The discussion around every boardroom table is ‘how do we innovate?’ On the face of it, this is an extremely valid question. Yet the desire to move at speed and rapidly implement new ideas can often lead to the wrong behaviours and, if not planned or executed in the right way, could lead to a lot of wasted time, effort and money. However, far from wanting to stifle innovation, an awareness of the risks means that we can be more strategic in how we harness creativity for success.
Innovation in the construction industry
The speed of advancement can be astounding. According to Moore’s Law, computer processing power will double every 18 months, and this exponential rate of technological change is manifest in every walk of life. But what does this mean for the construction and property industry, and how can we hope to keep pace?
The construction industry is under pressure. We are all feeling the need to innovate faster than ever before. Yet there is a risk that in bringing more products, more quickly to market, we will also start to see more failures.
It’s a common story, but the construction industry can learn a lot from the world of technology. Every year we see thousands of tech start-ups and products fail. There are only a few rare companies that have been able to find the winning formula for profit and longevity, so what does this tell us?
5-steps for successful innovation in construction
We need to ask ourselves whether the market is truly ready for the solutions we are proposing. Often, industries that are less set in a traditional approach have the ability to pivot and move in a more agile way when it comes to adopting new methodologies. In the construction industry, with our long-term programmes and delivery of assets over many years, this is not always the case.
We need to work within the framework of our industry and consider what exactly we are trying to achieve through innovation. Whether driving more efficient processes or delivering a better solution that ultimately benefits the needs of the end-user, I suggest five key steps for the construction industry to take into account when delivering any new product or service to market.
1. Recognise talent
The ability to see talent before anyone else is crucial. However, this is not just about unlocking potential. This is about ensuring you have the right skills in place to deliver the solutions you need. Whether that is from within your own organisation or drawing on the skill-set of a wider ecosystem, we often have to work outside of traditional capabilities to create value and embed the benefits that new ideas can bring to wider society.
2. Understand the problem
People often look to develop an application, service, solution or product and only later try to apply it to a specific situation. This approach typically fails, as it doesn’t deliver the real-world benefits people are looking for. Think of Apple’s Newton; one of the first Personal Digital Assistants (PDA). It was ground-breaking when first released in the early 1990’s, however the Newton tried to do too much, too soon, and the software failed to live up to its hype. After many customer complaints, Steve Jobs took back control and retired the PDA in 1997.
The key takeaway for the construction industry is that we need to start by identifying what problem we want to solve. For us, that means starting with the needs of the citizen.
3. Embrace citizen-centricity
A common thread running through tech sector innovation is the desire to introduce new products faster than the competition. Google+ was launched in 2011 in response to the way in which the company saw other social networks like Facebook starting to corner the global market. Yet this was more of a defensive mechanism than a developed application. Google+ failed to offer anything different that would noticeably challenge the market and attract the volume of users to make it a serious market competitor.
The construction and property industry can learn a lot from this. Most importantly, when developing new products and solutions, we need to ensure we aren’t working in an engineering vacuum. Innovators must engage with their target customer base and put user’s – or citizens – at the very heart of the approach. How can innovation in the built environment help to directly improve the quality of life for the people who live, work, move and play in our town and cities?
4. Work with your wider ecosystem
No single organisation can solve every problem in the world. The answer is to be really good at what you do and get others (partners) to play their part. Airbnb is a prime example of the success of this approach. In letting others advertise space on its platform, Airbnb offers a structured way for buyers to connect. In doing so, it orchestrates the overall value of the marketplace on which it’s focused.
5. Be curious
If the construction industry is to successfully evolve, we need to continuously challenge ourselves to be curious and think the unthinkable. From actively embracing modular technology and modern methods of construction, to parametric design or proptech solutions, exploring how new technology can be applied specifically to the construction and real estate markets will be key to the future direction of our industry.
It is clear that we have innumerable opportunities for advancement. However, under ever-mounting pressure, innovation in the construction industry is at risk of failure if it lacks specific focus and direction, or if ideas are developed in a vacuum. Our industry is on the cusp of major change, but we need to have a clear purpose in mind. Working in partnership to bring expertise and divergent thinking will be key to creating maximum value for both clients and their customers long into the future.