In the rapidly evolving construction and infrastructure industry, decision makers are often drowning in a sea of data. While data is essential to informed decision-making, its sheer volume can sometimes lead to “analysis paralysis,” where too much information makes action difficult. This article explores how brokers like American Global can help clients leverage key insights and use innovative technologies to make more effective decisions with less data, improving efficiency and effectiveness in project management and risk mitigation.
The data dilemma
The construction industry generates large amounts of data on a daily basis. From project management systems and BIM/Design files to IoT sensors and risk management information systems (RMIS), data sources are many and varied. Access to data is crucial, but data overload slows down the process and often leads to missed opportunities. The challenge is to sift through the data to find useful information.
“Data is the new oil”, according to Clive Humby, a British mathematician who noted that data, like oil, must be refined to have value. Refining data requires filtering out “the noise” and focusing on the key insights that lead to better decisions.
The Power of a Common Data Environment (CDE)
Creating a common data environment can be a game changer. A CDE, guided by the right broker/advisor, serves as the foundation, integrating data from multiple sources into a single cohesive platform, acting as a well-organized kitchen where all ingredients are easily identified and accessible. By centralizing data, a CDE ensures that only the most relevant and high-quality data is available, making it easier and faster for decision makers to find what they need. The key is the thought process of what data points have the most impact to make better decisions and learning to identify those data points and find where the beginnings of those points exist.
Key components of a CDE
- Exhibition of the project: Profile of the asset being built with high impact data inputs.
- Political structure: Limits, retentions and rates of the insurance of the project.
- Failure data: Data on incidents and claims from an RMIS
- Technological risk control solutions: Reality Capture, IoT and AI project risk solutions
By using a CDE, contractors can access information about the health of their projects, identify problems and find solutions more efficiently.
Benefits of less data, more information
The goal is not remove data, but to streamline and simplify it, ensuring that decision makers have access to the most crucial information. This approach offers several advantages:
- Improved decision-making: By focusing on key data points, decision makers are better informed and make more informed and timely decisions.
- Reducing “analysis paralysis”: Simplifying data reduces the risk of getting bogged down in unnecessary details.
- Improved risk management: Relevant, high-quality data enables better risk identification and mitigation.
- Increased efficiency: Teams can work more efficiently when they are not overwhelmed by mountains of data, improving overall project performance.
“The essence of strategy is choosing what not to do.” said Michael Porter, a renowned professor at Harvard Business School. In the context of data, this means focusing on the most critical information and ignoring the rest.
Innovative technologies in data management
Technological advances are at the heart of this streamlined approach. Tools like Applied Epic and Origami Risk, used by American Global, make it easy to efficiently store, search and produce data. These platforms offer customizable portals for seamless communication and data management. In addition, technologies such as Reality Capture, IoT, AI and robotics provide real-time data and insights, enhancing dynamic risk management and rapid response.
Case study: Improving risk profiles
Let’s take the example of a construction company that struggles with high incidence rates on its projects. By implementing American Global’s CDE model, the company can integrate data from its RMIS, project management systems, and IoT sensors. This integration enables real-time monitoring and early identification of potential hazards. The result is a significant reduction in incidents and an improvement in the overall health of the project.
Consulting on customer data architecture
Brokers can play a crucial role in helping general contractors (GCs) build robust data architectures. Starting internally, brokers can help GCs gather valuable information about project exposure and failure data. This involves identifying the most crucial data sources and connecting them intelligently to avoid drowning in data. In doing so, brokers like American Global can help GCs gain a competitive advantage, improve risk profiles, reduce total cost of risk (TCOR), and improve budgets and schedules.
Overcoming challenges
Despite the benefits, implementing a CDE presents challenges, such as overcoming manual systems, data silos, and ensuring data quality. The integration of new technologies and the reduction of skills gaps in the workforce are also important obstacles. However, with the right strategy and tools, these challenges can be managed effectively.
conclusion
For the construction and infrastructure sector, making smarter decisions with less data is not just a possibility; it is a necessity. By leveraging key insights and innovative technologies like those provided by American Global, professionals can increase efficiency, improve risk management and drive project success. A common data environment, supported by advanced technology tools, provides a streamlined approach to data management, enabling decision makers to access the information they need, when they need it.
By focusing on quality over quantity, the construction industry can move beyond data overload and embrace a more strategic and effective use of information, ultimately leading to better results and an advantage stronger competitive.
