MyFondia VirtualLawyer
June 20, 2019

Digitalization in the Construction & Real Estate Industry

We have interviewed 40 companies in 13 industries, over the last two years, to learn from their digital experience. Technology and digitalization are enabling innovation and disruption at a rapid pace.

The construction and real estate sector are experiencing a digital revolution which has led companies to re-think their business models, create new services and ways to operate.

Latest improvements and staying competetive

The interviewees mentioned that their biggest accomplishments for the last year were growing and improving their online store and moving to an electronic signature system, which saves time and helps to get rid of paper flow. The companies had experience of carrying out a practical service design case based on customer needs, utilizing tools like VR (Virtual reality) and BIM (Building Information Model) solutions.

The main investments for now are developing data systems, developing online services, launching online store, improve interactions with customers, update project management processes, creating BIM solutions and investing internal operations such as IT services and registers. The interviewees are also planning to test the software robotics in backend functions over the next year.

The interviewed companies have noticed that they need to get more out of existing machinery, people and premises, to stay cost effective and competitive. This is an internal driver for them, leading to investments in more efficient processes and automation tools. An important competitive advantage for businesses is the emphasis on customer experience. The interviewees have identified a change in customer behavior. Nowadays customers appreciate more convenient and easy-to-use electronic services, around the clock.

Future development

It’s expected that in the future, platform-type business earning models will become more prevalent in the real estate sector. AI solutions might be used to automate the management of platforms. Peer-to-peer sharing of access to goods and services could allow new services to be introduced to customers. In the construction sector, the use of BIM in design and maintenance will allow and speed up the creation of new types of processes and, when combined with IoT (Internet of Things) sensors, new services based on information gathered from new buildings. Other technologies that are trending are Machine learning, Big data and analytics, and VR and virtual modeling, which will give an excellent opportunity for property presenting e.g. when buildings are still under construction.

Over the next 5-10 years, the interviewed companies see themselves focusing on the creation of open interfaces to allow data flow and the use of big data, hoping that this leads to new innovations in the industry. They will also try to find solutions to reduce energy consumption. A specific area for further investigation is finding new uses for BIM, utilizing AI-based applications and IoT.

“In the future, the business model could well be subscription-based: you pay something, get the right to use one or several hubs, and pay according to use for everything (printing, lunches etc.) A subscribing customer, who you can sell and market all kinds of things to, and at the same time, you have a steady cash flow from basic subscriptions.”

Is your business related to construction and real estate sector? How do you stay legal when digitalization shapes the industry? We find that some current legislation and regulations are supporting the new technologies and the business models they enable. In other situations, we find that existing laws and practices is not suited for the new technologies and the business models they enable.

On our Digireport, you can read more of our key findings and recommendations for companies to follow from a legal perspective. We hope that you find something useful that can help your business on your digital journey. Download the full report from here.

We law your business <3