Crossing the ConTech Adoption Chasm [A Response Article]

In the rapidly evolving world of construction technology, or ConTech, there's a growing narrative that suggests the sector is hitting a ceiling in its adoption curve. This view, however, overlooks a crucial aspect of the industry's journey - we are not approaching a limit; rather, we are transitioning from an early adoption phase into a more mature phase of integration and utilization. This is not unique to Construction Tech.

But there’s indeed a problem.

ConTech is New

Construction truly became mainstream around 2018, which marked the start of widespread customer awareness, and even then, most customers we visited in Europe (mid-market contractors and developers) had never heard of or seen construction technologies. The majority of clients were familiar with basic tools like AutoCAD and Aconex but had little exposure to the vast capabilities of ConTech.

Stagnation but No Ceiling

The perceived plateau in ConTech adoption is misleading. It's not a ceiling but rather the end of one phase and the beginning of another, a phenomenon well-described in Geoffrey Moore's "Crossing the Chasm." Moore's work explains how technology markets evolve from early adopters to the mainstream. In ConTech's case, we are transitioning from initial excitement to a more deliberate and strategic phase of technology integration.

Beyond Excitement: Tech-enabling services

In the construction industry, the initial wave of enthusiasm for new technologies has subsided, giving way to a more pragmatic phase focused on effective implementation. This transition is marked by a growing awareness of the need for proper implementation strategies, underscored by comprehensive training and the embedding of tech-enabled workflows into everyday practices. The realization has dawned that acquiring state-of-the-art tools is only a fraction of the journey.

The key challenge here is ensuring that these tools are not only implemented but evolve and are embedded into tech-enabled workflows, with a strong emphasis on comprehensive training for all stakeholders. It's a process that calls for a strategic approach, ensuring that the workforce is adept at using these technologies in a way that enhances overall productivity and project outcomes.

And even so, even with successful implementation, a significant challenge remains: knowledge retention. Often, the deep expertise in using these technologies is held by a few individuals, and their departure can lead to a substantial loss of operational know-how. Addressing this issue of knowledge retention is crucial, but it's a complex discussion for another time. This aspect is pivotal in ensuring that the value of technology investments is not only maintained but also continuously leveraged for innovation and growth within the industry.

Onboarding is only the tip of the iceberg

The SaaS vendor implementation service in the ConTech space primarily focuses on onboarding users onto their platforms. However, there's a noticeable shortfall in the level of implementation support offered to construction companies. Vendors leave the intricacies of integrating their technologies into the complex workflows of construction projects largely unaddressed.

This leaves construction companies with the challenging task of adapting these technologies to their unique workflows and operational needs. Overcoming this challenge is crucial for construction firms to fully benefit from their technological investments and for the ConTech sector to realize its potential in transforming the industry.

Shifting focus from acquisition to implementation

Echoing the sentiments of the Builtworld’s article that we have entered an era of budget-cutting mindset, a compelling strategy emerges: focusing on the optimization of existing technological tools rather than investing in new ones. This approach isn't about reducing technology spending; it's about investing more wisely.

The untapped potential in the technologies already at hand offers a significant opportunity. It's not just about cost-saving; it's about enhancing the value of current investments. The conventional response to budget cuts might lean towards reducing tech acquisitions, but this can also be a moment to delve deeper into the capabilities of what’s already available.

This period could be an ideal opportunity for the industry to reassess its tech strategy. Rather than pausing progress, it's about finding more efficient and innovative ways to use the existing technological framework. This approach isn't about halting advancement but about evolving with a focus on efficiency and innovation within the existing tech ecosystem.

Recognizing the Finite Yet Potent Market

The customer base for ConTech, is limited, however the market annual turnover is massive.

Despite a saturation in the number of logos, the ConTech market's potential for expansion is far from exhausted. This expansion is multi-dimensional, ranging from deeper technology implementation, better integration in existing projects to diversifying offerings for various construction aspects. Additionally, strategic partnerships and collaborations offer avenues for innovation and market reach expansion.

An undoubtably Bright Future for ConTech

Construction companies, already equipped with a suite of powerful tools, are now positioned to optimize their use, unlocking immense value. This necessary strategic shift presents a significant opportunity for increasing revenues for both Construction firms and ConTech companies.

Taking for a fact that the only possible way for construction to progress is through technology, and the fact that adoption both remains low and benefits not realized, what seems like a ceiling, is merely an opportunity to enter a new and more exciting phase of Construction Technology.