Why the Future of Construction & Engineering Is About More Than Technology
Founder’s POV | Prashant Singh
Founder and C&E Industry Expert, ShiftPurple
The C&E industry has a problem with connected decision-making, not just technology.
Construction and engineering have always been complex affairs. There are multiple projects and contractors to juggle, timelines in flux, cost pressures and resource dependencies to contend with. The ongoing test is to put projects in the ground on time and to spec while staying within budget.
These days organisations have more technology at their disposal than ever.
Which raises a basic question: do these tools make management of a project easier or are they just another system to be managed?
In my view the opportunity is to be found in linking people, information and processes for better decision making rather than putting yet another layer of technology in place.
- The Persistence of Complexity
Take any large construction or engineering project. The team is watching the schedule, finance is on costs, procurement is dealing with suppliers, the commercial side is after contracts and billing. Leadership wants a consolidated picture of how the project is doing.All these functions will have their own way of reporting and their own systems. But if those systems are not talking to one another, you end up with duplicated information and reports that take too long to put together. Spotting cost variations is made difficult and decisions can be taken on the basis of data that is old or incomplete. The risk is not so much an absence of data as a lack of visibility across it.
- Business Outcomes First in Digital Transformation
A frequent error in enterprise transformation is to let the technology set the agenda instead of the business challenge.The talk is often about which ERP to put in or what application to modernise. Important matters, but not where to start. I would argue you have to first know what the organisation is looking to put right. Is it a case of wanting stronger control over costs, better project profitability, faster approvals or more dependable forecasting?
When the desired outcome is in focus, technology is an enabler. A successful transformation is judged by how well the business runs in its wake, not the number of systems that have been installed.
- Linking Project Execution to the Finances
For a C&E organisation there is considerable value in tying operational execution to financial performance.A project manager needs to see more than whether work is on track. Budgets, committed and actual costs, resource allocation and the like all need to be visible. Left disconnected from the project side, spotting an overrun is a reactive process.
Platforms such as Oracle Fusion Cloud ERP and its project management side can provide the means to link up finance, procurement and reporting. The worth of that depends on how well it fits the organisation’s model. The technology should suit the realities of delivery, not impose a generic process.
- Governance as an Enabler
Governance is seen as an extra round of approvals and controls. Done right it should give confidence to those making decisions.For a project driven business that means having clear lines of accountability, proper access and consistent workflows for approvals. The point is not to add complexity but to see that the right person makes the right call at the right time with the right information.
As an organisation grows its governance has to keep pace. Good governance is not at odds with agility; it underpins sustainable growth.
- AI Requires a Sound Foundation
AI is in every conversation about enterprise tech now. In our industry it holds promise for risk identification, forecasting, document intelligence and the analysis of project performance.Yet it cannot make up for bad processes and fragmented data. If your project and financial information is at odds, or governance is weak, even the best analytics will be suspect. Organisations ought to consider if their systems and data are up to the task before wondering what AI can do.
The next phase of transformation calls for a mix of connected information, firm governance and some intelligence.
- A More Connected Enterprise
I would put forward five priorities for leaders in the industry:Connect operations and finance for a consistent view of performance.
Put some standardisation on key processes in billing, procurement and approvals.
Tighten up project governance for better control and risk visibility.
Have a data foundation that is useful and consistent.
Be purposeful in adopting cloud, automation and AI and measure them against business results.They are all linked. Moving the needle in one opens things up in the others.
Final Perspective: Clarity as a Competitive Edge
Organisations in this sector will go on facing the demands of complex projects and changing requirements. That is not going to change. What can change is the response.
The future is for those who can use technology to serve the business, to bring intelligence to the finances and to make decision-making transparent. We do not want technology to merely manage the complexity. We want it to help us see through it. That is what digital transformation is for.
Prashant Singh
Founder | C&E Industry Expert
ShiftPurple
How ShiftPurple Supports C&E Transformation
We partner with organisations on digital transformation, project management processes, enterprise integration and Oracle Cloud implementation. For C&E enterprises that want to be more connected and have better visibility, we start by looking at where the disconnect is between the business priorities and the technology and processes.
Get in touch with our team on our website or explore our Oracle capabilities to discuss your transformation priorities.
Oracle Consulting & Implementation Services | ShiftPurple
ShiftPurple delivers Oracle consulting, cloud and EBS implementation, ERP, GRC, integration and managed services to help enterprises achieve secure, scalable digital transformation.