An increasing number of contractors are beginning to adopt collaborative technology and employ data analysis to improve operations and achieve greater results. Gaining real-time visibility and access to key data provides construction companies the ability to systematically analyze patterns and generate meaningful, informed insights for future projects.
By leveraging the power of digitalization, construction companies can identify key project components that are in line with their overall goals. Having access to critical data eliminates the guesswork in solving business problems and streamlines solutions surrounding actionable next steps. Read on to discover how leveraging data can help contractors improve their operations and decision-making, leading to more wins and greater profitability.
Improving The Decision-Making Process At Your Construction Firm
In the construction industry, it can be difficult to gauge whether a project is profitable or even on time until it is already well underway. Inaccuracies were responsible for nearly $2 trillion in lost value in 2020 alone. The risk of financial loss or unplanned expenses can often be mitigated with the strategic use of data; To stay ahead of competitors, construction firms need to not only collect relevant, meaningful data but also effectively leverage that data. This allows them to anticipate the real investments and costs of projects so that they are able to make accurate and informed decisions in a timely manner.
Efficiency, Processes And Valuable Insight
Construction projects consist of many moving parts. Do you have all of the materials that you need and the proper quantities? Are your workers spending more time than they should on certain tasks—especially ones that take them away from the field, such as paperwork? Is a potential project worth your time or liable to cost you money? Without access to relevant and comprehensive data from both the past and the present, there is no way to adequately answer these questions. A strategic IT leader can help establish an effective strategy for compiling the information needed to understand how the company’s time, money and effort are allocated—and what that means to the top and bottom lines.
Reducing The Risks Of A Project
Analyzing and harvesting data from construction projects can help organizations pinpoint potential risks and challenges. By collecting both structured and unstructured data, construction companies are able to overlay corporate data with project-centric information to identify gaps in data collection, as well as any negative trends. Everything from using historical averages to plan for the weather during a project to tracking which equipment is used (and how often) and staying ahead of breakdowns and repairs will impact whether a project is completed on time and on—or under—budget. Without utilizing this information, each project becomes a journey into the unknown.
Technological Integration Smooths Out Over Time
One of the primary reasons why construction companies fail to leverage data is that they do not currently have processes in place to collect and interpret that data. Even further, they often don’t know how to make technology seamlessly fit into their current methods. While there will certainly be some time and money spent upfront to integrate existing systems with new technologies, this decision pays off quickly and for the long term. Upon adopting collaborative technology, organizations can begin integrating their departments to improve communication. By gathering and interpreting critical data, companies are able to facilitate key predictions that immediately impact how choices are made–like which projects to bid on and which ones will be profitable.
What Construction Executives Can Do to Improve Data Usage
Even construction firms that are highly effective at gathering relevant data still must interpret it and use it in order to benefit from it. When navigating how construction executives can best improve data usage, organizations might find it most helpful to: Entrust Your Strategy to a CIO.
A CIO, or chief information officer, works to assist in putting data collection and governance strategies in place, as well as driving data management for an entire organization. CIOs act as strategic business leaders by placing greater emphasis on aligning IT efforts with business goals. Essentially, CIOs work alongside executives to drive business outcomes and utilize technology as a dynamic force for operational growth.. Utilize the Expertise of a Third-Party Consultant.
It is impossible to know things that you do not know—which is why trusting an industry expert with your data management is a smart choice for many construction firms. A fractional CIO with a bird’s eye view of the construction industry can offer objective advice on the types of integrations that would be most valuable to your company. This type of expert can work alongside your existing information technology team and vendors and help develop and execute an effective data strategy.
Trust The Experts To Help You Leverage Critical Data
Hartman Executive Advisors is a strategic technology leadership firm with specialized experience in the construction industry. Reach out to schedule an appointment to learn more about how we help construction firms drive data collection and interpretation strategies.