Imagine this scenario in the office of a hectic construction company. The project managers are writing reports, the estimating team are playing with their numbers in Excel, procurement are in their own spreadsheet universe, and the operations team are dealing with project delivery in a bubble. Each department is running its own processes and tools, but none of them talk to each other. There isn't a single "golden thread of information" that ties the entire business together. Ring any bells?
This all-too-common scenario in the construction world defines the issue of data silos. Disjointed, unintegrated information results in inefficiency, muddled communication, and maddening errors.
But what are data silos, and why are they such a massive hurdle for construction companies? Most importantly, how can construction experts overcome them? Stay with us as we explore these questions and show how an integrated construction data platform such as Archdesk can be a complete game-changer.
What are Data Silos?
Data silos happen when data from a company is disconnected and not shared with other departments. Each department may store and process its own data using systems that do not communicate with one another.
For example:
- The estimating team prepares bills of quantities (BoQs) and proposals in great detail, but these are poorly communicated to the procurement team. The result is duplicate BoQs or different versions, which delay procurement planning.
- Once the project moves to implementation, project managers are not in a position to pick and choose data to compare "estimation vs. actual" costs. Such discrepancies not only create reporting a hardship, but it is not possible to ascertain lessons learned for future projects.
This is the essence of a data silo. Each department functions as if it's an island unto itself, and sharing is a laborious, time-consuming process.
Why Do Data Silos Occur in Construction?
In contrast to finance or technology businesses, construction firms usually don't have data architects or large IT teams to grapple with integration challenges. That's partly because construction technology has developed slowly, and many companies still rely on traditional manual tools like spreadsheets and stand-alone project management applications.
Below are some of the primary reasons why data silos are prevalent in construction:
Manual Systems and Excel Reliance
Teams use Excel as it is easy, versatile, and cheap. But Excel won't scale and won't have clean integrations between departments. It generates stale, static files and locks up data as fragmented and siloed.
Shortage of Integrated Software
Most firms utilize disjointed project management solutions that solve specific phases. For instance, solutions like Procore could be best placed to solve for delivery of the project but may not completely solve for initial phases like estimation, mobilization, or pre-construction. That leaves pockets of information without one source of truth.
Departmental Orientation
Individual teams have their own processes and KPIs and are thus more interested in solutions to their own problems than in how their data fit into the overall business needs.
Complex Project Lifecycles
Construction work is inherently multifaceted, with numerous stakeholders, stages, and systems involved. Without a central platform, it is very difficult to keep everything in line.
The Hidden Costs of Data Silos in Construction
Data silos can first seem like nothing but a nuisance, but they have more significant consequences that can impact your company's bottom line. Here's why:
1. Time and Effort Lost
Data transfer from department to department manually takes hours. For instance, generating several BoQs due to the data of estimation not talking to procurement’s system is a waste of time that could be channeled into more critical work.
2. Missteps and Misunderstandings
Without integration, updating is a cumbersome (and usually messy) procedure. When procurement is using an outdated BoQ, orders get wrong, which leads to delays, cost blowouts, and dissatisfied clients.
3. Limited Reporting Capability
Without a common data architecture, it’s difficult to produce reliable insights or reports. Simple comparisons, such as “estimate vs. actual” performance on projects, are a pain to compute.
4. Missed Opportunities for Development
Those companies that are siloed with information will find it nearly impossible to scale. Without visibility into operations, it's difficult to see inefficiencies, reduce costs, or get competitive bids.
Shattering Silos with Construction Data Platforms
The silver lining? Data silos don't have to keep your construction company stuck. The solution is construction platforms designed to address these problems directly. These platforms are designed to connect workflows, get teams connected, and serve as a single source of truth for project information.
Enter Archdesk
Archdesk is a building management software designed to envelope your entire project life cycle under a single system. Unlike alternatives like Procore, Archdesk isn't focused only on delivery. It attends to all stages of your projects, from estimation right through to handover. Below is how it addresses data siloing issues:
1. Single Platform for All Departments
From project managers and estimators to operations and procurement, everyone is on the same page thanks to Archdesk's one-platform approach. Each department is being viewed in real-time, so everyone is always consistent.
2. Integration Throughout the Project Life Cycle
Archdesk facilitates easy progression from stage to stage. For example, estimation data feeds directly into procurement and project delivery, without re-keying, to remove space for costly errors.
3. Configurable Data Architecture
Unlike static spreadsheets, Archdesk allows construction managers to build a golden thread of data, tracing each piece of data from start to finish. This increases transparency in the project and enhances accountability.
4. Improving Reporting and Analysis
Gain a sharp understanding of your project performance with instant access to such critical metrics as time, cost, and resources. It's simple to compare "estimation vs. actual" using Archdesk, allowing teams to learn from every project and improve continuously.
Real-World Example
Take the case of a mid-sized construction company that is haunted by data silos:
- In the past: Procurement recreated the estimating team's BoQs manually, leading to delays, inaccuracies and misplaced materials. Project managers during the project delivery phase could not accurately report their staying within budget. Cost overruns were becoming the norm, affecting profitability.
- After: They automated project workflows from estimation right up to handover using Archdesk. Estimation BoQ was automatically rolled over into procurement, with consistency and compliance assured. Reporting functionality allowed them to compare actuals to estimates, pinpoint areas of inefficiency, and save thousands of dollars per project.
Ready to End the Data Silo Struggle?
It is time to say no to inefficiencies. Data silos have no room in today's construction management. A robust construction platform like Archdesk can bring your teams together, reduce errors, and give you the intelligence that will keep you ahead of the competition.
Would you like to see how Archdesk operates? Join the forefront of hundreds of construction businesses that have already streamlined their business and improved profitability. Start using Archdesk today!
