Day: September 15, 2021

Construction Management

New Report Reveals Data Strategy is a Key Advantage in Construction

Gerri Nielson

Discover key findings in infographic below

Advances in construction technology continue to accelerate what’s possible for the industry at large. The challenge with all this new technology is the sheer volume of project data it generates.

In fact, over the past three years alone, our research shows that new project data has doubled industry-wide. Couple that with common industry challenges in capturing, managing, and analyzing data, and we find a startling $1.8 trillion in cost impacts to the construction industry globally due to “bad” data. This is notably associated with the impact of bad data on decision-making.

This is where a clear data strategy can change everything.

In today’s construction landscape, working fast is a competitive advantage. Whether you’re coordinating with stakeholders, generating designs, or managing a jobsite, the speed at which you make decisions can make or break your projects.

With the right data management systems and strategies, construction teams can easily get the information they need to make good decisions that move projects forward at minimum risk.

A new report from Autodesk and FMI, Harnessing the Data Advantage in Construction, reveals the fundamental need for proper data management in construction, and the surprising cost of inaction. It also identifies current roadblocks and practical, actionable steps to implementing a data strategy that can make your projects significantly more profitable.

DOWNLOAD THE REPORT

Read on to get a glimpse of some key findings you’ll pick up from the report.

Key report findings and how they impact data strategy

Finding #1: Too much of your data is likely unusable or bad

Data is only as good as it is useful. So when it comes to construction data, true value lies in quality, not quantity. Having a lot of information isn’t necessarily a good thing, and that’s especially true if you’re looking at bad project data — i.e., your data is inaccurate, incomplete, inconsistent, or untimely.

In our research, 30% of the survey’s respondents indicated that up to 50% of their organization’s data are considered bad.

Having poor project data comes with consequences. Without accurate information, you won’t be able to make the best decisions, which can ultimately hurt your projects. In our research, respondents indicated that bad data led to poor outcomes in a third of their organization’s decisions.

As for the causes behind bad project data, our research found that the top contributors include:

Inaccurate/Incorrect data (24%)* Missing data (24%)* Wrong data (21%)*

So, what should construction professionals do to address the issue of bad project data? One important step is to tighten up your data entry practices. Inconsistent data entry is the largest cause of bad data. So by standardizing how you capture information, you can prevent bad data from permeating throughout your organization, and negatively impacting your bottom line.

*Please refer to the full report for detailed definitions of bulleted items

Finding #2: Making field decisions using data is critical, but often undervalued

We’ve already established that having good data is essential to making sound decisions. However, this has serious impacts in the field because these are your frontline decision-makers. It’s your project management and field supervision staff that are collecting, managing, and analyzing data every week.

The biggest reason behind the lack of data-driven decision making, according to respondents, is the urgency required when making a decision. And when accurate data isn’t readily available, we’re forced to move forward even when we don’t have all the information. Here are the top three risks to project decision-making:

Time constraint or urgency of decision (43%)Lack of reliable data (36%)Lack of experience with similar project decisions/issues (36%)

You can already see how good data serves to resolve major concerns associated with making critical decisions in the field. Read the full report to see the complete list of risks to decision-making.

Finding #3: Simply put, formally implement a data strategy

From the report, “The first step to supporting project staff who are tasked with data management and analysis is implementing a formal data strategy. Having a framework in place will lift the burden from busy supervisory staff and it will improve data consistency and insight moving forward.”

The problem for those without a strategy in place is that project data is not consistently informing decision-making. Only a fraction (12%) of respondents say that they always incorporate project data in their decision-making. Over 50% of survey respondents indicated they use project data when making decisions only occasionally, or even worse, not at all.

Our study found that respondents who “always” or “often” use project data when making decisions are more likely to have a data management plan or strategy already in place.

What elements should your data plan include? When asked about their own strategies, respondents highlighted they include the following components:

Sources and collection methods Standards for project data formatting and processingIdentifications and descriptions of data Methods and platforms for collecting, accessing, and sharing project data Archiving data Formal data management roles and responsibilities

The report also reveals what organizations put effort into when committed to quality data. Respondents said the following investments ensure decision-makers in the field can access actionable, high-quality data:

Regularly reviewing data at set intervals for quality purposes (40%) Having established data reporting and monitoring practices, both at the time of collection and use (38%) Structuring data in a common data environment (38%)

Our findings clearly lead to the importance of implementing a formal data strategy for project data, but we found that only 55% of respondents have done so themselves.

Finding #4: Buy-in from your entire organization is vital

According to the report, “Even if organizations understand the benefits of having a data management strategy, the path to implementation may be littered with roadblocks. Clearly, project management and field supervisors should require a plan to collect, manage, and analyze data. However, without knowing what investment is required or where to begin, leadership may not back the project. Obtaining buy-in from all key stakeholders is necessary for the successful roll out of a data management strategy.”

When asked what is holding respondents back from implementing a formal project data plan/strategy themselves, the top three concerns included:

Cost/required resources (40%)Not sure about where or how to start (36%)No leadership/organizational support (36%)

Further, organizations with revenue over $500 million were more likely to suggest “No leadership/organizational support” as a reason for not implementing a formal data strategy. This may be tied to how challenges manifest in a large construction firm compared to a smaller one, according to findings.

In the report, we also share key learnings associated with the lack of understanding benefits of a formal data strategy. There’s also the factor of workforce training. What do you do with all your data? Who manages it? How do you create consistency in entry, management and use of data?

We provide insight into those questions, and so much more, in Harnessing the Data Advantage in Construction, an in-depth report made in partnership between Autodesk and FMI. You can download it right now at no cost.

DOWNLOAD FULL REPORT

Download the report, Harnessing the Data Advantage in Construction, for actionable insights on the vital nature of a formal data strategy

At the end of the day, when equipped with good project data, construction stakeholders can rest easy knowing that they have reliable information at their fingertips to make important decisions quickly.

Accomplishing this requires having a formal data strategy in place, and one that’s executed by skilled team members. With these two components in place, you’ll be in an excellent position to leverage quality data for meaningful project decisions.

Download the report, Harnessing the Data Advantage in Construction: Why adopting a data strategy can bring firms a competitive edge.

If you’d prefer to listen and learn, you can download the audiobook version of the report as well.

The post New Report Reveals Data Strategy is a Key Advantage in Construction appeared first on Digital Builder.

Construction Services

Why Adopting a Data Strategy Gives Construction Businesses a Competitive Advantage – And Where to Start

Gerri Nielson

Projects are built on thousands of decisions. The quality of every decision depends on data: having accurate, timely and complete information that you can use when you need it.

But right now, data management is an area where many European construction companies are struggling.

We might be generating more information than ever before. But whether that’s producing actionable insights – and better outcomes for the business – is another question.

We’ve surveyed 1,115 construction professionals and interviewed four contractors across Europe to understand their challenges in using data, as well as where they see the biggest opportunities for the future.

It’s clear that using data can seem overwhelming. So how can companies overcome their data management hurdles – and start making better decisions?

Read the full report, Harnessing the Data Advantage in Construction, from Autodesk and FMI.

Is more data always better?

Most construction professionals (82%) agree their organisations are collecting more data from construction technology today than three years ago.

There’s a clear resource implication, with 49% of project management and field supervision staff’s time spent collecting, managing and analysing project data each week.

However, 39% of professionals say that less than half of that data is usable. Worse still, 40% of the average organisation’s data is bad – meaning inaccurate, incomplete, inconsistent or untimely.

There seem to be challenges with the whole process, from knowing what data to collect (51%) to understanding how to manage project data effectively (52%), and firms are unsure how to fix the situation.

Bad data, bad decisions

Project managers have always been tasked with making decisions quickly. But with the Covid-19 pandemic disruption, there’s more pressure on schedules than ever before.

Professionals say that time constraints represent the single biggest risk to project decisions (38%).

Information is one of the best ways to manage risks, especially when decisions are needed at speed. But crucially, professionals often lack the data to make project decisions effectively. Only 9% always incorporate project data into their decision making – while 64% do this sometimes, rarely or never.

In fact, data that’s inaccurate, incomplete, inconsistent or untimely actually compromises decisions. On average, bad project data results in poor decisions 41% of the time.

Formal data strategies: the benefits and barriers

Many construction companies have measures in place to get more from their data – from a common data environment (37%) to creating a formal position to oversee their data (33%).

But European companies are divided when it comes to having a formal data strategy: a plan to collate insights from different projects and drive business-level improvements.

While 58% of organisations have a formal data plan in place, a third (33%) don’t. A further one in ten professionals (9%) don’t know either way – suggesting that if strategies do exist, they aren’t being well-communicated in the business.

Companies with a data strategy say the biggest benefits are fewer safety incidents, a reduction in change orders, fewer missed schedules and less rework.

But there are barriers to creating a data strategy. A lack of applicability (39%), cost and resources (37%) and not knowing where to start (35%) are the most common reasons for companies not to have a strategy in place.

Culture challenges

Success with data isn’t only about the digital tools; construction companies need the right company culture – and people who are comfortable and confident with technology.

Many businesses acknowledge the growing importance of digital skills; 36% of companies are providing formal training in data analysis, while 44% say data management and analysis skills will be important for project management staff to do their jobs effectively in the future.

However, there are signs that company culture could be a key hurdle. At 34% of companies, a lack of leadership and organisational support is the main reason there isn’t a formal data strategy.

Communication and leadership will be a crucial part of encouraging technology adoption, and making data strategies a success.

What’s next?

Using bad data can have far reaching consequences. A contractor performing €1 billion in work annually could avoid €7.1 million of waste could have been avoided by making decisions using accurate data, according to our research.

But every construction business can take incremental steps to improve their data management.

Start small and begin with data selection before data collection

Focus on the place where your organisation could most benefit from data-driven insights. Once you’ve refined your process and can show clear results, you can take lessons from this onto the next data management area.

Focus on buy-in to gain organisational support

Articulating why changes are happening, encouraging open discussion and providing continual reinforcement will help to achieve buy-in over time. Ensure that your team has ongoing support with using these new technologies and processes.

Poor data equals poor results, so put quality first

Define clear processes for capturing good data – and ensure that this is a foundation of your overall strategy. A common data environment and either a single technology platform or integrated technology platforms are needed to support the flow of data, and to form the basis for long-term data ambitions.

To find out more about creating a robust data strategy, read the full report: Harnessing the Data Advantage in Construction: Why adopting a data strategy can give firms in Europe a competitive edge

The post Why Adopting a Data Strategy Gives Construction Businesses a Competitive Advantage – And Where to Start appeared first on Digital Builder.