The Opportunity: Improving Data Capabilities in Construction

[Applause] [Music] [Music] [Music] yeah you're listening to autodesk's digital Builder podcast a show that inspires construction professionals to innovate and use technology to improve how they build our world I'm Eric Thomas and I've been working in construction for nearly a decade and now I have the privilege to sit down with industry Trailblazers to hear how they're solving construction's biggest challenges and redefining the future of the built environment all right welcome to Autodesk digital Builder podcast I am your host Eric Thomas we are at Autodesk University today it is day one I have the pleasure of sitting with Nick Hall an associate director from deoe and today we're going to talk about why we need to create more data leaders in construction and using a report called called the state of data capabilities in the construction industry is a launching Point Nick how are you doing today how you feeling fantastic Eric it's uh this is my first Autodesk University uh conference and the energy in the room is is absolutely amazing it's great to see the the insights and the and the people that actually use some of the research that we're making for auto disc it's it's great when you get that feedback loop too and I I felt that when I've been part of other research reports too when you you meet somebody and they go oh I read that and it again it had a big impact on you know whatever project that I was working on so I'm I'm glad that you got to come in and join us and you know hang out a little bit but let's uh let's talk a little bit about that report and the research findings so of course that just recently was released and it was an effort that was admittedly commissioned by Autodesk so um we're talking a little bit about our research today but when the team first set out to conduct the research what were you looking to learn more about and you know what were your initial hypo offic is looking like when we started this research and and you know we we sat down with GG Piccolo the uh marketing manager in in Autodesk we were talking about the state of the construction industry at the time start of 2023 there was obviously the construction industry had really gone through a hard time with covid lockdowns preventing work from happening but also severe supply chain disruption and that caused inflationary pressure and it also caused um the inability to find um raw materials so really the idea behind the research was understanding how data can help and um essentially what we were doing was getting a bit of a stock take of what data capabilities existed within the construction industry and um look we were fortunate enough to get a bit of a Global Perspective uh we uh included 12 countries within the report surveyed over 1,300 uh construction leaders and had some fireside chats with uh leaders in in data construction as well sounds exciting and I love when we get that that Global lens too because different regions definitely tackle how they manage data and you know just general workflows in a very different way and of course the you know legal requirements and restrictions and everything are obviously different and that can introduce some you know differentiations or Deltas as far as how we tackle data but we can always learn from friends across the pond whether somebody's in a Mia or APAC and there's just a lot of really cool stuff tied to data so can you give me you know that that high level you know 10,000 foot or what it be you know 6,000 meter I don't know I can't do the math calculations there's a reason why I'm not an engineer but give me the high level of what you all uncovered and how that aligned with the expectations you had at the beginning definitely look what we um uncovered when we took that Global uh snapshot of what the the state of playing with data for the construction industry was there's a lot of room for improvement you know four out of five um construction companies could actually significantly improve their data capabilities but also uh the the carrot is that there's a big data dividend or from essentially improving your capabilities businesses that improve their data capabilities actually s in 50% increase in their average profit growth um 50% wow so increase from 4.4 to 7.1 all right well we we need to uh we need to start singing uh that from the rooftops as far as the ROI because there's there's clearly a business case with data and and I've been talking about this topic for a really long time we've done other research projects and and it always uncovers the same thing there's there's a lot of decision paralysis behind what are we going to do how do we make those changes but when we start highlighting the benefits and showing what those companies that are doing a really good job are actually getting the ROI is is starts to be very obvious even if that starting point where you get and you go okay how do we start making our data strategy takes a little bit to get to um I think the the long tale of it is very easy to convince somebody once you get into the you know data as you've stutely pointed out today so as we got into the findings more can you tell me what was what was the most surprising for you and you know how did those different uh you know response types and the the data literacy that they were experiencing how did that impact uh the the outcomes they had so what we did for this report it was it was ambitious we wanted to create a comprehensive measure of data capabilities um so it's called Uh intuitively the data capabilities assessment framework or the DCA I like that right on the nose of what it's supposed to be exactly no no misinterpretation there so we use the survey responses from those, 1300 um construction leaders and we essentially used 13 key indicators to categorize those those businesses into beginners emerging and leaders and what we found was that essentially like I said four out of five were in those two categories but 20% were actually in the first category the Emer the beginner stage so there there's a significant benefit from from uplifting their their data capabilities and I think that's that's when you really get to sell that Focus point and and the research that I've done in the past have been part of when we really start having that conversation the shift is when you start taking those Focus areas and so it's hard to step back and look at a data strategy and say okay we didn't standardize anything and we're not leveraging this well let's do everything like that's that's overwhelming that's hard to jump into and step back and say okay I I know where I need to start and go but when you get to focus that and you go okay this is the area where we can make the fastest improvements because our team is excited or already improved then you get to build on that so it's not just do everything at once like you know pick smart and then kind of evolve your data strategy from there and you know 20% of the folks out there listening right now it sounds like could you know make a big Improvement on their profit margins if they make a few small decisions today definitely definitely look we actually we actually used those 13 key indicators and broke them down into three different pillars one was the data strategy itself as you was sort of mentioning the other was around the data tools so how much data you collecting how much are you analyzing and how much you're actually using to inform decision M and that's one of the key differences that um separated the leaders from the the beginners as well there's a few different elements and the third one was around data talent and data Talent is exceptionally important on average construction businesses that we surveyed actually had relatively high scores for data strategy but where they they were missing or where they could improve was around their data use and around their data talent and and I think that's actually another area that I'm really excited about with the industry as well because you're starting to see more of these roles show up and the value of having a data strategy or a data scientist on your team who doesn't necessarily have a construction background but they have such a tremendous value that they can bring to your team and helping you really think through okay what can we do with data and what do we need to do to get our data in place to do that aspirational Vision because I I've heard more often than I'd like folks will get into their their their strategy and they won't really think through what do you want from this it's just gather for the sake of gathering and making sure you understand that intent helps you define your data standards it helps the way you capture it the amount you capture it so there's so many nuances that get into it um I'm going to stop now because I'll go for 25 minutes because I'm big date a nerd but I I'd also like to hear a bit more about the differences between those data leaders and know some of those that are less advanced in their understanding of construction data like where where does that Delta really shake out firstly in terms of as I as I mentioned the the data tools having that um data collection but also making use of that data we found actually a lot of businesses were collecting data but far fewer were actually putting that data to work and using that to inform decision making and that can have real significant benefits so one example we had from a a business we interviewed was actually a A supplier and looking at their supplier data they found that the supplier was actually visiting a construction site 15 times in a week sometimes multiple times during the day wow and so cutting that back um was a significant reduction in cost for the for that company and you make such a great point about the the use of the data I uh I quote uh Nathan wood from Spectrum a all the time on this and he he said something about the data Lake versus the data sewer and if you're just Gathering and Gathering like obviously don't stop that's that's not the the strategy point but it's a it's a matter of figuring out how you can actually take action and if you haven't thought through what that end State's going to be as I mentioned a minute ago it's a whole lot harder to get to the point where you can really truly leverage it and we might be gathering data and taking resources where you could be putting it somewhere else and so you just need to through what that looks like and you're going to be in a heck of a lot better position let's think this imaginary construction executive who's sitting and listening to us right now and they're still not sold they go the data strategy I don't think that's necessarily that important what would you say to them to really highlight the importance of having one of their business Now is really the time to to put your assets to work we're we're seeing one of the most competitive Industries facing some of the harshest economic um Outlook in terms of High inflationary and uh a lot of uncertainty that's coming up so now is the right time to make sure you're making the best use out of your data and look I would sympathize with them it's um it's not an easy thing to to build up your data capabilities and especially when the goalposts are always shifting further and further ahead you know what it took to be a data leader 20 years ago 10 years ago 5 years ago was very different to what it takes to be a data leader now yeah yeah the the rapid acceleration of tech adoption is is it puts us in an interesting but also I I think the the point that I always like to reign in here is just reminding everybody this is an opportunity it feels challenging sometimes to step back and say what am I going to you know do to get to the state that I want to but if you really think about it as this requirement now it's not a nice to have this needs to happen as you just astutely put a minute ago the the competitive nature is going to be huge not only in you know the uncertainty that we're dealing with but your competitors are doing this some of them are doing it very well and there's a sales pitch to other owners and other folks that are building facilities where you say look at the visibility that I give you look at the understanding and the transparency of your project versus you know a whole lot more uncertainty and a whole lot more owners meetings probably than you would necessarily want to have if you're already resource constrained and so you get to build on that and I just think it's it's such an opportunity and I I'm excited about it but I'd also like to kind of back come back into your your data L literacy point a minute ago and you know how does or should that data literacy Nuance really inform A team's decision- making so how how can you bring that into to making choices with data in a more effective way I think the point that really came out through the research was that data literacy is not something for your only for your data analytics team they're not going to be the ones who are going to be you collecting the data or actually implementing the lessons that that you learned so it's it's really from your Apprentice right up to your C Suite that needs to be actually understanding that data literacy we actually found that organizations that trained their whole stuff were two and a half times more likely to be data leaders than than businesses that didn't and we actually found that 13% of construction businesses didn't have data training all which is is a little bit of a scary thought it's alarming and and it's it's something that I think folks should learn from because you're you're empowering people across the entire ecosystem across the entire project team and I think in the years of you know yester year the VDC VDC team or the virtual design and construction team were the ones that had all the technology and they understood the data and they did all these things that helped you build your TCH stack and your strategy and now the the onus to make these decisions and understand the tools really sits on everybody's shoulder but it's also exciting because there's really cool things that we can do but as we continue to Crunch our schedules down and have higher expectations on the folks in the field who are making choices just on their gut instead of actually making with information that is accurate and useful that's really where the game Cher is now because you have your super and you pulls out his phone and he goes okay I can look up my dashboard I can take a look at where this is going to impact me something I found out versus either running back to the trailer and asking other folks or just going yeah I think it might be this and that might have been the right choice in the past but it might not be tomorrow and being able to make those decisions with more certainty I think brings a huge impact to a business if I can add one more point to that I think it's a it's a it's not only about the data literacy but as you were sort of alluding to the data culture if I sat next well one of the conversations I had was with uh jit key who's the chief data officer off at had R Digital Builder last year is fantastic glad you guys to talk to her brilliant Insight y one of the things she was mentioned she might have mentioned it to you last time was actually moving away from datadriven decision making to data assistant because you know those people on the on the job side they probably have Decades of experience making those decisions and intuitively they might know what the warning signs and indicators are but it's it's about working with them to Empower them to understand this is what you could use or making sure that they they have the best information to make those decisions that's when you're going to get the real Delta or the shift I like that pivot and that's it's an important Nuance because it still retains the the humanity the folks that are out there making that decision they're they're able to use that intuition instead of saying you are beholden to a dashboard and you know you bring in all this experience now you have the younger generation who might be more relying on that dashboard but you still have the opportunity to grab your you know Old Salt uh superintendent who's been on the project site for 30 years and he's got some experience to bring uh you know marrying those two it definitely makes a bunch of sense I'm going to steal that perspective the the framing because it's it's a good one might have to attribute it to I absolutely will I will not steal that from from jit key without any attribution it's all good there um so I got a couple more questions for you today Nick I'm I'm curious in your research as you got into the blockers or the barriers to folks making these choices of course we talked already about the decision paralysis which we have tremendous empathy over as far as making big changes in short amount of time but what are some of those other barriers that are blocking that you know really maturing your data capabilities or ability to you know augment your decisions as you just astutely pointed out in the construction industry we actually asked the question what are your barriers we found that 90% of um businesses had at least one barrier and probably they had quite a few um but the most common were lack of access to Skilled stuff so again talking to that data electricy data quality making sure that if you're going to do fancy analysis the data that's underlying that analysis is sound and accurate data security and also a lack of funding but one that that came out that was interesting um was actually looking at the awareness of construction leaders and their executives their own data capability so we had our objective measure of the data capability assessment framework and we actually asked them to rank their own data capabilities we found 25% actually overrated their own data capabilities so it's it's a significant significant number and it's a significant issue because essentially if you're already feeling like you're ahead of the pack you have less drive or impetus to actually push your capabilities to the next level it makes sense and and it really comes back to having a culture of continuous Improvement as well where you go we've got our dashboards that's where they're at and it to remain competitive and continue taking advantage of all the new Advanced you know types of Technology out there it does really include a f a focus from a cultural perspective to empower folks to make those you know choices or changes in how they approach their data but also giving them the room to make a mistake or fail potentially if they try something different so it's it's a multi- you know realm of how we do this but the the lack of talent is not going to change in the construction industry it's actually going to accelerate and I'm sure everybody's tired of talking about it but it's a it's an issue we need to be talking about because it's concerning but thinking about the tools and the ways and the Avenues that we have that we can control like improving our data strategy or taking different technology and using it different ways or recruiting folks from other Industries who have their data skills but don't don't have the construction experience when we start blending all of these into one spot that's when we start having hopefully a little bit more of a Rosy outlook on some of the the talent challenges and we get to augment everything with data and you know Ai and ML and everything else is we kind of you know build their technology stack stack but we're still addressing that core of our our challenge in that there are many factors in construction that you cannot control whether it's the weather or the supply chain unless you're warehousing literally everything under the sun but you can control your data strategy you can control the way that you bring your team to the table and make those choices with that information and so I think it's it's just a matter of marrying all those and at the end of the day you know pay attention to data it's important that's right that's right so what what do you think any actions or changes should some of these organizations that are really early in this data journey be considering right now to improve those capabilities say in the next five years like is you're starting to get up and you're getting out of that curve and that 20% that you mentioned like where should they be thinking right now I think you had a great list um if I could distill it into a couple of points what I'd say is starting with developing your in-house data capabilities um like we said before those that actually had uh training to their staff um across the whole level two and a half more times likely to be data leaders and it's really about empowering them as we spoke about today but the second area is probably Breaking Down the Walls and breaking down those data silos you know the the days of excel sheets and save to the desktop hopefully are far behind us please go away please go away let us use our purpose built tools instead of random stuff exactly exactly so the idea and as well having it centralized means that you're going to promote best practice if if you've got one set of data you're analyzing it in consistent ways different teams teams um can use that data effectively it also allows them to actually invest in security to protect that data in consistent ways the idea of having weak spots in your data just because this team does it differently gets eliminated when you've got a centralized data typ yeah you've really got that standards and that culture that really I think also communicate the why like help people understand why you're asking to do this and it makes it a little easier to compel somebody to make those changes and how they work and apologies I I feel like I stole some of your uh talking points I'm an admitted data nerd as far as uh getting into the Weeds on here so we could have this conversation for probably two or three more hours today but I don't think anybody else would want that one except maybe us so I've got one final question for you today what is one tool that you will use on every project no matter what project you're working on it's a it's it's a good question um look where from my business um at deoy the the most important tool is probably the uh having a dedicated hardworking team uh that knows what they're doing they technical skills uh off the charts and I have to keep up with them um is probably something that produces high quality research and hopefully really interesting research that um construction leaders will will take note of as well it's it's such an important Nuance of of any business whatever regardless of what industry are in and whenever I hear somebody asking like stack stack ranking like people processed technology for me it's always people first whether you put process or Tech next I think depends on how much of a nerd you happen to be or where you know what business Niche you happen to sit in but your your people are your asset and especially in construction when folks are really struggling to find the talent that they need you've got to build that culture you've got to retain folks and you've got to convince them that this is a business you should want to be working for in an industry that you're wanting to work in and so you know the people Nuance is tremendous and I I appreciate your focus there I think it's the right one thanks very much thank you so much for joining me today here on digital builder for everybody out there listening of course I am your host Eric Thomas you can find me on social either on Builder digital on Twitter or you can find me on LinkedIn I think I'm the only Eric Thomas that works at Autodesk at this point but either way I post a lot so you shouldn't have any issue finding me and also we are a video first podcast so you can find us on YouTube check out all of our backlog there's a lot of great content out there of course we're also on the standard podcast player Spotify app the gamut it's not hard to find us just plug digital Builder into whatever search engine you happen to be using and uh on that final note [Music] goodbye

Channel: Autodesk Construction Cloud

Views: 8,028

Keywords: construction technology, construction software, autodesk construction cloud, construction data, construction data analytics, project management, construction technology civil engineering, project management dashboard, project management day in the life, project management career, project management construction, project management 101, plangrid construction software, building construction software, digital builder podcast, construction podcast, deloitte report

Id: _9fCAsTbhXA

Length: 23min 46sec (1426 seconds)

Published: Tue Feb 06 2024