Data integrity is crucial for contractors to succeed in the current market and to advance with their tech stack. The more reliable and formatted data you have, the further ahead you can be. And that includes adopting AI capabilities to automate processes. Yet, 90% of construction data is unstructured and not formatted, and 95.5% of the data produced goes unanalyzed (Construction Dive).
If you aren’t measuring or tracking data, you can’t improve. AI is all the rage in construction, but it’s deemed useless unless you have the right data to execute against. Standardized data is less prone to errors and inconsistencies, more reliable, and gives your teams more accurate project information.
We’ll explore the downfalls of operating with bad data, types of data you need to collect, why data hygiene is crucial for your business, and steps to clean up the mess!
The Effects of Bad Data on Your Business
Inaccurate or incomplete data can lead to costly budgeting, scheduling, and resource allocation mistakes. It undermines decision-making, damages client trust, and can result in non-compliance with regulations. You and your team may not understand the value in data, leading to:
Remote data siloes – They hinder collaboration and communication among team members, leading to inefficiencies and delays in project execution.
Poor data quality – Results in inaccurate project estimates, flawed decision-making, and increased project risks, ultimately compromising profitability.
High-risk and poor data security – Exposes you to potential data breaches, legal liabilities, and loss of sensitive information, damaging reputation and financial stability.
Costly rework – Inaccurate or incomplete data leads to costly rework, driving up project costs and timelines, and eroding margins and client trust.
Obstacles to recruiting top talent – Poor data management systems and processes can deter top talent who prioritize organizations with efficient, modern, and transparent operations.
Why Good Data Hygiene is Crucial for Your Business
It’s time to be proactive about your data and where you stand on the leader vs laggard spectrum. Companies classified as data leaders can expect a 50% increase in average profit growth rate each year compared with beginners (Deloitte). When you start with good data, you will gain:
- Real-time valuable data to identify faults and unexpected issues in your workflows
- Reduction in costs in everything from rework to overhead
- Use of more advanced digital technologies and AI capabilities to ultimately build a long-term tech stack
- Comprehensive, holistic, and future-focused data strategy
- Forecasting abilities for revenue and margins
- Improved environmental impact
- Ability to make strategic adjustments and respond to pressing challenges like time or budget overruns during a project
- Robust data analysis, collecting data from multiple sources to make informed decisions regularly