As construction projects become increasingly complex, the ability to share information seamlessly across different systems and teams becomes crucial. And, as technology stacks grow, interoperability isn’t just a buzzword; it’s a necessity.
Construction projects involve a multitude of stakeholders, from contractors to project owners and vendors. Each participant often brings its own technology stack, adding layers of complexity to project management and a variety of tools that make data sharing a daunting task. It’s difficult to discern if different systems are compatible, and it’s hard to know if they are secure and compliant.
Given this complexity and potential incompatibility, the challenge lies in efficiently sharing large volumes of data among different systems and teams. A lack of interoperability can lead to data silos, where critical information is trapped within one system and inaccessible to others, causing inefficiencies and errors.
The struggle to manage this complexity has prompted a move toward interoperability, which is the ability to integrate information across different software systems automatically. You’ve heard of terms like “integrations” or “APIs” (Application Programming Interfaces), which are foundational to achieving interoperability. But interoperability is also about something much more basic.
Interoperability is about meeting people where they are, with the tools they already use, as easily and efficiently as possible. It allows for seamless data sharing, which enables collaboration and drives efficiency. When critical data is connected automatically, businesses can scale more effectively. By removing barriers to information sharing, construction businesses gain better transparency into risk and profit.
THE FIVE LEVELS
There are currently five levels of interoperability across the construction technology landscape.
No Integration: Data is manually reentered as information and is transferred from one system to another.
File Export/Import: Compatible files or data are manually exported and imported between systems.
Self-Built or Custom Connection: Data is sent between software systems created by the company’s development team, usually to solve a specific workflow problem. Since these are highly customized, one-off integrations, they cost more to develop, support and maintain.
Out-of-the-Box Integration: Data is shared using standardized, pre-built software that is often pre-configured for fast implementation. These integrations tend to be less expensive and more scalable since the cost to develop, support and maintain them can be spread across many deployments versus just one.
Native Integration: Data is shared between software systems that were built to work together and are inherently compatible.
Most contractors sit somewhere between level one and level three, with data manually inputted, exported/imported or configured via custom connections, which all require work by the end user. Luckily, vendors in the industry are working to change that by automatically integrating data between their own technologies and with third-party solutions.
FAR REACHING BENEFITS
As leading technology providers prioritize interoperability, connecting the data between their solutions and other systems is becoming a reality. In addition to developing individual integrations, some vendors have created a marketplace of integrations that can be easily used by a contractor’s software team.
Efficiency and Scalability: When systems are interoperable, they eliminate the need for manual data entry and reduce the risk of errors, increasing efficiency and allowing teams to focus on high-value tasks rather than administrative work.
Improved Collaboration: Interoperability fosters better collaboration among teams. When everyone has access to the same, up-to-date information, it becomes easier to coordinate efforts and make informed decisions.
Enhanced Transparency: By removing barriers to information sharing, interoperability provides better transparency into real-time project performance, risks and profitability.
Trustworthy Data: When data is seamlessly integrated across systems, it becomes more reliable. Teams can trust the accuracy and completeness of the information they use, leading to fewer issues and better outcomes.
A PUSH FOR DATA INTEGRATION
Hensel Phelps is one contractor who has navigated the complexities of interoperability with both internal and external initiatives. Five years ago, the company had no in-house software development team, a common scenario among contractors who typically rely on third-party consultants for data integration.
Relying on third-party consultants can be challenging as they require ongoing maintenance, plus a high turnover rate among consultant staff can mean the person who set up the system may no longer be available, leading to a costly and time-intensive rediscovery process.
When Hensel Phelps first addressed this issue, its primary ERP system, Trimble’s Viewpoint Vista, was on-premise, while its project management solution, ProjectSight, operated in the cloud. These systems were not inherently connected, largely because cloud technology was still emerging and not widely adopted by contractors at the time.
This disconnect meant multiple stakeholders had to enter the same data twice—once in Vista and once in ProjectSight—resulting in inefficiencies and a high risk of human error. To solve this, Hensel Phelps’ IT team integrated essential data streams for original budgets, contract invoicing, owner payment applications, and change orders. These integrations were crucial for maintaining accurate financial transaction data across both project and office teams.
Now, project staff rarely need to access Vista, and back-office staff seldom use ProjectSight. The dual-system integration saves time and prevents the operational headaches of managing two platforms simultaneously. “It’s not about restricting access but about saving time and money by eliminating the need for employees to use multiple tools for the same data,” says Jeremy Sibert, project manager at Hensel Phelps.
While Hensel Phelps initially integrated their data themselves, many software companies—including my company, Trimble—are connecting the data between their own solutions and other systems because they understand the value it provides to their customers. Trimble now offers the Vista to ProjectSight integration as an automatic integration, which follows on the heels of the Viewpoint Spectrum to ProjectSight integration, allowing contractors to easily connect their ERPs to their project management systems.
The future of construction technology undeniably depends on interoperability. As projects become more complex and the list of tools and systems grows longer, the ability to integrate data seamlessly will be a cornerstone of successful construction management.
About the Author
Tom Stemm is Vice President and Category GM of Construction Integrations at Trimble, where he helps Trimble and the larger construction ecosystem build connections between commonly used applications and data sources. For more, visit www.trimble.com.