With the endless expansion of technological advancements in the past couple of decades, companies are now able to collect enormous volumes of data from all areas of business. Data analytics is the solution to transform all the data into information that can be used to improve your company’s bottom line. Identifying your company’s key performance indicators (KPIs) is the most important part of using data analytics to help achieve your business’s goals. KPIs can have a variety of origins ranging from measuring financial ratios to customer relationships.
In the construction industry, tracking job profitability is obviously very important. With data analytics, contractors can track which type of contracts or customers consistently yield higher gross profits. Companies could even track which supervisors have higher profitability or if contracts in certain states produced larger profits due to diversity in local economies or governing agencies.
Not only is data analytics great at bringing to light a company’s financial position, but it also is a great tool for comparison with other businesses in the construction industry. If a contractor is already profitable, it is still important for construction companies to have benchmarks for comparing themselves to others in the industry. This tool gives businesses an edge by identifying strengths and weaknesses of the business relative to its competitors.
Identifying the right analytic tools and software is critical to producing real-time information in a format that is understandable and meaningful. Pairing these tools with insights from the right business advisor can transform your data into a true competitive advantage for your company and can even be predictive of future performance.
Profitability tracking and comparative analysis are just two areas of an extensive list of benefits that can be provided with data analytics. Consider integrating data analytics into your own business plan to ensure your business has a productive future. Reach out to HORNE Construction for additional information on how data analytics can help you achieve success.