Digital Builder Ep 93: A Primer on Data Monetization in Construction 

Data monetization in construction

Data is a topic that we've touched on quite extensively on the Digital Builder podcast. We've talked about best practices for collecting and sharing information, as well as how to create standards for data usage. But what about monetizing data? 

Monetizing data is an approach that enables construction firms to turn their data into an asset, unlocking new revenue streams and enhancing decision-making processes.  

Here to shed light on the fundamentals of data monetization is Thiago Da Costa, the co-founder and CEO of the no-code data platform Toric. Thiago discusses the strategies and tools necessary for construction firms to capitalize on their data assets and gain a competitive advantage so they can win more projects and provide even more value to clients.  

Watch the episode now 

You can also listen to this episode on Apple Podcasts, Spotify, YouTube, and anywhere else you get your podcasts.  

On this episode  

We discuss:  

  • The biggest gaps in data connectivity and how they impact project outcomes 
  • Why construction firms should consider data monetization 
  • The different ways to monetize data and how to get started 

Biggest gaps in data connectivity 

The conversation kicks off with a discussion of the industry's data gaps and their impact on construction firms. 

Thiago sees three major obstacles: an uneven landscape of data tools, a lack of integration between those tools, and insufficient organizational alignment regarding the importance of data. 

Let's start with the first component. According to Thiago, the disparity in the quality and age of data tools creates significant challenges. 

"We started off on pen and paper, then evolved into spreadsheets, and finally, we got into digital software tools that do specialized things. All of that created a very fragmented and uneven environment. Some software solutions are 20 years old, while others are a couple of years old, so you have a very different quality of data being created in these tools. And that comes with simple things such as required fields. If you don't have that data, you didn't capture it, and you won't have it." 

He continues, "The other aspect is the tools weren't designed to talk to each other or to work together. So, how do you overcome that? Because every company uses dozens of tools to create buildings. Overcoming that challenge is a big part—just figuring out how to leverage it." 

Finally, Thiago brings up the need for organizational alignment on the value of data. 

"The third gap is the alignment of the importance of data. If your company is not aligned, you might be missing an opportunity." 

How these gaps negatively impact your operations and performance 

When these gaps aren't addressed, they can acutely hinder a firm's day-to-day operations and long-term growth.  

From an operational perspective, not having robust data practices hampers team productivity, which results in inefficiencies, miscommunication, and costly errors. 

As Thiago puts it, "I think ultimately it's going to come down to how efficient the project is in terms of producing outcomes for the company, how much you can extract from a project, and how effective your teams can be." 

Without the correct data, you won't have the insights you need to identify the drivers of project success and determine the ideal conditions for your company. 

And that leads to even broader challenges that could hamper your firm's ability to stay competitive.  

"The impact is that you won't be able to keep up with whoever's been investing in data for a while. That's the rush; how do you catch up quickly so that you can become more of a data organization that creates better financial outcomes for the company?" 

Thiago also discusses the byproducts of having the right data solutions and processes. He points out that better insights can help improve safety, which in turn lowers insurance premiums.  

He emphasizes that leveraging data is a long game and team sport.  

"The whole company has to be committed to it, and it's a top-down decision," he remarks.  

"If you have a couple dashboards somebody built—that's cool, but ultimately it's the entire executive leadership team that decides you're not just making buildings, you're actually managing these projects for a better outcome, and you're using data as a key way to do it.” 

Investment and monetization opportunities from data 

There's no doubt that data is incredibly valuable and can enhance everything from safety and productivity to business strategy and innovation. But if you want to uplevel your data strategy, you need to start seeing it as more than a tool, but as a strategic asset that can provide investment and monetization opportunities.  

Investing in data to win more work 

Data drives a competitive advantage and positions your firm as a leader in the industry. 

Thiago states, "Data is not an investment that's supposed to just improve your internal operations. It's an investment that increases the capacity to monetize a project. And that comes from the fact that owners are more interested in working with companies that are better at managing themselves and their data. If you are perceived as data- and tech-forward, owners are more likely to give you the project." 

Monetizing data and providing more value 

As far as actually earning revenue from data, Thiago believes that owners are increasingly willing to pay for analytics and reporting services. 

"We're seeing people selling dashboards. You can have dashboards; you can have analytics reporting. Those are line items in the bid. In the same way that you charge for software, we're seeing people charge for those outcomes," he explains.  

He also points out that owners typically hire other providers or consultants to deliver these data-driven insights and services. So rather than handing the opportunity to a third party, why not offer these valuable services directly and capture the additional revenue yourself? 

And if you want to think even bigger, consider aggregating and anonymizing data to offer advanced predictive insights. 

"Ultimately, can you aggregate the data and monetize the specifics of it? Can you anonymize and provide better predictions? Owners will trust you more by having access to those data sets, which are unique to your company and your area of operations," adds Thiago.  

How to start monetizing data 

If data monetization piques your interest, Thiago recommends taking a few steps to shift your mindset and approach. 

Collect, curate, and govern 

If you haven't done so yet, make sure you're collecting data. 

"If you're not collecting your data today, you're probably missing out, so the first thing is to begin collecting the data—all the data. To process storage is minimal, and when you have to have as much data as possible, you should find the tools for curation," remarks Thiago.  

"So, the first thing is collection. Then I think the next stage from there is curation, governance, and figuring out where to put it." 

Alongside this step, you should also assess the value and potential applications of your data. Ask questions like: 

  • Who's going to buy this data? 
  • How am I going to use it? 
  • What questions do I want to answer? 

"Those things eventually come together," explains Thiago. "Your technology roadmap advances your tools to a point where your needs are met, and then you start being effective at it." 

Don't aim for perfection 

Thiago cautions against trying to get your data strategy perfect the first time. The most important thing is to take action and iterate. As you continue on the right path, actions for handling and monetizing your data will develop. 

"Don't try for perfection; just start leveraging your data. Start by figuring out how you can turn those data capabilities into a bid. How do you get paid to do it?" 

He continues, "I would say there's a roadmap there. First, you could manage your finance data. Then you can tackle your project data and centralize the information. And then there's everything else—your scheduling data and safety data, and it can go in many directions." 

New podcast episode every week 

Digital Builder is hosted by me, Eric Thomas. Remember, new episodes of Digital Builder go live every week. 

Eric Thomas

Eric is a Sr. Multimedia Content Marketing Manager at Autodesk and hosts the Digital Builder podcast. He has worked in the construction industry for over a decade at top ENR General Contractors and AEC technology companies. Eric has worked for Autodesk for nearly 5 years and joined the company via the PlanGrid acquisition. He has held numerous marketing roles at Autodesk including managing global industry research projects and other content marketing programs. Today Eric focuses on multimedia programs with an emphasis on video.
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We use Hotjar to deploy digital advertising on sites supported by Hotjar. Ads are based on both Hotjar data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Hotjar has collected from you. We use the data that we provide to Hotjar to better customize your digital advertising experience and present you with more relevant ads. Hotjar Privacy Policy
6 Sense
We use 6 Sense to deploy digital advertising on sites supported by 6 Sense. Ads are based on both 6 Sense data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that 6 Sense has collected from you. We use the data that we provide to 6 Sense to better customize your digital advertising experience and present you with more relevant ads. 6 Sense Privacy Policy
Terminus
We use Terminus to deploy digital advertising on sites supported by Terminus. Ads are based on both Terminus data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that Terminus has collected from you. We use the data that we provide to Terminus to better customize your digital advertising experience and present you with more relevant ads. Terminus Privacy Policy
StackAdapt
We use StackAdapt to deploy digital advertising on sites supported by StackAdapt. Ads are based on both StackAdapt data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that StackAdapt has collected from you. We use the data that we provide to StackAdapt to better customize your digital advertising experience and present you with more relevant ads. StackAdapt Privacy Policy
The Trade Desk
We use The Trade Desk to deploy digital advertising on sites supported by The Trade Desk. Ads are based on both The Trade Desk data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that The Trade Desk has collected from you. We use the data that we provide to The Trade Desk to better customize your digital advertising experience and present you with more relevant ads. The Trade Desk Privacy Policy
RollWorks
We use RollWorks to deploy digital advertising on sites supported by RollWorks. Ads are based on both RollWorks data and behavioral data that we collect while you’re on our sites. The data we collect may include pages you’ve visited, trials you’ve initiated, videos you’ve played, purchases you’ve made, and your IP address or device ID. This information may be combined with data that RollWorks has collected from you. We use the data that we provide to RollWorks to better customize your digital advertising experience and present you with more relevant ads. RollWorks Privacy Policy

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We care about your privacy. The data we collect helps us understand how you use our products, what information you might be interested in, and what we can improve to make your engagement with Autodesk more rewarding.

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