The Importance of Defining a Roadmap for a Digital Transformation: A Case Study of a Large Civil Construction Company in Portugal

The Importance of Defining a Roadmap for a Digital Transformation: A Case Study of a Large Civil Construction Company in Portugal

Marta Lamelas Costa, João Loureiro, Catarina Gata
DOI: 10.4018/978-1-7998-4201-9.ch025
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Abstract

The transition from a traditional organizational logic to a digital one is not immediate as it forces a readjustment of processes, Information Systems and even organizational structures. The company selected for analysis belongs to the civil construction sector. The case study consists of identifying and detailing operational procedures in the field of information systems and consequent diagnosis of the transition to a digital scenario, preparing it for new global competitiveness scenarios, as well as analyzing the intra and extra-organizational dimensions that should be considered in the process of transformation. The operational management of the company is based on traditional procedures, where data recording is mostly handwritten. It would be beneficial to use knowledge management systems, preparing the company for an increasingly widespread trend, such as the digital economy. This would allow an increase in the efficiency and productivity of processes, through the improvement of production, archive, and knowledge management in the scope of its operations.
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Introduction

This study appears in the current economic context, in which the theme of digital transformation is increasingly present, as most business leaders agree that digital transformation, a wave of business innovation fueled by technology, is interrupting their business or will do so soon enough. Although even less than half have adopted a digital strategy (Olavsrud, 2017), it is becoming extremely important for companies to define a strategy and a roadmap for digital change. They should seek to adapt their traditional business models to the potential of the digital context, bearing in mind that the simple introduction of new technologies, such as tablets, smartphones, cloud, among others, does not, by itself, guarantee a transition to this new context (Anunciação & Esteves, 2019).

With the exception of technology in products, technology does not add value to the business (Westerman, 2017). In truth, technology allows you to do business differently, and that is how it adds value. As referred by Westerman (2017) “e-commerce is not about the Internet; it is about selling differently. Analytics is not about databases and machine language algorithms, it is about understanding customers better, or optimizing maintenance processes, or helping doctors diagnose cancer more accurately. IoT is not about RFID tags it is about radically synchronizing operations or changing business models” (Anunciação & Esteves, 2019).

Therefore, the transition to digital logic assumes a broader vision, involving innovation in the business, consolidating commercial relations with customers and observing the development of their behavior, observing the practices of counterparts in the main international markets, developing new internal and external dynamics and the training of employees at IS level, among other examples.

As no company goes digital instantly, it is important that the process is planned and managed, so that the transition is controlled and without unforeseen events. There must be a sharing of responsibility among the entire organization, starting with top management.

This wave of change encompasses all economic and social organizations, whether public or private and this study included a private economic organization in the construction sector. This sector was chosen as it maintains a very traditional technological culture, where some resistance to change persists, with low levels of preparation in the face of technological developments and because it is one of the most relevant sectors in the Portuguese economy. In addition to its relevance in the national economy, the civil construction sector is strategic for the European Union, having in recent years faced several challenges in terms of market competition, human capital, environmental requirements and regulations. As a result of the financial crisis that Portugal went through, the sector lost about 30 thousand companies and more than 260 thousand workers (Pinto, 2019). However, it is expected that the sector will have a marked growth globally. Chinese companies, which dominate the global ranking of players in the construction sector, will contribute to this growth, with Australia being a great opportunity for foreign investment, due to the public investment policy in the public works sector (Deloitte, 2018).

The company chosen for this study started its activity in the 60s, in the area of earthworks, roads and urbanization, together with the exploration of quarries for their own production of aggregates, ready-mixed concrete and bituminous mixtures. For over almost 60 years, the company has diversified its area of operation, currently operating in all fields of public and private construction. The Industry Area, dedicated to the exploration of quarries and the production of construction materials also grew and became one of the company's business areas. Currently, the company operates 9 industrial production centers distributed throughout Portugal, constituting itself as a certified and reference supplier of aggregates, bituminous mixtures and ready-mixed concrete. In addition to Portugal, its internationalization strategy, which began in the early 1990s, has been present in African and Central and Latin American countries.

In light of the current economic context, the company has felt the need to modernize and introduce information technologies and systems with the goal of generating value (results center) and not just from a cost center perspective.

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