{"id":28674,"date":"2024-05-30T15:06:55","date_gmt":"2024-05-30T13:06:55","guid":{"rendered":"https:\/\/next-tech.com\/?p=28674"},"modified":"2024-05-30T15:08:30","modified_gmt":"2024-05-30T13:08:30","slug":"how-to-understand-construction-data-analytics","status":"publish","type":"post","link":"https:\/\/next-tech.com\/en\/how-to-understand-construction-data-analytics\/","title":{"rendered":"How to understand construction data analytics"},"content":{"rendered":"<p><span style=\"font-weight: 300;\">In the modern construction industry, there is a clear gap forming between companies that use construction data analytics and those that don\u2019t.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">The companies that use data analytics in construction effectively aren\u2019t just adapting to ride the industry-wide digitisation trend \u2013 but are realising the positive effects of well managed data on their project\u2019s profits.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">And, for all construction businesses right now, profits are often hard to come by. Studies show construction project profits have been steadily declining over the last six years, and are now at an average of only 1-2%. On top of this, around <\/span><a href=\"https:\/\/www.strategy-business.com\/article\/Why-do-large-projects-go-over-budget\"><span style=\"font-weight: 300;\">91% of projects tend to go over budget<\/span><\/a><span style=\"font-weight: 300;\">, and the industry expects nearly half of projects to be unprofitable.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">But for ambitious companies looking to use data analytics for construction to boost project performance, it takes more than just ditching Excel and whiteboards.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">In this guide we\u2019ll look at:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">How big data and analytics are transforming the construction industry<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">How data analytics in the construction industry is currently being used<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">What is the problem with data management in construction?<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Why connected, real-time data is the answer to effective construction analytics<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 300;\">Ready? Let\u2019s go.\u00a0<\/span><\/p>\n<h2><b>How big data and analytics are transforming the construction industry<\/b><\/h2>\n<p><span style=\"font-weight: 300;\">Big data analytics in the construction industry is a way to more effectively manage the hundreds or thousands of jobs to be done (and tracked) on each project.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Big data analytics in construction refers to the vast volumes of data generated from various sources, like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Project management tools\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Building information modelling (BIM)<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">IoT devices on-site\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">And more\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">Ambitious construction companies are realising that this data, when effectively analysed through digital tools, can offer deep insights into every facet of a construction project, from initial planning to completion.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">So what are some of the trends that have brought on this push to digitisation and data analytics?<\/span><\/p>\n<h3><b>How data analytics in the construction industry is currently being used<\/b><\/h3>\n<p><span style=\"font-weight: 300;\">Despite the fact that some still operate on whiteboards, excel, or pen and paper, construction companies of all sizes are starting to see the positive capabilities of using digital tools to harness construction industry data analytics.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Effective project data gathering and tracking helps improve project management, by giving project managers more visibility into things like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Project planning<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Time reporting\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Work order management<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Field reporting<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Budgeting<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Revenue forecasting\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Tendering and invoicing<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Resource planning\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">And much more<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">Not only that, but when the data from these project aspects are connected in real-time, you can see how one small change in a project can affect everything else, giving more control over project performance.<\/span><\/p>\n<h4><b><i>Regulatory compliance<\/i><\/b><\/h4>\n<p><span style=\"font-weight: 300;\">The shift toward digital tools is further spurred by tightening regulatory requirements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">In the UK, for instance, the concept of the &#8220;golden thread&#8221; as outlined in recent building safety legislation emphasises the importance of transparent and accessible digital records throughout a building&#8217;s lifecycle.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This initiative aims to enhance building safety by ensuring all safety information is readily available and up-to-date, pushing companies towards digital solutions that can manage and maintain such detailed data efficiently.<\/span><\/p>\n<h4><b><i>Younger generations pushing for modernisation<\/i><\/b><\/h4>\n<p><span style=\"font-weight: 300;\">As younger, tech-savvy professionals enter the construction industry, there is an increasing expectation for companies to leverage technology.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This demographic is adept at using digital tools and expects their workplace to utilise technological advancements. Their influence is catalysing the adoption of technologies such as machine learning, AI, and IoT in construction processes, which not only streamlines operations but also attracts new talent who are eager to work in a modernised environment.<\/span><\/p>\n<h4><b><i>Sustainability initiatives<\/i><\/b><\/h4>\n<p><span style=\"font-weight: 300;\">With environmental impact a growing concern, construction data analytics help in planning and executing construction practices that are more sustainable and less damaging to the environment.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">But the boom in construction digitisation and data analytics has left a lot of ambitious companies scrambling to keep up \u2013 and this leads to rushed approaches.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">The potential of data analytics in the construction industry is consequently being wasted.<\/span><\/p>\n<h2><b>The problem with data management in construction<\/b><\/h2>\n<p><span style=\"font-weight: 300;\">Getting access to data is one thing, but the key to success is effective data management in construction.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Construction data management ensures that the project data you gather and use isn\u2019t poor, because poor construction data leads to bad construction planning and project management.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">But the rush to keep up with digitisation has created a self-fulfilling prophecy of poor data management, plunging construction projects into deeper anarchy than the times of pen and paper.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Construction companies buy separate digital tools<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">As the potential of digitisation and data analytics has been realised, a multitude of digital construction tools have flooded the market, covering every aspect of the construction process.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Suddenly presented with all of this choice, construction companies often purchase a different tool for each use case across a project lifecycle. So that means one separate tool for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Project planning<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Time reporting<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Progress reports<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Price lists, quotes and invoices<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Work orders<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">Photo and document storage\u00a0<\/span><\/li>\n<li style=\"font-weight: 300;\" aria-level=\"1\"><span style=\"font-weight: 300;\">And more<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">You end up with a confusing construction tech stack, each system having a different owner, used by different employees and stakeholders with multiple login portals.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Construction data gets stuck in silos<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">When digitisation is done by purchasing separate systems, data from all aspects of a project is locked in silos.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This leads to fragmented data that isn\u2019t easily shared and a lack of visibility that can delay decisions, hinder collaboration, and increase the risk of data errors.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>Static construction data causes inefficiencies<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 300;\">Most of the point products on the market are only designed to provide after-the-event snapshots of project data, nearly always aggregated to a high level.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">They\u2019re optimised to manage static construction data that is out-of-date by the time it\u2019s analysed. This only shows a basic picture of your project, not the hundreds or thousands of moving parts within it. This kind of construction data management will never allow construction companies to improve project performance.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">If ambitious construction companies want to grow, there has to be a better way to manage and analyse construction data.<\/span><\/p>\n<h2><b>Why the best construction projects run on data in motion<\/b><\/h2>\n<p><span style=\"font-weight: 300;\">In the ever-changing landscape of construction projects, success hinges on effectively managing the flow of data in motion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Unlike static data, which offers a snapshot of a project&#8217;s status after events have occurred, data in motion captures the ongoing interactions and tasks as they unfold in real time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This dynamic approach allows project managers to see not just isolated events, but the interconnected movements of every component within a project.<\/span><\/p>\n<h3><b>Understanding Data in Motion<\/b><\/h3>\n<p><span style=\"font-weight: 300;\">Every construction project is a complex web of tasks, with thousands of jobs performed daily. These tasks are interdependent; a delay in one can cascade through others, potentially derailing the entire project.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Real-time visibility into these dynamics (data in motion) enables project managers to proactively adjust schedules, resources, and priorities to keep projects on track.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This approach transforms how projects are managed by allowing for immediate reaction to changes and integrating data across different stages and aspects of a project. Real-time data streams help identify patterns, predict potential issues, and provide actionable insights that can significantly enhance decision-making and project efficiency.<\/span><\/p>\n<h3><b>The advantage of seeing Data in Motion<\/b><\/h3>\n<p><span style=\"font-weight: 300;\">By harnessing the power of data in motion, construction companies can avoid the pitfalls of outdated information and static data analysis. This proactive approach reduces risks, cuts down waste, and significantly boosts project performance.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Embracing data in motion is not just about keeping up with technology, it\u2019s about staying ahead of the curve in project management, ensuring that your projects are not just completed, but completed successfully and profitably.<\/span><\/p>\n<h3><b>Next: Optimised for Data in Motion<\/b><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-24015\" src=\"https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-1030x916.png\" alt=\"\" width=\"622\" height=\"553\" srcset=\"https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-1030x916.png 1030w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-300x267.png 300w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-768x683.png 768w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-1536x1366.png 1536w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-1500x1334.png 1500w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1-705x627.png 705w, https:\/\/next-tech.com\/wp-content\/uploads\/2024\/02\/next-insights-1.png 1937w\" sizes=\"auto, (max-width: 622px) 100vw, 622px\" \/><\/p>\n<p><span style=\"font-weight: 300;\">Recognising the limitations of traditional tools that manage &#8216;data at rest&#8217;, Next has been developed to specifically cater to the needs of modern construction management. Our platform excels in capturing and utilising data in motion, offering tools that integrate seamlessly across various project aspects.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">With Next, data from across your entire projects is not only collected but connected. This connectivity provides a holistic view of a project in motion, allowing for a level of control and insight previously unattainable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">Next\u2019s technology ensures that project managers can see the impact of each job done on the overall project in real time, transforming potential chaos into a well-oiled project machine.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This allows you to not only keep projects within budget and on schedule but also enhance their overall profitability and competitive edge in a challenging industry.<\/span><\/p>\n<p><span style=\"font-weight: 300;\">For a deeper dive into your project&#8217;s financial health, our platform feature, <\/span><a href=\"https:\/\/next-tech.com\/en\/solutions\/real-time-financial-data-analysis\/\"><span style=\"font-weight: 300;\">Next Insights,<\/span><\/a><span style=\"font-weight: 300;\"> allows you to gain real-time visual feedback and AI-powered analytics into your project finances across all projects.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300;\">This powerful tool streamlines financial data visualisation and project management, allowing you to make strategic adjustments on the fly, ensuring your projects are not just managed but profitable as well.<\/span><span style=\"font-weight: 300;\">Want to see Data in Motion in action? <\/span><a href=\"https:\/\/next-tech.com\/en\/book-demo-next-experts\/\"><span style=\"font-weight: 300;\">Book a demo <\/span><\/a><span style=\"font-weight: 300;\">with us today and one of our expert team members will take you through how to get started!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the modern construction industry, there is a clear gap forming between companies that use construction data analytics and those that don\u2019t. The companies that use data analytics in construction effectively aren\u2019t just adapting to ride the industry-wide digitisation trend \u2013 but are realising the positive effects of well managed data on their project\u2019s profits. [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":19685,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[89],"tags":[],"class_list":["post-28674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to understand construction data analytics | NEXT<\/title>\n<meta name=\"description\" content=\"Explore how construction data analytics boost project profits and manage data effectively in our comprehensive guide.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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