Five Tips for Construction Companies to Harness the Power of Big Data

It may be the perfect time for your construction firm to start thinking on a larger scale — specifically, about big data.

"Big data" refers to the enormous volume of information collected through various technological sources, such as smartphones, social media platforms, GPS, sensors, cameras, algorithms, and even satellites.

Cloud Computing provides the necessary infrastructure for managing and analyzing vast amounts of data generated in the construction industry.

Companies nationwide are adopting big data analytics, reaping rewards in areas like marketing, site analysis, and scheduling optimization.

Your construction business can benefit from big data analytics in several key ways:

Your construction firm likely juggles many projects simultaneously. Those projects generate huge amounts of data that must be collected, organized and analyzed. Big data analytics allows you to quickly process that information, freeing up time to focus on job-site issues.

Your business needs to predict risks accurately to plan and complete projects efficiently. Using big data analytics can help you gain insight that will help improve cost certainty and identify potential problems.

Using sensors in cars, machines and trucks, combined with the schedule of the project and traffic information, algorithms can sort out the best routes at job sites, decreasing fuel costs and waiting times. The locations of equipment can quickly be identified and you can tell how tools are being used and when they need to be replaced. Sensors on machines can flag abnormal events quickly and maintenance teams will know exactly what's wrong and the parts they'll need for repairs. This can reduce a machine's downtime.

Construction firms sometimes miss the mark when estimating costs. Big data analytics provides a better chance at formulating a precise budget based on information about job sites and personnel availability as well as the prices of materials, suppliers, human resources systems and communication. Analyzing data effectively can help construction firms create more accurate budgets and identify areas for cost savings. What's more, the data can help you bring in jobs on time, reducing costs still further. Despite the advantages, however, big data can create problems, particularly when you first begin implementing it. Here are five tips that can help minimize the problems and maximize the benefits of big data.

High profile data breaches, such as those involving Target Corp. and Home Depot, have caused concern for most companies collecting big data. The security protections you installed years ago may no longer be adequate. Make a long-term commitment to safeguard this asset by continually upgrading the equipment and, if need be, hiring extra staff to keep it protected and running smoothly.

The amounts of data collected will be vast, and there is a possibility of wasting inordinate amounts of time and resources wading through it. Utilizing a data lake can help manage the vast amounts of data by storing it in its raw form, making it easier to sift through and analyze. The main challenge is finding the information that's valuable and discarding the rest. Refine your procedures for sifting through information to quickly get to the core of what you need.

In some respects, big data has leveled the playing field, so it's easier for smaller firms and start-ups to cut in on the action. If you've spent years building your firm, you might be vulnerable. Think like your smaller competitors. Big data should open up niches that you can try to fill before others do. Devote time and energy to market research and react quickly to changes and developments in the industry.

Some firms suffer from lack of communication between departments. Communication across the company, and through departmental barriers, is critical to the successful use of big data. Some of the responsibility relates to data management, so be sure key members of your team are properly trained in disseminating information that people need to do their jobs most effectively.

Sometimes when owners of construction firms ask questions, they don't like the answers. The same is true when you analyze the data you collect. The results may suggest a need for major changes that you've resisted or are dead-set against. In this situation, listen to the data but don't abandon the instincts or business philosophy that made you successful in the first place. Use the information to make informed decisions but don't follow it blindly. The potential of big data is vast and ever-expanding. If your company hasn’t yet embraced this technology, now is the time to do so — waiting too long could leave you behind. However, to truly harness its power, it’s essential not to let big data overwhelm your operations. Leverage the latest tools available while combining them with your business expertise and sound judgment to achieve the best results.

Connect with CSH and discover the ways that we can support your construction business as you venture into the exciting world of big data. Through our brand extensions, we are able to offer a wide variety of solutions that will maximize your data potential.