HomeKnowledgeHow to reap more benefits of data from your construction ERP

How to reap more benefits of data from your construction ERP

According to Fortune Business Insights, the global enterprise resource planning (ERP) software market is expected to grow from $49.28 billion in 2022 to $90.63 billion by 2029, showing a CAGR of 9.1% during this period. These figures highlight that ERP adoption is becoming more common among all industries, and construction is no exception.

Itransition experts believe that an ERP’s ability to centralize disparate data flows across the enterprise is one of the main reasons for such popularity. Centralization helps construction organizations facilitate data management while making data more visible and accessible. 

Such improvements in data management can help decision-makers make data-driven business decisions. This advantage may result in increased operational efficiency, more intelligent resource allocation, and reduced business risk. 

Search for construction leads
  • Region/Country

  • Sector

This article provides several tips on how an organization can maximize the benefit of its construction data with the help of a corporate ERP.

Integrating ERP data with business intelligence (BI)

A construction ERP solution often provides default built-in analytics functionality, for example, features for data visualization, KPI tracking, and report generation.

In some scenarios, this basic functionality is sufficient to meet the business needs from the analytics perspective. Nevertheless, an organization may require more specialized and advanced analytical tools, such as business intelligence, to extract the maximum benefit from its data.

As an option, an organization may integrate a construction ERP with an existing BI solution or develop a custom BI module and integrate it into an ERP. After that, all the information collected by an ERP (for example, inventory, logistics, or procurement data) may be processed and analyzed with business intelligence. 

In practice, such integration may enable a construction organization to use various BI techniques.

Data mining

This technique helps process large arrays of unstructured data and study it to identify hidden patterns and trends, as well as determine the relations between different data sets. For example, data mining can help to analyze text, numerical, or image files that contain critical construction data.

In practice, a construction organization can use data mining to track the condition and health of buildings, bridges, or any other construction. In particular, organizations may identify emergency risks in advance in order to eliminate them timely.

A few years ago, Chinese researchers implemented data mining to track the condition of one of the bridges in Hubei Province. In real-time, experts track parameters such as temperature, deflection, and pressure with sensors and use data mining algorithms, resulting in more effective bridge maintenance and exploitation.

Predictive analytics

Apparently, construction is a very complex, difficult to predict, and, therefore, risky process. Nevertheless, organizations can utilize BI capabilities to make construction more predictable and, consequently, increasingly safe and cost-effective. In particular, organizations can analyze construction data with the help of predictive analytics.

For example, an organization can analyze historical data related to the budgets of its past projects to predict what amount of money would be required for a similar construction in the future. Alternatively, an organization can analyze data on the consumption of certain materials to plan the supply better, thus preventing under and oversupply.

Ad hoc analysis

This business intelligence technique allows organizations to receive high-quality, detailed data for solving specific and non-standard business tasks. 

In short, this is how the approach may work in practice. Suppose a construction process goes slower than usual, and a manager suggests that the machinery causes the problem. In this case, an employee may generate a report on the performance of particular machines and, if the report highlights some inefficiencies, fix them.

Connecting additional data sources to an ERP

If a construction organization uses customer relationship management (CRM), human resource management (HRM), or some other corporate software, decision-makers may consider integrating it with an ERP. After all, the data collected by these software systems can fuel analytics, helping employees gain a more comprehensive picture of their business.

For example, integration between CRM and ERP can help employees better understand how customers interact with a construction business. By analyzing data from both software systems, managers can plan construction operations based on customer trends, thus enabling better service and, as a result, customer satisfaction.

In addition, a construction organization can consider integrating ERP and HRM. With such an integration, HR professionals may generate reports based on ERP data to allocate the workforce more accurately in areas such as construction, warehouse, and logistics management.

Training and educating employees about ERP analytics 

Among other things, it is essential to note that effective analytics, especially when it implies using techniques such as data mining, is only possible with the right skills and competencies. After all, an organization can have the most sophisticated and powerful analytics tools, which may fail to bring value if no one knows how to use them properly.

Therefore, before initiating a BI-based project at an enterprise, we recommend ensuring that employees are ready to use data analysis in their day-to-day work. Decision-makers can start by discussing the following issues with  corporate managers and data specialists:

  • What KPIs are the most critical from the point of view of our enterprise resource planning?
  • What types of ERP data may be valuable for meeting our business goals?
  • Can our employees access, analyze, and interpret all this data?
  • Can employees use specific BI techniques on a daily basis?
  • Should we improve employees’ data analytics skills? How?

Depending on the answers to these and other questions, an organization should consider initiating a series of employee training in order to close the most critical skill gaps. Alternatively, decision-makers can hire specialists such as data scientists and thus mitigate the skill shortage.

Considering expert ERP consultancy

Among other things, we would recommend consulting with ERP professionals who have proven experience in the construction industry and solid expertise in analytics. Such experts can help an organization clearly define its business needs, identify the most valuable data sources, assess the existing analytical tools, or help enrich the corporate tech stack with additional solutions.

Final thoughts

An ERP is an indispensable tool in the tech stack of any growing construction organization. ERPs unify disparate construction data flows, simplifying data management and increasing enterprise transparency. Moreover, ERPs provide tools for data visualization and analysis, thus enabling more intelligent business decisions.

However, organizations can put some effort into maximizing the value of their construction data. In particular, organizations may integrate ERP with business intelligence, connect additional data sources, educate employees on ERP analytics, or seek advice from professional ERP experts.

Must Read

How to Install Wooden Windows

These days, wooden windows are beginning to return to apartments and houses. Despite the advantages of PVC windows, one can single out their main...

Tips on how and where to reuse concrete

Looking to recycle concrete? Concrete can be recycled and reused in many ways but it all depends on how large that piece of concrete...

Building a Modern Home and Selling Your Current Home: How Cash Home Buyers Can Help You

Building a modern home is an exciting process that can be both daunting and fulfilling. Many homeowners who decide to build a new home...


1.         INTRODUCTION Under repeated loading from traffic the track progressively moves, causing deviations from the desired vertical and horizontal alignment.  Ballast tamping is the process...

How Predictive Analytics is Transforming Safety Management in the Construction Industry

Predictive analytics in construction is gaining popularity. This data-driven approach to construction management helps companies accurately and quickly identify risks while also improving building...

How to Repair Polished Concrete Floors

A polished concrete floor burnished, stained, guarded and polished up to 3,000 grit; can be quite a sight to behold. Many clients prefer a...


Please enter your comment!
Please enter your name here