Network Effects: The Answer to Digital Skepticism in Construction?

Picture of Giulia Papi

Giulia Papi

Data Intelligence Manager

construction management statistics

Company culture, current ways of working and proper training are a huge part of the “utopic site life” jigsaw puzzle. Yet, the catalyst to meeting these challenges is the adoption of digital solutions and Modern Methods of Construction (MMC).

However, the uptake of tech in our industry is the second slowest across sectors worldwide. Whether this is affected by the fact that Construction is a high-volume, low-margin industry, the ongoing skill shortages, or the incumbent economic recession increasing material costs, creating digital defensibility is still an overlooked opportunity across the industry. A huge resource with massively untapped potential lies in front of us: Network Effects (NFX).

network effects example
construction management statistics

By definition, the broadest and most simple category of network effects is that of direct network effects. This phenomenon happens where increased usage of a product or solution leads to a directly proportional increase in the value generated of product usage to its consumers.

Simply put, network effects occur when a product or service becomes more valuable as its uptake increases.

Imagine our workforce as a series of nodes in the construction ecosystem, where each node connects to every other node in the network. Every new individual that joins a direct network creates a new connection for all the nodes that currently exist there.

This increases its density ^2, with each new node adding to the inherent network value at a geometric rate.

The innDex system was designed and is continuously iterated keeping people at the forefront of all its tools and developments. We understand that our industry’s biggest asset is its workforce. And, we’re also aware that NFX is the number one way to create digital defensibility in Construction.


A common concern that often arises with respect to digital transformation in Construction is the fear of being replaceable. 

This is where NFX become the solution.

Digital transformation is the initial step towards improving communication across the entire supply chain. The more individuals joining the innDex digital network, the more we start generating value by allowing white collars to work from home and blue collars to work close to home.

A more interconnected workforce speeds up time spent on projects. Companies can take on more contracts, generating demand for a bigger workforce, attracting more skilled individuals to the industry. At the same time, digital creates new opportunities to attract new types of talent to construction. After all, what are we gonna do with all this data generated?! (gotta reduce that 96% of forgotten data somehow…)

Our industry will be able to grow in size and most importantly in value. This will set off a snowball effect that destroys siloed working and radically increases transparency without replacing individuals, but in fact, empowering them.

Digital transformation is the catalyst for this change. It allows transparency across the supply chain, enables smarter and more productive working, whilst ensuring safety and guaranteeing confidence in an environment where there is little uncertainty. 

Digital systems aid job creation, all while enhancing the quality and productivity of our workforce. The focus of any company’s digital journey is not on removing jobs from the sector. The focus is on continuously creating new opportunities and streamlining the way of working, ensuring buildings and infrastructure are built more safely and efficiently. 

Make construction sexy again, make construction digital.