To cope with global urbanization, we need to build faster, cheaper and with a high quality. However, construction is one of the least digitized sector of the economy.

1. Digital Transformation in the
Construction Industry
Julien Gaidot - MBA in Innovation Management
Module : Tech Management & Digital Transformation
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2. Situation
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3. Construction: Value Chain
Financing Design Materials Logistics Construction Maintenance
on siteGovernments
Developers
Architects
Technical
consultants
Producers
Manufacturers
Wholesalers
Equipment
suppliers
Contractors
Subcontractors
Users
Service
providers
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4. Difficult & long recovery from the financial crisis
Added value of construction vs. industry
in France [base 100 - 2008]
Net Earnings of construction vs. industry
in France [base 100 - 2006]
16%
27%
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average
op. margin

5. Low productivity
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6. Digitalization
Construction is one of the
least digitized sector
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7. Key learnings
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Complex
value chain
Many
Stakeholders
Red Ocean
Low
Profitability
Labor
Intensive
Low
Productivity
Digitally
Under-
developed

8. Macro Trends
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9. Global
urbanization
“Managing urban areas has
become one of the most
important development
challenges of the 21st century.”
John Wilmoth
Director of UN DESA’s
Population Division
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10. Sustainability
Challenge
“Buildings have become the
most emission intensive sector
in France, before
transportation”
Hélène Genin
General Delegate
BBCA Association
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11. Scarcity of
skilled workforce
“50% of the French
construction companies say
they cannot find skilled
labour”
INSEE
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source: INSEE, december 2017

12. Project
Complexity
“The sheer complexity and
variability of today’s
megaprojects require a
project-operating approach
that integrates technical and
management systems”
McKinsey Global Institute
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Paris’ new court of
Justice, built in PPP
between Ministry of
Justice, Renzo Piano
architect and
Bouygues
Construction

13. Key learnings
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Global
urbanization
drives growth
in the sector
Sustainability
is crucial for
renovation/
construction
projects
Systemic lack
of skilled
workers
Collaborative
digital
systems are
needed

14. Issues & Challenges
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15. 15
Develop innovative
products & services
Operational
excellence
Improve
communication &
collaboration
New business
models
1 New materials (connected, sustainable)
2 New services for customers and users (guiding apps, contextual targeted advertisement)
3 Faster product to market (lean startup, rapid prototyping)
4 Secured design process (BIM, AR/VR)
5 Efficiency in the value chain (standardization, predictive analysis for enhanced logistics)
6 Optimized usage of equipments (predictive maintenance, automated resource allocation)
7 Enhanced financial & operational monitoring (BIM, automated advancement monitoring)
8 Accident prevention (sensor protection gear, drone surveillance)
9 Ease collaboration between stakeholders (BIM, collaborative tools, smart contracts)
10 Enriched data sharing (BIM for end-users, sensors)
11 Attract & keep talents (digital/innovative professional training, promote digital focus)
12 Collaborative practices (open-innovation, startups, partnerships between stakeholders)
13 Project opportunities based on big data analysis
14 Construction “as a service” (extend PPP models on total life cycle)
Source: Accenture, étude filières industrie du futur, 2017
Strategic issues Challenges and possible solutions

16. Use Case: B.I.M.
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17. What is Building Information Modelling (BIM)?
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“BIM (Building Information Modeling) is
an intelligent 3D model-based process that
gives architecture, engineering, and
construction (AEC) professionals the
insight and tools to more efficiently plan,
design, construct, and manage buildings
and infrastructure.”
Autodesk

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19. Use cases
Analytics
Turner construction developed
predictive analysis tools coupling
drones and BIM to anticipate
risks of delays and costs overrun
on Golden 1 center in Sacramento
Augmented workers
Mortensen is going to use smart
helmets from Daqri coupled with
Autodesk BIM360 to enable
workers to see through all the
technical layers on the
construction of a hospital
Real-time monitoring
Skanska optimized logistics using
RFID chips couple with BIM,
enabling real-time advancement
monitoring. Saved $1m on the
MetLife stadium project.

20. Barriers in France
● Complexity of the technology for SMEs
● Lack of government incentive
● Need for a document sharing platform
● Need for a collaborative legal public procurement framework
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21. Some Startups in Construction Tech
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22. Thank you
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Julien Gaidot, Project Manager in Construction & Infrastructures | MBA
julien.gaidot@gmail.com
www.linkedin.com/in/juliengaidot

23. References
McKinsey&Company (2017) Reinventing construction: a route to higher productivity, McKinsey Global Institute report,
February 2017
Accenture (2017) Etude filières industrie du futur: synthèse des impacts et recommandations, Accenture Consulting, June
2017
Ghandi, P. et al. (2016) Which Industries Are the Most Digital (and Why)?, Harvard Business Review, April 1st 2016, retrieved
from: https://hbr.org/2016/04/a-chart-that-shows-which-industries-are-the-most-digital-and-why [accessed May 23rd 2018]
No Author (2014) World’s population increasingly urban with more than half living in urban areas, United Nations DESA, July
10th 2014, retrieved from:
http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html [accessed May 24th
2018]
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24. References
URBANET (2016) The world urban population | Infographics, www.urbanet.info, August 25th 2016, retrieved from:
http://www.urbanet.info/world-urban-population/ [accessed May 24th 2018]
No author (2017) Why the building sector, Architecture 2030, 2017, retrieved from:
http://architecture2030.org/buildings_problem_why/ [accessed May 24th 2018]
EnerJ meeting Paris 2018 (2018) Le manifeste, rénovation énergétique des bâtiments, March 8th 2018, retrieved from:
https://www.enerj-meeting.com/documents/manifeste-enerj-meeting-2018.pdf [accessed May 24th 2018]
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