Digital Transformation Strategy in Construction Industry: A Case Study on PT. Konstruksi Membangun Negeri Tbk

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Digital Transformation Strategy in Construction Industry: A Case Study on PT. Konstruksi Membangun Negeri Tbk

ABSTRACT: The advancement of digital tools in construction has increased for the past decade and it brings a solution overcome the issues of low-level productivity and inefficiency. Digital transformation is one of the strategies to increase operational excellence and generate new competitive edges at the same time in the construction industry. PT. Konstruksi Membangun Negeri Tbk (KMNI), an Indonesian 50-year-old building contractor facing business issue as its revenue and profitability has been declining for the past 5 years. Mixed-methods explanatory were conducted to assess KMNI readiness and best fit-in strategy to conduct digital transformation. Using INDI 4.0 assessment, KMNI’s readiness score is 2.03 or medium readiness with some areas for improvement. A house of KMNI digital transformation is proposed as guidance for KMNI to conduct digital transformation, encompassing (1) a roof as the direction, (2) a beam of goals, a pair of pillars (3) process that adopt lean construction 4.0 and (4) technology as the enabler, and (5) people as the foundation. To construct this house, a roadmap with five years of timeline and five phases to be executed in order to transform KMNI’s operations and become a new way of delivering the product to its customers as a new competitive edge.

KEYWORDS – digital transformation, construction 4.0, digital maturity, roadmap, lean construction

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