AEC (architectural, engineering, and construction) firms and the infrastructure sector are currently facing a crucial turning point. The industry is grappling with the need to address aging infrastructure while also investing in new infrastructure projects to drive social and economic benefits. However, this demand comes at a time when there is a growing shortage of talent and skilled labor in the AEC sector, making it essential for firms to find ways to do more with less.
To overcome these challenges and increase efficiency and effectiveness, AEC firms are turning to new technologies and embracing digital transformation. The global AEC market size for all software was $7 billion in 2020 and is projected to reach $16 billion by 2028, growing at a CAGR (compound annual growth rate) of 10.7%. This surge in spending indicates that AEC firms and the sector as a whole are adopting data-centric, digital, and model-based technologies to augment older technologies and file-based systems.
One technology with the potential to unlock significant value and efficiencies is infrastructure digital twins and immersive metaverse experiences. By combining design and engineering models, reality capture imagery, IoT (Internet of Things) sensor data, and other sources of information into dynamic, real-time, 3D immersive infrastructure digital twins, the entire infrastructure lifecycle can be improved. From concept to design, construction, and operations, these digital twins offer a transformative approach to infrastructure projects.
Data-centric workflows play a vital role in advancing collaboration across the project and infrastructure lifecycle, accelerating decision-making processes, and enhancing the quality of deliverables and assets. Leading organizations have already begun leveraging this approach to drive innovation and progress.
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However, it is important for AEC firms and the sector as a whole to understand that digital transformation goes beyond just implementing new technology. Investing in technology alone is unlikely to lead to success. To truly achieve digital transformation, firms and organizations must address the impact of technology changes on the people and processes that support it.
Introducing these technologies as incremental advancements to existing processes can provide significant value and ease the adoption curve. However, change management becomes more challenging due to the presence of five distinct generations in the workforce, each with different expectations and comfort levels regarding technology usage. Thoughtful change enablement is vital to the success of digital transformation, regardless of the approach or methodology.
When implementing new digital applications and programs, the workforce must learn new things. Therefore, change enablement should focus on explaining why the change is important for both individuals and the company, as well as clearly communicating what will change and how it will affect job roles. Articulating the benefits of new technologies or applications and their relevance to individual and firmwide success increases the likelihood of acceptance and adoption.
Business process re-engineering is another crucial aspect of digital transformation. Organizations must transform and improve their processes when implementing new technology, ranging from a light to heavy touch depending on the desired outcomes. Identifying a forward-thinking team to implement the new technology and contribute to documentation and evangelization can add credibility and make change more comfortable. Setting goals and communicating what will not change is equally important to ensure transparency and encourage buy-in from employees.
Supporting new technology and tool implementations with training, communication planning, and resources is essential. Organizations must also actively monitor the results, listen to employee feedback, and refine their approaches as needed.
To effectively address the current challenges in the AEC sector, digital transformation is imperative. The transformative power of infrastructure digital twins and the metaverse is within reach, but it is critical to acknowledge the role of people and processes in successful implementation. Integrating change management practices into the transition to digital delivery ensures timely adoption and maximizes the impact of technology investments for infrastructure firms. By embracing digital transformation and prioritizing change enablement, AEC firms can navigate the industry’s inflection point and thrive in the face of evolving demands and limited resources.
