Digital Transformation: How to build the future, today Contents Introduction .................................................................................................... 3 Built environment in 2020: journey towards digitalization .......................... 4 Built environment in 2020 ............................................................................................................................................................ 5 Industry 4.0: the architecture of opportunity ........................................................................................................................ 6 The reality of Industry 4.0 & digital transformation ............................................................................................................ 9 How ready are we to adopt and invest? .................................................................................................................................. 10 Spotlight on data: the foundation of digital transformation ...................... 11 The foundation of digital transformation .............................................................................................................................. 12 Digital transformation hesitations and barriers ............................................................................................................... 13 Unlocking the value of data ........................................................................................................................................................... 15 Collaboration & communication: making digital construction a reality ....... 16 Making digital construction a reality .......................................................................................................................................... 17 Step 1: adopt a standards-based approach ............................................................................................................................ 18 Step 2: break down barriers with communication ............................................................................................................... 19 Step 3: build momentum for buy-in support ......................................................................................................................... 20 Propelling organizations into international markets ......................................................................................................... 22 Building blocks for success: your digital transformation checklist .............. 23 How to secure your place in the smart cities of tomorrow, today .............................................................................. 24 Why BSI? ....................................................................................................... 25 References ..................................................................................................... 26 2 Digital transformation: how to build the future, today Until now, achieving true digital transformation within the built environment has been a near impossible task. Stalled by a backlog of unusable data, a lack of Whether you’re a supplier, manufacturer, constructor, standardization and poor cross-project communication, consultant or client, this report will guide you through organizations are falling short on their ability to deliver your digital transformation journey and explore: 2020’s vision of digital construction. • Industry 4.0’s impact on today’s built environment In today’s competitive market, it’s no longer enough for organizations to sit back and wait for change to happen. • The role data plays in the future of digital construction With exclusive insight from leading industry influencers, • How to create a strong foundation for technology including Alex Lubbock (Head of Digital Construction, buy-in and rollout HM Treasury and Cabinet Office), Gary Pattison (Certification Technical Expert for BIM and Digital • Ways in which your organization can boost Construction, BSI) and Dan Rossiter (Sector Lead, BSI), competitiveness in global markets with survey results from over 100 built environment professionals, this report helps readers overcome their digital transformation pitfalls and challenges with expert advice and tangible steps. ASSET LIFECYCLE 3 Built environment in 2020: journey towards digitalization 4 Built environment in 2020 In today’s built environment, projects are being designed, constructed and managed against a backdrop of fluctuating pressures. From uncertainties such as Brexit in the UK and compliance requirements to urbanization and sustainability demands, organizations are on a tightrope, balancing these priorities whilst trying to modernize their services. However, with the right digital transformation strategies and Organizations are support in place, this balance is easier to achieve. Not only on a tightrope, because organizations will have the technology in place to help them remain compliant, but because the collection of balancing these meaningful information and the use of automation will help priorities whilst businesses move towards the collaborative and connective trying to modernize standards of Industry 4.0. their services. 5 Industry 4.0: the architecture of opportunity What is Industry 4.0? The fourth industrial revolution is centred around the cyber-physical transformation of manufacturing1, with a focus on the connectivity and automation of data. Industry 4.0 is arguably one of the most evolutionary eras Technology like Big Data, Internet of Things (IoT) and the manufacturing industry has ever experienced, and also Building Information Modelling (BIM) is improving the describes the automated/digital trend. way buildings are designed, made and maintained as they allow for communication between human and Centred around the exchange and automation of data, machine, and machines with each other. this wave of digital transformation moves physical assets from static structures into connected ecosystems. And this is just the beginning. Industry 4.0 is built from the convergence of technology including: IoT Artificial Intelligence Big data Wearable technology Additive Building Information manufacturing Modelling (BIM) Automation and autonomous controls Robotics Cloud computing 6 5 Industry 4.0 builds the foundation for tomorrow’s smart assets and smart cities. Using IoT networks and sensors, smart assets This technology creates the framework for smart collect data from their surroundings so that they cities, where assets, buildings and infrastructures can adapt to their environment and adjust their can not only communicate with each other, but operational performance accordingly. Not only also with an interconnected network of work, does this increase the efficiency, sustainability travel and living spaces. and security of buildings and infrastructures, but it also transforms facilities management. Investment in smart cities is expected to reach $135 trillion in the next two years2, making this urban evolution a reality you can’t ignore. Investment in these cities is expected to reach $135 trillion in the next two years2, making this urban evolution a reality you can’t ignore. 7 “Being able to plan for the future adoption of technologies at scale is critical. We have to have vision.” Alex Lubbock Head of Digital Construction, HM Treasury and Cabinet Office 8 The reality of Industry 4.0 & digital transformation in 2020 81% of organizations have invested or are planning to invest in BIM over the next 12 months. 44% have invested in cloud computing3. The opportunities that Industry 4.0’s technologies but integrated workplace management solutions present for the built environment are astounding. allow multidisciplinary teams to better collaborate and communicate. Not only will this combination of technology unify today’s fragmented landscape – connecting building As a result, projects will become more efficient owners, designers, construction teams, facilities and profitable in the long term. managers and occupants through shared asset data – Top five innovations predicted to have the biggest impact on the built environment over the next five years4. Cloud BIM IoT 1 2 computing 3 Automated Artificial construction and 5 Intelligence 4 system processes 9 How ready are we to adopt and invest? 32% of professionals feel unprepared and behind in delivering 32% digital transformation standards in 20195. Despite their investment intentions, only 12% of To move towards Industry 4.0’s shared goal of an open organizations we surveyed would consider themselves and collaborative built environment, we must adopt a as leaders in their field in terms of their digital growth mindset that will allow us to invest in our transformation strategies. This lack of confidence is future, today. hindering the ability of organizations to modernize This begins by breaking down adoption barriers and and deliver better services for their clients. creating a strong foundation of useable data to light the spark of digital transformation. 12% 0% 100% Only 12% of organizations would consider themselves as leaders in their field in terms of their digital transformation strategies6. 10 Spotlight on data: the foundation of digital transformation 11 The foundation of digital transformation “An integral part of smart cities is the collaborative sharing of data from separate disciplines and sources.” Gary Pattison Certification Technical Expert for BIM and Digital Construction, BSI No matter what your role within the supply chain, IoT technology