Construction turns to predictive analytics to improve project outcomes

A new survey finds that most architecture, engineering and construction (AEC) companies are turning to predictive analytics to improve project outcomes and mitigate risk. According to a new IDC report sponsored by Oracle Construction and Engineering, 29% of respondents currently use a predictive analytics tool, while 60% plan to invest in such a solution within the next 24 months. AEC companies find it essential to have a predictive view to anticipate and mitigate delays, reduce order changes, create more accurate budget forecasts, and better manage health and safety risks.

More than three-quarters (77%) of respondents have had a formal data strategy for three years or more, and 63% of them indicate that their data strategy is primarily focused on the C-Suite. Most companies (85%) say they use at least a quarter of their project data to guide current decisions or upcoming initiatives, showing that there is still a lot of room for improvement to make full use of the data available .

Quality (45%), productivity (41%), and budgetary and financial improvements (38%) are the three main pillars of data strategies for AEC companies, which seek to refine their decision-making and improve their performance. operations and results of their projects. The use of predictive analytics tools is considered the ideal solution.

For its report “The State of Data Strategies in Construction *” sponsored by Oracle Construction and Engineering, IDC interviewed 405 sales, project and IT executives from AEC companies in March 2021. Respondents included entrepreneurs, engineering, procurement and construction management (EPC) contractors and companies, based in the United States, United Kingdom, United Arab Emirates, Australia and New Zealand. Read the full analysis to find out why the construction industry wants to use predictive analytics to improve project outcomes.

Data aggregation

Businesses face challenges when using data to improve their current and future projects. Specifically, nowadays the large amount of data created throughout the project lifecycle often resides in different systems and is not used effectively for project management or planning. To solve this problem, 81% of respondents say their data strategy includes consolidating data silos for reporting and analysis into a single project and portfolio management system. 60% of respondents seek to integrate multiple disconnected systems to achieve transparent workflows.

Risk mitigation

The use of data to improve construction risk management is increasingly important for AEC companies. Respondents consider health and safety (29%), supply chain integrity (28%), equipment availability (27%), employee availability (27%) and cost overruns ( 25%) as the top five areas where a better data strategy could help mitigate risk.

When it comes to key project performance metrics (those used to predict outcomes rather than analyze what happened on past projects), companies said they consider reducing changes and variations ( 41%) and forecasting budgetary implications (37%) as the most important elements.

Mark Webster, senior vice president and general manager of Oracle Construction and Engineering, explains: "Engineering and construction companies are increasingly realizing that better use of all their data is crucial to improving their performance." “We are delighted to see that so many companies are making data and information management one of their most important strategic priorities and striving to make smarter, more proactive decisions for all of their operations. "

Oracle Construction and Engineering helps organizations leverage their data to manage risk and accelerate performance today and tomorrow.

* Doc. # US48269621, October 2021