Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk

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Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Digital Transformation:
The Future of Connected
Construction
An IDC InfoBrief | March 2020

                                Sponsored by
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |   Methodology       |   Digital Deadlocks in Construction                    |     Country Highlights   |   BIM Adoption and Digital Construction Solutions   |   Next Steps

The state of digital transformation in construction
across the globe
Why is digital transformation (DX) a priority                               with
for construction companies worldwide?                                                                                  of companies in

                              of construction
                                                                                              58%                      stages* 1 and 2
                                                                                                                       out of 5.
                              companies worldwide

       72%
                              said this is a key
                              priority to drive much                        In fact, only
                              needed changes
                                                                                                                       of companies are
                              to their processes,
                              business models and/
                              or ecosystems.
                                                                                              13%                      well on their way
                                                                                                                       to succeeding on
                                                                                                                       their DX journeys.

Through DX, construction companies can
ensure operational excellence and improved                                  This IDC InfoBrief takes a closer look at the
customer engagement by effectively                                          worldwide construction industry and the
managing risk, completing projects on time                                  challenges encountered by organizations as
and on budget, improving workforce safety                                   they embark on digitalization, the deadlocks
and, overall, support infrastructure growth                                 they must surpass and the investments they
across world economies.                                                     must make to bring the industry into the
                                                                            digital era.
However, majority of these companies are
still in the early stages of their DX journeys,                             *The stages are defined on page 4 of this report.

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                             2
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions   |   Next Steps

The construction industry is ripe for digitalization
Many organizations worldwide have embraced DX and are bringing new innovations into their
businesses. However, the construction industry has yet to fully reap the benefits of digitalization                                   How can construction companies benefit from
due to the unique challenges it faces compared to other industries.                                                                   digital transformation?

                       Customer demand                                                                                                                  Improved productivity and better performance
                       Increased personalization brought forth by the utilization of digital technologies                                               Automation and informed decision-making from a single source
                       in improving customer experience is driving organizations to reassess their                                                      of truth for construction projects can lead to improved workflow,
                       processes and business models. How can construction companies meet individual                                                    lowered costs, better resource management and faster turn-
                       customer specifications without sacrificing assembly and material efficiency?                                                    around times.

                       Competitive environment                                                                                                          Connected construction
                       The marketplace is evolving, where every industry is being disrupted and needs to                                                Cloud-based software and mobile apps ease collaboration among
                       keep pace. For the construction industry, this means being aligned with the level                                                all stakeholders, from design to construction and inspection
                                                                                                                                                        for better reporting and documentation, quality assurance
                       of progress expected by governments and the public sector.
                                                                                                                                                        and control.

                       Smart everything                                                                                                                 Safety and risk management
                       Smart devices have become part of the fabric of everyday life. Worldwide, there                                                  Digital technologies can be utilized for proactive onsite safety
                       is a proliferation of smart buildings and cities, along with green technology and                                                and risk management through offsite manufacturing, along with
                       sustainability initiatives to reduce waste generated from construction activities                                                predictive maintenance.
                       amounting to billions of dollars annually.

                       Political and economic factors                                                                                                   Improved cost of construction
                       The construction industry is heavily affected all over the world – lower                                                         Creation of offsite, prefabricated materials and modular
                       infrastructure spending and market demand, labor movement, rise in materials                                                     construction continue to have gained popularity, addressing time
                                                                                                                                                        constraints and costs.
                       costs and decreased productivity vary across countries.

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                             3
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction       |   Methodology      |      Digital Deadlocks in Construction               |    Country Highlights         |   BIM Adoption and Digital Construction Solutions                        |   Next Steps

Construction companies are still in the earliest stages
of digital transformation
                                   IDC defines digital transformation (DX) as the application of 3rd Platform                                                                         Almost 60% of construction
                                   technologies such as cloud, mobile, big data and social; coupled with                                                                             companies worldwide are only
                                   organizational, operational and business model innovation to create new                                                                             starting their DX journeys.
                                   ways of operating and growing businesses.
                                                                                                                                                                 40%
                                                                                                                                 Stage 5

                                                                                                                              Optimized
                                                                                             Stage 4

                                                                                          Managed

                                                                                                                                                                               34%
                                                                Stage 3
                                                                                                                                                                 30%
                                                           Repeatable
                                    Stage 2
                                                                                                                          DIGITAL DISRUPTOR
                               Opportunistic
         Stage 1

        Ad Hoc
                                                                                                                          DIGITAL DISRUPTOR

                                                                                                                       Enterprise is
                                                                                                                                                                                                                          28%
                                                                                                                                                                                                       24%
                                                                                     DIGITAL TRANSFORMER
                                                                                                                       aggressively disruptive
                                                                                                                       in the use of new                         20%
                                                                                    Integrated, synergistic
                                                           DIGITAL PLAYER                                              digital technologies
                                                                                    business-IT management             and business rmdels
                                                        Business-IT goals are       disciplines deliver                to affect markets.
                               DIGITAL EXPLORER
                                                        aligned at enterprise       digitally enabled product/         Ecosystem awareness
                            Business has identified     level around creation       service experiences on a           and feedback is a
     DIGITAL RESISTER
                            a need to develop a         of digital products and     continuous basis.                  constant input to
                                                                                                                                                                 10%
 Business and IT            digitally enhanced,         experiences, but not                                           business innovation.
 digital initiatives are
 disconnected and
                            customer-driven
                            business strategy,
                                                        yet focused on the
                                                        disruptive potential of                                                                                                                                                             11%
 poorly aligned with
 enterprise strategy,
                            but execution is on a
                            project basis. Progress
                                                        digital initiatives.
                                                                                                                                                                                                                                                         2%
 and not focused on         is not predictable nor
                            repeatable.                                                                                                                           0%
 customer experiences.
                                                                                                                                                                                Stage 1                 Stage 2            Stage 3           Stage 4     Stage 5

                                                                                                                                                                               Ad Hoc            Opportunistic           Repeatable        Managed     Optimized
                                                                                               Source:
                                                                                               IDC Digital Transformation MaturityScape Framework, 2015                Note: Numbers may not be exact due to rounding.
                                                                                               IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                                                    4
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions   |    Next Steps

Methodology
The Digital Transformation (DX) Construction Maturity Pulse was conducted in April 2019 to assess organizations in 12 countries across Europe, Asia Pacific including Japan (APJ),
and the Americas on their DX maturity, as well as their challenges, priorities and requirements in digitalizing, particularly looking at construction-specific challenges and priorities.

        Country                    Sample Size
                                                                                                                                      Demographics
          UK                             52

          GERMANY                        51                                              By Job Role / Function                                                          By Company Size

          FRANCE                         51
                                                                                                                                                100 to 249                                                500 or more
                                                                              IT                                                                employees                                                  employees
          ANZ                            44

          CHINA                          130
                                                                                       39%                                                                              31%                 42%
          JAPAN                          50

          KOREA                          50

          INDIA                          154

          SINGAPORE                      49

          US                             90

                                                                                                             61%
                                         69
                                                                                                                                                                               26%
          CANADA

          BRAZIL                         45
                                                                                                                                                           250 to 499
                                                                                                                             Line of business
          TOTAL                          835                                                                                                               employees

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                         5
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |     Methodology     |   Digital Deadlocks in Construction      |     Country Highlights                  |     BIM Adoption and Digital Construction Solutions   |    Next Steps

How are construction companies prioritizing
digital transformation?
 Q. Is DX a priority for your company?                                                                                                        of construction companies worldwide are prioritizing DX, which cuts

              28%                  18%                  31%                  28%
                                                                                                                 72%                          across five different dimensions. DX allows organizations to evolve into a
                                                                                                                                              digital native enterprise (DNE), which can support innovation and digital
                                                                                                                                              disruption rather than enhancing existing technologies and models.

                                                                                                                  Leadership                        Omni-Experience                  Information        Operating Model           WorkSource
             72%                  82%                   69%                   72%                               Transformation                      Transformation                 Transformation       Transformation          Transformation

                                                                                                                 Ecosystem awareness                      Ecosystem experience      Data discovery       Connected products/     Manage talent
                                                                                                                 and insight                              definition                                     services
                                                                                                                                                                                    Value development                            Source talent
              WW                 Europe                  APJ               Americas                              Business model                           Continuous innovation                          Connected assets
                                                                                                                 innovation                               orientation definition    Value realization                            Optimize work
                                                                                                                                                                                                         Connected processes
                                                                                                                 Organizational and                       Platform service          Knowledge &                                  Facilitate a digital
                                                                                                                 cultural disruption                      delivery definition       collaboration        Decision making         transformation
 Q. Is there someone in charge for DX?                                                                                                                                                                                           mindset
                                                                                                                 Agile planning and                       Omni-dimensional          Information          Organizational
                                                                                                                 governance                               marketing definition      architecture         structure

              31%                  22%                  38%                   24%
                                                                                                                An “outside in”                     Blended physical               Information as
                                                                                                                                                                                                           New digital          Ecosystem-based
                                                                                                                   business                            and digital                  a competitive
                                                                                                                                                                                                        revenue streams            workforce
                                                                                                                 environment                          experiences                     advantage

              69%                  78%                  62%                   76%
                                                                                                         While a majority believe DX is a priority, it is clear that many construction companies
                                                                                                         worldwide are struggling to unlock its full potential. To truly become a DNE, construction
                                                                                                         companies must identify their challenges and address the digital deadlocks in their business.
              WW                 Europe                  APJ               Americas
                                           Yes     No                                                    Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                                         6
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions   |   Next Steps

Five key challenges of construction companies –
the ‘Digital Deadlocks’
                           of construction
                           organizations worldwide                                                                                                                  46%           DX roadmaps
                                                                                                                                                                                  Prioritizing the industry use
                                                                                                                                                                                  case journey
      52%                  have reached a digital
                           impasse and are stuck                                             Silos of
                                                                                           Innovation
                                                                                                                        Outdated KPIs
                                                                                                                        DX Performance
                                                                                                                           Scorecard

                                                                                                                                                                    42%
                           in stages 2 to 3 of their                                                                                                                              DX platform
                                                                                           DX Platform
                           DX journeys.                                                                                                                                           Rearchitecting for scale

Unlocking these digital deadlocks will
help companies evolve into digital native                                                                 DIGITAL
enterprises (DNEs) and experience the full
benefits of digital technologies.                                                                         NATIVE                            Siloed DX
                                                                                                                                                                    37%           DX performance
                                                                                                                                                                                  Scorecard critical success
                                                                                                                                                                                  metrics and KPIs
                                                                                     Limited            ENTERPRISE                         Initiatives
                                                                                    Expertise                                           DX Organization
                                                                                                                                           Structure

                                                                                                                                                                    36%           DX capabilities
                                                                                  DX Capabilities
                                                                                                                                                                                  Reshaping business and
                                                                                                                                                                                  technology expertise
                                                                                                               Tactical Plans
                                                                                                               DX Roadmaps

                                                                                                                                                                    29%           DX organization
                                                                                                                                                                                  Structure embedding digital
                                                                                                                                                                                  in the business

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                   7
Digital Transformation: The Future of Connected Construction - An IDC InfoBrief | March 2020 - Autodesk
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions       |     Next Steps

Regional view of construction-specific roadblocks
Along with the five digital deadlocks, creating a strategic roadmap for digital investments is the top DX challenge for 46% of construction companies
worldwide. This is followed by integrating digital projects across the organization (42%) and finding KPIs and metrics to measure digital success (37%).

                                                                                  54%
                                                                                                                                                                                                48%
                   46%                                                   45%                                                 44% 43% 42%
            42%
                           37%                                                                                                                                                       37%
                                                                                        31%                                                                                                                31%
                                                                                                                                                                                                           31%

                      WW                                                          Europe                                                APJ                                                     Americas

                                                Building the right organizational structure                                Finding KPIs and metrics to measure digital success
                                                Integrating digital projects across the organization                       Developing digital capabilities and skills
                                                Creating a strategic Roadmap for digital investments                       Lack of infrastructure to support a digital enterprise

                                                                                                                                                                                    Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                                    8
Introduction     |   Methodology       |   Digital Deadlocks in Construction                          |    Country Highlights   |   BIM Adoption and Digital Construction Solutions               |   Next Steps

Organization concerns in the construction industry
by region
The top challenge in the worldwide construction industry is effectively managing risk. This is closely followed by completing projects on time and
on budget, data security and workforce safety.

                      Effectively managing risk                                                                       View by Region
                                                                                                                      Effectively managing risk is in the top 3 organizational challenges of all countries in
                        12%                                                                                           Europe and the Americas.

                                                                                                                                                                                                                                  17%
                       Completing projects on                                                                            16%         16%
                       time and on budget
                                                                                                                                                                                                 12%                                       12%
                        11%                                                                                                                 10%                                                         11%
                                                                                                                                                                                                                                                   10%
                                                                                                                                                                                                                                                         11%
                                                                                                                                                   9%                         9%          9%
                       Data security

                        11%
                       Workforce safety
                                                                                                                                      Europe                                                   APJ                                         Americas
                        10%                                                                                                                                   Effectively managing risk                Completing projects on time and on budget
                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835                            Data security                            Workforce safety

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                                                9
Introduction     |    Methodology       |   Digital Deadlocks in Construction   |   Country Highlights             |     BIM Adoption and Digital Construction Solutions   |   Next Steps

Top challenges viewed by country
Data security is most important for construction companies in France and Singapore, while completing projects on time is a top priority in India. Finally, workforce safety
is most common in Asia Pacific countries, particularly China, Japan, India and Australia/New Zealand (ANZ).

                                                                          Completing
                                 Effectively             Data           projects on time     Workforce
                                managing risk          security          and on budget        safety                              Design development                                                                  18%
          UK                          1                    2                      3                                             Planning and briefing                                                      15%
          GERMANY                     1                    2                                     3
                                                                                                                                            Site execution                                           13%
          FRANCE                       2                   1
                                                                                                                                          Documentation                                            12%
          ANZ                         1                                                          2
                                                                                                                                        Pre-construction                                           12%
          CHINA                                                                                  3

                                                                                                                                                        Bidding                              11%
          JAPAN                                                                                  2

          KOREA                                                                   2             1
                                                                                                                   Operations and maintenance                                          8%

          INDIA                        3                                          1              2                    Testing and commissioning                                        8%
          SINGAPORE                    2                   1                                                                   Handover or turnover                               4%
          US                          1                                           2              3

          CANADA                      1                    2                                     3
                                                                                                                   In addition to organization challenges, construction companies also believe that
                                                                                                                   these construction phases need the most improvement.
          BRAZIL                      1                    2
                                                                                                                   Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                             10
Introduction      |    Methodology       |   Digital Deadlocks in Construction   |   Country Highlights     |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Software investments to address construction
industry challenges
Construction organizations are looking into new, innovative technologies to accelerate their digital transformation.

                Current investments                                                            Planned software investments

   Enterprise resource
        planning (ERP)                                       51%
                                                                                           Client relationship
                                                                                          management (CRM)                      34%                                       Top 3 innovative technology
                                                                                                                                                                          investments construction
 Project management                                          51%                            Bid management                     33%
                                                                                                                                                                          companies planned in the
    Project scheduling                                 44%                               Project management                   31%                                         next 18 months
    Client relationship
   management (CRM)                                    43%                              BIM-based workflows                   30%
                                                                                                                                                                                                        Predictive analytics/
 BIM-based workflows                                  41%                                          Estimating              29%                                                                          big data
             Estimating                               40%                                     Project insights             29%
       Prequalification                         33%                                                   Takeoff              28%                                                                          Internet of Things
                                                                                          Enterprise resource
                                                                                                                                                                                                        (IoT)
      Bid management                        30%                                                planning (ERP)              28%
        Project insights              24%                                                  Project scheduling              28%                                                                          Drones
                 Takeoff          19%                                                         Prequalification           24%
      Add timekeeping             19%                                                        Add timekeeping            22%                               Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                       11
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

United Kingdom – top challenges and
technology investments

                                                                                                                                                      The state of construction in the UK

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Data-driven construction and informed
                                                    Investments                       Investments                    Investments
                                                                                                                                                      forecasting are among the common
                                                                                                                                                      trends in construction, along with
                  Effectively                           Client                                                        Predictive                      investments in drones and robotics to
 1                managing                           relationship                      Estimating                    analytics/big
                      risk                                                                                               data
                                                                                                                                                      address current issues such as labor
                                                     management
                                                                                                                                                      shortage, resource management and
                                                                                                                                                      operational efficiency. Currently, the
                                                                                                                                                      UK is the leader in building information
                                                       Enterprise
 2              Data security                           resource
                                                                                         Project                       Internet of                    modeling (BIM) adoption, which has
                                                                                       scheduling                        Things                       been mandatory in public sector
                                                        planning
                                                                                                                                                      projects since 2016. The Centre for
                                                                                                                                                      Digital Built Britain is a government-
                Completing
                                                                                                                                                      funded organization established in 2017
                                                      Project
  3           projects on time                                                      Project insights                  3D printing                     to support the digital transformation of
                                                    management
               and on budget                                                                                                                          the UK construction sector.
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   12
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Germany – top challenges and technology
investments

                                                                                                                                                      The state of construction in Germany

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    There is a growing demand for
                                                    Investments                       Investments                    Investments
                                                                                                                                                      housing units caused by the increasing
                                                                                                                                                      population, supported by low
                  Effectively
                                                      Project
                                                                                                                      Predictive                      interest rates. There is also increased
 1                managing                                                               Takeoff                     analytics/big
                      risk
                                                    management
                                                                                                                         data
                                                                                                                                                      government spending on infrastructure,
                                                                                                                                                      and the cost of building homes hit
                                                                                                                                                      a nine-year high in 2018. Prefab
                                                                                                                                                      materials and green technologies are in
                                                       Enterprise
 2              Data security                           resource
                                                                                       BIM-based
                                                                                                                      3D printing
                                                                                                                                                      consideration in the industry, while BIM
                                                                                       workflows                                                      will be made mandatory in all transport
                                                        planning
                                                                                                                                                      projects by 2020. Planen Bauen 4.0 is
                                                                                                                                                      Germany‘s BIM Steering Group. The VDI
                                                        Client                          Client
                                                                                                                                                      2552 describes the country’s national
                  Workforce                                                                                            Internet of
  3                                                  relationship                    relationship                                                     BIM standards and processes.
                   safety                                                                                                Things
                                                     management                      management
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   13
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

France – top challenges and technology
investments

                                                                                                                                                      The state of construction in France

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    There are over 1 million people
                                                    Investments                       Investments                    Investments
                                                                                                                                                      employed in the construction industry
                                                                                                                                                      in France, but labor shortage remains
                                                       Project
                                                                                        Client
                                                                                                                       Internet of
                                                                                                                                                      a challenge in the industry. In 2017,
 1             Data security                                                         relationship
                                                     management
                                                                                     management
                                                                                                                         Things                       500,000 homes were built using BIM,
                                                                                                                                                      although BIM is not mandatory in
                                                                                                                                                      France. The government introduced
                                                                                                                                                      the Plan Transition Numérique dans le
                  Effectively                                                                                         Augmented
 2                managing
                                                       BIM-based                       Project
                                                                                                                     reality/virtual
                                                                                                                                                      Bâtiment in 2014 with an investment
                                                       workflows                     management                                                       of 20 million euros to digitize the
                      risk                                                                                               reality
                                                                                                                                                      industry. Plan BIM 2022 has since taken
                                                                                                                                                      over this initiative to introduce BIM in
                 Manual
                                                       Enterprise
                                                                                                                                                      all construction project and provide
              processes and                                                            BIM-based
  3                                                     resource                                                      3D printing                     training support to all workers.
             time-consuming                                                            workflows
                                                        planning
              double entries
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   14
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

ANZ – top challenges and technology
investments

                                                                                                                                                      The state of construction in ANZ

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Australia’s construction industry is fast
                                                    Investments                       Investments                    Investments
                                                                                                                                                      growing, comprising 8% of the country’s
                                                                                                                                                      GDP and employing 1.1 million people.
                                                       Enterprise                       Client                        Predictive                      New Zealand also expects its construction
 1             Data security                            resource                     relationship                    analytics/big                    industry to grow by 20% in 2022. In both
                                                        planning                     management                          data                         countries, robotics, 3D printing and drones
                                                                                                                                                      are becoming more common. Technologies
                                                                                                                                                      such as autonomous trucks, wearables
                  Effectively
                                                                                                                                                      and AR/VR will be used in the next 5 to 10
                                                       Project                                                         Internet of                    years. On the other hand, BIM adoption
 2                managing                                                             Estimating
                                                     management                                                          Things
                      risk                                                                                                                            varies among states in Australia, while New
                                                                                                                                                      Zealand has taken its first step toward
                                                                                                                                                      implementation with the establishment of
               Lack of effective                                                                                                                      the BIM Acceleration Committee that consists
                                                                                                                      Augmented
                technologies/                            Project                        BIM-based                                                     of representatives from the government,
  3                                                                                                                  reality/virtual
                   outdated                            scheduling                       workflows
                                                                                                                         reality                      construction and digital industries.
                 technologies
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   15
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

China – top challenges and technology
investments

                                                                                                                                                      The state of construction in China

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Opportunities for the construction
                                                    Investments                       Investments                    Investments
                                                                                                                                                      industry arose in 2013, when the Belt and
                                                                                                                                                      Road initiative was launched to increase
                Lack of real-
                                                                                        Client                        Predictive                      China’s connectivity to the rest of Asia
                time insights                         Project
 1                                                                                   relationship                    analytics/big                    through infrastructure developments.
                as to project                       management
                                                                                     management                          data
                performance                                                                                                                           China has been using prefab materials to
                                                                                                                                                      lead efficiency worldwide and leveraging
              Delivering timely                                                                                                                       3D printing to create new construction
                information
                                                                                        Bid
                                                                                                                      Augmented                       materials. While BIM is not mandatory
 2             to customers/                           Estimating                                                    reality/virtual                  in China, the government is driving
                                                                                     management
             vendors/partners/                                                                                           reality
                  suppliers                                                                                                                           the 13th Five-Year-Plan to make BIM
                                                                                                                                                      “business-as-usual.” Notable structures
                                                                                                                                                      constructed with BIM include Disneyland
                                                                                                                        Artificial
                 Workforce                              Project
                                                                                       Enterprise
                                                                                                                      intelligence,                   Shanghai, the Phoenix Media Centre and
  3                                                                                     resource
                  safety                              scheduling
                                                                                        planning
                                                                                                                        machine                       Shanghai Tower.
                                                                                                                        learning
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   16
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Japan – top challenges and technology
investments

                                                                                                                                                      The state of construction in Japan

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Human and machine collaboration is
                                                    Investments                       Investments                    Investments
                                                                                                                                                      supported by the government. Companies
                                                                                                                                                      are incentivized to utilize technologies
             Lack of effective
                                                                                       Enterprise                     Predictive                      like robotics and artificial intelligence.
              technologies/
 1                                                     Estimating                       resource                     analytics/big                    These technologies, along with unmanned
                 outdated
                                                                                        planning                         data
               technologies                                                                                                                           machines provide a partial solution to the
                                                                                                                                                      labor shortage in Japan caused by an aging
                                                                                                                                                      population. The Ministry of Land, Transport
                                                                                        Client                                                        and Tourism is the driver of BIM adoption
                 Workforce                             BIM-based
 2                                                                                   relationship                        Drones                       in Japan, and a policy for its utilization was
                  safety                               workflows
                                                                                     management
                                                                                                                                                      created in 2017. The government has also
                                                                                                                                                      increased its investments in reconstruction
                                                                                                                                                      projects due to earthquakes and tsunamis.
                   Manual                                                                                               Artificial
                processes and                         Project                          Project                        intelligence,                   The Olympics 2020 also contributed to the
  3
               time-consuming                       management                       management                         machine                       boom of construction projects in Japan.
                double entries                                                                                          learning
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   17
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Korea – top challenges and technology
investments

                                                                                                                                                      The state of construction in Korea

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    In 2019, Korea’s global construction
                                                    Investments                       Investments                    Investments
                                                                                                                                                      competitiveness fell from 6 to 12, due
                                                                                                                                                      to the lack of cutting-edge technologies
                 Workforce                            Project                           Bid
                                                                                                                      Predictive                      used in more advanced markets. In
 1                                                                                                                   analytics/big
                  safety                            management                       management
                                                                                                                         data
                                                                                                                                                      response to this, the Ministry of Land
                                                                                                                                                      Infrastructure and Transportation is
                                                                                                                                                      driving the use of 3D printing, AI and
                                                                                                                                                      robotics. The government also provided
               Completing                                                              Enterprise                     Augmented
 2           projects on time                          Estimating                       resource                     reality/virtual
                                                                                                                                                      US$5.8 million in 2019 to create BIM-
              and on budget                                                             planning                         reality                      based building design standards and
                                                                                                                                                      information technology. Korea is an
                                                                                                                                                      early BIM adopter; BIM has been
                 Lack of real-
                                                                                        Client
                                                                                                                                                      mandatory for public sector projects
                 time insights                         BIM-based                                                       Robotics -
  3                                                                                  relationship                                                     over US$50 million since 2016.
                 as to project                         workflows                                                       Hardware
                                                                                     management
                 performance
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   18
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

India – top challenges and technology
investments

                                                                                                                                                      The state of construction in India

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    The Indian government sees the need for
                                                    Investments                       Investments                    Investments
                                                                                                                                                      technology in construction in response
                                                                                                                                                      to the growing demand for housing
               Completing                              Enterprise                                                     Predictive                      spurred by a fast-growing economy and
                                                                                       Project
 1           projects on time                           resource                                                     analytics/big                    urbanization. When it comes to BIM, there
                                                                                     management
              and on budget                             planning                                                         data
                                                                                                                                                      is good adoption, but it is mostly used by
                                                                                                                                                      India construction companies for overseas
                                                                                                                                                      clients. Local clients do not see the long-
                 Workforce
                                                                                       Enterprise
                                                                                                                       Internet of
                                                                                                                                                      term value of BIM, which is a concern the
                                                       Project
 2                                                                                      resource                                                      India BIM Association wishes to address
                  safety                             management                                                          Things
                                                                                        planning
                                                                                                                                                      through open collaboration with the
                                                                                                                                                      community. However, despite opposing
                                                                                                                                                      views on BIM, notable structures which
                 Effectively
                managing risk                            Project
                                                                                        Client                                                        made use of this technology include the
  3                                                                                  relationship                     3D printing
                  and data                             scheduling
                                                                                     management
                                                                                                                                                      Bangalore Airport and the Delhi Metro Rail.
                  security
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   19
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Singapore – top challenges and technology
investments

                                                                                                                                                      The state of construction in Singapore

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    The governing body for the construction
                                                    Investments                       Investments                    Investments
                                                                                                                                                      industry in Singapore is the Building and
                                                                                                                                                      Construction Authority (BCA). BCA expects
                                                        Client                           Client                    Robotic process                    improvement in the industry, with projects
 1             Data security                         relationship                     relationship                  automation –                      to reach S$27 billion and S$34 billion for
                                                     management                       management                      Software
                                                                                                                                                      2020 and 2021, respectively. The use of
                                                                                                                                                      BIM is government mandated, with training
                                                                                                                                                      support provided to workers. BCA also
                  Effectively                          Enterprise                                                     Augmented                       wants to increase the use of technologies
 2                managing                              resource                         Takeoff                     reality/virtual                  in construction. BCA’s Building Innovation
                      risk                              planning                                                         reality
                                                                                                                                                      Panel will assess innovations that can
                                                                                                                                                      improve the industry, which includes the
                                                                                                                                                      use of sustainable building materials, green
               Lack of effective
                technologies/                          BIM-based                                                       Internet of
                                                                                                                                                      technology, automation and 3D printing.
  3                                                                                    Estimating
                   outdated                            workflows                                                         Things
                 technologies
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   20
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

United States – top challenges and technology
investments

                                                                                                                                                      The state of construction in US

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Labor shortage is one of the biggest
                                                    Investments                       Investments                    Investments
                                                                                                                                                      challenges in the US and the construction
                                                                                                                                                      industry is finding it difficult to attract Gen Z
                  Effectively                          Enterprise                                                     Predictive                      employees. Construction companies are
 1                managing                              resource                                                     analytics/big
                                                                                       Estimating
                                                                                                                         data
                                                                                                                                                      positioning the use of tech innovations,
                      risk                              planning
                                                                                                                                                      including 7D modeling, to appeal to the
                                                                                                                                                      digital savviness of this demographic.
                Completing                              Client                                                                                        Digital technologies are prevalent in the
 2
                 projects on                         relationship                        Bid                           Internet of                    construction industry, including AR/VR, RPA,
                time and on                          management                       management                         Things
                   budget                               (CRM)
                                                                                                                                                      analytics, drones and automation. While the
                                                                                                                                                      construction industry is booming with the
                                                                                                                                                      use of these innovations, BIM utilization has
            Workforce safety
                                                                                                                                                      been limited to some departments within
           and lack of effective                       Project                             Project
  3           technologies/                                                                                              Drones                       the government and is not mandatory in
                                                     management                           insights
                outdated                                                                                                                              the private sector.
              technologies
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   21
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Canada – top challenges and technology
investments

                                                                                                                                                      The state of construction in Canada

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    Canada’s construction industry is seeing
                                                    Investments                       Investments                    Investments
                                                                                                                                                      an aging workforce and rising costs as
                                                                                                                                                      key issues. There is a push to increase
                  Effectively                          Enterprise                                                     Predictive                      usage of data analytics to address safety
 1                                                                                       Project                     analytics/big
                  managing                              resource                                                                                      and productivity, as well as introduction
                                                                                       scheduling                        data
                      risk                              planning
                                                                                                                                                      of sensor and detection tools to pave
                                                                                                                                                      the way for improved sustainability,
                                                                                                                                                      green technology and smart structures.
                                                        Client
 2               Data security                       relationship
                                                                                        Project                        Internet of                    When it comes to BIM, it is mostly used
                                                                                      management                         Things                       in the private sector and there is no
                                                     management
                                                                                                                                                      government mandate in place, leading to
                                                                                                                                                      the fragmented usage of BIM.
                                                                                         Client
                   Workforce                             Project
  3                                                                                   relationship                    3D printing
                    safety                             scheduling
                                                                                      management
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   22
Introduction     |   Methodology       |   Digital Deadlocks in Construction   |   Country Highlights   |   BIM Adoption and Digital Construction Solutions                         |      Next Steps

Brazil – top challenges and technology
investments

                                                                                                                                                      The state of construction in Brazil

                  Challenges
                                                  Current Software                 Planned Software                Innovative Tech                    The growth of the construction industry
                                                    Investments                       Investments                    Investments
                                                                                                                                                      is led by private-public partnerships.
                                                                                                                                                      There is a decrease in financing for public
                  Effectively                          Enterprise                                                     Predictive                      infrastructure projects, but regulatory
 1                                                                                      Project                      analytics/big
                  managing                              resource                                                                                      changes have been introduced to further
                                                                                      management                         data
                      risk                              planning
                                                                                                                                                      attract investments from the private sector.
                                                                                                                                                      When it comes to adoption of technologies,
                                                                                                                                                      Brazil’s construction industry lags behind
                                                                                         Client
                 Data security                         BIM-based                                                       Internet of                    its foreign counterparts in the use of the
 2                                                                                    relationship
                                                       workflows                                                         Things                       latest technology, particularly big data
                                                                                      management
                                                                                                                                                      and analytics, artificial intelligence and
                                                                                                                                                      3D modeling, but there is a move toward
                   Manual
                                                        Client
                                                                                                                                                      international construction standards. BIM
                processes and
  3
               time-consuming                        relationship                       BIM-based                     3D printing                     adoption will be made mandatory by 2021.
                                                     management                         workflows
                double entries
                                                                                                                                                      Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                   23
Introduction              |   Methodology   |    Digital Deadlocks in Construction   |   Country Highlights   |     BIM Adoption and Digital Construction Solutions    |   Next Steps

DX maturity correlation to use of digital construction
solutions (like BIM)
IDC research shows there is a correlation between most mature organizations (stages 3 and above) and their usage of BIM-based workflows – the higher the
maturity, the higher the proportion of BIM-based workflows in daily operations. Also, these organizations have automated a higher number of processes with digital
construction solutions.

                   Everybody uses BIM-based workflows in                                                                                                 Percentage of your projects that uses
                         their day to day operations                                                                                                         digital construction solutions

                                                                                                                              30%

                                                                                            32%                               25%                                                                          5%
                                                                                                                                                                                                                             5%
                                                                                                                              20%
                                                                                                                                                                                                           6%                5%
                                                                            23%                                               15%

                                                                                                                                                             1%
                                                                                                                              10%                                                 1%
                                                                                                                                                             2%
                                                                                                                                                                                                           17%               16%
               3%                      2%                       9%                                                            5%       1%
                                                                                                                                       1%                            8%                9%
                                                                                                                               0%
                                                                                                                                       2%
             Stage 1                 Stage 2                   Stage 3      Stage 4        Stage 5                                             Stage 1              Stage 2            Stage 3             Stage 4           Stage 5

Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835                                                                                                             41-50%        51-60%       Over 60%

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                        24
Introduction              |   Methodology           |   Digital Deadlocks in Construction          |   Country Highlights      |   BIM Adoption and Digital Construction Solutions   |         Next Steps

BIM adoption varies worldwide
Its usage is integral to digital transformation in the construction industry.                                                                                                                        BIM projects and skills

                                                                                                                                                                                                                                                                     29%
                                                    Investment in BIM-based workflows                                                                                             We have a few staff members that                                                     31%
                                                                                                                                                                                               can work within BIM                                                  28%
                                                                                                                                                                                                                                                                      30%
                                                                                                                                                        53%
                                                                                                                                                                                                                                                                   27%
                                                                               48%                                                                                                   We have a specialist BIM and/or
                                                                                             47% 48%
                                                                                                                                                                                                                                                             23%
                                                  47%                                                                                                                                              VDC department                                                    30%
                                                                                                                                                                                                                                                           22%
                                                                   42%                                  43%
 40%                             41%                                                                                                                                                                                                             15%
                                                                                                                                37%                                            We outsource all work related to BIM
                                                                                                                                                                                                                                                       19%
                35%                                                                                                       34%         34%                                                                                                    13%
                                                                                                                                                                                                                                                     18%
                       31%                                                                                                                  30%
                                       29%
       27%                                                                                                                                                    27%                         We do not bid on projects
                                                                                                                                                                                                                                           11%
                                                        25%                                                                                                                                                                          7%
                                                                                                                                                                                                      involving BIM                          12%
                                                                         20%                                                                      20%                                                                                       11%
                                                                                     18%
                                                                                                                    16%                                                                                                                   10%
                                                                                                              14%                                                                     We outsource a portion of our                       10%
                                                                                                                                                                                             projects involving BIM                       10%
                                                                                                                                                                                                                                           12%

                                                                                                                                                                                                                                     7%
                                                                                                                                                                               Everybody uses BIM-based workflows                      9%
                                                                                                                                                                                      in their day to day operations                 7%
    UK          Germany           France           China            Japan        Korea        India     Singapore    ANZ          US        Canada       Brazil                                                                     6%

                                                                               Current        Planned                                                                                              Worldwide   Europe         APJ         Americas

When it comes to investments in BIM-based software, Brazil‘s construction companies are                                                                                                       of organizations worldwide have a few staff members that
in the lead, which can be attributed to the boom of public-private partnerships and the                                                                                                       can work within BIM, while 27% say they have their own BIM

push for mandatory usage by 2021. Planned investments are higher for countries where                                                                                           29%            specialist and/or VDC department. About 7% of organizations
                                                                                                                                                                                              use BIM-based workflows daily across all operations –
use is fragmented or adoption is slower.                                                                                                                                                      however, 26% outsource a portion/all work related to BIM.

Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                                                                              25
Introduction              |   Methodology     |   Digital Deadlocks in Construction   |     Country Highlights   |    BIM Adoption and Digital Construction Solutions   |   Next Steps

Top benefits where digital construction solutions help
improve projects
Construction companies worldwide believe that these are the top benefits/areas where digital construction solutions (such as
BIM workflows, bid management, project management and insights) can help improve your construction projects.

         Top benefits of digital construction solutions                                                                         Planned software investments

  Overall project management and performance                                                   20%                                1-10%                                     26%
                           Improving health and safety                              13%                                          11-20%                                    25%
                       Control of time and scheduling                               13%
                             Control of costs and waste                            12%                                           21-30%                              22%
           Project documentation and stakeholder
                                    engagement                                9%                                                 31-40%
                                                                                                                                                          14%
       Faster and more accurate projects insights                           8%
                               Simulation and modeling                     7%
                                                                                                                                 41-50%         8%
      Collaboration among different stakeholders                         6%                                                      51-60%    2%
               Single source of truth of project data               4%
                                                                                                                                  None     2%
                                      Project profitability         4%
                Claims, litigation and risk mitigation                   3%                                                    Over 60%
                                                                                                                                          1%

Despite the benefits identified, 95% of organizations worldwide use digital construction solutions in just 50% or less of their
projects, while only 2% use digital construction solutions in over 60% of their projects.

Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                                                                                                               26
Introduction       |   Methodology     |     Digital Deadlocks in Construction                       |   Country Highlights           |     BIM Adoption and Digital Construction Solutions                                        |      Next
                                                                                                                                                                                                                                                                      NextSteps
                                                                                                                                                                                                                                                                           Steps

What’s next for construction companies worldwide?
                                     Creation of a DX Roadmap                                                                                                            Budget for Technologies (% of Annual Turnover)

                                                                                                                                                                                                     3%
  We have plans to establish a DX roadmap
                                                                                                                                                                                        6%
                in the next 0 to 12 months                                    30%
  We have plans to establish a DX roadmap
               in the next 12 to 24 months                            25%                                                                                                                                                                                     1-3%

            We have no plans to establish a
                                                                21%                                                                                                                   12%                                                                     3-5%
                              DX roadmap                                                                                                                                                                               32%
                                                                                                                                                                                                                                                              5-10%
    We have two roadmaps: one for DX and
                        one for business                 16%                                                                                                                                                                                                  10-15%

  Our DX roadmap is the business roadmap           9%                                                                                                                               21%                                                                       15-20%

                                                                                                                                                                                                                                                              Over 25%
                                                                                                                                                                                                              27%

                                     Improving Digital Capabilities

                                                                                                                                            To accelerate digital transformation (DX), 30% of construction
    Operational excellence - production/                                                                                                    companies worldwide are planning to create a DX roadmap
                   creation of offerings                                                                   48%
                                                                                                                                            within the next 12 months. In addition, plans to hone digital
     Customer excellence - engagements                                                            44%                                       capabilities are in place, with operational excellence as a top
                                                                                                                                            priority for almost half of construction companies worldwide.
    Data capitalization and monetization                                                       41%                                          Customer excellence in improving engagement and data
                                                                                                                                            capitalization and monetization round up the top 3 priorities
 Customer excellence - products/services                                                     39%                                            for digital capabilities. For these initiatives to succeed,
    Operational excellence - supply chain
                        and distribution                                          32%                                                       construction companies must increase their budgets for
Talent excellence - change management,                                                                                                      technology – 32% of construction companies currently only
                collaboration innovation                        21%                                                                         spend 1-3% of their annual turnover on technologies, while
                                                                                                                                            just 2.5% spend over 25%.
                                                                 Source: IDC-Autodesk DX Construction Maturity Pulse, n = 835

An IDC InfoBrief | Digital Transformation: The Future of Connected Construction                                                             This IDC InfoBrief was produced by IDC Asia-Pacific Custom Solutions. Copyright 2020 IDC. Any IDC information or reference to IDC that is to be used in advertising,   27
                                                                                                                                            press releases, or promotional materials requires prior written approval from IDC. For more information, visit: www.ap.idc.asia or email: gmsap@idc.com
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