The Importance of Analytics in the Construction Industry
Analytics – The systematic computational analysis of data or statistics, according to the Oxford dictionary.
What does analytics mean for the construction industry and is it necessary to implement for the industry to move forward?
Previously, perhaps not. That’s because the industry heavily relied on the physical delivery of hard-copy data to measure growth and to discover what it would take to keep a business afloat or even better, thriving.
Since the introduction of technology was so vivid and revolutionizing, however, the way businesses get measured today, is entirely different than before. Analytics, also referred to as big data, forms an essential part of project management, thus helping construction businesses to discover what it takes to remain relevant entering 2020 and the years that follow thereafter.
The algorithm used in data analytics suggests different types of data, including the duration it takes to finish projects ranging from small-scale to big-scale, allowing project managers the necessary information to establish completion dates of various phases of a project. Analytics also presents a lot of useful information that helps project managers predict the total budget cost of a project and has recently suggested that nearly 80% of projects are indeed over budget.
How Analytics Can Save Construction Businesses Money
Given that most construction projects take longer to complete and projects tend to go overboard with their given budgets, the outcome of projects gets presented to business owners negatively. No business owner wants to hear how much extra they have to pay to have a project completed, or even have to charge their customer more than was initially arranged.
Analytics presents enough relevant data that prevents projects from going over their budget limt, which also makes projects much easier to manage.
What makes projects difficult to manage, is the fact that there are many different elements, as well as operations and expenses, that form a part of a single project. Since there are too many elements and professionals put in charge, it is very likely for miscommunication to occur or proper communication to not realize whatsoever, which is why technically analyzing data is helpful and necessary to implement.
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