DX (Digital Transformation) and the Construction Industry

October 17, 2023

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DX (Digital Transformation) and the Construction Industry

These days, a great many things are moving into the digital realm. In this article, we will look at the meaning of the frequently seen term DX and explore how it is being applied across various industries, and in construction in particular.

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What Is DX?

DX stands for Digital Transformation, also referred to as digital conversion. DX goes beyond simply adopting digital technologies; it aims to create new business models based on digital technology and to innovate existing business models.

The representative technologies of digital transformation are as follows.

  • Artificial Intelligence (AI) : A technology that mimics human intelligence, used in a wide range of fields such as image recognition, speech recognition, natural language processing, and robot control.
  • Big Data : A technology that collects and analyzes large-scale data to derive useful insights, used in areas such as customer analysis, market forecasting, and product development.
  • Internet of Things (IoT) : A technology that connects things to things and things to people to exchange information, used across manufacturing, distribution, healthcare, transportation, and more.
  • Cloud Computing : A technology that provides computing resources (infrastructure, software, data) over the Internet, offering advantages such as cost savings, scalability, and flexibility.
  • Blockchain : A distributed data storage technology offering advantages such as security, transparency, and reliability.

In diverse fields such as manufacturing, distribution, finance, healthcare, and education, these technologies are being used to automate production processes and improve the quality of services and products.

What Is Digital Transformation in the Construction Industry?

Source_MCI, Construction & Economy Research Institute of Korea, Construction Industry Innovation Measures in Response to the Accelerating ‘Digital Economy’

There are many reasons for adopting digital transformation, but the most important is improving productivity. The higher an industry’s level of digitalization—such as ICT and manufacturing—the higher its productivity growth rate tends to be. Digital transformation in the construction industry shares the same purpose. The goal of digital transformation in construction is to introduce digital technologies throughout the entire construction process to increase efficiency and productivity and to prevent safety accidents.

To describe the application areas and effects of digital transformation in construction more specifically, they are as follows.

  • Design and Construction
    In the design and construction field, BIM (Building Information Modeling) technology is the most actively used. BIM is a technology that integrates and manages all of a construction project’s information in a 3D model, effectively increasing the efficiency of design and construction and reducing errors. In addition, drones and artificial intelligence technologies are being used to prevent safety accidents on construction sites and to improve construction quality.
  • Materials and Equipment Management 
    In the materials and equipment management field, IoT and big data technologies are used to track the location and condition of materials and equipment in real time and manage them efficiently. This makes it possible to reduce waste of materials and equipment and cut maintenance costs.
  • Construction Site Management 
    In the construction site management field, IoT and big data technologies are used to monitor and manage the environment, safety, and quality of construction sites in real time. This makes it possible to prevent safety accidents and improve construction quality.
  • Construction Waste Management 
    In the construction waste management field, IoT and big data technologies are used to track the amount of construction waste generated and its movement routes and to manage it efficiently. This makes it possible to reduce construction waste and protect the environment.

The Construction Industry, Where Digital Transformation Is Now Required

· Why It Was Difficult to Adopt DX on Construction Sites

The construction industry has traditionally been regarded as labor-intensive. Sites primarily involve large workforces, and the stages that must be gone through—design, construction, maintenance, and so on—are quite densely packed.

Digital transformation literally means that this kind of work environment must move into the digital realm. For this reason, even though its benefits have long been recognized, digital transformation in the construction industry has been a difficult challenge. Introducing digital technology requires improving the complex structures and work methods of construction sites, and it also requires that on-site workers both understand and accept the digital technology.

· The Gradual Digitalization of Spatial Information

To respond to these practical challenges, the government has stepped up policy support for the Fourth Industrial Revolution. In 2022, as the enactment of the Serious Accidents Punishment Act increased demand for safety management, the construction industry likewise came face to face with the need for digital transformation.

In response to these social demands, major Korean builders such as Hyundai E&C, GS E&C, POSCO, and DL E&C are now actively adopting platforms to apply DX to the construction business.

Source_The Korea Economic Daily: The SCCI evaluates the corporate adoption and readiness level of smart construction technologies

Meissa, too, is one such smart-construction platform, leading the DX of the construction industry through technical collaboration with builders. When we reviewed last year’s statistical grades for the smart-construction performance and capability assessment of Korea’s top 10 builders, we found that every builder using the Meissa platform received a high SCCI grade.

Going forward, Meissa will continue to advance with sophisticated technology so that construction sites can become even safer and more convenient.

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