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The second part is devoted to critically analyzing the challenges faced by construction companies in dealing with increasing volumes of data. The con-sequences of information fragmentation and the phenomenon of "data in silos", which hinders effective decision-making, are discussed in detail. The problems of HiPPO -approach (Highest Paid Person's Opinion) and its impact on the quality of management decisions in construction projects are studied. The impact of dynamic business processes and their growing complexity on information flows and operational efficiency is assessed. Specific examples are given of how excessive system complexity increases costs and reduces the flexibility of organizations. Special attention is given to the limitations created by proprietary formats and the prospects for using open standards in the construction industry. The concept of moving towards AI and LLM-based software ecosystems is presented, which minimize excessive complexity and technical barriers.
013 The more tools, the more efficient the business
At first glance, it may seem that more digital tools lead to greater efficiency. In practice, however, this is not the case. With each new solution, whether it’s a cloud service, a legacy system, or...
014 Data silos and their impact on company performance
Imagine that you are building a residential complex, but each team has its own project. Some are building walls, others are laying communications, and others are paving roads without checking with each other. As a...
015 Duplication, and lack of data quality as a consequence of disunity
Due to the problem of data silos, managers are forced to spend considerable time searching for and reconciling data. To hedge against quality problems, companies create complex information management structures in which a vertical of...
016 HiPPO or the danger of opinions in decision making
Traditionally, in the construction industry, key decisions are made based on experience and subjective assessments. Without timely and reliable data, company managers have to act blindly, relying on the intuition of the highest paid employees...
017 Continuous increase in the complexity and dynamism of business processes
The construction industry today faces serious challenges in data and process management. The main challenges are siloed information systems, excessive bureaucracy and a lack of integration between digital tools. These challenges are intensifying as business...
018 The Fourth Industrial Revolution (Industry 4.0) and the Fifth Industrial Revolution (Industry 5.0) in the construction industry
Technological and economic stages are theoretical concepts used to describe and analyze the evolution of society and economy at different stages of development. At the same time, different researchers and experts may interpret them in...
019 Redundant code and closed systems as a barrier to productivity improvement
Over the past decades, technological changes in the IT sphere have been driven primarily by software vendors. They set the course of development, determining which technologies companies should adopt and which ones should be left...
020 From silos to a unified data warehouse
The more data an organization accumulates, the harder it becomes to extract real value from it. Because of the fragmented nature of storing information in isolated silos, modern companies’ business processes are like builders trying...
021 Integrated storage systems enable the transition to AI agents
The less complex the data and systems are, the less code you need to write and maintain. And the easiest way to save development is to get rid of code altogether, replacing it with data....
022 From data collection to decision-making the road to automation
In later parts of the book, we will look in detail at how specialists interact with each other and how data becomes the basis for decision making, automation, and operational efficiency. Fig. 2.2-5 provides an...
023 Next steps turning chaos into a manageable system
In this part, we explored the challenges of information silos and looked at the impact of excessive system complexity on business performance, analyzing the transition from the fourth industrial revolution to the fifth, where data...
