In today's rapidly evolving construction and infrastructure industry, decision-makers often find themselves drowning in a sea of data. Although data is essential for informed decision-making, its sheer volume can sometimes lead to ‘analysis paralysis,’ where too much information hinders action. This article explores how brokers like American Global can help clients leverage key insights and utilize 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 numerous and varied. Access to data is crucial, but data overload slows down the process and often leads to missed opportunities. The challenge is sifting through the data to find actionable insights.
“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 key insights that drive 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 a foundation, integrating data from various sources into a single, cohesive platform, acting like a well-organized kitchen where all the ingredients are easily identified and accessible. By centralizing data, a CDE ensures that only the most relevant, high-quality data is available, making it easier and faster for decision-makers to find what they need. The key is the thought process around what data points are most impactful for making better decisions and learning how to identify those data points, and finding where the inception of those points exist.
Key components of a CDE
- Project Exposure: Profile of the asset being built with high impactful data inputs.
- Policy Structure: Project Insurance limits, retentions and rates.
- Failure Data: Incident data and claims coming from a RMIS
- Technology 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 issues, and find solutions more efficiently.
Benefits of less data, more insight
The goal is not to eliminate data but to streamline and simplify it, ensuring decision-makers have access to the most crucial information. This approach offers several benefits:
- Enhanced Decision-Making: With a focus on key data points, decisions are better informed make more informed and timely decisions.
- Reduced ‘Analysis Paralysis’: Simplifying data reduces the risk of getting bogged down in unnecessary details.
- Improved Risk Management: High-quality, relevant data allows for better identification and mitigation of risks.
- 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 disregarding the rest.
Innovative technologies in data management
Technological advances are at the heart of this streamlined approach. Tools such as Applied Epic and Origami Risk, used by American Global, make it easier to efficiently store, search and produce data. These platforms offer customizable portals for seamless communication and data management. Additionally, technologies such as Reality Capture, IoT, AI and robotics provide real-time data and insights, improving dynamic risk management and rapid response.
Case study: Enhancing risk profiles
Let’s take the example of a construction company struggling with high incident 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 overall project health.
Client data architecture advisory
Brokers can play a crucial role in helping general contractors (GCs) build robust data architectures. Starting internally, brokers can help GCs collect valuable insights into 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. Integrating new technologies and reducing skills gaps in the workforce also pose significant 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 only a possibility; it is a necessity. By leveraging key insights and innovative technologies such as 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, offers 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 a stronger competitive advantage .
