3rd March 2016
Research shows that data-driven businesses are able to gain meaningful insights that can improve decision-making and increase profitability. However, only 15 percent of organisations are using analytics to drive their business objectives. Here we look at how analytic agility can transform the construction industry.
The construction industry is experiencing a technological revolution, with business intelligence (BI) and analytics at the forefront of this shift. Consequently, analytic agility has become vital to improve decision-making and encourage growth. While some businesses invest in their analytic capabilities, many are reluctant to put resources behind it, not realising the power of the data to meet deadlines, improve cash flow and facilitate growth.
Importance of data-driven construction software
Construction software is gaining momentum enabling businesses to utilise data to improve decision-making processes, plan and execute projects effectively as well as predict risks. By utilising Building Information Modelling (BIM) businesses have access to intelligent data that can save time and money while minimising waste. Software solutions that provide business intelligence and reporting tools, such as NAVcontracts, deliver an accurate overview of business’ financial position enabling accurate forecasting. Here’s how data-driven construction software can benefit your business:
Minimise waste - According to the Government Statistical Service, 100 million tonnes of waste was generated by the construction industry between 2010 and 2012. Utilising BIM, you can plan the exact order of the equipment and materials required for the project, minimising the amount of waste that would usually be produced.
Manage costs effectively - Timely and accurate information is essential to success. In NAVcontracts, all project transactions are posted directly to the contract ledger giving live analysis of contract performance, profitability and cash flow.
Minimise delays - By understanding a project in full, construction companies can employ staff and order the exact equipment and materials required. Added to this, as construction projects present many logistical challenges, constant monitoring and accurate forecasting are vital to ensure jobs are completed on time.
Accurate forecasting - Forecasting is essential to project success, allowing you to account for resource fluctuations, labour shortages and time frames. Without those predictions, projects can experience a spike in costs and significant delays. Consequently, this impacts directly on future projects, jeopardising the success rate and company’s market position. To address these challenges, it essential to forecast projects and activities by real-time performance on a daily, weekly or monthly basis.
Optimise cash flow - To create an accurate forecast you need to record all incomings and outgoings, factoring in fixed and variable costs. Accurate forecasting contributes to tightened budgets, which translate into optimised cash flow.
Maintain competitive advantage - Data driven software provide accurate figures on previous projects, which can help you win contracts in the future. Furthermore, in seeing where improvements are needed and where trends have decreased or increased, it is possible to boost business performance and identify new growth opportunities.
According to Harvard Business Review, data-driven businesses are 5 per cent more productive and 6 per cent more profitable than their competitors. If you have not yet tapped into the full potential of business intelligence and analytics, it is time to consider the solution to improve cash flow, identify and avoid potential problems and find opportunities for efficiency improvements.
To find out more about NAVcontracts [customform form="navcontracts-brochure-download" text="download the brochure here" type="1"].