The Influence of Digital Transformation on Suppliers’ Business Models

Abstract

The construction sector’s productivity has remained more or less flat for the last two decades. The industry struggles to deliver projects on time, within budget and at the desired quality. One way to improve productivity is through integrated management of the interface between supply chain and site activities. This integration can be supported by digitalization and corresponding digital technologies and processes that have emerged in recent years, for example Building Information Modelling (BIM). Out of all available trends in construction, BIM will have the biggest impact on players' business models.
The purpose of this thesis was to examine the influence of digital transformation due to BIM on suppliers’ business models in the construction industry. The research used an exploratory study that combined literature review with a case study analysis. Five topics were researched in detail to establish the current state. Based on the reviewed literature, possible future scenarios were identified and examined further through a case study in industry. For each scenario, business model opportunities were suggested and discussed from both theoretical and industry perspectives. The discussion introduced each opportunity, use of BIM, suitable business model, necessary changes, advantages and disadvantages.
This research showed that the digital transformation and BIM influence the construction industry and affect its stakeholders. Additionally, change management has to occur together with the digital transformation in a company. People need to collaborate to innovate and create products that will follow the digital development.
This thesis showed that BIM creates new business model opportunities. Therefore, the suppliers should be prepared for this transition and adjust their business models accordingly. Digitalization and BIM have a positive impact on supply chain and can potentially improve the productivity in the construction industry.