Digital Transformation in Construction: The Power of Contech Data

Digital transformation in construction depends largely on new technologies — many of which have allowed companies to hugely transform how projects are managed today. These new technological capabilities arise from other tech that has been around and evolving for decades.  

Construction technology has helped companies move from what can best be described as a defensive approach — mitigating risk, building the right teams and documenting processes — to one that’s more offensive. This is in no small part thanks to construction technology data analytics, which allows firms to be more proactive in coordinating resources, planning projects, and utilizing crews both on- and off-site.

However, not all organizations have fully embraced data analysis in construction. Some don’t recognize its value or lack the means to capture and aggregate the information. But the data is there for the taking. It all comes down to integrating a solution to control the data (structured, semi-structured and unstructured). The data management tool must correctly classify the information by use case and then integrate it. From there, it must meet quality standards for the organization: Has the data been ascribed to the right use case? Are there any informational gaps? Does the information fit its intended purpose?

Most importantly, the solution must be capable of cataloging data to make it accessible and useful to team members. This ability can inspire a host of novel data inquiries that lead to insights for improving business and project outcomes. Even if a firm isn’t utilizing data, it’s still creating it. Without classification, no one knows what information to protect, leaving the business open to security concerns and increased risk.

Leveraging data analysis in construction

Contech data can be a powerful tool for the construction industry. As long as firms have the right technology solution in place, they can unlock new insights, uncover new efficiencies and relieve some administrative burdens on their teams.

Here are four key benefits you can reap from leveraging data analysis in construction:

1. Proactive approach

Legacy systems have a way of becoming so deeply ingrained in the structure of an organization that the technology seems irreplaceable—even though they often lack the functionality, efficiency and interoperability needed in today’s environment. They are slow, expensive to maintain and tend to be used in isolation, creating data silos and making it difficult to work collaboratively. With such systems, firms may find it challenging to keep pace with the competition.

Construction software makes it possible to establish a single source of truth. It makes mountains of project data more easily accessible, allowing team members to derive actionable insights. It also makes it easier for firms to improve processes, grow strategically and remain competitive. In addition, new contech allows for customization, thereby offering industry-specific and business-specific capabilities. With contech, firms get the exact solution they need.

2. Data-driven decisions

Much of the data captured in the construction industry currently goes unused or underutilized. However, data patterns can prove beneficial in all regards, including accurate quoting and deadlines as well as proper coordination and safety. Accurate, connected data can’t replace industry knowledge or experience. Still, it can inform decisions on how to best refine construction processes, prepare for upcoming projects, monitor the price of materials and even anticipate supply chain delays.

“The ability to have live, current, real-time data is a huge benefit,” says Jaeson Thornton, executive project manager at Humphrey & Associates Inc. “When a design change is released, for instance, a large change of all HVAC units from top to bottom in a multistory building, we have to provide cost impact in a timely manner. If we are delayed in receiving these documents and miss or overlook these changes, then we risk the chance of not being compensated for the additional work by submitting our pricing late.”

3. Operational optimization

Digital transformation in construction is more than digitizing business processes or improving data accessibility. It allows firms to optimize operations by interweaving organizational change and technology implementation, then implementing more customer-centric strategies that can drive business. 

However, having the right technology is vital, as is having the right people and processes. Once in place, firms can better understand the health, risk and productivity of operations, allowing team members to identify gaps and address problems before they become serious.

4. Talent management

The construction industry’s digital transformation has further-reaching benefits than just building a more financially viable business that’s better equipped to weather the ebbs and flows of today’s market. The investment in contech has a way of making firms more attractive to the next generation of talent. They’ve come to expect new and emerging technologies in the workplace. Fail to provide, and they’ll seek employment elsewhere.

“Because of the continued commitment to innovation, the new technologies, using construction management software, as well as our mechanical technologies, we’re drawing in a younger generation that typically isn’t interested in construction,” says Wilford Jessup, IT director at Building Zone Industries. “We have people lined up at the door to get on board and partake of this innovation, technology and the new steps coming out.”

As with anything in the construction industry, data analysis starts with finding the right solution. If possible, a holistic solution serves a firm best; it provides means for capturing and aggregating all the various types of data streams and converting that information into actionable insights.