The last two years have been very challenging for the construction industry the world over. The global downturn and recession took its toll on this industry, too. In such trying times, innovation and differentiation are the keys to survival, and adding that extra value for consumers could be the way out of this gloom for many developers. Can technology, specifically mobile technology, play that role?
As for other industries, timely access to information is critical for the success of the construction industry. How can developing the links between technologies, materials, people and processes in the construction industry help companies to cut costs, increase revenues, bring innovation and enhance shareholder value? How can new technologies such as automated mobile access provide an impetus to innovation in this industry? How can automated mobile monitoring of construction workers and sites help in reducing costs and improving innovation? These are questions that the industry must explore as soon as possible.
Construction companies know that if they have to survive and thrive in this dynamic and uncertain environment, they need to have access to relevant information at the point of need and decision-making. It is now a proven fact that IT and technology can be a real source of differentiation even in the construction industry. Seamless connectivity between construction sites and information databases and unified access to such systems can provide real-time information and data for speedier decisions. All of these functions can be supported by leading-edge technologies, foolproof processes and high-end networking solutions.
Importance of Mobile Technology Mobile data services for construction companies are currently based around email and attachments—a practical reality for many professional users. As mobile data for construction companies enters a new phase, with the arrival of high-end devices and secured data access through mobile networks, operators are once again thinking about how best to provide mobile data services to their enterprise customers. Telcos are ready to bridge this gap by filling the role of mobile network operators and systems integrators (including software developers) by showcasing seamless mobile data applications that organisations need.
Some of the key challenges for construction companies today include:
How can investment in mobile data be justified?
What are the market drivers for enterprise mobile data services?
What is the effective role of the mobile network operators in delivering these services?
What pricing strategies will be most effective?
Which applications are likely to reach a mass market?
Let us look at the top IT and mobile-related technologies which are changing the landscape of the construction industry worldwide:
Mobile Technology for ERP: Most large construction companies have implemented Enterprise Resource Planning (ERP) systems to link various databases and systems that manage material, resources, people, logistics, finance, accounting, etc. However, it is always a challenge to access vital information in these ERPs at the point of need—for example, the construction site. However, the next step for those companies which have implemented ERPs would be to provide access to these applications on mobiles and handhelds. This will speed up decision-making and make the investments more productive. Some examples of applications which can be mobile-enabled are:
Mobile Service Force Management: Helps the service management force to deliver on their Service Level Agreements (SLA) by automating the service management cycle—service request dispatching, service request assignment, service delivery and service-related invoicing. This will enable service empowerment, service execution, service intelligence, service analysis and reporting.
Inventory and Order Management: Provides stock keepers with a real-time view of their existing stock positions, their ability to receive and issue goods in an integrated fashion, the ability to transfer stocks between locations and more. This will have implications on inventory management, stock transfers and warehouse management.
Procurement Management: This is the ideal tool for procurement staff as it provides visibility into the availability of raw materials, work-in-progress and finished goods. The solution is intelligent enough to provide purchase order triggers depending on preconfigured stock levels, enabling economic order quantity, purchase triggers, supplier order integration, approvals and analytics.
Mobile Technology for Customer Relationship Management: Similar to ERP, many construction companies, especially those in the housing industry, have deployed expensive CRM customer management systems. Again, it makes a lot of sense to provide mobile access to this information to the field force. An example of this is:
Mobile Sales Force Automation: This helps the sales force stay on top of both sales empowerment—in terms of having all critical information required to close a deal—and sales execution—in terms of being able to automate the execution process (order-to-cash cycle). This will enable service empowerment, service execution, service intelligence, service analysis and reporting.
Mobile Technology for Access Control: While access control into buildings has been popular for some time, security has acquired a more important significance in recent times. Once the building is complete, a whole set of technologies are available—access cards, biometric access systems, optical access control, etc. One new practice has been giving access to site staff much before building is complete. This can be well managed by using mobile technology. This technology is being used in developed countries. In one system, a database is created for contact information of all site staff.
This database is managed by a site administrator. At the time of reaching a construction site, the person dials a specific number using the registered mobile number. The database system checks if the card number is in the records of the database and validates the same, checking if the caller number identification matches with the database or not. After this validation, access is either allowed or denied. This database is easy to manage as the same can be done by an administrator using the internet. This system can also be used to manage access timing or number of visits in a given period of time. When a security breach takes place, the system will automatically report the incident via SMS, email or alarm. This can be used in various other places such as car parks, garages, temporary buildings, depots, etc.
Technology for Personnel Monitoring: Management of site workforce and personnel is another area where mobile technology can offer speed in decision-making. Such a system will accurately record the online warm body count of the deployed workforce and hence control actual costs in an effective manner. This becomes more important in a country like India, where the construction industry is still very labour-intensive. This system can also forecast the skill types required in a typical project plan so that work does not suffer for want of skilled abour at a particular time.
Such systems will be connected to the ERP and HR systems and information uploaded from the sites using mobile technology to update the records online in real time. In many cases such systems save over 50 per cent of administration time, increase compliance by over 30 per cent and achieve reduction of the insurance premium, which is also an important point to consider.
Opportunities for improvement exist in areas such as tracking the deployed workforce and attendance, recording hours of labour, training records, etc. Here, the deployment of mobile technology can offer help, right from the time of capturing the information using the handhelds.
Technology for a Mobile Building Management Information System: Much information such as building information and layers of metadata currently resides on paper. This is used during each phase of construction. Often, this information takes time to reach the site crew. Mobile building management information systems can ensure that information such as searchable three-dimensional models of physical structure offer a single, comprehensive resource for owners, contractors, subcontractors and tenants.
The traditional brick and mortar companies that exist in the construction industry see mobile technology and IT as both a threat and an opportunity. While the opportunity comes from the chance to embrace technology and innovate ahead of others, the threat is from competitors espousing these technologies much faster. In order to maintain a competitive edge, industry players need to be innovators and visionaries.
The author is a senior industry leader and management professional in IT and Telecom. He can be reached at lv.sastry@airtel.in |