As one of the oldest and most vital industries, construction is in dire need of cutting-edge technologies to provide affordable and safe housing. The global population is growing at an alarming pace, and so are house prices and homelessness rates. That’s why enhancing various building processes with the latest technological advances is crucial for the future of humanity. And the best way to ensure this is by performing digital transformation in the construction industry.
Smart Construction: Definition and Key Concepts
“Smart construction” is a general term that broadly encompasses all cases where digital technologies are implemented in the construction industry. As you can imagine, the range of such cases is enormous. It covers the use of hardware, such as robotics, sensors, and controllers, and, of course, various software solutions, for example, those powered by Big Data or AI/ML technologies.
The construction industry involves an almost infinite number of different processes, methods, and operations of various complexity. For this reason, the applicable scope of digital technologies is equally enormous. However, all those technological advances serve the same purpose: to streamline construction by imparting various beneficial effects.
Benefits of Smart Construction
Digital transformation is a costly and complex procedure, but it offers a variety of benefits for all industries and businesses. Let’s take a look at some of the most popular advantages of implementing smart technologies in the construction industry.
Higher Work Safety
The safety of construction workers remains one of the biggest concerns in the industry. The combination of hardware and software technologies can greatly improve work safety at construction sites.
For example, smart devices can ensure constant site monitoring. This measure serves several purposes. First, it enables early detection of safety hazards. Then, it allows real-time gathering of emergency-related information for further analysis. This way, smart solutions can learn from mistakes and prevent potential hazards more effectively, thanks to data analysis and machine learning.
Another effective measure to improve safety on construction sites is the integration of automated solutions and the use of remotely operated devices. Operators can control robots from safe locations to perform tasks in dangerous environments.
Better House Security and Comfort
One of the purposes of smart construction is to build smart houses. This means modern digital technologies are integrated not only in construction processes but also in the fruits of workers’ labor. First and foremost, new buildings should cover the basic needs of residents more effectively than “traditional” houses.
Since safety is one of such basic needs, smart construction should ensure it by thorough planning and implementation of hardware and software solutions. For example, building design should make provision for surveillance systems with movement tracking and face recognition. The integration of smart sensors that detect smoke, fire, flooding, or short circuits will additionally increase the safety of residents.
Improved Management
Smart construction is impossible without cutting-edge management solutions. There are many commercial and custom-made software products designed specifically for the needs of the construction industry. As a rule, they are complex modular systems that have separate components focused on particular aspects of construction, such as design, logistics, inventory, workforce management, and others.
To ensure seamless operation and total control over processes, construction management software integrates hardware and software components into one infrastructure. This allows supervisors to plan, estimate, and monitor work processes much more effectively than was possible before.
Enhanced Energy Efficiency
Thanks to precise digital technologies, the construction industry can create buildings from prefabs and cost-saving “green” materials. The same technologies also allow businesses to reduce the energy consumption of building equipment. For this purpose, the construction industry gradually switches to using more energy-effective hardware with a better performance-to-watt ratio.
Management software solutions, enhanced with AI and ML technologies, help to reduce equipment downtime and shutdown periods. This is especially beneficial in the case of operating heavy machinery with high levels of carbon emissions.
Better Productivity
The use of computer technologies benefits construction from the earliest stages, such as building design and project planning. Automated calculations speed up the design and management processes and allow changing the project on the fly. So, if the requirements suddenly change, construction managers do not have to plan everything from scratch.
Enhanced productivity of construction is the result of several other benefits mentioned in this list. Better management, smart equipment, and safer work conditions contribute to the overall improvement of productivity and faster project completion. All these benefits ultimately reduce operating costs and make the construction business more profitable.
Higher Quality of Work
Digital technologies also improve the results of builders’ work. Houses built using smart construction methods are more robust thanks to virtual modeling, simulation, and testing. VR and AR technologies help architects and designers visualize future buildings, experiment with different layouts, and much more.
One of the most important opportunities provided by smart construction is the ability to perform complex simulations. For example, architects can test the potential outcomes of various emergency situations and natural disasters based on the planned building layout and materials. Then, they can change those parameters and perform another set of tests to see if other variants provide better results.
Keep in mind that this list of potential benefits is far from complete. New technologies appear almost every day, so construction becomes “smarter” as time passes. It is highly possible that future technological breakthroughs will bring whole new levels of advantages to current construction processes and methods.
Overall, the potential benefits make smart building an incredibly promising industry for new businesses and investors. That’s why the size of the smart construction market is growing steadily. Experts predict that it will reach $121.6 billion in 2026.
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Best Practices and Strategies for Successful Adoption
The construction industry is very diverse, resulting from different traditional approaches, material preferences, and environmental conditions. These factors usually vary from country to country and even in different regions of the same country. So, defining the best smart construction strategy that can universally apply to every location is a tricky task.
However, there are several crucial steps that are absolutely required in order to adopt smart construction:
The use of AI/ML and Big Data for smart design, simulation, and testing.
The use of enterprise resource planning and construction management software to speed up work processes.
The use of on-site monitoring and automated checkups to ensure work safety and quality.
These three essential aspects must be ensured to implement the benefits of smart construction. Combined with each other, they can provide an infrastructure that uses software and hardware solutions to facilitate most operations in this industry. However, if you have additional resources, you may implement additional steps to integrate even more digital technologies. This way, your business will be able to build smart houses and, possibly, even cities!
Future Trends and Outlook for Smart Construction
Digital technologies will soon become an integral part of the construction industry. Considering the current progress, it is possible to predict the most promising trends that will become dominant in the near future.
Improving Energy Efficiency of Building Processes
Digitalization in construction will ensure better logistics thanks to smart trackers. Powerful management software will reduce downtime periods and ensure the smooth flow of work processes.
Reducing Waste and Carbon Emissions
All “smart” industries aim to become “green” as soon as possible. In the context of construction, waste reduction is highly important both during operations and as a feature of newly built houses. For example, architects can design an automated heating management system that controls thermostats based on ambient temperature inside and outside the house.
Creating a Self-Sustained Energy Infrastructure
Digital technologies require a reliable source of sustainable energy. That’s why smart construction invents various methods to satisfy this requirement. As one example, it is possible to link a house and an electric car to share one energy pool. Solar-powered houses with smart power management are another example of such energy infrastructure that is gaining more popularity. The use of various technologies to generate, accumulate, and distribute green energy, such as solar and wind energy, will become integral to smart construction.
Much Higher Use of Robotics and Automated Processes
Smart construction methods may reduce the amount of workforce required to complete a project. However, the adoption of smart technologies also raises skill requirements for workers. One of the most possible future trends is the growing adoption of robotics in construction. It includes the use of drones for surveillance, autonomous vehicles for long-distance delivery of building materials, and remotely operated robots for work in dangerous environments, such as heights.
The Growing Importance of Big Data, Machine Learning, and Artificial Intelligence
The role of data analysis is of vital importance for all aspects of construction. It helps mitigate or eliminate the drawbacks of existing methods and invent improvements. As a result, AI and ML technologies will allow more effective automatization of many construction processes.
Better Integration of All Electronic Devices Within a House Into One Complex Infrastructure
Smart houses should be the logical product of smart construction. Users will be able to monitor and control everything in their houses from smartphones, tablets, or laptops. For example, Smart sensors and meters can track electricity, gas, and water consumption, so the “smart home” may estimate monthly expenses and suggest ways to reduce them.
Conclusion
For the last few years, main construction industry trends have focused on adopting the latest programming technologies in all the designing, building, calculating, and other processes. Machine Learning, Artificial Intelligence, and Big Data open so much potential that has yet to be explored in full. Cost efficiency, optimization, improved management, hazard risk elimination, and advanced analytics are only a few benefits from the long list.
To enjoy all the perks of smart construction technology, you need to find professional and reliable specialists who can create bespoke software tailored to your company’s specific needs. Intellectoft is a company with 15+ years of experience in digitalization in the construction industry. For many years, construction has been our domain area of expertise, along with fintech and healthcare industries. Our smart construction solutions include but are not limited to creating from scratch and upgrading:
ERP (Enterprise Resource Planning) software;
Inspection management solutions;
Project management systems;
Customer and partner portals;
Analytics and reporting software;
Project onboarding and staff training solutions;
Construction integrations, and many others.
If you already know what specific digital solution your construction company needs or just have a blurred idea of what digital solution you want, don’t hesitate to contact us and describe your problem along with your requirements. Based on our industry expertise, we will offer you the most efficient and cost-effective solution that will help you create architecture masterpieces or achieve your unique business goals.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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