Four tech trends that are reshaping the construction industry

Four Tech Trends
That are Reshaping the
Construction Industry

Getting strategic about
information technology.
When considering new ways to generate revenue for your
construction business, you might not immediately think to explore
information technology (IT). For most executives, IT has long
conjured up visions of expense and loosely tracked ROI.
However, technology is evolving. Today’s solutions are capable
of working side-by-side with traditional software applications to
provide a significant competitive edge—with minimal risk and
disruption. This includes solutions for the jobsite that provide
greater mobility and visibility.
Where to begin?
Considering the pace of technological change, it can be difficult
to separate hype from real value. And even more difficult to
cut through the techno jargon. It’s easy to see why many
executives and business leaders throw their hands up in the air in
exasperation.
The good news is, you likely do not need to get into the weeds of
how technology works. It is, however, critical to familiarize yourself
with the essential role today’s emerging technologies play and how
they can drive competitive advantage for your company.
This interactive guide provides a basic introduction to the
most talked about new technologies that are reshaping the
construction industry:
Cloud
Cloud computing makes software and other technologies
available over the Internet as services.
Mobility
The rise in mobile devices is creating a flexible workplace,
enabling people to do their jobs anytime, anywhere.
Big Data
Emerging tools empower businesses to capture, store, and
analyze massive amounts of data from various sources.
Social
Social tools aren’t just for connecting with old high school
pals—new social apps and websites can improve workplace
collaboration, knowledge, and communication.
By understanding why these technologies are becoming
mainstream, how to think strategically about them, and where
they can be applied to your business, you can help turn your
IT efforts from a cost center into a revenue generator.

What business issues are you looking to solve?
Replacing our current software
would be a massive headache—
but we do need some added
capabilities.
Learn more about the Cloud
I’d like to benchmark
our performance against
others in our field.
Learn more about Big Data
I need a better way to stay on
top of current construction best
practices, trends and news.
Learn more about Social
The office and the jobsites aren’t
always working with the same,
most current project information.
Learn more about Mobility
It’s difficult to locate the project
information in a timely fashion.
I recognize the need for new
technology but don’t have
time to install a new system.
For all its faults, email is still our
best way to share project details.
Learn more about Social
There’s too much information
and no way to filter and find
what matters most.
Learn more about Big Data
Jobsite leaders are making
decisions on gut instinct
rather than hard facts.
I have to rely on others to send
me project and business details.
I need to easily pinpoint the value out of IT instead
of just blindly pumping more money into it.

The cloud from 40,000 feet.
It’s commonly believed the term “cloud computing” originates from technical diagrams,
which typically use cloud illustrations to represent networks, particularly the Internet. In the
simplest terms, the cloud delivers computer resources to businesses over the web.
The business case for cloud computing:
Faster deployment
Applications can be available to teams much more quickly—in hours versus weeks and
months required for traditional software implementations. This is especially useful if you
need to quickly set up computer resources for new projects.
Scalability
The cloud enables businesses to have the flexibility to provide more users with access to
project information at generally a more affordable per user cost than traditional systems.
You may even be able to increase or decrease specific user costs dependent on the
project volume you currently carry.
Flexible access
Access to cloud applications and services is typically available anytime, anywhere, on any
web-enabled device—improving job site productivity and enabling quicker response to
business demands.
Simpler administration
The cloud can effectively outsource your IT to specialists, who handle all the system
maintenance and updates.
Cost predictability
With the cloud, you can reduce capital expenditures in hardware, software, and even
physical space . . . and pay for technology on a predictable, pay-as-you-go basis.

Construction work
that works in the cloud.
Hypothetically speaking, you could run any type of work process or application in the
cloud. Even regulated and sensitive information can live in the cloud. However, despite its
momentum, construction executives should avoid thinking of cloud computing as a panacea
for every technology woe.
There are certain aspects of a construction business that are likely to be more logical
choices to consider moving to the cloud initially. For many businesses, software
applications that improve field productivity and collaboration are good starting points
because they deliver the most immediate value, with little impact on IT infrastructure..
Hybrid cloud can be a “best of both worlds” option.
The cloud does not have to be an all-or-nothing proposition. In fact, a recent Forrester Group
survey suggests two-thirds of planned cloud implementations will complement, not replace,
existing on-premises implementations.
By following this hybrid cloud computing approach, contractors can maintain certain
technologies physically “on-premises” (financial solutions, for example) while moving
operational and job site processes (field time tracking, for example) to the cloud. This reduces
disruption to the business.
Job Ready Tip:
To determine where to
start with cloud IT, first
identify low-hanging fruit
within your organization:
• Which staff and tasks will
be most receptive to a
technology shift?
• What changes will cause
the least disruption?
• Where will you see the
largest benefit in time and
money savings?

Consider these quick-win candidates for cloud deployment.
One of the most advantageous aspects of cloud computing for construction firms is its ability to connect the field with the office. It can provide
better insight to the jobsite, enable the transfer of more timely and accurate field-to-office information, and empower managers with the
information they need to keep projects on track. Some key quick-win candidates for the cloud, include:
Project Documents,
Drawings, and Photos
Reporting and
Analytics
Employee Time
Capture and Approval
Creating a centralized hub for your
project files in the cloud provides
all the key players (employees,
subcontractors, and clients) the
ability to share and retrieve the
latest project documentation as
they plan and act to keep the
project moving forward.
Business and project leaders
shouldn’t have to rely on others to
email them reports. Cloud solutions
can automatically extract the latest
data from accounting and project
management solutions, providing
you access to the information you
need anytime, anywhere.
Project profitability hinges on your
labor. That’s why it makes sense
to capture and approve employee
time worked on the jobsite where
it happens—using cloud and
mobile solutions instead of paper
timecards or emails to more quickly
get to the labor reporting visibility
you need to ensure you are the
most profitable.

Why mobility matters.
Many of the decisions and much of the work conducted in construction is performed outside
of the office—on the job sites, at client offices, at property locations, and in your home.
Mobile technologies provide convenience, improve collaboration, and keep projects moving.
It’s little wonder why 93% of construction contractors have used some sort of mobile device
on their jobsites.*.
Cloud and mobility are blood brothers.
Cloud is the method for deploying technology and information on the Internet; mobility is a
means to access it. Cloud-based mobile apps enable construction professionals to execute a
growing range of tasks anytime, anywhere. These include:
• Accessing job cost and other project reports.
• Sharing drawings, photos, and other project documents.
• Reporting and approving employee hours worked in the field.
• Submitting daily field reports.
• Processing service work orders.
• Completing punch lists.
• Tracking equipment and inventory.
• Accepting materials at the job site.
• Scheduling.
*Engineering News Record, August 2012 construction survey
32%
32% of construction companies are
currently seeking work outside their
geographic region, further increasing
the need for mobile solutions.
Source:
Sage 2013 Construction Industry
Technology Trends survey

Security for a mobile workplace.
Smartphones and tablets provide convenience like never before. However, it’s essential to
understand mobile devices that end up in the wrong hands could give anytime, anywhere
access to mission-critical information and sensitive financial data. If you haven’t already done
so, now is a good idea to implement a strategy to guard against misuse.
Among the first considerations for a mobile security policy is device ownership. Will your company
buy devices for all personnel? Will you enable workers to bring their own devices (BYOD)? Or do a
combination thereof? Today 47% of construction firms allow employees to use their own devices
for work purposes—enjoying the benefits of mobility at less cost to the firm.*
To mitigate risk, especially in a BYOD environment, construction firms should take six steps:
1. Set some immediate ground rules. For starters, consider applying existing security policies
to mobile devices (such as password length). Share your intention to publish a more formal
policy at a later date.
2. Involve your employees. People are passionate about their devices. If you don’t fully understand
how they use their gadgets and implement policies that are too restrictive, they will rebel.
3. Create a list of approved technologies. Consider creating a directory or list of acceptable devices
and apps. This will ensure employees only use technology and apps from trusted providers.
4. Develop a security plan. Take into consideration important practices such as data wiping,
password standards, and employee access levels.
5. Publish a policy. Establish appropriate security controls, clearly explain the expectations
to employees, define company rights, outline expense reimbursement, and communicate
what technical support the company will provide.
6. Enforce security policies. Like any guidelines, without enforcement, employees will view
your mobile security policy as optional (especially in a BYOD environment). Consider
mobile device management tools to simplify enforcement (see next page).
*Sage 2013 Construction Industry Technology Trends survey
Learn more about the risks and
rewards of BYOD.
Access our related white
paper about BYOD policies for
construction firms.
Download the White Paper

How to enforce mobile security.
Mobile device management software (MDM) enables companies to enforce security policies
and defend against malicious and inadvertent incidents—whether devices are company-
owned or employee-owned. These solutions are especially useful in BYOD environments
because they enable you to easily separate and appropriately secure corporate information
from employee information.
As with any software, you have some options. You can either purchase an MDM solution as
on-premises software or subscribe to a MDM cloud solution. At a minimum, MDM software
should help you:
• Secure corporate information. This includes enforcing password usage, remotely locking or
deleting data when a device is lost or stolen, encrypting data, and preventing proprietary
information from being sent in specified ways, such as email.
• Manage devices. This includes remotely configuring and updating devices and fixing
common user problems.
• Manage applications. This includes the ability to accept and reject applications,
company-specific app stores, and data wipes by application when an employee changes
roles, for example.
The costs of cloud MDM solutions vary widely but expect $2–$10 per device per month.
That’s not petty cash if you have a large base of employees. However, to the extent that
mobility pays off in increased productivity—mobile device management tools can help avoid
security breakdowns and are worth the investment.
Source:
http://www.informationweek.com/mobility/business/byod-requires-mobile-device-manaement/229402912
Job Ready Tip:
Some MDM vendors
offer telephone expense
management capabilities,
which alert company
administrators when voice
and data charges go over
set limits.

Big data. Big potential.
You may have heard the term big data tossed around. But what is it?
In a nutshell, it refers to sets of data that are too massive for traditional software solutions
to capture and manage in a reasonable amount of time. When describing big data, most
sources cite three main challenges that must be overcome:
1. Volume—Refers to the enormous amount of data generated and collected by
organizations.
2. Variety—Describes the different types of data that is collected: text, audio, video,
web logs, and more.
3. Velocity—Illustrates the speed at which the data must be analyzed.
With these challenges in mind, the key to big data is to be able to bring together large
amounts of data from multiple sources. Then it’s important to extract the relevant
information, make correlations between data types, and visualize the data and the
resulting information so trends can be spotted and decisions made.
Businesses that are able to do so can gain a significant competitive edge from the
resulting analytics.
The cumulative data and content
stored worldwide will grow 44 times
during this decade.
Source:
IMEX Research, 2011 Big Data Industry Report
44x

Big data and the construction industry.
For the construction industry, big data is no small potatoes. Companies are capturing data
with greater granularity, including vendor transactions, field reports, change orders, and client
interactions. Plus the use of Building Information Modeling (BIM) is expected to increase
through all phases of the building lifecycle (planning, design, construction, and management),
greatly increasing the amount and variety of digital building information available.
Although some forward-thinking construction firms are already using big data to gain a competitive
edge, the majority of construction firms continue to lean on historical or trailing indicators..
Dip your toes in the big data pool.
Capitalizing on the benefits of big data doesn’t necessarily require investments in new tools.
Benchmarking is one simple example of how construction companies can start putting big
data’s principles to work right away.
By opting into a benchmarking pool, you can determine how your company compares to others
in a variety of areas such as backlog, return on equity, and profit margin. There are a variety
of construction benchmarking services that you can tap into today, including CFMA and CII.
In the future, opt-in collection and sharing of the data will likely happen in the course of
normal business when you and other companies use your business applications. All data will
be aggregated to protect company proprietary information.
As big data becomes more mainstream, there’s little question that it will provide construction
firms with insight for decision support—provided companies are able to ask the right questions,
maintain the right data sources, and use the right statistical tools to interpret the answers.

Get social to improve collaboration.
The overriding tendency among construction business leaders is to consider social tools
in the context of marketing and customer service. Although it’s true that sites like Twitter,
Facebook, LinkedIn, and Google+ are useful for encouraging conversation with customers
and gathering feedback, the applications for social tools are much broader.
In fact, according to a recent study by the McKinsey Global Institute, “twice as much value
lies in using social tools to enhance communication, knowledge sharing, and collaboration
within and across enterprises.” The company goes on to estimate that by fully implementing
social technology solutions, companies can raise the productivity of managers and
professionals by 20–25%..
Sharing knowledge.
For construction firms, the majority of this value resides in improving knowledge sharing and
communication across project teams. A properly implemented social tool that receives full buy-
in from the workforce can help teams stay informed minute by minute on the progress of tasks
and shared activities. Rather than static emails, full conversations can be stored in the cloud
and picked up again at any time..
Keeping informed.
Reading and participating in construction blogs and social sites will also keep you and your
team up-to-date on the latest best practices and help you explore and solve issues—from job
site productivity to risk management.
Source: McKinsey Global Institute
Time-consuming tasks
Time-saving tasks
28%
19%
25%
25%
Potential increase in productivity
through use of collaborative
social tools.
19%
Percent of the workweek the average
worker spends looking for internal
information.
28%
Percent of the workweek the average
worker spends managing email.

Next steps?
Emerging technologies including cloud, mobility, big data, and social have already begun to
reshape the construction industry. By taking a low-risk, high-return approach that involves
deploying these technologies where they make the biggest immediate impact in your
construction organization, they can become and drive a competitive edge.
Still having trouble wrapping your head around these trends and their various applications to
your business?
Visit the Job Ready site for blog postings and additional resources on these trends.
Or contact Sage at 800-628-6583 to speak with a business advisor about how
cloud-based mobile technology can be applied to your company..
About Sage
With more than 40 years of industry experience, Sage keeps projects moving with the most
job-ready and people-connected solutions for construction and real estate. Our 40,000
customers manage more than 400,000 jobs, 5.7 million subcontracts, and 622,000 rental
units each year with Sage products.
©2013 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or
trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are property of their respective owners.

Four tech trends that are reshaping the construction industry

Recommended

Recommended

More Related Content

More from Sage Construction and Real Estate

More from Sage Construction and Real Estate (9)

Recently uploaded

Recently uploaded (20)

Four tech trends that are reshaping the construction industry