Engineering and construction (E&C) companies have volumes of valuable data to leverage to drive more effective and efficient business decisions if they can successfully develop data analytics and data governance functions within their organization. Developing a robust approach to analyze data and realize its full potential is something E&C companies need to do now in order to remain competitive and decrease the risk of outsiders taking over. Knowing what data to look for and where to find it is only the first step. An organization needs to clearly define the methodology to drive positive results.
A roadmap that defines the objectives and methodology keeps stakeholders aligned and provides a baseline for funding and reporting.
Six Key Steps to Follow When Launching a Data and Analytics (D&A) Program
- Goals and Objectives. Clearly define problems or questions and get leadership buy-in.
- Data Assessment. Define and map data sources, define population for analysis and select key attributes. Failing to understand how different sets of data are interpreted may lead to a wrong path forward.
- Implement Analytics Environment. Decide on whether the data will reside in the cloud, on/off-premise and determine technology by leveraging current state to the degree possible;
- understand initial and ongoing extraction requirements, prepare data for analysis and load data into analysis platforms; and
- although data can be structured, semi-structured or unstructured, it is important that there is consistency during analysis.
- Data Analytics and Validation. Identify tools and methods for analysis, create scripts or workflows for analysis, validate results and investigate outliers.
- Determine data time frequency, data quality, volume as well as ongoing data system changes and integration.
- Perform data cleansing, mapping and structuring as necessary.
- The tools and methodologies used will vary depending on the technical capabilities of those conducting the analysis. Automating the analysis would allow for easier future updates.
- Conducting a peer review following the completion of the analysis will help verify the initial results. When results are validated, E&C companies may need to repeat the analysis with the corrected data.
- Summarize and Present Results: Select tools for presenting results, create visualizations and address stakeholder feedback. Use the presentation of the results as a brainstorming session to solicit input and alternative ideas.
- Repeat Analysis or Ongoing Analytics: Develop an automated process to identify and standardize KPIs. Create executive dashboards. Re-performing the analysis can be automated by linking exiting data sources (e.g. ERP, PMIS) with analytic
Deciding what to analyze initially can be a major challenge for E&C companies. The simplest way to begin the analysis journey would be to focus on the following quick wins:
- Pursue the right projects. Conducting a detailed analysis of the drivers of profitability and identifying the most profitable projects will assist E&C companies focus on projects that are in line with their business development objectives.
- Focus on bidding and estimating. Leveraging an organization’s historical estimates and bid data will allow for increased accuracy of future estimates, and direct actions on existing projects.
Applying analytics to available data is the initial step to evaluate any opportunity that can drive business results, and will help E&C companies remain competitive and ultimately grow. Developing a robust and consistent approach to capture, analyze and report data will be a crucial differentiator in the upcoming years. If an organization does not already have a plan in place, it should start by understanding company business needs, envision what the company wants from the data and chart a clear path.
