When it comes to data in construction, there’s good news and bad news. The good news is, construction professionals recognize the value of data and are collecting a tremendous amount of information. In fact, research from FMI Corp shows 2.5 quintillion bytes of data are produced daily.
The bad news? The vast majority of that data — 95.5% according to FMI — goes unused in the E&C industry. Market research from Deloitte Access Economics, commissioned by Autodesk, supported this gap and indicated that 80% of construction companies still have room to improve their data capabilities.
So while data can be powerful when generating insights, failing to harness it properly can mean missing out on game changing profit margins. Companies classified as data leaders can expect a 50% increase in average profit growth rate each year compared with beginners. For a business with US $25 million in annual profits, this could equal a $700,000 increase in profits.
Beyond missing out on profits, issues like wasted time and diminished productivity can result from low data capabilities. In fact, research shows construction managers and executives spend an average of 11.5 hours per week researching and analyzing data. And those in BIM/VDC and preconstruction roles spend even more time looking for data each week, averaging 12.3 and 13.4 hours per week, respectively.
This tells us that while we have a lot of data, we don't have much insight, especially insights that are readily actionable.
But don’t worry, there’s hope. If your construction firm is data-rich but insight-poor, know that there are a number of actions you can take to effectively leverage all the information you have.
Let’s explore the data issues that construction pros are facing and how to address them.
Data overload and difficulty with analyzing information are two of the biggest challenges the construction industry faces today.
Deloitte research shows that the average construction company collects and analyzes eight out of 11 types of data presented in the survey, but only collects, analyzes, and makes decisions based on three data types.
For instance, financial data is the most frequently collected data type, with 86% of companies reporting they capture it. However, only 33% of firms said they analyze and leverage financial data to make decisions.
Our past research also shows that data has actually doubled in the last three years alone, yet only about 55% of organizations have a formal data strategy in place to make good use of all that data. For the other 45%, as you can tell, making confident decisions with bad data is not only risky, but costly.
It’s no surprise then, that Forrester found that while 74% of firms want to be more “data-driven,” only 29% are successful at turning data into insights and actions.
To improve data capabilities, it’s important to understand the difference between these three pillars: data, analytics, and insights. Level setting on the terminology helps determine the tools, people, and processes you need to collect, analyze, and draw conclusions from data.
Let’s look at these components individually in the context of the construction industry.
Data refers to quantitative and qualitative measures collected in raw form. In construction, this could be things like the number of defects, safety incident rates, time spent dealing with change orders, observations on the jobsite, etc.
Data collection specialists and data engineers are usually the types of professionals in charge of handling these measures. People in these roles clean, aggregate, and enter the information to be analyzed.
Analytics, on the other hand, involves processes and technologies that help translate the raw data into formats that people can understand — typically reports and dashboards. Effective data analytics requires a robust construction platform as well as data analysts who can help with inspecting and transforming data into the best format.
Then we have insights, which are the meaningful realizations and actions that the organization implements based on data and analytics. While there are official roles designed for deriving insights (one example is the role of insight analysts), extracting insights from data and analytics is something that many people in the organization can do.
For instance, field managers and general contractors who regularly monitor metrics like incident rates, rework costs, or waste can use all that information to come up with processes that improve profits and productivity on the jobsite.
Now that we’ve covered the fundamentals of data, analytics, and insights, let’s discuss how construction firms can put all of the above to good use. Here are the pillars of effective data management and analysis.
With so many metrics and data points to be collected and analyzed, it’s simply impossible to do things manually. That’s why the first pillar of moving from data to insights is digitization.
Do note that going digital isn’t simply about replacing pen and paper with technology; it’s about reimagining your processes to make data collection and sharing more efficient.
As Manu Venugopal, Senior Manager of Product Management of Autodesk put it, digitization “isn't just about moving off of paper although that's an important first step. It's about enhancing the way information is shared, often in ways that weren't even possible before and leveraging connected devices in the office and field to expand access to project information and help everyone make faster and better decisions.”
With so much riding on the quality of your data, having a workforce with data skills is key to gaining a healthy competitive edge. However, recruiting and finding the right workforce to accelerate data capabilities can be challenging for construction companies already facing significant workforce shortages.
Alternatively, upskilling your current team members can help you address these issues while propelling your firm to becoming a data leader. Deloitte's survey results show that companies who provide data training to all team members are 2.5 times more likely to be data leaders, compared with those who don't offer training. Empowering your teams to be more adept at handling data can also reduce the amount of wasted time searching for more information. After all, when teams know how to access and use data more effectively, they can figure out how to uncover the insights they need faster.
You may be using digital tools, but if your systems and workflows aren’t integrated, becoming more data-centric will be an uphill battle.
First, establishing your foundation on a connected construction platform is key to integrating workflows starting in early design phases through handover.
Connected construction workflows on one platform open up several benefits, including higher levels of efficiency, reduced risk, and better collaboration.
As such, your construction platform should enable the smooth data transfer from one project phase to the next and enable all stakeholders to be in sync.
Integrations also play a vital role in integrating workflows. See to it that you’re using an open platform that allows you to quickly find, access, and retrieve data. This openness is critical, particularly in a fast-paced environment where you need to get your hands on the right information ASAP.
Closely related to this is having connected datasets. Your workflows should be linked so that any updates or changes to your data are automatically synced across your systems. This way, you’re able to access the right information at any given time.
Raw data by itself is hardly useful. Your team should be able to view data in a user-friendly format — hence the need for visuals like graphs, tables, and reports.
The manner in which data is presented can make all the difference, so get yourself a system that supports user-friendly and flexible visualizations. There are data platforms that offer templates or pre-built dashboards for things like resolution workflows, RFI management, etc.
The best-in-class solutions come with configurable visualizations that let you tailor your reports to fit your needs. This flexibility is essential because there are many cases when you need to slice and dice the information to fit a specific project or situation.
Data-backed insights are the bedrock of good business decisions, so you want to optimize your data analysis for success. While team members can certainly put their heads together to gather intel, AI capabilities are incredibly helpful to assist automation efforts.
Adopt construction technology that uses AI and machine learning to provide real-time and automatic insights from the data you’re capturing. The right solution, said Venugopal, can help “flag any riffs, improve the accuracy of your workflows as well as help standardize and structure the data” — ultimately streamlining your operations and helping you deliver projects quickly, and in the most cost-effective way possible.
The future of construction will be a lot more insightful. In order to thrive, your firm needs people, processes, and tools that can help you unlock the valuable insights within your construction data.
To do that, start by making sure that your organization understands the ins and outs of data, analytics, and insights. It’s important to establish the key pillars discussed above so you can have a solid foundation on which to build and implement your initiatives.
If you’d like to learn more about how to turn data into insights, learn more about Autodesk Construction Cloud to find out how our platform keeps your workflows, teams, and data connected at every phase of construction.
