
Billing is done in AR process by entering Certificates / Invoices –retentions are managed.
Revenue recognition is managed by entering manual journals –calculation is done outside system
in Excel.
Budgeting is done in Excel. Fixed Assets in managed in Oracle and new plant is bought using
Oracle Purchasing.
Month End takes to the 15th of the month so room for reduction in time here. (AP takes to day
6/7) –Cost Team is the bottleneck
Have two types of vendors (suppliers and sub-contractors) which are treated differently:

The supplier side is managed in Oracle with no paper –standard P2P process –use Oracle
iSupplier. Have 3500 vendors, however, how many suppliers are there across the whole group
and are they common is actually not clear.
Reporting is mostly customised reports and would like the ability to link paying subcontractor
when paid by client.
Cash Flow forecasting is done is Excel which is not good. (need short term view “4 weeks” and
long term view “end of project”.
Automation of intercompany supply and demand would be beneficial, for example plant business
is a separate entity from construction business unit, buy steel, concrete etc from other group
entities.
7.1.3 Procurement
Procurement has 14 employees and are involved in managing the following types of
procurement:
 Sub-Contract Packages and Traditional Purchasing to support direct works content of
projects.
 Materials such as concrete and steel, consumables which are bought by description (4000
POs per month),
 Misc. such as consultancy, equipment, Plant, Machinery is managed by the plant business
unit
This department is involved in the Pre and Post Contract procurement processes.
Sub Contract Packages
Sub Contract packages are Approx. 75% of the procurement value and effort.
The Bill of Quantities is the foundation for the sub contract package procurement process. This
will usually come from a 2D take-off or 3D take-off from a BIM model. During the pre-contract
process packages of work are defined and enquires sent to potential sub-contractors. In addition,
AG have information of what they believe the pricing should be for different types of work.
These are used to compare and validate the prices that sub-contractors submit. As part of this
pre-contract process the design team will work with procurement, estimating, contracts and other
functions to review the specifications and drawings.

The process also involves reviewing contract documents and conditions and looking for
deviations from standard contractual conditions.
Value engineering is also often asked for by clients which is led by the design team. They will
look for opportunities to reduce costs without necessarily impacting quality. They will also
discuss with speciality contractors.
During this pre-contract process there will be lots of communication between the various AG
departments and the sub-contractors. (client and sub contract queries etc). An EDMS system is
currently being used but it is not integrated to any business system. They do not use Aconex –it
is only used by the contracts team.
Sub-Contracts are awarded at various stages of the project.(e.g 30 –40 packages per project –this
number was different from what the contracts department said –they said it could be as many as
200 packages per project?)
Not all packages (subcontracts) will be awarded when the main contract is awarded (sales
contract) as some of the packages may not need to start until much later in the projects schedule.
During the life of the project work packages could be split or merged.
Two types of variations need to be managed: Client and Domestic. Client variations that impact
sub-contract variations need to be aligned back-to-back with sub contract variations. Once the
sub-contracts are awarded these client variations are managed by the contracts department, not
the procurement department. Domestic variations which are ones not driven by the client are
more serious as the client is not likely to be willing to pay for them. (non-refundable variations).
They do not happen that often but are often caused because a sub-contractor is not performing
well so the work may be awarded to an alternative sub-contractor.
The above sub-contract process is all managed either manually or in Excel so a new integrated
system to get control of this and improve these processes is needed.
7.1.4 Purchasing
Approx. 25% of Value and effort. 5 people in this groups.
This a more traditional purchasing process –requisition –PO –receipt –match –pay.
They use Oracle today to handle this, however, this sytem was not designed for the construction
industry and said processes are very manual or cumbersome. For example –safety inspections on
site (5000 items per month).

Not enough automation.
No integration to Project Cost Control. (e.g. requisitions need be validated against project budget
to stop project running out of control)
No integration to Project Plan. (plan and buy at right time) –planning very manual –for example
could we generate material plan from take-off or estimating?
Use Pricing Agreements –typically negotiated annually
Some materials need consolidation across projects to agree supplier pricing contracts with call-
offs –e.g. steel.
7.1.5 Technology
There have been many CIOs being appointed at AG with each CIO brings a new strategy.
However, none of these strategies have been fruitful and each department has a different set of
platforms/software being used without have connection between all these departments and
without maximising the use of these platforms as illustrated in the below graph. Furthermore,
there is no clear vision or strategy that is being shared with all departments regarding the digital
transformation or its importance.
7.2 Primary Activities
7.2.1 Quality Control
Have 25 people in Quality Department. Are working on about 10 active projects.
The main system used is Aconex. In a Design and Build projects, AG have full control on project
workflows, therefore Aconex is used as the master document control solution. In Design-Bid-
Build projects, the client will decide which system shall be used however, it is usually Aconex as
it is the dominant solution in the region today. Aconex is used to drive the workflow of
producing and managing the document deliverables (quality plan, submittals, inspection request
…… 1000s of documents)
The quality department focussed on two areas:
 Projects: where they will have 1 or more dedicated quality people assigned full time to
the project and

 Quality Assurance. Quality assurance is focused on other, generally non project specific
tasks such as ISO and other Audits,
They use Sharepoint to manage the QA documents but may benefit from a better more integrated
document management solution.
Aconex is not integrated to any other system so there may be some advantage in integrating it to
some areas in in company ERP.
There is a priority issue regarding tracking QC information for Concrete Deliveries which go to a
QC checkpoint where they record the actual delivery date and time and test results are taken to
measure attributes like strength etc.
They want to be able to measure supplier quality performance. Oracle used for material
procurement and receipting.
Use the Aconex field solution for snagging which seems to work well.
7.2.2 Business Development
Lack of Customer Relationship Management system means that the Business Development team
are currently managing the pipeline in a mix of spreadsheets and sharepoint. This reduces the
accuracy and visibility of the pipeline to the business. Currently submitting 30 opportunities,
which lead to an invitation to tender (ITT), to the Bid Management team per year. The trend is
that the value of projects is reducing, requiring AG to win more in order to achieve the revenue
target.
Task management within the business development is very manual: steps on a process are
handled via email and information captured in excel. Bid development act as the hub within the
business, therefore it is important that tasks and data is controlled to reduce the errors and
duplication.
All documentation relating to an opportunity is handled in sharepoint and email folders. Around
40 documents are required per submission.
There is no master list of contact details for opportunities and clients (projects) and as a result all
information relating to new business / business won is held in spreadsheets. This makes it
difficult to plan for marketing activities such as campaigns, events, social media communications
etc.

7.2.3 Bid Management
30-40 project bids per year of which win 2-3 projects are won per year (win rate 6% -need to
increase win rate as project values falling).
Average project pre COVID was 1 Billion Dirham –now average project has fallen to about
500M (need to win twice as many contracts)
AG differentiator is their 32 year reputation in the UAE region (quality, delivery reliability) and
the fact that they are vertically integrated.
No CRM solution to support bid process Candy Estimating being rolled out + use Excel,
Sharepoint, Planswift and Smartsheet.
Two main types of contracts (Construction Only and Design and Build).
Construction Execution –approx. 30% direct works 70% sub contract
Estimating department responsible for bid (approx. 18 people plus 4 design people within Bid
Team)
Sometimes the bid is a two stage bid –technical first and if successful then followed by
construction bid.
Subcontract to external sub-contractors or other AG divisions –like concrete, steel, fitout etc –
treated as sub-contractors.
Other functions are also involved in the bidding process (contracts, planning , technical. –use
Primavera and Synchro sometimes.
BIM is only driving a small number of bids but it is an increasing trend. Use Autodesk REVIT
and Navisworks.
Take-off quantities mostly from 2D drawings. Use a product called Planswift to do 2D take-off.
Rolling out Candy as Estimating solution. Bid time can be weeks or months depending on the
size and amount of design and scope changes that happen during bidding process.
Smartsheet is used for booking time, tasks, milestones, approvals, vacation tracking and
managing workflow by the Bid Teams.
Bidding and Estimating function do NOT use Aconex for Document Management –too heavy
and expensive for bidding process. They would like a simpler document management solution.
Cannot measure estimate accuracy but really want to be able do this. Estimate Cost Codes are
not aligned with Project Cost Control codes or Finance coding. Estimate is manipulated to form a

more detailed budget for many reasons –ideally want to be able to compare actual to budget and
estimate to learn lessons and improve estimate accuracy.
7.2.4 Contract Management
Contracts department are responsible for contract management, administration, legal etc. 45
people in this department –virtually all Quantity Surveyors
Responsible for contracts after the project is awarded. Mostly QSs who are assigned to projects
and work on construction site.
Risk and Opportunity management is owned by the projects function. Projects reports into
operations.
They look after the Main Contract and on average 200 subcontracts per project. The Procurement
function take the subcontracts up to the point of award and then the Contracts function manage
all the contracts from that point.
Typically have 5 –10 active projects running at any time so that means they are managing more
than 1000 individual sub-contracts at any time.
Use Oracle to manage client invoicing but with no quantities –the quantities are managed in
Excel.
Subcontracts are NOT managed in Oracle but in some other Citrix based system. Make payments
in Oracle AP while Quantities are managed in Excel.
Variations are managed in Excel –typically 200 client variations per project.
There is a desire to have a fully integrated solution –one stop shop
KPIs are currently very basic –may be able to improve.
The QHSE team are responsible for measuring Sub Contract performance.
Aconex is used for sub contract collaboration (documents, submittals, drawings …) and is used
on most contracts so integration to Aconex may be beneficial. Also used for submitting
subcontract applications for payment /claims but does not include quantities.
7.2.5 Health & Safety
Have 63 people in this department –mostly site based as they are allocated to projects
Currently trialling specialist HSE solution called BEN. May roll it out if successful.

Mobile driven solution user friendly solution (simplicity and ease of use are critical.) May have
to have Arabic version to work in Egypt.
There are legal requirements on how many safety people they have to assign to a project based
on project characteristics such as number of buildings, height etc. So efficiency gains are not
going to have a major cost impact.
Carry out Project level HSE Inspections once per month.
Need to collect photos etc. Need to manage risk assessments, method statements, NCRs, incident
recording and analysis, inspections…
Also manage a risk and opportunity register for safety issues only not commercial risk –done in
Excel.
Project Resource planning may be something that could be useful –for example, what are the
requirements for high probability bid projects added to the current load.
7.2.6 Technical
Have 52 people very focussed around BIM and CDE management to support the construction
and handover process.
Main software tools in use are Autodesk REVIT (BIM models), BIM360 (CDE tool) for
managing 3D models, Autocad, Navisworks, Oracle Aconex as EDMS for documents and Excel
for project deliverable tracking/progress and time recording. Used to use TEKLA but dropped.
Manage 1000s of deliverables per project in a master register called MIDP (Master Information
Delivery Plan). They would like this to be integrated with the Project WBS and Primavera.
Project Activities, Tasks and Document Packages could be good solution.
The MIDP is constantly changing through all stages of the project.
The structure of the MIDP needs to be flexible to be changed based on the clients project
requirements. (e.g. Document numbering)
The deliverables are mainly documents (e.g shop drawings, RFIs, Doc Submittals) that in most
cases will have to be published to the client , sub contractor, consultant etc using Aconex.
There is a need be able track the status and progress of the deliverables. There may also be some
benefits from integrating with Aconex and/or BIM 360. The status coding will change from
project to project (e.g. one project may use A, B, C another some other coding)

They record time against the work but probably not at individual deliverable level so would
probably book time at a higher grouping level.
Time is booked into Excel and then an administrator uses this data to create cost transactions into
Oracle finance.
Also measuring site progress and updating the BIM model with the status would be interesting.
7.2.7 Project cost control
There are 7 people in this function. Each person is responsible for 2-3 projects.
They do everything is Excel which is very time consuming and has the risk of being inaccurate
and difficult to validate.
They are responsible for creating the project budget after the contract is awarded. It can take 6
weeks from that point to create the baseline budget. Seems a long time. The project budget is
made up of direct and indirect costs. Examples of indirect costs are prelims, temporary offices
etc. Direct costs would be for example labour costs where labour rates can be applied to the
budgeted man hours.
The Estimating dept provide a rough budgetary number but the ability to transfer the final
estimate into a budget in a more integrated way is a big opportunity. This is also one of the
Estimating functions goals to be able to measure estimate accuracy and learn lessons –today this
is not possible. AG use the 16 Division CSI structure to build up the budget and also for the
monthly cost report. This structure is not used in the Primavera WBS or in the Oracle GL so the
process is not integrated and consistent which results in a lot of manual translating of numbers
(e.g. actual costs) to try to reconcile the numbers.
The big benefit is having one version of truth. GL and Project Cost Report have the same actual
with no reconciliation required.
The Monthly Cost Report takes until the 20th day after the month end to produce so it is always
way out of date. The desire is to have it available on day 5 after month end or earlier. In addition
to the month end report there is no real time project cost information.
Project Management & Planning
Planning Use Primavera as main tool.
Also use Synchro sometimes for 4D BIM scheduling and simulations etc.

Also use Excel and Powerpoint to present dashboards.
Client usually wants things to be reported based on their specific requirements and formats.
Typically report on how project is performing against the project baseline.
They use resources in primavera to generate labour plans.
They have invested a lot of time building standards (e.g. WBS) –but clients often want things
done to their preferred standard.
They use Primavera to do project cash planning –an unusual place to manage project cash
planning -this is only for revenue –not cost.
They take high level key material quantities into P6 (e.g. Concrete, Steel, Drywalling -use this to
generate some high level KPIs.
Are interested in the adoption of digital technologies such as BIM, 4D scheduling, VR, AR and
have experience in these topics already. Also want to explore how they could use technology to
help with the recording of site progress using technologies such as 360 cameras.
8 Findings’ discussion& Roadmap
8.1 Findings Discussions
Based on the above analysis, AG’s departments are working in silos without clear unified
organisationstrategy or vision with many different platforms and software being used across all
departments. Moreover, there is a huge potential for AG to differentiate themselves in the market
by adapting investing in new technologies. These findings are not unique to only AG and not
only to the construction industry but to many other organisations and other industries
Therefore, the digital transformation roadmap will be structured as below:
 Defining the vision
 Focusing on People
 Strategy formulation
 Implementation

8.2 Roadmap
8.2.1 The Vision
It is very important to setup a company vision that defines the organisation’s purpose,
worldview, Ambitions and Culture. (figure XX)shows a sample of vision for a construction
company for 2022 and onwards. This vision needs to be agreed with the complete C level
management and continuously communicated with the employees.
8.2.2 People
The working environment in construction is typically extremely stressful and convincing
employees to take part of digital transformation initiates is extremely challenging. Therefore, it is
important to encourage communication and include employees in the decision making. The
below figure XX provides an overall strategy on how to excite employees and include them in
decision making. This is conducted by:
 Future proof people with life-long learning.
 Develop an Employee Experience mirrors best customer experience.
 Foster Risk Friendly and Empowered people.
 Hack Management and Rewire organisation for agility.
 Breakdown Silos

 Install the right governance and right rewards.
Furthermore, 42% of AG employees are below 35 years old which is a typical case for any
organisation. This means that these employees are typically up to date with technologies or
flexible to accept new technologies and contribute to the development of new ideas which is a
huge opportunity for any organisation.
8.2.3 Strategy
The Digital transformation strategy for a construction company shall be broken down into 2
parts:
1. Future proofing
2. Current business optimisation

8.2.4 Future Proofing
The focus of future proofing strategy is to research and investigate the feasibility of new
technologies in construction. This is a very important step for the construction company’s overall
digital transformation strategy to:
1- Enhance its reputation in the market as an innovating organisation.
2- Avoid being redundant in the market.
3- Enhance its processes and increase efficiency.
There are 4 technologies that should be investigated that have potential to be useful in
construction: AR, Robotics, RPA & Data science. Therefore, at the future proofing part of the
strategy, the following processes will take place:
1- Setup Innovation Workshops (Discovery Stage): as mentioned in the people section, it is
important to encourage communication and include employees in the decision making,
Therefore, innovation workshops will be created with representatives from all
departments to discuss ideas and innovations.
2- Analyse the Business benefit of these initiatives (Define Stage): lean innovation business
canvas will be created to analyse these ideas, investigate its benefits and define resources.
3- Start the development with filling the Thinking-Making Canvas.

4- Create sub-teams (Develop Stage): teams will be created from the Innovation workshops.
Each team will be in charge of the research and development of a proposed idea. Teams
will meet quarterly to discuss their progress and their findings.
5- Agree on Objectives and key results (OKRs): Objectives and key results ( O K R s ) i s a
goal-setting framework deployed by Google in 1999. Started in the 1970s, technology
leaders of Intel and Oracle developed the new model based on traditional management
and goal -setting approaches such as MBOs (Management by Objectives) and SMART
Objectives . Around 20 years later John Doerr, i n t roduced OKRs to Googlewhereby the
methodology gained popularity. OKRs enable managers and employees to define, track
and measure goals in conformance with their organisation’s overall vision. Firstly, OKRs
are defined from top-down so that team and individual goals can be aligned with
company objectives. However, individual and team results, ideas and feedback may then
influence the company’s OKRs reactively from bottom up. Thus, the methodology makes
goals transparent and visible within the entire company which stimulates alignment,
cross-functional collaboration and gets organisations into a strategic flow.

The structure of OKR shall be following the definitions below:
8.2.5 Current business optimization
8.2.5.1 ERP
As demonstrated in the value chain analysis, AG had no unified digital strategy governing all
departments,for example, Oracle has been used in some departments; however, it is missing
many of the crucial features and packages. As stated earlier, it is a common problem for many

organisations and need to be resolved. Therefore, an ERP system is crucial to connect all
departments and maximise potential benefit of the system. The ERP system will act as the
repository of all information that can be used by the departments for analysis and decision
making.
There are many available ERP systems in the market. Therefore, the selection of the appropriate
system shall go through the following steps:
 Conduct a GAP analysis.
 These systems shall be demoed to test their application against the targets in the GAP
analysis and their prices.
 Then based on the GAP analysis, a proposed ERP system will be introduced to top
management with a business case.
 Then a pilot project will be setup to test the proposed system.
Finally a roadmap for the whole ERP implementation for all departments shall be created with
OKRs. A Typical ERP complete implementation would take between 3 to 5 years.
8.2.5.2 RPA
Another technology that would be a huge benefit for any business is RPA. Robotic Process
Automation (RPA) uses AI to mimic human interaction with a PC. It is typically used to
automate many of the manual and repetitive tasks across all departments. This technology has
the potential to have a huge return of investment for all departments.
The RPA implementation will go through the following process:
1- Create an Automation team.
2- Setup meeting with different departments and the automation team to understand the
tasks and evaluate which ones that can be automated (Discovery stage).
3- Register all these tasks in a comprehensive list that includes:
a. The manual task duration.
b. How often it is done.
c. How long it will take to develop the automation.
d. The creation of automation task completion status percentage.

4- Start developing automation scripts.
5- Conduct QA/QC process before releasing the automation script.
6- Listen to the feedback from users.
7- Develop KPI dashboard based on the number of hours saved. The KPIs identified for the
implementation of RPA are:
a. Average time to develop an automation script.
b. Number of times a script has been run.
c. The duration of the script run.
d. Number of manual hours saved for each task.
9 Conclusion
Although the construction industry has been known to be resistant to change and innovate, the
resent development of the different technologies and governments’ push for smart solutions and
digital transformation have encouraged many construction companies to go through digital
transformation in resent years to cut costs and increase efficiency. However, it is required to
have a clear vision, methodology and strategy on how to transform the business as without it
could lead to a huge waste of time and energy with no real benefit.

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APPENDIX
QUESTIONNAIRE
Q1) Do you have knowledge that construction industry in UAE is moving towards adopting
digital technologies?
a) Yes
b) No
Q2) According to your learnt knowledge in the construction industry, how do digital
technologies help construction industry in UAE?
a) For scheduling activities and processes
b) For detecting errors and mistakes
c) For attaining competitive edge
d) For designing models
e) For achieving objectives in faster manner
Q3) According to your opinion, do you think that digital technologies have become essential
part within construction industry in UAE?
a) Yes
b) No
Q4) As per your experience, what are the current available digital technologies for construction
industry in UAE?
a) Machine Learning and artificial intelligence
b) Augmented reality and virtual reality
c) Next-Gen Analytics
d) Software Solutions
Q5) According to your view, what are the benefits of current digital technologies in
construction industry?
a) Higher productivity at lower cost
b) Better safety at sites of construction
c) Increased clarity
d) Improved collaboration for efficient construction
Q6) As per your view, do you think that digital skills are impacting the construction industry?

a) Yes
b) No
Q7) As per the modern time, what are the digital skills that have great impact on the
construction industry in UAE?
a) Building Information Modelling
b) Virtual reality
c) 3D printing
d) Mobile technology
Q8) As per your experience, do you think that building information modelling help in
eliminating hassle and confusion from operations within construction industry of UAE?
a) Yes
b) No
Q9) With the gained knowledge by your working, what is the major benefit of virtual reality
that could be experienced by construction industry of UAE?
a) Reducing on-site visits
b) Improving customer experience
c) Upgrading collaboration
d) Improving quality control and accessibility
Q10) According to you, what are the major benefits of 3D printing within construction
industry?
a) Reducing injury
b) Quicker construction
c) Better durability
d) Cheaper construction
Q11) Do you think that digital technologies are assisting in improving construction site safety?
a) Yes
b) No
Q12) If your answer is yes for the above mentioned question then how does technology help in
improving construction site safety?
a) Developing site sensors
b) Monitoring things like temperature

c) Controlling dust particulates
c) Helping to limit exposure to workers
Q13) According to your experience, what are the challenges faced by construction industry
while implementing digital transformation strategies?
a) Lack of standardisation of work
b) Increased time pressure
c) Lack of trained and sufficient worker
d) Lack of cooperation from the different stakeholders
Q14) Do you think that time element plays significant role in construction industry for the
implementation of digital transformation strategies?
a) Yes
b) No
Q15) As per your opinion, do you think that employees of different construction organisations
have proper awareness about digital technologies?
a) Yes
b) No
Q16) If you get chance then what are the suggestions that you would give to construction
industry in UAE to improve the knowledge of workers regarding digital technologies?
a) Proselytising digital literacy and why it is valuable to everyone
b) Providing digital learning and on the job training sessions
c) Assessing digital literacy level in the workplace
d) Evaluating outcomes by sessions of training
Q17) According to you, if construction industry adopts digital learning then what is the major
benefit that could be experienced by them?
a) Saving time and efforts
b) Quick learning
c) Anywhere and anytime learning
d) Effective and efficient outcomes
Q18) As per your view, do you think that on the job training sessions are better than digital
learning in improving the knowledge of workers regarding digital technologies?
a) Yes

b) No
Q19) As per your opinion, do you think that assessing level of digital literacy among employees
in the construction industry is crucial?
a) Yes
b) No
Q20) Do you think that making employees understand about the value of digital technologies
help to improve the knowledge among workers?
a) Yes
b) No
Q21) Do you think that anticipated outcomes could be achieved by construction industry
through sessions of training?
a) Yes
b) No
Q22) According to your knowledge, what are the different benefits of building information
modelling in the construction industry of UAE?
a) Shorter project life cycles
b) More opportunities for modular construction
c) Improved coordination and communication
d) Resource and cost savings
Q23) Does construction industry help UAE in improving its economic growth and
development?
a) Yes
b) No
Q24) From your gained information about digital transformation in construction industry, do
you think that this industry will be fully dependent upon different digital technologies in future?
a) Yes
b) No
Q25) If your answer is yes for the above asked question then would you support digital
transformation within construction industry in UAE?
a) Yes
b) No

Frequency Distribution Table
Q1) Do you have knowledge that construction industry in UAE is
moving towards adopting digital technologies?
Frequency
a) Yes 25
b) No 5
Q2) According to your learnt knowledge in the construction industry,
how do digital technologies help construction industry in UAE?
Frequency
a) For scheduling activities and processes 10
b) For detecting errors and mistakes 6
c) For attaining competitive edge 4
d) For designing models 7
e) For achieving objectives in faster manner 3
Q3) According to your opinion, do you think that digital technologies
have become essential part within construction industry in UAE?
Frequency
a) Yes 22
b) No 8
Q4) As per your experience, what are the current available digital
technologies for construction industry in UAE?
Frequency
a) Machine Learning and artificial intelligence 9
b) Augmented reality and virtual reality 7
c) Next-Gen Analytics 8
d) Software Solutions 6
Q5) According to your view, what are the benefits of current digital
technologies in construction industry?
Frequency
a) Higher productivity at lower cost 6

b) Better safety at sites of construction 9
c) Increased clarity 7
d) Improved collaboration for efficient construction 8
Q6) As per your view, do you think that digital skills are impacting
the construction industry?
Frequency
a) Yes 22
b) No 8
Q7) As per the modern time, what are the digital skills that have great
impact on the construction industry in UAE?
Frequency
a) Building Information Modelling 5
b) Virtual reality 7
c) 3D printing 8
d) Mobile technology 10
Q8) As per your experience, do you think that building information
modelling help in eliminating hassle and confusion from operations
within construction industry of UAE?
Frequency
a) Yes 27
b) No 3
Q9) With the gained knowledge by your working, what is the major
benefit of virtual reality that could be experienced by construction
industry of UAE?
Frequency
a) Reducing on-site visits 9
b) Improving customer experience 6
c) Upgrading collaboration 8
d) Improving quality control and accessibility 7
Q10) According to you, what are the major benefits of 3D printing Frequency

within construction industry?
a) Reducing injury 5
b) Quicker construction 7
c) Better durability 10
d) Cheaper construction 8
Q11) Do you think that digital technologies are assisting in improving
construction site safety?
Frequency
a) Yes 26
b) No 4
Q12) If your answer is yes for the above mentioned question then
how does technology help in improving construction site safety?
Frequency
a) Developing site sensors 6
b) Monitoring things like temperature 8
c) Controlling dust particulates 10
c) Helping to limit exposure to workers 6
Q13) According to your experience, what are the challenges faced by
construction industry while implementing digital transformation
strategies?
Frequency
a) Lack of standardisation of work 10
b) Increased time pressure 7
c) Lack of trained and sufficient worker 8
d) Lack of cooperation from the different stakeholders 5
Q14) Do you think that time element plays significant role in
construction industry for the implementation of digital transformation
strategies?
Frequency
a) Yes 26

b) No 4
Q15) As per your opinion, do you think that employees of different
construction organisations have proper awareness about digital
technologies?
Frequency
a) Yes 20
b) No 10
Q16) If you get chance then what are the suggestions that you would
give to construction industry in UAE to improve the knowledge of
workers regarding digital technologies?
Frequency
a) Proselytising digital literacy and why it is valuable to everyone 7
b) Providing digital learning and on the job training sessions 6
c) Assessing digital literacy level in the workplace 9
d) Evaluating outcomes by sessions of training 8
Q17) According to you, if construction industry adopts digital
learning then what is the major benefit that could be experienced by
them?
Frequency
a) Saving time and efforts 8
b) Quick learning 5
c) Anywhere and anytime learning 9
d) Effective and efficient outcomes 8
Q18) As per your view, do you think that on the job training sessions
are better than digital learning in improving the knowledge of
workers regarding digital technologies?
Frequency
a) Yes 25
b) No 5

Q19) As per your opinion, do you think that assessing level of digital
literacy among employees in the construction industry is crucial?
Frequency
a) Yes 28
b) No 2
Q20) Do you think that making employees understand about the
value of digital technologies help to improve the knowledge among
workers?
Frequency
a) Yes 25
b) No 5
Q21) Do you think that anticipated outcomes could be achieved by
construction industry through sessions of training?
Frequency
a) Yes 22
b) No 8
Q22) According to your knowledge, what are the different benefits of
building information modelling in the construction industry of UAE?
Frequency
a) Shorter project life cycles 7
b) More opportunities for modular construction 6
c) Improved coordination and communication 10
d) Resource and cost savings 7
Q23) Does construction industry help UAE in improving its
economic growth and development?
Frequency
a) Yes 27
b) No 3
Q24) From your gained information about digital transformation in
construction industry, do you think that this industry will be fully
dependent upon different digital technologies in future?
Frequency

a) Yes 25
b) No 5
Q25) If your answer is yes for the above asked question then would
you support digital transformation within construction industry in
UAE?
Frequency
a) Yes 20
b) No 10