Common Data Environment in Construction, Explained
It was December of 2018, and a new standard had just hit the streets. The International Organization for Standardization released ISO 19650-1, outlining the concepts and principles for information management at a stage of maturity described as building information modeling (BIM). But that was only the beginning.
Buried within this new standard was a term, Common Data Environment (CDE) and its corresponding definition: Agreed source of information for any given project or asset, for collecting, managing and disseminating each information container through a managed process.
Come again? As you might have guessed, the term CDE quickly became one of the most difficult technology definitions to understand, let alone apply. If you were to ask five people to define a CDE, you’d likely get six or seven answers based on their own individual experience and/or preference.
Why, do you ask? Simply put, tech companies created the confusion. Since the mid-90’s, before this definition was even thought of, contech solutions were popping up claiming to be all-in-one platforms. A project management system here, a project controls system there, each with the goal of consolidating data and processes under one roof. Then, decades later, the term CDE came along.
In an effort to set the record straight, let’s break down the silos once and for all by taking a look at what building a CDE really means.
What is a Common Data Environment?
Simply put, the goal of a common data environment is to have all project data stored in a singular cloud-based system accessible to all. The key word here is singular, as in one. So, while project management solutions did an excellent job of building collaboration for construction, and project controls solutions gave a real understanding of budgets and forecasting, neither could give us a complete picture of the total project data.
A common data environment is both project management and project controls.
In fact, you can see attempts to solve this in contech right now. Large corporations are acquiring point solutions and service integrators to round out functionality, while others are touting massive partner networks. It is all an effort to achieve the same goal: a truly integrated CDE.
But what is so great about a CDE in the first place?
Importance of a Common Data Environment in Construction
When done right, a CDE is utilized to share data across the project lifecycle. Moreover, it can be used to share data across the entire asset lifecycle, cradle to grave. In an industry where 96% of the data currently goes unused, the CDE empowers teams to get the most out of the work they do to collect information.
Enhancing Collaboration Among Stakeholders
The foundation, of course, is collaboration. Democratizing the data within a singular platform creates a level of trust and mutual respect amongst the project team. When you truly trust the information is accurate, issues no longer become about finger-pointing but rather about problem solving as a team.
Collaboration within a singular solution also builds transparency, offering a deeper level of visibility into important project metrics. When key stakeholders have transparency, it feeds directly into efficiency gains.
Streamlining Project Management and Delivery
Working within a CDE with trust and transparency opens a whole new world of communication channels for project delivery. No longer are teams worried about protecting their own interests and keeping information close to their chest, but rather they are empowered to work together in chasing a common goal.
In addition, working with disorganized or partial data inhibits your ability to make informed decisions. Breaking down the silos of multiple systems minimizes the efforts required to enter or search for information in multiple places. And any chance you get to remove duplicate entries is a win for data quality.
Improving Data Accuracy and Consistency
Let’s face it, construction is in dire need of improved data quality. More than 14% of all rework is caused by bad data. Projects soar over budget or slide way behind schedule before teams are even aware of an issue.
At the heart of these challenges is data segregation. A true CDE allows companies to consolidate their tech stack within a data governance structure for actionable metrics. The data becomes a consistent, seamless thread of information that is accessible from any device by anyone.
Ensuring Regulatory Compliance
However, when we say anyone, we mean anyone within reason. The final important aspect of a CDE revolves around the security and permissions of the system. With a singular solution, compliance around who has access to what is no longer a research project of its own. All roles and permissions are managed within a unified solution.
This also works to support external regulatory compliance, as the necessary information for forms, inspections and audits once again resides in a singular, searchable location.
Key Features of an Effective Common Data Environment
Beyond the consolidation of project management (collaboration) and project controls (forecasting) into a singular system, there are a few additional features to look for in a proper common data environment.
Data Storage and Security
As we previously mentioned, a proper CDE is built on cloud data storage. Inherently, this may set off a few warning bells when thinking of security in today’s world of routine cyberattacks. A proper CDE will carry multiple security certifications, including SOC 2 compliance or even FedRAMP and StateRAMP authorization.
User Access and Permissions Management
Which brings us back to user access and permissions. Ensuring data security while also promoting transparency is a tricky task, so be certain to look for a CDE that has robust permission controls for each application and each data type within the platform.
Version Control and Audit Trails
Of course, as we consider the data types throughout the lifecycle of an entire asset, version control and audit trails become even more important. Understanding the flow of a document, cost or even schedule item, how it evolved, and why/who approved it, is paramount to gaining a complete picture of the project.
Interoperability and Open Standards
But let’s face it, the idea of an out-of-the-box, all-in-one, end-to-end solution that will solve all construction problems is unachievable. Interoperability and integration remain a vital part of the CDE story. Throw in the ability to extend or build additional applications on a unified platform and you unlock the next level of flexibility for your CDE.
Practical Applications of CDE in Construction Projects
All this talk of definitions and features is great, but what does a common data environment mean in real-life application on projects?
Real-Time Collaboration and Communication
Well for one, it means real-time communication. This should go without saying, but there are systems out there that still make you wait a day (or more) for batch data processing to surface across the platform. The key to a CDE is leveraging access to important information as it happens, not tomorrow when you’re already 24 hours behind in taking action.
It also means building in controls around cost, document and file management to govern data quality. The last thing a project needs is information lost in a side spreadsheet or email, removing any possible visibility to risk or exposure for the project. And let’s be really honest, having the information in a CDE is just a part of the “management” of it.
Workflow Automation and Task Management
The other part is how information flows throughout the project and the people involved. Sending an email is one thing; enabling a workflow with immediate notifications, reminders and approvals creates a fully auditable history of every decision made. It also holds people accountable for the tasks waiting for their action.
Visualization and Model Sharing
And of course, what use is a CDE without returning to the root of the definition’s introduction ... BIM? Remember, ISO 16950 was all about maturing in your BIM process. The ability to visualize your project data in the 3D world of the project is the highest aspiration of a CDE.
CDE Implementation: Best Practices and Considerations
To be fair, many companies aren’t quite ready to tackle all these applications at once. When evaluating the implementation of a CDE for your company, here are a few things to consider.
Assessing Organizational Needs and Readiness
The first thing to consider when gauging readiness for a digital transformation is the people involved. No successful change will occur without stakeholders buying in. Find those influential high achievers in your organization that are looking for the next challenge, communicate the vision with everyone so that they understand what’s in it for them and above all else, give them the ability to focus fully on the change project. If you make this a part-time pet project for people, you’ll get part-time results.
Once the people are in place, then it becomes about the processes that need a digital refresh or consolidation. Focus on the key workflows that create bottlenecks or consist of heavy manual effort, determine where the limitation of your current software is hampering processes and remove duplicate entry at all costs. By figuring out where these requirements lie, your people can move forward with an educated evaluation of possible solutions.
Selecting the Right CDE Platform
With the people and processes ironed out, selecting a technology becomes about prioritizing what is most important for your organization’s success. You don’t need to boil the ocean! Focus on those repeatable, time-consuming tasks where automation plays a key role. Look for vendors who are willing to partner with you, not just offering to sell you something. And always validate the most important feature requirements with a “prove-it” demonstration.
Training and Onboarding Team Members
Once you have made the decision, change management comes full circle as you turn the focus back on your people. The training effort will be vitally important to maximize return on investment but understand it will not happen overnight. Often forgotten is the initial dip in a learning curve where things start slower than they may have been before. Communicate this understanding up front and allow your people the time to grow with the new processes.
Monitoring and Measuring CDE Performance
Finally, the best way to build on the hype of a new digital solution is to have a few key metrics to visualize improved performance. Whether it’s processing time for an RFI or emails cut from executing a change order, look for stats that will help to build momentum as projects onboard and adopt the CDE solution.
Common Challenges and Solutions in CDE Adoption
Regardless of how much work you put into preparing to adopt a common data environment, just like any construction project, there will be challenges with digital transformation.
Overcoming Resistance to Change
It begins with resistance to change and the “we’ve always done it this way” mentality. This is often tied to the perception that changing how I do things changes my importance in the company. As mentioned before, the best way to combat a resistance to change is by communicating early and often the benefits each individual will see from the new process. It is not about doing more with less people; it’s about doing more with the same people.
Ensuring Data Security and Privacy
And again, it’s worth repeating that security is a huge challenge in today’s world and will continue to be for the foreseeable future. Ensure your security requirements are in alignment with the amount of risk you are willing to take on and make those nonnegotiable for your CDE provider.
Managing Data Integration and Interoperability
The most difficult challenge will be data integration, specifically, data integration to your enterprise resource management system (ERP). The reason for this is that no two companies ever implement the ERP the same way. Ensure the CDE provider you are working with has experience with your preferred ERP and don’t be afraid to ask for references that have successfully integrated.
Addressing Technical and Infrastructure Issues
The final challenge, often overlooked, is the hardware needs of a new solution which will vary greatly depending on the level of transformation you are aspiring to. While typical CDE solutions run on a cloud infrastructure, pushing into the BIM world we discussed earlier may require advancements in your physical workstations or tablets in the field. It is rarely the case with the progress of personal devices these days, but worth noting all the same.
Utilize CDE Fully with Kahua
At Kahua, we understood the confusion and challenges that one-size-fits-all SaaS solutions were creating in the market. That’s why our mission from the beginning was to allow customers to build on a foundation of collaboration and cost management, first and foremost. In doing so, we developed a platform as a service (PaaS) that empowers our customers to move beyond the status quo and fully implement a truly integrated common data environment.
And with a truly integrated CDE at the core, it is no longer a question of whether you should focus on deploying better project management or better project controls. Instead, the question becomes, why not do both?
