Digitisation in the construction industry

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Digitisation in the construction industry

Applied to a specific case

Kamalan Rashasingham

Thesis submitted for the degree of Master in Cybernetics

30 credits

Department of Physics

Faculty of mathematics and natural sciences UNIVERSITY OF OSLO

December / 2018

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Abstract

Emerging technologies affect the construction industry. Global trends gain an extensive foothold in Norwegian construction companies. In this thesis, I have therefore investigated how digitisation can help to empower the workers in the construction industry. My study is based on qualitative interviews with three project members from AF Gruppen TEAM Bispevika and with a focus on a selected case-study in Bjørvika, Oslo. The thesis aims to identify to which degree AF Gruppen TEAM Bispevika has digitised their work. In doing so, the project discusses three different digitisation frameworks.

My findings show that my respondents stress the need to revisit the business model. There are many employees doing almost the same tasks every day, even though they have enough knowledge to perform other tasks as well. I argue that it will benefit AF Gruppen and other construction companies if they establish a more flexible mindset. This will give employees the opportunity to execute different assignments and the company will have a staff better prepared for future global trends. Moreover, people tend to underestimate the need for specific information to perform a task or a job. The way the company organises its work processes makes the communication and sharing of files and documents back and forth unnecessarily time-consuming. In this thesis, I suggest that there is a need to develop novel work processes with greater inclusion of digital tools that can collect data faster and better, especially when it comes to creating data as a fundament for reports.

Furthermore, my findings indicate that digital tools are empowering people within the industry. It is therefore crucial for AF Gruppen to make use of digital tools and advanced technology, to assure the company's ability to keep up with the development in the industry.

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Acknowledgements

There are many people I would like to thank for helping me complete this project. First and foremost, thank you to my interviewees in this study for sharing valuable insight and experience with me. Your reflections were useful, and I learned a lot while exploring the topic.

I would also like to pay my gratitude to my supervisor Josef Noll at the University of Oslo, Department of technology systems (ITS). Your door was always open whenever I wanted to talk about my research or had questions about my thesis. Thank you for all the inspiring discussions. Your knowledge and research were essential to the finalisation of this thesis.

And - maybe even more importantly - you helped me understand the importance of digital inclusion.

Moreover, I would like to acknowledge my external supervisor Lars Kristian Hunn at AF Gruppen. You always had insightful ideas and offered great solutions. Thanks for inviting me to workshops and including me in your conversations. Also, thank you to AF Gruppen for giving me the opportunity to cooperate with you. It was very useful to see how things work in an organisation this size.

I want to thank Sebastiano Lombardo, my first external supervisor at AF Gruppen. Thanks to you, I got to cooperate with AF Gruppen. Thank you for welcoming me and introducing me to project leaders. Your knowledge was useful during the early stages of this project.

Furthermore, I would like to thank my colleague Atle Engebø at Norwegian University of Science and Technology (NTNU) for comments and suggestions. It was essential during the last stretch of my thesis.

I would also like to thank my family for motivating me and always supporting me. A special thanks to my mother and father for encouraging me to do what inspires me the most – research within what I hope is my future place of work. I would also like to thank my younger sister for creating a healthy competition between us and making me strive for the best.

Also, thank you to my dear fiancée Margrete for countless working days at school and for being so positive and helpful along the way, including discussions, brainstorming, love and care.

This thesis would not have been possible without you all.

Kamalan Rashasingham

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List of figures

Figure 1 The structure of a semantic ontology. Source: (Zöllner-Weber, 2009) ... 10

Figure 2 An example of a Semantic Ontology ... 11

Figure 3 Illustration of a fragmented construction industry ... 12

Figure 4 AF Gruppen’s Organisation Chart. Source: (Lars Solbakken Berggaard, 2016) ... 15

Figure 5 Digitisation Framework Source: (Group, 2018b) ... 16

Figure 6 The Four Keys. Source: (Schober et al., 2016)... 19

Figure 7 Digital Roadmap ("Digitalt Veikart") for the Norwegian Construction Industry. Source: (Sandnes, 2016)... 21

Figure 8 The maturity index. Source: (Schuh et al., 2017) ... 26

Figure 9 Focus on the construction industry ... 30

Figure 10 Simplified process to calculate cost-benefit ... 42

Figure 11 The transition of collecting fragmented information to accessing specific information on a shared platform ... 43

Figure 12 A comparison of registration of working hours ... 44

Figure 13 An example of a building heat map. Source: https://uk.pcmag.com/mmsoft- pulseway/85752/10-steps-to-getting-started-with-your-ibw-network-buildout (Accessed 15 December 2018) ... 45

Figure 14 Future scenario of project and asset delivery enabled by digital tools ... 47

Figure 15 Cycle of digital information ... 47

Figure 16 Right hand side of the picture shows us how digital tools can remind us of our responsibility ... 48

Figure 17 Transparency will give greater insight into what tasks that are performed ... 49

Figure 18 Competence will contribute to reaching required business goals ... 50

Figure 19 Structure for digital empowerment ... 52

Figure 20 An example of collision. Source: http://therevitkid.blogspot.com/2009/11/cost-savings-of- bim.html (Accessed 15 December 2018) ... 53

Figure 21 Trello board. Source: https://trello.com (Accessed 15 December 2018) ... 54

Figure 22 Digital Twin in Construction. Source: (Intellectsoft, 2018) ... 55

Figure 23 BIM Box on construction site. Source: http://constructionexec.com/article/bim-in-a-box- maximizing-the-power-of-bim-on-the-jobsite (Accessed 15 December 2018) ... 55

Figure 24 Example on how the supplier can reply to orders in BIM. Source: https://www.autodesk.com/solutions/bim/structural-engineering (Accessed 16 December 2018) ... 56

Figure 25 BIM model is sent to the store ... 57

Figure 26 Drilling holes; Man vs robot. Source: https://www.youtube.com/watch?v=CS0bmXW43Us&t=59s (Accessed: 16 December 2018) ... 59

Figure 27 Compare time planned vs time spent ... 61

Figure 28 The "I" - Information in BIM is left outside in the processes ... 62

Figure 29 The data and information cycle ... 63

Figure 30 People Empowerment Model ... 65

Figure 31 Robot contributing to perform physical, manual, repetitive work. Source: https://www.youtube.com/watch?v=CS0bmXW43Us&t=59s (Accessed: 16 December 2018 ... 68

Figure 32 Robots printing concrete structures. Source: https://newatlas.com/robots-3d-print-concrete- structures/56601/ (Accessed 16 December 2018) ... 68

Figure 33 Power of collaboration. Source: https://yourstory.com/2017/11/smart-leaders-know-power- collaboration/ (Accessed 17 December 2018) ... 72

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List of Tables

Table 1 A comparison of the core functionalities ... 23 Table 2 Functionalities that focus on technology ... 24 Table 3 Functionalities that focus on Empowering People ... 25 Table 4 My Top 10 findings. A scale from 1 – 5, where the final score is weighted 20% – 40% – 40%

... 39

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1.0 Introduction

This thesis will investigate new technologies and global trends in the construction industry.

The industry includes the construction and maintenance of residential and commercial

buildings, and the processes of constructing roads, infrastructure and facilities related to other sectors such as oil, energy and railways. It has become a common knowledge that a

construction project exceeds its time limits and budgets (Construction, 2017). The challenges are many, and as the projects get more complex, there is no way it is getting any easier to keep control of the building progress. The construction industry is facing rapid changes as advances in new technology is emerging. According to a McKinsey report on global digitisation, the construction industry is low on digitisation (Agarwal et al., 2016). The construction industry ends up on the bottom, just over agriculture and hunting.

New advances in technologies, digitising work processes and more use of Building Information Modelling (BIM) shall contribute to save costs and keep track of progress in projects. Thus, the main goal of digitised work in the construction industry is to enable a more agile process leading to flexible development while still in control of time and budget.

Going even a step further, the collaborative model being established in some industries will also contribute in the construction industry to future orientation way of efficient and effective building. According to Roland Berger, business leaders need to think in a new way. They need to think away from traditional methods that have worked for many years. The potential risk of not rethinking their methods can, at worst, end up being outperformed by other

companies who are willing to rethink (Schober et al., 2016). Therefore, «Ignoring digitisation is a mistake» (Schober et al., 2016, p. 14).

Industry 4.0 has been recognised as a global trend towards digitisation and the main game changer in the construction industry. According to the European Commission, Industry 4.0 is to shape the future perspectives of manufacturing and construction. The European

Commission recognises that businesses in the industries are not taking full advantage either of the advanced technologies or the innovative business models offered by the collaborative economy (Comission, 2018).

1.1 My motivation

Digitisation was a natural choice of topic for my thesis. I want to get a better understanding of how digitisation can empower people. From my experiences, people tend to struggle to get a hold of digitisation. What does it mean? How does it affect life? How can we utilise

technology to the fullest? These are some of the questions that rise and need to be explored. I want to get a better understanding of why the construction industry struggles to digitise their work and to utilise technology to a greater extent.

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1.2 Background

The Norwegian Construction Industry contributes to about 50 billion NOK to the Norway gross domestic product (GDP) (Economics, 2018). The Norwegian Construction Industry consists of approximately 55’000 companies and more than 225’000 people (Nilsen, 2018).

The industry further recognises that there is a need for around 7-8’000 craft workers annually towards 2030 (Bygg.no, 2017).

This study is aimed towards one particular industrial partner, AF Gruppen TEAM Bispevika.

From the early 1990s, AF Gruppen focused on major construction projects in Norway (Gruppen, 2018). TEAM Bispevika is the name of the project team that works with constructing residential buildings in Bjørvika, close to the city centre of Oslo.

The motivation to study this topic is to contribute to AF Gruppen TEAM Bispevika on their desire on increasing their work and effort towards digitisation and collaboration. What is interesting is the ambition that we have seen which is slightly different from the industry itself. The desire to contribute to the industry to take advantage of new technologies thrives the purpose of this paper. The industry needs help to design and implement a digital strategy.

1.3 Identifying the problem and problem statement

Advances in new technology require new knowledge. Digital tools and processes let us develop new work processes. It is evident that the construction industry needs a suitable approach to a digital strategy. Our industrial partner is aware that they need to rethink their working methods in order to work smarter and to be more efficient. The traditional models in applying digitisation have a goal of cost-saving or more efficient way of handling data processes. This is also a legitimate starting point in Norway for AF Gruppen TEAM

Bispevika. However, it does not stop there; digital empowerment of people is the main driver for digitisation.

In modern times, we see that employees have a demand for satisfactory work of “decent work” in addition to standard salary and vacation. In certain industrialised countries, the number of qualified craft workers goes down giving companies the challenge to make the jobs more attractive (Institute, 2003). Empowering employees, providing them with the equipment and resources they need will eventually help them to perform at an even higher level. Businesses will benefit employees’ well-being and satisfactory as productivity and quality increases, as well as it can result in high levels of collaboration (Manington, 2018).

The problem statement, which this thesis looks at, is to identify how digitisation will affect AF Gruppen TEAM Bispevika. First, the thesis will investigate different digitisation frameworks. Then, the thesis will identify goals to help TEAM Bispevika achieve a higher digitalisation maturity stage. Lastly, it will look into how TEAM Bispevika can empower its employees.

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1.4 Defining the scope

The starting point of this thesis is the analysis of the existing framework and the

identification of core functionalities for digitisation processes. With our empowerment model in mind, the main questions are, to what degree the traditional model can address the

empowerment and how the model extended and adapted to put empowerment in the first place. The people empowerment model will explore how digitisation can empower people through the different building phases. The specific outcome of the analysis is to recognize a set of recommendations for transformation into the empowerment of people.

1.4.1 Objective

This report aims to give a better understanding of how to digitise a company within the construction industry. It will also provide a framework that should be a suitable approach to digitisation for any other company in the industry. Lastly, it will explore the possibilities of empowering people and employees through the availability of digital technology.

1.4.2 Research question

Therefore, my research question is:

1. How can digitisation help to empower people in the construction industry?

1.4.3 Limitations

The research project will not give a fully thorough review of digitisation of the construction industry. On the contrary, it will investigate a specific case study for digitisation in the construction industry. The research will explore AF Gruppen TEAM Bispevika and their project in Bjørvika. This project is carried out over a semester, lasting 17 weeks.

1.5 Outline

This master thesis is divided into six chapters and will have the following outline:

● Chapter 1 - Introduction: The term digitisation is described briefly but will be explored more afterwards. This chapter will also describe this thesis’ aim and research question.

● Chapter 2 - Theory: This chapter will focus on global trends in digitisation and explore digitisation frameworks and people empowerment entities.

● Chapter 3 – Applying the digitisation frameworks: Methods used in this study will be explained.

● Chapter 4 – Analysis and findings form interviews: Findings from my discussions at AF Gruppen TEAM Bispevika will be presented.

● Chapter 5 – Discussion and Evaluation: In this part, I will discuss tendencies from my empirical findings. Suggestions for further research are offered.

● Chapter 6 - Conclusion: A final line for the discussion will be drawn. Major findings are presented.

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2.0 Theory and frameworks of digitisation

This part of the thesis creates the basic to follow and understand the study. Firstly, relevant definitions will be explained. Moreover, an overview of emerging technologies and global trends in the construction industry will be presented. After exploring the global trends, it is natural to describe and understand different digitisation frameworks. Afterwards, we try to extract the core functionalities from the different digitisation framework. That will allow us to find a suitable approach towards digitisation for companies in the Norwegian construction industry.

2.1 Exploring relevant definitions

2.1.1 Digitisation

The Merriam-Webster dictionary defines digitisation as «the process of converting something to digital form» (Merriam-Webster, 2018c). While, the Oxford dictionary defines the term digitisation as «the conversion of text, pictures or sounds into a digital form that can be processed by a computer». The main difference between these two definitions is that the Oxford dictionary explicitly mentions what can be digitalised as well as it must be processed by a computer (Dictionaries, 2018d). This means that the information must be in bits so that a computer can process it. A scanner allows us to digitise text and images because it is a device that scans documents and converts them into digital data (Dictionaries, 2018i). The Merriam- Webster dictionary defines scanner as «a device that scans an image (such as a photograph) or document (such as a page of text) especially for use or storage on a computer» (Merriam- Webster, 2018h). When digitisation is mentioned in this thesis, we will have the Oxford Dictionary definition in mind as it is the most suitable.

2.1.2 Digital transformation

Digital is defined as «involving or relating to the use of computer technology» by the Oxford Dictionary (Dictionaries, 2018c). Digital is also defined as «composed of data in the form of especially binary digits or characterised by electronic and especially computerised

technology» by the Merriam-Webster Dictionary (Merriam-Webster, 2018b).

The Oxford Dictionary defines transformation as «a marked change in form, nature, or appearance» (Dictionaries, 2018k), while the Merriam-Webster defines it as «an act, process, or instance of transforming or being transformed» (Merriam-Webster, 2018j). In this context, transforming refers to a change in composition or structure.

Digital transformation can be defined as the process of involving or relating to the use of computer technology to change the marked in form, nature or appearance. The definition needs some modification to be an applicable to the construction industry. Digital

transformation can be defined as the process of involving the use of computer technology to change the form and nature of the different phases or processes during construction. This definition will relate to the processes on the construction site, the change in business models due to the increased use of digital tools as well as the end-user.

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2.1.3 Global Trends

The term global can be used in various situations. It can be defined as «relating to the whole world» (Dictionaries, 2018h). In some circumstances, it can also mean relating to the whole of something, or a group of things. The Merriam-Webster dictionary shares the same

definition as the Oxford Dictionary when the term global is referring to relating to the entire world, worldwide. Moreover, the dictionary also defines global as relating or applying to a whole, such as a computer program (Merriam-Webster, 2018g).

The term trend as a noun is defined as «a line of development or a current style or preference» (Merriam-Webster, 2018k). The Oxford Dictionary defines it as «a general direction in which something is developing or changing», and as «a topic that is the subject of many posts on a social media website or application within a short period of time»

(Dictionaries, 2018l).

This thesis investigates a specific case in the construction industry and therefore is some modification to the terms global and trend needed in order to apply the terms in this study.

That being said, parts of the Oxford Dictionary definition suit this study when it defines global as relating to the whole of something, or a group of things. The definition provided by the Merriam-Webster on the term trend as mentioned earlier suits this thesis very well. The modifications of the definitions are done to suit this thesis as the definitions become relevant for further discussion. I therefore suggest to interpret global trend in the construction industry as a group of things as a current style or preference. This definition suits this study very well because the study will later clarify and describe emerging technologies in digitisation in the construction industry.

2.1.4 Industry 4.0

Industry 4.0 is described both as the next industrial age or the second machine age, but there is no universal understanding of the term (Mario Hermann, 2018). According to a Briefing published by the European Commissioner in September 2015 states that the term originates from Germany and the manufacturing industry (Davies, 2015). Angela Merkel, the German Chancellor, described the term industry 4.0 as «the comprehensive transformation of the whole sphere of industrial production through the merging of digital technology and the internet with conventional industry» (Davies, 2015, p. 2). With her statement, Angela Merkel suggests that the whole industry (designers, suppliers, the products themselves and end-users) shall be digitally connected. An Acatech Study, The Industrie 4.0 Maturity Index, describes Industry 4.0 as a phenomenon that will create many opportunities for growth offered by digitalisation, interconnectedness and new technologies (Schuh et al., 2017 ).

The new High-Tech Strategy Innovations for Germany is a paper published by the Federal Ministry of Education and Research in Germany (Federal Ministry of Education and

Research of Germany, 2014). In this paper, Industry 4.0 is recognised as the fourth industrial revolution where the use and integration of Information and Communication Technologies (ICT) is a major key-role in the industries. Further, the Federal Ministry of Education and Research find building information modelling (BIM) as an important trend to improve efficiency, reduce costs and to promote technologies in the construction sector. The paper also recognises that the Internet of Things (IoT), the rise of devices and people connected to the internet, creates challenges impacting both the interests of businesses and the labour market.

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It is a tough task to define Industry 4.0 as for now. Even though the term was commercialised already in 2011, there is not yet a universal accepted definition. That being said, there is a need for a common understanding of what Industry 4.0 is about. The Briefing published by the European Commissioner describes Industry 4.0 as «a term applied to a group of rapid transformations in the design, manufacture, operation and service of manufacturing systems and products» (Davies, 2015, p. 2). This description lack integration to other industries such as the construction industry. It covers for the most the manufacturing industry but lacks approach to others. That being said, the European Commissioner mentions that Industry 4.0 is depended on advances in technologies such as in ICT, other network communications,

simulation technologies, data collection, sensor technology to monitor processes, and ICT- based support for human workers (Davies, 2015).

To summarise, we can describe Industry 4.0 as the fourth industrial revolution that aims to digitise to increase productivity and growth of industries by taking advantage of new

technologies. ICT technology will play a major role when it includes sensor technologies and lets devices and humans stay connected. ICT enables ease of collection of data to analyse and provide information. Industry 4.0 also lets the end-users, often mentioned as customers, to be involved throughout the whole value chain; design, production and distribution.

2.1.5 Strategy

Strategy is defined as «a plan of action designed to achieve a long-term or overall aim»

(Dictionaries, 2018j). Another definition is the art of planning and directing overall military operations and movements in a war or battle (Dictionaries, 2018j). On the other hand,

strategy is also defined as «a careful plan or method or the art of devising or employing plans toward a goal» (Merriam-Webster, 2018i). Freedman Lawrence, the author behind Strategy:

A History, states that strategy is more than just a plan (Freedman, 2013). Companies, politicians and military and the everyday person need a strategy. A plan only tells you what tasks or events you need to finish in order to move to the next task or event. A strategy is needed when disagreements and conflicts rise to know what move to make next. Freedman also states that many starts on a strategy aiming for an ideal or desired end state. But he rather wants us to understand that a strategy sets the current starting point as basic for so then

reflecting on a series of events.

Michael Porter explains that positioning is no longer the heat of strategy as it is too static and not meeting today’s flexible markets and advances in technology (Porter, 1996). He also explicitly differentiates between Operational Effectiveness (OE) and strategy as many people are confused on the definitions. He clarifies that the meaning of OE is to perform similar tasks better than your competitor, while strategy is to create unique tasks or activities or performing similar activities in a different way (Porter, 1996). I think it is important to differentiate the activities; To take advantage of more advanced technology, motivate employees and collaborators better, and gain better control of future activities. The motivation to be different, seen from a business point of view, is to propose a different or greater value to customers. It is not given that the business will be able to propose a greater value, but the business can see opportunities to reduce cost, increase efficiency and to reach a higher level of satisfaction among its employees. By clearly differentiating from competitors the business can outperform others. When comparing Porter’s description of strategy to one of the descriptions provided by the Oxford Dictionary, we can say put it on the far edge; if a nation wants to win a war, it has to perform its activities in a different way than its rivals. If not, there is a risk of being outperformed and not achieving a victory.

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We see that there is a need for common understanding as a basis to discuss strategies. Even though there is no agreed definition of the term strategy, one can say, in a business context, that it means performing a set of very different activities compared to competitors. This thesis combines Freedman’s and Porter’s explanation on strategy, a strategy can be described as setting the current starting point to basic and then performing and reflecting on sets of activities different from your competitors or rivals.

2.1.6 Framework

This study will compare different digitisation frameworks. It is, therefore, necessary to define what a framework is to be able to get the criteria for comparison. Definitions of framework vary. The Oxford Dictionary defines a framework as an essential supporting structure of a building, vehicle or object (Dictionaries, 2018f). Going further, it also defines a framework as a basic structure underlying a system, concept, or text (Porter, 1996). The Merriam-Webster Dictionary defines a framework as a basic conceptional structure (Merriam-Webster, 2018e).

None of these are conflicting, The first definition defines it as a supporting structure while the second definition describes it as a basic structure.

Ralph E. Johnson mentions that «frameworks are a form of design reuse» (Johnson, 1997, p.

40). This witness that the purpose of frameworks is to be reused. Another definition is «a framework is a reusable design of all or part of a system that is represented by a set of abstract classes and the way their instances interact» (Johnson, 1997, p. 39). Again, we are witnessing the reusable aspect of a framework. Even though the reusable aspect is highlighted in both definitions, an important part of framework is also the design of it. The Cambridge dictionary defines framework as a system of rules, ideas, or beliefs that is used to plan or decide something (Dictionary, 2018).

Framework is a system of abstract classes, rules, ideas that is used to decide something. Even though the purpose of the framework is to be reused, the design is a skeleton of an application (Potanin, 2018).

2.1.7 Functionality

This study will investigate different digitisation frameworks to understand the different ideas and to extract the core functionalities to decide what steps to make to achieve a greater stage of digitisation. Functionality is defined as «the range of operations that can be run on a computer or other electronic system» (Dictionaries, 2018g). It also defines functionality as

«the quality of being suited to serve a purpose well» (Dictionaries, 2018g). Functionality is also defined as «the set of functions or capabilities associated with computer software or hardware or an electronic device» (Merriam-Webster, 2018f). Both of these definitions speak about the capability of running a range of operations with the computer.

According to a paper published by Tealium, there are 11 core functionalities of successful data strategy for marketers (TEALIUM, 2018). The study looks into the core functionalities of a Universal Data Hub (UDH), which empowers cross-organisational collection. The paper presents 11 functionalities:

1. Data collection

Build well-defined goals, such as Key Performance Index (KPI), to use the metrics to collect and measure data.

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8 2. Segmentation

The user must be able to define different segmentation to be able to put correct tags on data.

3. Support for Event- and Audience level Data

This strategy is meant for marketers to trigger marketing tools. The synergies to the

construction industry can be at the procurement phase or when the real estate agent needs to sell an apartment. The focus to support marketers’ tasks rather than any workers on the construction site.

4. Data Distribution

To provide a secure solution that lets data transfer through any means.

5.

Profiling

Again, this is an essential functionality for the marketer. The marketer needs to create profiles based on the collected data after an event. In the construction industry, profiling or

standardisation is necessary to attach needed information to all objects in BIM. This will let the building models have the needed information throughout the building’s lifetime.

6. Directives & Automation

When data is collected and profiled, repetitive work can be automated.

7.

Cross-channel, Cross-Device Capability

Cross-channel functionality is to focus on moving forward, while cross-device capability is to create common tags to data so that it can be connected. This is to build bridges between past and present data. This will give a better understanding of what information the data is giving us.

8. Real Time

Providing data and information in the moment, as in real-time.

9. Programmatic Delivery

Again, this is an essential part of marketing. Programmatic delivery can also be understood as automated delivery. The term “programmatic delivery” is meant for automated processes of buying advertisements on software. I don’t see any relevance of programmatic delivery as a core functionality for this thesis’ purpose. The focus on programmatic delivery only applies to marketers.

10. Client- and Server-side integration

Enable client and server to communicate on the same platform. This will allow seamless communication and information can be presented on a common platform. Client- and server- side integration applies to the technical aspects.

11. Ease of Use.

The technologies must be easy to use. The software and the graphical user interfaces need to be intuitive, so it is widely adopted in the different construction phases and among different teams.

We see that these functionalities are a wide range of operations that are associated with the computer. It lacks digital partnerships ecosystems. I would like to add an extra functionality based on the theory by Eng; the concept of digital partnerships that emerges due to

digitisation. Non-technology companies establish partnerships with digital start-ups or digital companies to bring something new to the industry (Eng, 2006).

2.1.8 Capabilities

Capability is defined as «the facility or potential for an indicated use or deployment» and as

«a feature or faculty capable of development» (Merriam-Webster, 2018a). On the other hand, capability is defined as «the power or ability to do something» (Dictionaries, 2018b). In this study, we define capabilities as the ability of development or to do something.

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2.1.9 Empowering people

Empower is defined as «to give official authority or legal power to do something»

(Dictionaries, 2018e) (Merriam-Webster, 2018d). Empowerment of people will contribute to increasing awareness on resources and the environment. It contributes to better knowledge to climate and resources aspects (Josef Noll, personal information, 16 October 2018). These are soft-drivers for industrial benefits. The construction industry is a considerable source of pollution and the need to improve its environmental footprints is emerging. To reduce emissions and to eliminate fossil fuels for heating, the construction industry must contribute on supporting and empowering knowledge and development.

As mentioned earlier, empowering employees will help them perform on a higher level.

Businesses will benefit employees’ well-being and satisfactory as the productivity and quality increases, as well as it can result in high levels of collaboration (Manington, 2018). I argue that digital empowerment, and thus participation in the construction processes will be one of the assets that companies can use for creating better jobs.

2.2 Semantic ontology

Before studying the different frameworks and the global trends, we need to establish some common understanding. Semantics is the study of the meaning of words or sentences (www.dictionary.com, 2018). «Semantic barriers refer to a misunderstanding between the sender and receiver arising due to the different meanings of words, and other symbols used in the communication» (Jargons, 2018). The reasons causing misunderstanding can be several, but the issues lie in not having the same base and not making the language simple enough.

Ontology is often referred to as a dictionary or glossary, but with greater details and structure (Ontolog.cim3.net., 2018). The focus is on naming parts and process and grouping similar ones together into categories. The figure can contribute to help to understand the following global trends and frameworks later. This will let us create a structure for digital

empowerment afterwards. A scheme that describes the structure of the ontology divides the scheme in classes, instances, properties, and information about a character. To be applicable in this study, there is done some modifications without removing the essence of the scheme structure.

The clear benefits of a semantic ontology are the development of knowledge. An ontology will focus on knowledge representation. This will let others manage knowledge better (Zöllner-Weber, 2009). The reader shall learn new things or unlearn old sayings. The illustration shall clear out any confusion on digitisation and digital empowerment of people.

It shall also give a very clear thought on what this topic is about.

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As we can see from figure 1 the structure consists of the following:

1. Domain

The ontology domain will make sure that the knowledge can be reused. The domain can also be understood as the main topic.

2. Class

A class is a way of defining groups.

3. Subclass

If the class cover a bigger area, it can be reasonable to create subclasses. Subclasses will let us narrow the scope to be more precise in our understanding. Subclasses are not necessarily always needed.

4. Instances

Instances, also referred to as an individual, is an object. Instances can belong to more than just one class.

5.

Properties

The properties are used to describe the specification to all instances of a class. Sometimes properties are only connected to classes to characterise the class itself and not to explain the instance (Noy and McGuinnrss, 2018). That happens when the instance is presented in a very simple language, and there is no room for misunderstanding or other interpretation.The relevance of a semantic ontology is to make the reader and other aware of the understanding of a topic (Cisternino et al., 2009). This is to create default interpretations of business and empowerment vocabularies (Cisternino et al., 2009).

To get a better understanding of the presented scheme for structuring the semantic ontology, the following example is presented: I intend to illustrate university courses.

Figure 1 The structure of a semantic ontology. Source: (Zöllner-Weber, 2009)

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11 Figure 2 An example of a Semantic Ontology

A similar semantic ontology will be illustrated when it comes to the structure of digital empowerment later in the study.

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2.3 Global trends in digitisation that affects the construction industry

2.3.1 The Construction Industry

The very beginning of the construction industry dates to when the very first human beings needed a place for protection from bad weather or built a shelter. Today the projects are more complex. According to a report “Next Step” by Bygg21, the building industry in Norway is fragmented (Bygg21, 2015). Every company works for themselves and often on their own premises and the productivity lacks due to bad flow in communication (Bygg21, 2015).

The fragmented and project-based industry has companies that covers multiple disciplines.

Some companies only do plumb work while others only do electrical work. During a project the different disciplines must come together. The information flow is affected by the

fragmentation in the industry

2.3.2 The Relevance of Construction Industry

The total employment in the construction industry in EU in 2007 was above 15 million people (Asikainen and Squicciarini, 2011). It is recognised as one of the biggest employers of all economies and contributing considerable to countries’ GDP.

The industry affects our everyday life, but also our environment. According to Commission of the European Communities, buildings are using the most of energy (42% of the final energy consumption) and stands for about 35% of all greenhouse emissions (Communities, 2007).

Figure 3 Illustration of a fragmented construction industry

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2.3.3 Emerging technologies and how they can affect

This part will briefly describe the global trends in digitisation in the construction industry. It will also briefly look into how the technologies can affect the construction industry.

2.3.3.1 Information and Communication Technology (ICT)

Communication is a vital part of all construction phases; precise information must be

communicated between the different disciplines during the different phases. Information and communication technology enable to digitise information and to integrate different systems to exchange information (Techterms, 2010).

2.3.3.2 Internet of Things (IoT)

IoT refers to a network of physical objects or devices that are connected to the internet. These devices are allowed to transfer, receive and send, data through the internet (Alam and Pathak, 2018). IoT is being commercialised in the residential sectors, such as “Smart Homes”, and is now a global trend (Wang et al., 2013). The use of IoT can be applied in energy systems in homes, collecting data on temperature, humidity, to provide real-time data that can be accessed through the internet on your smartphone (Proudgreenbuilding, 2018). For example, sensors allow real-time data sharing and will, therefore, provide the right information at the right time during construction processes.

2.3.3.3 Virtual Reality (VR)

Virtual Reality is defined by the two words, virtual and reality. It is a computer-generated simulation of a three-dimensional reality that a person can interact in, given that he or she is using the technology, such as glasses or helmet. The technology will allow designers and architects to explore the 3D model in VR before construction, giving them the opportunity to interact in the designed buildings. The technology will also enable comparison between the designed construction up against the physical work that is being done (GenieBelt, 2017).

2.3.3.4 Simulation

Construction processes are both very simple and very complex. Construction simulation will allow graphical representation of all activities that need to be conducted during all the construction processes (AbouRizk, 2010). This can help decision-makers analyse their projects and engineers to do scenario-based planning. In construction, simulations will allow improving estimates and schedules. Further, it can also help to improve the placement of tower cranes to lift and schedule work (AbouRizk, 2010).

2.3.3.5 Augmented Reality (AR)

We can think of AR as an extended reality. AR is a technology that lets you put pictures of virtual objects into the real-world environment from your camera (Reiners et al., 1998). AR in construction will let designers and engineers to see designed 3D models of buildings in the real world through their phones (Yoders, 2018).

2.3.3.6 Drones

UAV is sometimes referred to as drones and are remotely operated aircraft. In the construction industry UAVs can be used to inspect land sites and ongoing construction

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processes. UAV as a tool will improve safety aspects and provide real-time images from the construction site (Ayemba, 2018). Also, drones on the ground can contribute to monitor the construction site and to share real-time data through a camera or similar detection

applications.

2.3.3.7 Big data

The construction industry generates a huge amount of data that is not being captured or stored for further use (Josef Noll, personal information, 16 October 2018). It is lost after a project, partly because the industry is project-based but also the lack of implementing technology that can store this data during the projects. Big Data is a global phenomenon that has changed businesses and society. Big data is the ability to process a lot of data to extract useful insights and information (Bilal et al., 2016). In the construction industry, big data can help to improve efficiency, to better estimate construction waste and to harness data to find the most suitable schedules towards construction (Bilal et al., 2016).

2.3.3.8 Robots

The use of robots is well-known in the manufacturing industry, while the adoption lags in the construction industry (Kangari, 1991). Some commercialised and marketing use of robots has been carried out (Saunders, 2018). Robots will allow the construction industry to take better advantage of smart construction equipment’s and additive manufacturing (Delgado Camacho et al., 2018). Further, the use of robots can enable a decentralised production as the robots can print large pieces of structure nearby the construction site (Saunders, 2018).

2.3.3.9 Artificial Intelligence (AI)

AI is the «development of computer systems that are able to perform tasks normally requiring human intelligence» (Dictionaries, 2018a). Planning and visualise a construction project are normally very difficult and a complex task. Applying AI technology in construction projects can help to find the optimal design of buildings, reduce project schedules and to speed up planning processes (Blanco et al., 2018).

2.3.3.10 Building Information Modelling (BIM)

Earlier the architects and the engineers drew lines on a piece of paper that for instance

represented a wall, windows, doors etc. Computer Aided Drawing (CAD) software let project teams create 3D models. BIM is a platform for integrated design, modelling, and cooperation.

BIM can be used for planning, design, construction, maintenance and operation of facilities (Azhar, 2011). The purpose of BIM is to provide information about the model being built.

BIM will not only provide visualisation of the building but also cost estimates, construction sequence to mention some. Within the global trend BIM, we have some other emerging trends that we can briefly describe:

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2.3.3.10.1 Digital Twin

A digital twin is the physical construction site in digital data. As the construction process goes on, the digital twin will be the reference to determine how buildings are being built (Intellectsoft, 2018). The digital twin will be the base for comparison to the planned BIM- model to discover differences and support further decisions.

2.4 Exploring existing digitisation frameworks

Emerging technologies challenge the established, well-known way of executing different processes in the construction industry. The need to rethink the way of doing things are rising (Agarwal et al., 2016). The global trends are reshaping the industry, and the companies need tools to see and capture the opportunities that come with it (Group, 2018b). The need to understand different digitisation frameworks is to specify needs, what steps to make to improve the grades of digitisation and to explore what impacts the changes will have (Johnson, 1997).

2.4.1 AF Gruppen’s Organisation Chart

AF Gruppen was established in 1985. It first started with construction and then oil & gas in 1991. The company has been expanding into new market areas since (Gruppen, 2018).

Figure 4 AF Gruppen’s Organisation Chart. Source: (Lars Solbakken Berggaard, 2016)

According to the first quarterly report in 2018, the board of AF Gruppen recognises that there are unlimited opportunities when taking advantage of digital tools. Innovation and new work process emerge. The report also states that AF Gruppen becomes a more attractive employer when using and implementing new advanced technology in the organisation. AF Gruppen is aiming to take more advantage of emerging technology to be more competitive and to keep track of development in the industry. Their ambition is to make technology a part of the daily work (Grongstad, 2018).

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2.4.2 The Digitisation Strategy Framework published by the Boston Consulting Group (BCG)

Boston Consulting Group is an international consulting company (Group, 2018a). Its clients are in the private, public and non-profit sectors.

Figure 5 Digitisation Framework Source: (Group, 2018b)

The need to understand this model is to face and conquer new opportunities that come due to digital transformation within a business. The aim of the BCG’s Digitisation Strategy

Framework (Figure 5 Digitisation Framework Source: (Group, 2018b)) is to help industrial organisations to develop a strategy that will help them to understand global trends and to evaluate capabilities (Group, 2018b). To design and implement a digitalisation strategy there is a need for a formal framework. Thus, such a framework can be used to discover gaps and opportunities in the organisation. However, it is not given that this is suitable for any company, some modifications may be needed to establish a tailored strategy.

BCG has divided their framework into three main domains:

1. Digital data-driven offerings and business models 2. Digitisation of core business

3. Digital Capabilities

The coming explanation of the BCG’s framework will have base in the construction industry.

1. Digital data-driven offerings and business models The framework divides this domain into four categories:

a. Digitally enhanced products b. Data-driven services

c. Digital services d. Software products

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We see that all these four categories have data in common. Massive amount of data is produced during the processes of design, construction, maintenance and operation of a building (Agarwal et al., 2016). Big data is an important source for new innovative business models for companies. Data is a critical asset that companies would like to inherit. Recent development in technology such as AI will enhance new ways of solving problems. AI can contribute to finding the optimal schedule based on a given design (Blanco et al., 2018). The capabilities of technologies grow. The construction industry might improve their practices when implementing data-driven services, for example during the construction phase to remote monitoring their progress. The digital services focus on satisfying the digital need and boost the business’ competitiveness (Group, 2018b). In the construction industry, the data acquisition produced from many sources will help in to make better decisions. Software and technical challenges play a part in the slow digitisation transformation in the construction industry (Agarwal et al., 2016). Improvements and better application programming interface (API) between software so that information is easily accessed is very needed. ICT-enabled services will empower people, for example, to manage their health (Honka et al., 2011). This will help people in the construction industry to be aware of their health and safety on the construction site.

2. Digitisation of core business

The framework divides this domain into four categories. It is not given that all business has all the four categories within their organisation. That being said, the aim of digitising the core business means to transform the business to make it leaner and more agile (Group, 2018b).

The business needs to map its supply chain and discover what parts of it that can be digitised.

Robots and 3D-printing will allow parts being printed on the construction site at any time to the same cost (Tuck et al., 2007). Research and development can minimise risk, improve quality and thus increase both productivity and efficiency by enhancing digital technologies (Tuck et al., 2007).

This framework is not tailored for construction companies and therefore lacks some parts, meaning departments. This framework misses to include the designers, engineers, builders and other disciplines, as well as the asset owner. Due to change in customer behaviour, they tend to access more information online and make a decision when exploring (Group, 2018c).

In the design phase of construction projects such as an apartment complex, designers can showcase buildings and apartments to potential customers through VR technology. Then, companies can collect more data about the customers based on feedback they are receiving.

This will let them customise even more and improve their design.

3. Digital capabilities

Dynamic integration of advanced technology such as smart sensors will strengthen

companies’ power to do something and make decisions. Proactive use of information systems enables the organisation to be agile in order to make quick responses on rapid-changing information (Lu and Ramamurthy, 2018). The system must be developed to have the flexibility to collect, exchange and share big data from different platforms so that workers can access and gain the knowledge and information they want in a quick manner instead of the systems being a technical hinder. When having data from different sources, it can be difficult to both analyse and integrate them in the same platform. The issues arise when data from different devices are somewhat connected, and better API is needed to be deployed.

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In buildings, IoT can enable customer assets to be connected anywhere and anytime. A digital partner ecosystem is not only considered for the end-users but also during all the phases of construction. Employees will use technologies to access information, communicate, solve problems, participate and support each other in the different phases of construction (Intellectsoft, 2018). It will also enable for further collaboration also after the initiated project.

2.5.2.1 Extracting the core functionalities from BCG’s framework

After studying the framework, I suggest the following functionalities as important when looking into digitisation in AF Gruppen TEAM Bispevika:

1. Data Collection

The need to collect a huge amount of data to improve services and make changes in the business model.

2. Data Segmentation

To be able to pinpoint data more precisely. Segmentation will also allow to data visualise information better.

3. Data Distribution

Distribute data across the construction phases to keep the employees posted on the progress.

4. Cross-channel, Cross-Device Capability here as a common platform for sharing data Easy access and good flow of information. This is necessary to solve ongoing problems.

5. Real-time data

Real-time data gives the project team current data on the processes. This kind of information will let them have better control of the project.

6. Automation

Health, Safety and Environment is a big concern during construction. Robots and automation can contribute to improve safety at a construction site and to do a repetitive man job.

7. Client and server integration here as a digital collaboration

The use of digital technologies to collaborate, interact and communicate will let a broader audience to be included. This will let project teams achieve more than what they would have done on their own.

8. Network cluster of digital partners

To join a community that thrives for the same purpose on digitisation as the companies. The community will share knowledge and integrate others in their processes. This will lead to better cooperation and shared knowledge.

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2.4.3 Four Keys to the Digital Transformation by Roland Berger

Roland Berger is also a global consulting firm (Berger, 2018). It focuses on industries such as automotive, financial services, infrastructure, chemicals, construction and consumer goods &

retail. The company focus on digitisation as it is one of its business functions. When it comes to digitisation and digital transformation of a company, Roland Berger recognises the many new strategic opportunities (Bloching and Winterhoff, 2018).

The Four Keys framework is meant to be applied in the European construction industry (Schober et al., 2016). The report compares the productivity in the manufacturing industry up against the construction industry. It states that the manufacturing industry, especially in Germany, has seen increasement in productivity on 34,1% the past decade, while the

productivity in Italian and Spanish construction industry has declined by 5% per annum in the period from 2010 to 2015 (Schober et al., 2016). The framework on digital transformation done by Roland Berger divides the framework into four parts:

1. Digital Data

Digital data is about the processes where electronic devices collect and analyse data to get the accurate information into every part of the value chain.

2. Automation

Automation covers all the technologies that will enable autonomous, self-organizing systems.

3. Connectivity

To achieve connectivity means to look for and integrate current separate activities.

4. Digital Access

Digital access is about having the capacities by access to the internet and internal networks.

Figure 6 The Four Keys. Source: (Schober et al., 2016)

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Roland Berger states in their report that this framework can be applied to the whole value chain (Schober et al., 2016). It breaks the value chain to the following links:

1. Logistics 2. Procurement

3. Production/construction 4. Marketing/sales

5. After sales/end-customer marketing

Roland Berger’s findings show that the difficulties with digitisation has root with the implementation of digital tools. Manufacturers and producers of building materials focus on digitising production and distribution as a part of their approach to Industry 4.0. The report also mentions that the companies in the construction industry have mainly focused on digitising planning, construction and logistics through BIM (Schober et al., 2016).

2.5.3.1 Extracting the core functionalities from the Roland Berger’s framework

Based on the magazine article (Schober et al., 2016), I interpret the core functionalities to be as following:

1. Data Collection

Data needs to be collected to provide information 2. Data Segmentation

Data must be segmented to be able to lock it to the correct segmentation 3. Data Distribution

Data must be distributed through any platform so that it can be accessible 4. Profiling

The need to address collected and segmented data to correct segmentation. This is essential as the framework breaks the value chain into five links.

5. Cross-channel, Cross-Device Capability

The connectivity cannot be achieved if the activities don't move forward and concretised tags are connected. This will enable a better understanding of the given information so new actions can be taken to achieve higher grade of connectivity.

6. Client- and server integration

As part of the connectivity, client- and server integration is necessary.

7. Automation

To take advantage of technologies to automate repetitive work and create self-organising systems that will let manpower to be used to some other tasks.

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2.4.4 A Digital Roadmap named “Digitalt Veikart” by The Federation of Norwegian Construction Industries

The Federation of Norwegian Construction Industries (BNL) developed a digital roadmap called “Digitalt Veikart” for the Norwegian construction industry (Sandnes, 2016). The purpose is to increase sustainability and value creation through digitisation within 2025. BNL recognised that the industry is fragmented, and the companies are therefore digitising for their own sake. There is, therefore, a need to coordinate shared activities and to increase tempo towards digitisation together in the industry. BNL shares the vision that advances in new technology, and IoT will reshape the way the industry plan, construct and maintain its buildings and infrastructure (Sandnes, 2016).

To understand the framework, we can divide it in X-axis and Y-axis, where the X-axis is the horizontal axis, and the Y-axis is the vertical axis. The X-axis is both a timeline and

suggestions for prerequisite demands, while the Y-axis counts for products. The Y-axis is divided into two parts:

1. Digital Twin

As mentioned earlier, the digital twin is the mapping of the construction site. This digital twin shall be the final delivery to the asset owner, showing what is built.

2. Digital Construction Site

A digital construction site is a virtual construction site where everything is planned and projected before being built.

Figure 7 Digital Roadmap ("Digitalt Veikart") for the Norwegian Construction Industry. Source: (Sandnes, 2016)

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The X-axis can be divided into four parts, apart from being a timeline from just before 2017 to 2025:

1. Shared digital platform

There is a need to establish a shared digital platform to find components and objects for construction projects.

2. Standards, digital laws and rules

Regulations and laws need to be developed so it can emphasise and facilitate digital interactions.

3. Competence

People need to be educated to take technologies to use.

4. Value realisation

Value realisation is to share the best praxis throughout the industry about digital work processes, and business models will help to create value. Further, measuring the effect is needed to discover if the given actions actually lead to more value.

Besides the mentioned explanation of the framework, the framework also emphasises a need for annual investment. The desired goals by digital transformation for the construction industry are the following (Sandnes, 2016):

a. 20% reduced costs

b. 50% faster project execution time c. 50% reduced greenhouse gas emissions d. 50% increased export

2.5.4.1 Extracting the core functionalities from BNL’s framework

I interpret the following core functionalities from the framework:

1. Data collection

Data needs to be collected to be able to achieve BNL’s goal.

2. Data segmentation

Data needs to be segmented in order to segment and put correct tags on the collected data.

3. Data distribution

The data needs to distribute to the different disciplines. When achieving a digital construction site, there is a need for distributing data fast.

4. Automation

Automation will be needed not only to achieve the desired goal about 20% reduced costs but also to create value. When repetitive work processes are automated, the manpower can be reorganised to do other tasks.

5. Cross-channel, cross-device capability here as shared digital platform

BNL recognises the need for a shared digital platform. This means that client-and server-side integration is needed to communicate through the platforms. Further, data distribution needs to be seamless to have achieved optimally and desired communication.

6. Standardisation

The need to standardise work and laws and regulations to promote digital interaction and collaboration. It will also help the companies in the industry to standardise their work, so different activities are recognised easier.

7. Ease of use

The technologies must be easy to use. BNL recognises that there is a need to educate the industry to take advantage of the different new technologies, but at the same time, the technologies shall be easy to use to get the fullest out of them and to be widely adopted.

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2.4.5 A comparison of the core functionalities

In this part, I will summarise the extracted core functionalities from the different digitisation frameworks and put them in a table. This will let us compare the functionalities to discover any differences.

Table 1 A comparison of the core functionalities

Framework / Functionality

BCG Roland Berger BNL

Data collection X X X

Segmentation X X X

Data distribution X X X

Profiling - X X

Directives & Automation X X X

Cross-channel, Cross-device capability X X X

Real Time X - -

Client- and server integration X X -

Ease of use X - X

Digital partners X - -

We see that the BCG’s framework in Figure 5 Digitisation Framework Source: (Group, 2018b) covers most of the functionalities compared to the others. At the same time, it is necessary to

mention that BCG’s framework doesn’t focus only on the construction industry. Both Roland Berger’s, Figure 6 The Four Keys. Source: (Schober et al., 2016), and BNL’s, Figure 7 Digital Roadmap ("Digitalt Veikart") for the Norwegian Construction Industry. Source: (Sandnes, 2016), frameworks focus on the construction industry and are developed for the industry. BCG’s framework benefits of covering most industries and not be specified to the construction industry. We can, therefore, expect it to cover more functionalities as it is more of a general framework.

The findings show that it is reasonable to divide the functionalities into two categories, the

‘focus on digitisation’ and the ‘focus on empowering people’.

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2.5.5.1 Focus on technology

After comparing these frameworks, I find it interesting to ask; when a company within the construction fulfil all these functionalities - will it have conquered a digital transformation?

One can argue that the answer to this question is no. Technology alone is not the answer;

technology, work processes and people are involved. Therefore, there is a need to establish a maturity index to explore how far a company has come. This will help them to discover the obstacles to overcome and to become more efficient. Later in this chapter, we will explore a maturity index.

Table 2 Functionalities that focus on technology

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2.5.5.2 Focus on Empowering People

I suggest that these functionalities support people more than technology. Real-time information will give the people in a construction project better control of the progress.

Further, it will provide the needed information to make better and faster decisions. Client- and server integration will let seamless communication between electronic devices. It will also let all parties in a project communicate on a shared platform. Intuitive processes and tools will make a person's working day easier and effective. Digital partners will share experiences and help to solve problems without being in the same room.

Table 3 Functionalities that focus on Empowering People

Digitisation in the construction industry