Last updated: Everything’s connected: Industry convergence in engineering, construction, and real estate

Everything’s connected: Industry convergence in engineering, construction, and real estate

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There’s a quote from “Manifest,” a TV show I enjoyed a few years ago, that really resonates: “It’s all connected.” Isn’t that the truth! Everything is or can be connected these days.

Think about your home as an example. Many have “smart” homes where their thermostat, security system, refrigerator, and washing machine are all connected to their Wi-Fi and can be monitored via a mobile device.

If you can connect your washing machine to the internet, anything can be connected, and that’s why this idea of industry convergence makes so much sense—take two unrelated items and bring them together.

The engineering, construction, operations, and real estate sectors are among those leading the way in industry convergence. Driven by economic realities — the need to boost productivity in a tight labor market — firms are branching out to cultivate growth outside their traditional business models.

Examples of industry convergence detailed in a new SAP whitepaper include:

  • Some engineering firms include manufacturing in their end-to-end processes by producing prefabricated components to be assembled quickly at the building site.
  • Real estate developers are using new technologies such as solar panels to take responsibility for power generation.
  • Forward-thinking construction companies are forming insurance policies to cover contractors working on-site to help reduce the cost of insurance for the overall project.

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As with any building, convergence requires a solid foundation

To make industry convergence a reality, you need a solid, intelligent technological foundation to support a breadth of industries. Some solutions to consider include:

  1. Process-centric technology to support best practices.
  2. Business networks to connect your company with the right suppliers, vendors, contractors, etc. The goal is to simplify sourcing and build a more powerful value chain.
  3. System integrators to extend your network. (And partner with ones who have experience in multiple industries.)
  4. Advanced, intelligent cloud solutions for deep industry capabilities that are quick and affordable.
  5. Emerging technologies, including artificial intelligence (AI), reinforcement learning (a type of machine learning where the learning system receives training through positive and negative feedback, according to Gartner), and digital twins.

“Choosing a future-proof technology allows you to adapt faster to industry complexity and change, with confidence and unprecedented agility,” says Johnny Clemmons, Global Vice President and Industry Business Unit Head for Construction, Travel and Transportation, SAP.

Working across industry ecosystems

A recent IDC paper explains how firms can become digital-first organizations and expand their ecosystems, and includes some construction and engineering examples.

One of the best practices highlighted in the paper is adding visualization by using digital twins of assets, processes, and people across ecosystems to facilitate collaboration. For example, CBR, an architecture, engineering and construction company, leveraged software to turn a project’s building information model into a digital twin at the handover phase.

“The move to more open, extended, pan-industry ecosystems is the next phase of digital transformation,” says Jeff Hojlo, research vice president, Future of Industry Ecosystems at IDC.

“Organizations continue to recognize that innovation is more robust, resiliency is stronger, and the ability to serve the end customer…is greater with a varied, diverse ecosystem of partners in place,” he adds.

Industry convergence: More than tech 

In addition to technology, firms also need the people and processes in place for successful industry convergence. You can have the best tech on the market, but if your processes are broken or non-existent and you don’t have the right talent to run and execute, the tech will just be a waste of time and money.

The people can be a combination of full-time staff, contractors, and partners. Partnering with those with deep experience and expertise makes all the difference when it comes to selecting, setting up and integrating, running, and updating technology platforms and point solutions.

The right tech and people make it easier to create and document processes. With efficient processes in place, an organization is better equipped to make quick, strategic business decisions, whether it’s improving sustainability performance to reduce their carbon footprint or finding better ways to improve safety on a jobsite.

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