5 digital investment strategies to accelerate ROIs

Why is that? IDC, a market research firm specializing in business and technology, found that 42% (PDF, p. 2) of organizations are focusing on processes over outcomes and the wrong key performance indicators (KPIs). Simply investing in technology doesn’t ignite change. Rather, companies need:

• A cohesive digital road map.
• A top-down approach to change management in which leaders set the vision for a digital future.
• Defined outcomes first, then a work-backward approach to determine actions needed to achieve those outcomes.

Here are five top digital investment strategies to accelerate the ROI of digital transformation.

The industry knows both everything and nothing about the data interoperability challenge. Every day, disrupted workflows hinder collaboration with partners and force the rework and workarounds that narrow margins and lead to frustration and BIM fatigue.

It’s evident in the bottom line: A 2016 McKinsey analysis reported that construction projects are typically up to 20% delayed and 80% over budget (PDF, p. 18). The different stakeholders delivering the project share these losses, but owners disproportionately bear the burden.

Meanwhile, a 2018 study (PDF, p. 7) by FMI and Autodesk portfolio company PlanGrid looked at digitization in the construction sector and found that 52% of rework is caused by poor data and miscommunication, costing about $31.3 billion in 2018 for firms in the United States alone. The report also revealed (p. 12) that, in an average week, construction employees will spend more than 14 hours—roughly 35% of their time—looking for project data or information, mitigating mistakes, managing rework, and handling conflict resolution.

For all the causes of inadequate interoperability—proprietary data formats, disputed standards, or simple technical debt—the industry is just beginning to grasp the costs. It’s important to bring up in the context of software development because, as design and engineering houses incubate and assess their own specialized tools, the ability to seize the market opportunity is essential for evaluating the bet. In other words, if you’re an architecture firm looking to bet on in-house software development, it’s good to know how much you stand to win—whether on your own projects or commercially in the market.

To learn more about optimized operations, read this deep-dive article, featuring the CIO from US company Kimley-Horn and the CTO of the Association for Manufacturing Technology (AMT). 

Look at your iPhone. Every time you unlock it, you’re generating data. AI is identifying continuous patterns to help Apple understand how people engage with their phones, which aspects they like or dislike. This information helps engineers design future features to constantly improve user experience.

Leveraging data effectively requires a mindset shift that needs to come from the top; 60% of the highest-performing AEC companies have a C-suite–driven data strategy. Making data-led decisions leads to innovation and creates competitive advantage for AEC and manufacturing companies.

Companies must invest in technology and people in parallel, creating an empowered workforce that’s skilled for the digital world. Digital transformation opens the door to developing a people-first strategy. As automation takes over manual processes, workers can shift into roles that enable them to innovate and create value. Facilitate enterprise-wide collaboration by leveraging the cloud to unify data and connect workers anywhere, anytime, on any device. In AEC and manufacturing, industries that traditionally required people to be on-site to manage operations, 30% (PDF, p. 7) of workers will be remote by 2023 thanks to virtual and augmented reality.

Building a people-first strategy requires an institutional transformation that supports skills development and new ways of working to benefit from digital investments. It’s important to create excitement and get buy-in. Leaders can offer learning through gamification, give workers new titles, or increase employee recognition to get workers on board with continuous change. Millions of people are quitting their jobs in what’s being called the Great Resignation; companies need to leverage technology to attract and retain talent and create ongoing learning opportunities to help people adapt.

At Autodesk, technology growth dovetails with a commitment to people. During the move to the cloud, it was important to understand what skills employees already had and what will be needed in the future to support them through that transition. These values flow from our CEO. He sets a vision, articulates that vision, and creates excitement by celebrating wins as a team. Investing in a people-first strategy is in Autodesk’s DNA.

Innovation is critical to accelerating the ROI of digital investments. While many leaders prioritize innovation, they may also be unsure how to initiate change, be too focused on day-to-day operations, or have a fear of failure. But to future-proof their businesses, leaders need to embrace a learning mindset to successfully innovate at scale.

Leaders can create a culture of innovation by communicating the benefits of new methods, sharing their vision of the goal, and presenting a road map of how they’ll get there while still running the business. In short, transparency is critical.

AEC and manufacturing companies are making digital investments that herald an era of innovation. They need to leverage those investments—like generative design, additive manufacturing, and robotics—to design new customer engagement strategies (for example, virtual experiences) and create new revenue streams. A great example of innovation at scale and speed is the amazing feat of designing and building a 1,000-bed hospital in 13 days in China early in the pandemic, made possible by digital transformation and data-driven collaboration.

For AEC, supply-chain delays can cost 30% of a project’s budget. As part of a digital ecosystem, companies can share resources, materials, and assets to build supply-chain resilience. They can learn from each other’s successes and failures, boost innovation through collaborative networks, and make the organizations stronger as a community. Digital transformation is no longer a bold move—it’s standard practice in today’s market. But to reap the rewards of digital investments, leaders need to spearhead institutional transformation and focus on the end goal.

To learn more about digital ecosystems, check out this deep-dive article, featuring Japanese companies MISUMI and Shimizu Construction.

Autodesk CIO Prakash Kota is responsible for the company's global infrastructure, enterprise operations, and workforce collaboration and productivity services. A version of this article ran previously on Redshift.