The construction industry is the last to keep up with technology advances. I just read an article from Bill Kracunas called, A Scorecard for Technology Debt. In it, Bill has develop a way to calculate the cost that companies are experiencing from the following elements;
Bond companies and Banks are starting to use technology scorecards to evaluate a construction company besides their financials. They are looking for the deficiencies mentioned above and understanding the magnitude of the costs associated with them. The following are key components of the scorecards;
Security: Does the company have adequate safeguards to protect its sensitive and proprietary information, especially against cyber threats? Does it encrypt all personally identifiable information? Has the company been victim to a material data breach? Does it have robust contingency plans for potential incidents?
As we continue to move to a cyber-world, the components above will have a great impact on companies not embracing the future. Getting a bond or financial funding may be restricted from a poor scorecard. The construction industry is DEAD last in spending and needs to step up and start allocating funds.
“CFO’s make up 80% of the decision makers of construction IT spending, What are the barriers in allocating funds? How can we improve and catch up?”
I believe the largest single way to do this is through standardization of data and terminology for our industry. Until a “cost code” is the same for everyone, the above deficiency elements will continue to plague our industry. All we have to do is look at manufacturing industry as a model of standardization. Until we measure production the profits required to catch up from the technology debt will not vaporize. We need CSI, CFMA, NCCER, ABC, AGC, and ASC to name a few, to create a combined committee to address this issue. They need to work with software companies to start making the necessary modifications to be able to process the new standards. Then teach, teach, teach.
Thank you for reading, I encourage you to comment….