The standard explanation concerning digital transformation is that it is a customer-driven, digital-first approach to all aspects of a business. But what exactly does that mean in the real world? Saudi Projects spoke to Richard Abboud, Senior Vice President, Group AMANA, to find out more, digging a little deeper into how it leverages data, fosters faster and smarter decision-making, and ultimately changes customer expectations and enhances new opportunities.
Saudi Projects: Digital transformation is a ‘hot term’ but seems to sometimes confuse, so how do you define it at AMANA?
Richard Abboud: Digital transformation refers to the full spectrum of technologies companies employ to improve processes and deliver better customer outcomes, including AI, ML, IoT, and cloud computing.
Yes, there is some confusion around ‘digitization’ and ‘digitalization’. The former refers to the process of converting analog data into digital form. The latter refers to embedding digital technologies to improve business processes. For example, in the construction industry, IoT can simplify the procurement, distribution, and tracking of goods and services.
AMANA champions intelligent solutions to improve efficiency in construction, ensuring time savings and cost reductions.
The focus of our digitalization initiatives have been to enable collaboration through cloud-based and network servers and enhance project coordination between teams and clients.
“The focus of our digitalization initiatives has been to enable collaboration through cloud-based and network servers and enhance project coordination between teams and clients.”
SP: What does ‘going digital’ mean for the industry’s skills needs and how is AMANA approaching this in terms of training and managing change for employees?
RA: Going digital encompasses deploying connected construction technologies across the value chain. This includes integrating assets, people, and processes into a single intelligent and secure platform to improve operational efficiencies and transparency. With increased digitalization, the skills gap is widening. This is a key concern for construction leaders as the skills gap negatively impacts project timelines, agility, growth, and innovation.
Looking ahead, attracting talent, upskilling, and reskilling the workforce will be critical. There is also an urgent need to focus on diversity and inclusion in the GCC construction sector. AMANA has prioritized increasing gender diversity within the workforce, fostering an appealing organizational culture, and increasing digitalization as it continues to build on its leadership in 2022 and beyond.
“The industry will also need to look beyond the obvious cost and efficiency benefits of digital transformation and see how it is driving many environmental benefits.”
SP: What is the most influential digital technology in implementing digital transformation?
RA: For AMANA, it is a combination of technologies driving digital transformation. For example, AMANA has deployed Oracle Fusion Cloud Human Capital Management (HCM) to deliver a secure and modern user experience with automated service requests for all employees, and develop an approach with a supporting training platform. The applications also help in automating employee onboarding, enhancing productivity, and reducing administrative costs.
As a fast-growing multinational organization with employees spread across multiple geographies, it is important for us to drive seamless interconnectivity, offer remote accessibility, and implement a data-driven modern performance management and rewarding tool.
With Oracle Cloud Applications, we can provide a consistent employee experience across devices, realize significant efficiencies across departments, and enable one source of truth for HR data to improve decision-making on one integrated platform spanning the entire employee life cycle, from hire to retire.
SP: How is BIM helping AMANA with projects? What are your most recent projects completed on BIM?
RA: AMANA has made significant investments in digitalization, migrating to the Revit BIM platform to enable integrated project delivery, shortening production cycles, and fostering collaboration amongst various departments.
Recently, we leveraged modular construction to deliver the world’s largest vertical farm – Bustanica – in Dubai South, spanning 330,000ft2. It was built using innovative off-site construction methodologies such as BIM, saving time, and reducing waste and work hours. We’ve used intelligent solutions across several key projects for clients such as The Red Sea Development Company, NEOM, Nupco, and Veolia in Saudi Arabia.
“We’ve used intelligent solutions across several key projects for our clients such as The Red Sea Development Company, NEOM, Al Muhaideb Group in Saudi Arabia.”
SP: What technology is at the center of AMANA strategy?
RA: I would say BIM has been a key enabler for AMANA’s digital transformation initiatives, helping us to fulfil our goal to build more efficiently.
This technology has enabled us to design and integrate our key projects in Saudi Arabia for The Red Sea Development Company, NEOM, Nupco, and Veolia. Our project delivery team worked with engineers in different offices and countries to design and build in real-time as both design and construction progressed, enabling us to deliver the project in record time.
SP: What do you think are the major challenges in digital transformation?
RA: Overhauling legacy systems is a challenge. In some instances, financial constraints and lack of proper training also affect digital adoption. But project managers must leverage software to make their construction business more interconnected and agile, both internally and externally. The industry will also need to look beyond the obvious cost and efficiency benefits of digital transformation and see how it is driving many environmental benefits.
“Encouragingly, the regional construction industry is also improving its performance on sustainability, diversity, and inclusion by increasing investments in connected construction, leveraging technology and innovative methodologies.”
SP: What do you think the construction industry will look like five years down the road if digital transformation has the impact that is envisaged?
RA: The benefits of true digital transformation are enormous for the construction sector. Innovation, the adoption of new technologies like AI and robotics, and a shift towards sustainable practices will put the construction industry on the fast track to growth. It’s time for the industry to recognize that the repetitive, simplified, and standardized factory operating process promotes safer, healthier, and cleaner working conditions, with far lower wastage rates than an open construction site. Encouragingly, the regional construction industry is also improving its performance on sustainability, diversity, and inclusion by increasing investments in connected construction, leveraging technology, and innovative methodologies. The future over the next five years looks quite promising for the regional construction industry if more technology is adopted to boost efficiencies.
“As a fast-growing multinational organization with employees spread across multiple geographies, it is important for us to drive seamless interconnectivity, offer remote accessibility, and implement a data-driven modern performance management and rewarding tool.”
SP: What other emerging technologies do you currently have your eyes on in the construction sector?
RA: Robotics, AI, and ML are shaping the future of construction. The use of technology in the construction sector is expanding quickly with the goal of improving productivity and sustainability on the job site. Construction robotics and connected construction site are examples of developing technologies.
At AMANA, our focus will be on start-ups and scaleups that foster innovation and boost intelligence in these fields, but it’s also crucial to maintain a shared data environment where data from building initiatives is preserved and easily accessible to everyone.
As the GCC is accelerating towards a decarbonized future, the construction industry, responsible for one-third of global carbon emissions, will play a key role in fulfilling green agendas for a circular economy.
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