By Nima Jarvandi, Product Marketing, Senior Manager, Salesforce
In the wake of the Great Recession of the late 2000s, some industries have been able to find their way back to a period of growth. Engineering and construction firms, in particular, have seen steady business growth with signs that the boom will continue.
Yet, in spite of this incredible turnaround, productivity remains a significant challenge for many in these industries. And what we know to be true is that productivity has a strong correlation to profit.
In Malaysia for instance, data collected from 1991 to 2010 revealed that there is indeed a strong correlation between the construction sector and the economic growth. The construction sector contributes to the country’s revenue generation, capital formation and employment creation, all of which affects the gross domestic product (GDP) and the socio-economic development of Malaysia, according to a paper by Khan, Liew, and Ghazali, Malaysian Construction Sector and Malaysia Vision 2020: Developed Nation Status
A global study by McKinsey revealed that construction is one of the largest sectors in the world economy. About $10 trillion is spent annually on
construction-related goods and services. The study goes on to say that productivity in this sector is however slower compared to other sectors, and “there is a $1.6 trillion opportunity to close the gap.”
In an industry where projects are getting more complex in scale and scope — maintaining a high level of productivity is critical for success.
So, What Causes Low Productivity?
According to McKinsey, almost one-third of the productivity gap can be attributed to a lack of digitisation, which McKinsey defines as where and how companies build digital assets, expand digital usage, and create a more digital workforce.
This so happens to be an area where engineering and construction companies lag significantly compared to other industries. Another survey by Roland Berger found that sales, marketing, and post-sales teams within engineering and construction companies had the most to gain — in terms of productivity — from the digitisation of data, and an increased access to data, automation, and connectivity.
For some, implementing a full-scale digital transformation may seem too complicated.
Many construction companies still largely rely on spreadsheets, point solutions, and old-school “sticky notes” to keep track of important customer data and interactions.
All too often, information gets lost or is too hard to find, and smart employees end up wasting time re-doing work.
Plus, without a centralised productivity system in place, there’s no efficient way to track progress, predict results, or uncover opportunities.
If any of those pain points sound familiar to you, you’re likely ready to give your business’s productivity a boost. Implementing a Customer Relationship Management (CRM) system into your engineering and construction business can help with your digitalisation process. The best ones can effectively manage critical customer information all in one place to help teams build and foster a more profitable business and stronger customer relationships.
Get the complete CRM Handbook here
Salesforce has helped many companies in the engineering and construction fields digitise their businesses with the world’s #1 CRM solution.
Here are four ways that implementing a CRM can transform your engineering and construction business:
- Centralise Your Data
Get access to one centralised place for managing all relationship data, including current and past projects, bids, clients, suppliers, subcontractors, and partners.
- Accelerate Productivity from Initial Bid to Project Completion
Manage and track all active and past projects efficiently by keeping information out of email silos, reducing paperwork, and optimising project schedules and budgets.
- Improve Visibility and Insights
Generate real-time project reports, create forecasts, and assess profitability (and more!) all from the same platform.
- Scale With Ease
Easily configure Salesforce to meet the specific needs of your business as it continues to evolve and grow, including key integrations that work seamlessly with other systems you may already have in place.
In a Nutshell
With an effective CRM in place, engineering and construction firms can unlock the benefits of digital collaboration.
They can enable on-site execution and integrate back-office data with an effective system for customer engagement.
Want to know what’s the best CRM system for your business? Email us at firstname.lastname@example.org or call us at 03-7885 9720.
Article first appeared on the Salesforce Blog.
Lava is a cloud solutions provider and an authorised Salesforce Partner in Malaysia. We have more than a decade of experience in cloud solutions which includes marketing automation, CRM implementation, change management, and consultation. We pride ourselves in not just being a CRM partner but in also understanding the needs of our customers and taking their business to the next level.