A common data environment within a construction technology ecosystem can help reduce unnecessary data. It further helps enable construction data strategies that can save time and money. Jay Snyder, President of Big Blue Innovations, a construction technology and startup advisory and M&A planning firm, discussed the strategy behind construction ERP-PM ecosystem integration at the RedTeam on the Road event in Nashville.
Construction contractors often use about 100 technology solutions for their businesses or projects. Technology is usually the third-highest cost, after labor and equipment. However, only about 15% of contractors leverage their data via an ERP-PM ecosystem to generate insightful analytics.
Direction and focus are essential to your construction data strategy
Building a technology ecosystem for effective technology management is an exhausting process. To make it easier, it’s essential that you start by knowing
- What data matters to you
- What you want to achieve by integrating your tech stack
- Which data and integration technology standards your company needs
For example, you may want to improve efficiency—including reducing repetitive data entry and data redundancy—and have a more cohesive data set. You might also need to meet certain specifications when you export data or integrate ERP and project management (PM) ecosystems. Most companies need everyone who enters data to enter it correctly. They also need to not have to enter the same data into 2 or 3 systems.
You’ll also want to consider how easy it’ll be to access or share data. Keep in mind that most firms have some inaccurate data. For example, you may have updated your cost codes, making old data irrelevant. A combination of technologies accessed in many ways, such as the cloud, web browser, VPN and back-room server can complicate things further.
Many technologies can make it harder to connect ERP and PM systems. They also limit access to one source of truth or how often that source of truth can be updated. Think about how on-premise systems, like a Citrix connection or VPN will likely be obsolete within a couple years because they’ll limit the functionality of mobile phones and tablets in the field. Also consider that some old, and even some new tech solutions are closed systems. Cloud and browser-based options are much more future-oriented.
From spreadsheets in silos to creating an integrated ERP-PM ecosystem
There may be many solutions within a construction firm, but data locked in spreadsheets can’t be analyzed, used or optimized. For example, Estimating, Accounting and HR may each have their own tech systems with locked-down spreadsheets that contain data that are useful to Operations.
Take an inventory of all of the tech solutions your firm is using and determine which ones you want to include in your integrated ERP PM ecosystem. Then brainstorm with your tech partner to figure out how to build your technology ecosystem. You’ll likely land on one of three architecture options or paths:
Point-to-point integration
An interconnected web in which each solution directly integrates with another solution to create a combination of integrated point-to-point solutions.
iPaaS or Integration Platform as a Service
With iPaaS, the subscription service sits on top of or below a tech stack and stores the data, which passes through it uni- or bidirectionally.
CDE or Common Data Environment
With a proprietary managed central data store in the cloud, systems drop data into a CDE like an ecosystem of sockets. Data can be easily gathered or added. This environment makes it easier to maintain your data standards and to own your data. It also limits exposure to cybersecurity threats.
When managing construction data – look toward the long-term
Think about what’ll happen to any construction technology ecosystem in the future. This way, you won’t have to change your tech inventory plan in 2 or 3 years. To ensure your plan isn’t short-term,
- Understand what staff using the tech want from it, such as exactly how they want to improve efficiency
- Get intel from end users. For example, ask supervisors what they need from the system
- Ensure your tech suits your needs and is based on your standards, “plan to plan”
- Commit to the new tech stack/ecosystem, and manage expectations
- Avoid exposure to vulnerabilities from ever-evolving cybersecurity threats. This vital part is best entrusted to 3rd-party cybersecurity managers
You’ll likely see the first benefits in about 6 months, perhaps as some reports and a bit of analysis. In 18 months, you may be able to compare expected plans to past plans and a data set. This will give you insights from the combined information and maybe other benefits, like avoiding late fees.
View the video recording of this discussion and the full RedTeam on the Road recording library.
