Big data is the evaluation of large sets of data that can reveal patterns, trends and associations in many different capacities and has been particularly effective in analyzing human behavior. It has become a powerful support mechanism for businesses; however, not all employers are using data strategically.
Data offers employers in the construction industry a unique opportunity to enhance business operations through utilization of the wide variety of data available today. Big data is an impactful tool to mitigate risk, control costs and optimize quality and efficiency through data-driven insights that lead to better decision-making.
The Starting Location
Construction industry employers need to establish goals and metrics for each project to successfully utilize big data. Outlining clear objectives for each project will clarify necessary next steps and the data needed to complete it. Big Data can be a valuable tool for evaluating ROI when goals like determining the validity of a program, creating a business case for an additional resource or analyzing financial implications of a decision are outlined clearly. Other additional goals may include measuring workforce productivity or observing claims patterns to evaluate program design and possible alterations.
Once clear intentions for a project have been established, a data collection and analysis strategy must be implemented.
The Path
To accomplish goals using data, it’s imperative to have access to the data needed. One way to collect data is through internal resources. To ensure accuracy when internal resources are being utilized, it’s critical to establish a clear process to obtain the metrics that will be analyzed. Some useful data for construction industry employers to track includes:
- overtime (amount paid and hours worked);
- productivity metrics;
- workers compensation costs by injury type; and
- employee absences by absence reason.
Tracking these data points will allow employers to evaluate risk, cost and efficiency. Another valuable way to collect data is through an insurance carrier or vendor partner. Today, carriers and vendors are collecting a variety of data points which can offer important findings. For example, a quarterly report provided by a carrier or vendor may include beneficial insights that promote project objectives and additional metrics may be supplied if requested.
The Destination
A crucial piece to developing compelling data-driven solutions is interpreting and transforming the data into meaningful direction. It is a difficult task to alter data into an advantageous tool, but with the appropriate team in place, the value is immense. Construction industry employers should use existing business partnerships or engage consultants that specialize in strategic analysis to interpret data and uncover useful information. A construction industry employer that collects and relies on big data is enabled to make informed decisions that align strategically to the company’s goals, propelling the organization forward in a more effective way.
