The latest McKinsey report is a great examination of how the current global events are accelerating change within the construction industry and its broader ecosystem. Titled ‘The Next Normal in Construction,’ the report describes a fragmented, risk averse industry that has typically under performed in terms of productivity growth, digitalization and profit, compared to other industries. It goes on to say that, in conjunction with the Covid-19 pandemic, the combination provides opportunities for already existing disruption in the industry to be bolder, strategic and begin to define what the resulting normal is going to look like.
The report is a comprehensive study of the current and future construction industry ecosystem - the largest industry in the world, and well worth the read, but what caught our attention at Voyansi is the similarity in vision of how this next stage will play out...
The industry represents ‘13 percent of global GDP, construction has seen a meager productivity growth of 1 percent annually for the past two decades.’ This highlights the challenges that the typical project-based approach continues to serve up time and time again, project by project. So while there are advancements in single threaded concepts like moduralizations and sustainability, the efficiencies in the information feedback loop are well and truly opportunities missed.
Voyansi has been investing in connecting not just the familiar steps and stakeholders in the existing value chain, but also redefining the flow and fidelity of the information that connects them. Redefining how we synthesize these connections to provide for a much more integrated ecosystem is our driving force and as is projected in the report, there will be ‘$265 billion in new profit pools’ up for grabs.
So how are we going to do it? First we ditch the documents*, implement agnostic data models, connect owners to the customer-centric business models of the future, and everyone in between. Sound simple? It’s not, but get in touch with the Lab to find out how we can get you prepared for the next normal.