A series that explores the tech trends poised to disrupt the construction industry by Master Builders Solutions' Global Digital Insights Strategist, Ricardo J Rodríguez.
Big data refers to large sets of information analyzed through various technologies, including Hadoop, NoSQL databases, and other analytical tools. It's used in almost every industry, from retailing and marketing to health care and finance. It's also been used in construction for years now; however, it wasn't until recently that these initiatives became more widespread across industries due to advances in technology. For example, many advancements have been made in machine learning over the last few years, making it possible for computers to learn independently without requiring human input.
Large amounts of data are collected through research and analysis at the core of big data. In construction, big data shows promise to address common industry problems, including reducing cost overruns, improving project management, and helping to reduce litigation by providing data that allows for better decision-making. Thus big data's use cases expand into scheduling, planning, and lean construction project delivery, allowing us to track progress in real-time. Data from various sources can be collected and fed into AI applications to determine which materials are required for each construction area. These materials will then be delivered at the precise time required. Data from sensors on construction equipment will also be used to accelerate project execution with minimal downtime and increasing profit margins. Platforms could then use this data to generate a schedule that optimizes workflow efficiency throughout the project lifecycle.
The construction industry is a highly cyclical, capital-intensive business with high risk. Incorporating big data into the decision-making process can help construction companies manage this risk and improve overall performance. However, Big data is often poorly understood or implemented in a manner that lacks actionable insights. One of the biggest impediments to improvement is collecting the correct data in the right place at the right time.
The construction industry has been slow to adopt big data technology, despite its application in other industries such as manufacturing and healthcare. Several factors impede construction companies' ability to lead in this field. The workforce in the construction industry does not attract a lot of skilled data scientists and technologists. According to some 2020 estimates, there was a gap of 250,000 data scientists in the U.S., which means there is a significant shortage of qualified personnel for companies to hire on an ongoing basis1. In addition, many of those who do have skills in this area may be reluctant to enter the field because they expect their paychecks will be smaller than their counterparts in other industries.
Adopting emerging technology and various data tools can be difficult, especially for a company that lacks internal expertise and focuses solely on its core business/product. Embracing emerging technology and various data tools can be difficult, especially for a company that lacks internal expertise and concentrates exclusively on its core business (construction operations, professional services, or building material application). The construction industry is highly mixed, with many different stakeholders involved in every project, making it very difficult for any one player to have visibility into all aspects.
Construction is also one of the last industries to be digitized, even though much of what falls under its umbrella —building design, energy performance, and structural engineering — is based on technology. Big data should be a part of every construction company's toolbox, especially those with an eye on the future. Big data can help companies make better decisions about their operations, saving millions of dollars in costs.
Construction professionals are beginning to embrace new trends in increasing technology. Big Data can help construction companies compete with tech-heavyweights by allowing them to leverage data streams to make smarter business decisions. Construction organizations should pay close attention to several considerations needed to leverage big data effectively:
The data transformation of the construction industry is coming faster than most people realize. Data is poised to become a significant part of every new construction project in the future. We predict that data will play an increasing role in construction projects worldwide over the next few years. This big data revolution will be unavoidable whether you are an architect or a builder. If your business isn't open to incorporating data into your work, you'll miss several opportunities to capitalize on assets. These are no longer tied to "counting and collecting" data but rather to understanding and analyzing it. In some instances, the value of the information itself would be greater than that of the physical asset.
Whether you are an architect or a builder, this big data revolution will be unavoidable if you want to remain competitive. In addition to our previous posts on AI and Field Robotics, some relevant use cases to start exploring are:
As the construction industry moves forward, we are witnessing a growing discontent with practices that prevent firms from realizing their full potential. There is a shift toward construction technology, and data analytics as more practitioners acknowledge their value in an increasingly competitive market. Thus, increasing maturity in data technology is vital to the survival of our construction businesses. Big data is an expansive field that can help companies capture value in many areas.
As more construction companies recognize the power of big data, architects and engineers are gradually incorporating digital technology into their firms. Businesses are slowly but surely beginning to capitalize on their ability to collect and process large amounts of data with the help of sensors, measuring tools, and cameras, and the ability to share those findings in real-time through the internet easily.
There are many ways to digitally transform an organization with big data. Still, the most important first steps are setting your strategy, developing a culture of innovation and digital maturity, and identifying actionable small wins. Though it may seem complex, there are numerous ways to begin integrating big data into your firm. It can dramatically impact the business—allow it to generate new revenue streams, improve customer engagement, find new efficiency opportunities, and more. Hopefully, this article has provided insights into the considerations needed to implement better data science, analytics, and systems into core business workflows. The future of our industry depends on it.
If you have any questions about this emerging topic of digital transformation in the construction industry, feel free to contact Ricardo. You can also visit our dedicated page for more information here.