New research has revealed the importance of data to the increasingly digital Australian construction industry. It highlights that not only are construction companies realising the significant benefits of data-driven business decisions, they also say that access control to their project information is of paramount importance.
Conducted by ACA Research and commissioned by Procore Technologies, the survey of 160 construction companies of different sizes and types around Australia found that sophisticated data capture and analysis is becoming fundamental to the success of these businesses. So much so, that more than half (56 per cent) say they would vote with their feet, and switch software providers in order to ensure better control of and access to their data.
“Data is everything to Spence Construction. Our philosophy is: if you can’t measure it, you can’t manage it,” said Tim Hassett, Business Manager at Spence Construction.
“Data allows us to identify and mitigate risks, deal with recurring issues across the business, and ultimately save time and money. Having access to data at our fingertips to make decisions is fundamental to our operations, and we strongly believe that any data we put into a software platform is our IP.”
Benefits of data capture and analysis
Construction firms are investing in capturing, integrating and standardising data across their businesses to deliver measurable benefits, including increased productivity, better collaboration, improved decision making and risk management, and reduced expenditure.
In an economy of scale, these benefits increase exponentially with the size of a company.
- More than one-third of companies surveyed (34 per cent) say data capture and analysis improves efficiency and productivity a great deal. This increases to 72 per cent among large businesses (more than 100 employees).
- A third of all businesses surveyed (33 per cent) and 62 per cent of large businesses identified better risk management as a key benefit of leveraging data. This undoubtedly will have helped these bigger companies weather the storm of the pandemic over the past six months.
- All businesses recognise operational cost savings as a clear advantage in using data to drive decisions. More than a quarter of companies (26 per cent) believe they could save between 10-20 per cent if they fully utilised all available data to drive better outcomes.
Data accessibility
The survey further revealed that data-driven business models are nuanced and perspectives on data access vary across the Australian construction industry.
Small and medium businesses appear to be much more focused on minimising day to day costs and avoiding financial repercussions. Meanwhile, large companies display a greater level of flexibility in their approach to data management.
- Overall, nearly three quarters (73 per cent) of respondents say they should have access to their data however and whenever they want it, and around two thirds (67 per cent) say losing access to their data would have significant financial repercussions on their business.
- Concerningly, 29 per cent of respondents (and 48 per cent of large businesses) have to pay a fee to export their data, and nearly a fifth (19 per cent) believe their software provider owns their business data.
- Almost 7 in 10 large companies say they would change software providers for this reason.
Matthew Rayment, Chief Operations Officer at PBS Building said accurate and real-time reporting across their business allows greater visibility of minor issues before they become major issues – enabling them to act more quickly and focus on strategic priorities and forward planning.
“These efficiencies have a positive impact on quality and safety, time and profit, meaning those businesses that don’t use data analytics and intelligence systems will be disadvantaged. Given the critical importance of data to our operations, we do not engage with software providers that charge for access to data that we rightfully own,” he said.
