Digitalisation Is Transforming The Nordic AEC Scene

Posted by Stefan Grahn on November 19, 2018

Digital Transformation Nordics

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A global research report by the IDC, the premier global provider of market intelligence and advisory services for the ICT markets, show that 59% of businesses who actively work with digital transformation have only reached the initial phase of their work (research covering 2000 companies in 23 countries). They are running digital projects and making progress, but they are not digitally transforming their overall organization.

The reasons for not moving past the initial stages of transformation and using technology to solve traditional business issues can be many. For example, the management board may not be fully invested, or perhaps the basic technical solutions are not in place before launching several intense, and often resource heavy, digitalisation projects. Focusing on getting the basics right is a key to success, but there is of course no hiding place from the transformative effects of AI, big data and cloud computing. And you cannot see the digital transformation in isolation, but it affects the entire company and its culture. Effective change management is necessary if you want to achieve transformation, bolster your firms operations and beat the competition.


 

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The Nordic “Digital Players”

Innovation Nordics

Needless to say, digital transformation is on everyone’s radar and has become one of the most talked about topics in media, businesses and society. However, many decision makers in the Architecture, Engineering and Construction (AEC) industry globally feel unprepared for this. Deltek's recent study found that as many as 70% don’t feel ready or able to deal with disruptive technologies. But what's the outlook in the Nordics? According to the IDC, in 2017 Nordic organizations spent approximately €25 billion on technology and services related to digital transformation. Most organizations are characterized as “digital players”, meaning they have a strategic approach to digital transformation, but predominantly focus on using the technologies to improve productivity and efficiencies. For example, many Nordic organizations chose cloud services, and typically, multiple cloud providers. Cloud deployment is often the preferred deployment model for new workloads with existing ones being replaced with cloud solutions as well. In fact, in 2017 the preference for cloud deployment shifted from SaaS and VMs to cloud-native code and container technologies, as the benefits of cloud shift to flexibility and agility.

 

'Nordic organizations spent approximately €25 billion on technology and services related to digital transformation'

 

 

The AEC industry is no exception to the rule and digitalisation is affecting the industry. The whitepaper “Designed by ‘Bots’ and Erected by Printers” by the IDC Nordic, reports that companies in these industries in Western Europe already spend more than €1.5 billion on innovation accelerator technologies for industry specific use cases, and spending growth is projected around 15% annually. So there is definitely incentive, and it’s a matter of starting at the beginning and getting the basics right rather than jumping ahead. More importantly, it’s crucial for firms to understand that this is not exclusively an IT project with a start and an end date, but an ongoing business strategy that should be visible throughout the entire firm.

In the coming years, we will see a continuing transformation of the AEC industry, with new digital services becoming necessities, and significant changes in the market space depending on whether a company gets on the digital journey or not. Read more in the report from IDC Nordic available here:

 

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