Innovation in AEC must create measurable value for owners through smarter, more sustainable solutions.
I was reminded of this quote recently by a leader in the AEC innovation community: “A business has only two functions: marketing and innovation.” Peter Drucker – one of the pioneers of modern business management – believed that the purpose of a business is to create a customer. And that the only two internal activities that generate external results are marketing and innovation.
According to McKinsey, “In a business context, innovation is the ability to conceive, develop, deliver, and scale new products, services, processes, and business models for customers” (emphasis mine). Yet in today’s AEC industry, much of the innovation conversation – especially around AI – is focused inward: improving firm efficiency, automating tasks, and building internal knowledge.
These are worthwhile pursuits. But they are not enough.
The firms that will lead are those that innovate with a clear purpose: to create measurable value for the project owner. That means delivering smarter, more sustainable, and more cost-effective solutions – not just for the firm’s benefit, but for the people funding, using, and living with the outcomes of our work.
These firms are innovating across three critical fronts:
- Core innovation: materials and building technology. Breakthroughs in materials science – like self-healing concrete, photovoltaic glass, and mass timber – are redefining what’s possible. These aren’t just technical upgrades; they enable owners to achieve better performance, lower lifecycle costs, and more sustainable outcomes.
- Design innovation: enhancing human and owner outcomes. Design is evolving to prioritize not just aesthetics, but experience and function. For example, schools that improve learning outcomes, hospitals that accelerate healing, and offices that boost productivity. These are not just design wins – they’re business wins for owners. AI, simulation tools, and interdisciplinary collaboration are helping firms test and refine these ideas before they’re built, reducing risk and increasing value.
- Process innovation: smarter project delivery and operations. From planning to operations, our industry is a complex web of firms, systems, and stakeholders. Process innovation must simplify and integrate this complexity – making delivery faster, more collaborative, and more transparent. Whether through digital twins, robotics, or AI-driven scheduling, the goal should be clear: better outcomes for the owner across the asset lifecycle.
Innovation isn’t innovation unless it creates value for someone. And in our industry, that someone is the project owner.
There’s nothing wrong with using AI to streamline proposal writing or automate internal workflows. But the innovation strategies that will define the next decade are those that start with the owner’s needs and work backward – delivering real, tangible results in the built environment.
Tom Godin is a senior director at Zweig Group and the leader of the firm’s Performance Consulting practice. Contact him at tgodin@zweiggroup.com.
