For nearly 150 years, the infrastructure group HOCHTIEF has been providing construction and engineering services for public and private customers around the world. Today, they’re using AI and other next-generation technologies to create new business models and revenue streams through startup-like environments—including their innovation hub Nexplore and spinoff EDGITAL—benefiting not only their existing business, but digitizing the construction industry.Explore HOCHTIEF’s story
HOCHTIEF determined that the best strategy for dealing with industry-wide challenges such as competition, fragmentation, and changing conditions was to digitize—using AI to respond in new ways to business problems and create new business models. “We started to think about how we can bring ourselves from industry 1.0 to industry 4.0,” recounts Bernd Holtwick, Chief Financial and Digital Officer, HOCHTIEF PPP Solutions/Managing Director, EDGITAL.
“We have a lot of data generated during the life cycle,” explains Holtwick. “With AI, we can unleash the power of this big data and create the new business opportunities.” Before implementing AI, HOCHTIEF developed a structure around their data and an organizational understanding of how it could be used to solve problems. In measuring KPIs for pilot projects, they examine how solutions make work more efficient and reduce risk to deliver more control over projects.
AI in action
Construction is a traditional industry characterized by high competition. Each project is unique and presents companies with new challenges. The HOCHTIEF group examined this problem and decided that innovation was the key to differentiating, identifying several areas where AI technology could make their business more competitive.Learn how HOCHTIEF is looking to the future with AI
Nexplore: Life as a Service
Operating like a startup within HOCHTIEF, Nexplore is dedicated to changing the current business model in the construction industry. To that end, Nexplore is generating a platform based on AI that delivers solutions that support the many subfields of HOCHTIEF’s work on their sites across the globe. Among these are about 20 new projects they’re exploring, along with a visionary approach called “Life as a Service.”
Learning from HOCHTIEF
Construction is a huge industry, comprising more than 11 trillion dollars and about 13 percent of the US GDP. But it’s also an industry that tends to do things in traditional ways. HOCHTIEF is changing that equation by using AI to create new business models and drive revenue streams, while spinning off new innovation arms like EDGITAL and Nexplore to take them further.
How can you use AI strategically to differentiate your organization from competitors?Discover more about HOCHTIEF