The Importance Of Business Intelligence In Construction

The construction industry, which has traditionally been slow to adopt digital transformation, is currently undergoing a significant shift. The pandemic has seen an unprecedented influx of technological innovation, much of it out of necessity and some out of opportunity. This presents a certain amount of turbulence in the industry landscape as companies grapple with the pace of change. While most refrain from being early adopters in our industry, a few others are open to piloting point solutions for unresolved challenges. Furthermore, the appetite for such new adoption seems to increase on opposite ends of the spectrum – either for less data-mature companies or those with larger, more established teams and strategies. With the integration of business intelligence (BI) tools, the sector is witnessing transformative improvements in market strategy, safety, customer experience, and overall project effectiveness. As more and more construction firms recognize the potential of BI, it’s becoming clear that the era of manual processes and intuition-based decisions is being replaced by data-driven approaches.

When firms in growth mode adopt new processes and technology in an ad-hoc manner, it gives rise to more silos, redundancies, and inefficiencies. The lack of a comprehensive strategy in selection, adoption, and implementation causes more problems than it solves. We at JRM Construction Management recognize that business intelligence, technology, operational excellence, and strategy are more interconnected than ever, and the way we evaluate our initiatives reflects that comprehensive approach.

Market Strategy

Every business thrives on making informed decisions based on current market trends, customer demands, and emerging technologies. In construction, this translates into understanding where potential clients might be, what types of buildings or infrastructure are in demand, and how to deliver projects in the most cost-effective manner.

BI tools can analyze vast amounts of data from various sources – such as past projects, competitor analysis, and market trends – to provide a clear picture of where the market is heading. With this insight, construction companies can:

- Identify growth opportunities in areas previously overlooked

- Predict which services will be in demand and prepare their teams accordingly

- Strategically bid on projects, leveraging insights into which ventures are likely to be the most profitable.

Safety

Construction is notoriously one of the most hazardous industries. The manual nature of many tasks, combined with the complexity of construction sites, poses significant safety risks. Here’s where BI comes into play:

- Predictive Analysis: BI tools can predict potential safety issues by analyzing past incidents and identifying patterns. This enables firms to take proactive measures before a problem arises

- Real-time Monitoring: Many BI systems can be integrated with IoT devices and sensors that provide real-time data about equipment health, worker fatigue, or hazardous environmental conditions. This instant feedback can be instrumental in preventing accidents.

- Safety Training: By understanding which areas pose the most significant risks, companies can offer targeted training sessions, ensuring that workers are well-prepared for specific challenges they might face on the job

Customer Experience

In today’s competitive marketplace, simply delivering a project on time and within budget isn’t enough. Clients are seeking a comprehensive experience – from initial meetings and project updates to post-construction maintenance.

BI aids in enhancing the customer experience by:

- Personalized Service: By analyzing data from previous interactions, construction companies can tailor their approach to meet individual client preferences, fostering a stronger, more personal relationship

- Efficient Communication: BI tools can automate regular status updates, making it easier to keep clients in the loop about project progress.

- Feedback Analysis: Collecting and analyzing feedback helps companies continually refine their processes and deliver even better service in the future

Project Effectiveness and Efficiency

The bottom line for any construction project is delivering quality work efficiently. BI provides the tools needed to streamline operations and boost overall efficiency:

- Resource Allocation: BI platforms can predict which resources (both manpower and materials) will be needed and when, ensuring there’s no idle time or wasted materials.

- Time Management: By analyzing past projects, BI tools can provide more accurate time estimates, helping managers schedule tasks more efficiently.

- Cost Predictability: Predictive analytics can provide insights into potential cost overruns, allowing firms to take corrective action before issues escalate.

- Quality Control: With the integration of sensors and IoT devices, construction companies can monitor the quality of their work in real-time, making necessary adjustments on-thefly.

What is JRM doing?

Aligned with one of our core values – “Never Settle, Always Improve” – in one of our initiatives we are continuing to work on a master benchmarking database that connects pursuit and project information across the full lifecycle. While the value lies in identifying the number of reference points through the lifespan of a pursuit or project, the challenges lie in amalgamating the information in a structured manner. We provide avenues for our BI & IT teams to have a joint conversation with operations about not just data collection and preparation, but also about standardization of processes, consolidation of tools, and wider operational excellence measures. As experts in our industry, we look forward to leveraging this information to better serve our clients and the industry vertical.

What’s next?

As the digital era advances, it’s evident that Business Intelligence isn’t just a fancy add-on for the construction industry – it’s a necessity. From honing market strategies and enhancing safety to enriching customer experiences and ensuring projects are carried out efficiently, BI is setting the foundation for the future of construction. Companies that embrace this trend will not only stay competitive but will lead the way in innovation, safety, and client satisfaction.

Recent developments in artificial intelligence have meant that every other construction technology company or startup is tacking on those initials on every possible piece of marketing material. But besides the hype, as the actual model development and training achieves critical mass for AI in construction, we are curious about how it manages to wrangle (and meaningfully use) unstructured project data for not just advanced analytics, but hopefully even in predictive and prescriptive ways. Of course, the industry is a long way from using this in the regular toolset and is only just starting to see specific functional model use for both discriminative and generative AI – but enhancing the connected enterprise with this transformational capability will be a game changer, not just for project efficiency and the bottom lines across the AEC spectrum but has likely sparked the next leg of innovation connecting construction across industries.