{"id":8193,"date":"2021-06-08T10:15:48","date_gmt":"2021-06-08T14:15:48","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=8193"},"modified":"2026-02-12T04:43:09","modified_gmt":"2026-02-12T09:43:09","slug":"mobilize-digital-data-construction","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/mobilize-digital-data-construction\/","title":{"rendered":"How construction firms can mobilize digital data and reduce manual paperwork"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tConstruction<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\tHow construction firms can mobilize digital data and reduce manual paperwork\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

\n\t\t
\n\t\t\t
\n\t\t\t
\n\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tSusie Carter<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n

The construction sector is known to work on wafer-thin margins. Yet, according to McKinsey, construction is one of the least digitized industries<\/a> in adopting digital technologies that could deliver time and cost savings.<\/p>\n\n\n\n

But with the advent of paperless tech now moving at the speed of light, firms will have to accelerate work to digitalize and phase out manual sharing of paper documents.<\/p>\n\n\n\n

\u2018Going digital\u2019 isn\u2019t easy. But, done right, it brings opportunities to implement systems that support high standards, mobile working, time and cost savings, as well as business growth.<\/p>\n\n\n\n

It will also help you to ensure that mobile workers and subcontractors adhere to the same standards. This can be easily achieved when third parties use mobile apps to record and manage business information relevant to your business.<\/p>\n\n\n\n

Read this article to find out how to mobilize digital data, so you can help your business get ahead.<\/p>\n\n\n\n

Challenges of using manual paperwork processes<\/h2>\n\n\n\n

Construction firms have embraced the use of new technologies such as Building Information Modelling (BIM) on behalf of clients but have been slower to adopt digital technologies within their own businesses.<\/p>\n\n\n\n

James Howard is the managing director of Sherwood Systems,<\/a> which tailors business management systems on behalf of clients in the construction sector.<\/p>\n\n\n\n

He says around 40% to 50% of construction firms\u2019 processes are still paper-based.<\/p>\n\n\n\n

That means firms can easily become victims of their own success \u2013 when winning new contracts can easily quadruple the amount of administration they have to manage, within a matter of weeks.<\/p>\n\n\n\n

With ever-increasing requirements for robust data on compliance, and health and safety, this reliance on paper also presents several potential risks that will waste your time, effort and money.<\/p>\n\n\n\n

These include the following:<\/p>\n\n\n\n

Reduced visibility and control<\/h3>\n\n\n\n

Without digital data, many construction firms don\u2019t identify issues until year-end. This reactive approach means there are fewer actions they can take to address potential problems.<\/p>\n\n\n\n

In addition, fewer back office staff are now working on sites, so no longer have access to key documents when they need them.<\/p>\n\n\n\n

Reduced productivity and control of mobile teams<\/h3>\n\n\n\n

In this time of a new normal, it\u2019s almost impossible to keep track of a disparate workforce without a proper system.<\/p>\n\n\n\n

Risk of loss<\/h3>\n\n\n\n

Using paper puts your business records at risk from black swan events such as fire, flooding, and theft.<\/p>\n\n\n\n

Mistakes, duplication and inefficiency<\/h3>\n\n\n\n

Paper-based systems often have fewer controls. It\u2019s all too easy to send the wrong document or lose control of versions, which leads to time being wasted.<\/p>\n\n\n\n

Increased administration and cost<\/h3>\n\n\n\n

Without caution, your staff end up spending time manually processing data instead of supporting business growth.<\/p>\n\n\n\n

According to Howard, it costs between $5 and $25 to process just one purchase order \u2013 a cost that can rack up very quickly when you order thousands of items.<\/p>\n\n\n\n

Reduced accountability<\/h3>\n\n\n\n

When using manual processes<\/a>, it\u2019s harder to keep a robust paper trail confirming actions, whether processes have been followed, and who signed off on key decisions.<\/p>\n\n\n\n

Restricted growth<\/h3>\n\n\n\n

You can\u2019t increase productivity or profit without having a decent system in place. With low margins, you can\u2019t afford not to automate routine transactions.<\/p>\n\n\n\n

Why using digital data is more efficient<\/h2>\n\n\n\n

Despite the challenges, 81% of construction firms said they planned to improve their businesses digitally in 2020, according to research from Causeway<\/a>, which seeks to optimize performance in construction.<\/p>\n\n\n\n

Benefits of doing so include:<\/p>\n\n\n\n

Increased visibility and control, including the mobile workforce<\/h3>\n\n\n\n

With access to real-time data, you can get a full understanding of performance at any time, and use data to make informed and proactive decisions.<\/p>\n\n\n\n

By involving suppliers and subcontractors, you can split the burden of administration and ensure everyone takes responsibility for their actions.<\/p>\n\n\n\n

Better productivity<\/h3>\n\n\n\n

Construction firms that have digitalized their processes<\/a> said new management technologies increased productivity by 15%, according to Causeway.<\/p>\n\n\n\n

Around 88% of construction firms said that if implemented, digitalization would increase employee productivity.<\/p>\n\n\n\n

Improved security<\/h3>\n\n\n\n

With a secure online system, you can reassure clients and external stakeholders that your systems are well-protected against black swan events, with data accessible 24\/7 and a reduced risk of transmission of coronavirus.<\/p>\n\n\n\n

Reduced cost<\/h3>\n\n\n\n

Digital systems can reduce costs by around 20%, which could spell the difference between financial success and failure in construction, an industry that has tight margins.<\/p>\n\n\n\n

Improved accountability<\/h3>\n\n\n\n

Having a clear digital paper trail, covering all aspects of your business and projects, offers you maximum reassurance and protection in the event of any incident or accident.<\/p>\n\n\n\n

Improved accuracy and efficiency<\/h3>\n\n\n\n

You can avoid wasting time by \u2018designing out\u2019 potential mistakes.<\/p>\n\n\n\n

Automate key aspects of processing transactions<\/h3>\n\n\n\n

This can include the likes of scanning and recognition of barcodes on delivery dockets to ensure transactions are married up appropriately in the system.<\/p>\n\n\n\n

By creating rules, you can stop any transaction being authorized without the correct process being followed.<\/p>\n\n\n\n

By streamlining routine transactions such as purchase orders, your system will quickly pay for itself.<\/p>\n\n\n\n

Create a flexible workforce to support growth<\/h3>\n\n\n\n

By shifting to a digital system, you can maximize the flexibility of your workforce.<\/p>\n\n\n\n

For example, you can fulfill increases in work without having to recruit new people. In addition, you can free up your people to work on value-add activity such as bidding<\/a> and developing brand proposition, instead of administration.<\/p>\n\n\n\n

Areas you can streamline using mobile and electronic data<\/h2>\n\n\n\n

Digitalization enables you to get the right information to the right people at the right time. It can result in you making efficiencies across the entire business, covering:<\/p>\n\n\n\n