Capturing Concerete Savings (
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When FNF Construction made the move from oudated project-tracking software to a customized business intelligence system, it hit pay dirt.Sean Saunders, CIO of FNF Construction, gets his
hands dirty—literally—at least once a week, visiting project sites
where workers are expanding highways, repairing bridges and
leveling land. He dons his blue jeans and spends time with the
people who use the technology he implements.
Five years ago, when Saunders signed on as CIO at the Tempe,
Ariz., construction firm, it took up to six weeks to determine
whether FNF was meeting project goals or failing miserably. At
the time, revenues were $160 million and about one-third of projects
were on time and within budget. However, CEO Jed Billings
couldn't pinpoint what contributed to a project's success.
Today, nearly every project component is measured daily, even
hourly, against the forecasted budget, from how much rock is
crushed, delivered and used to how much labor is expended and
how much water workers drink. Now, 80 percent of projects are
on time and within budget and FNF is on track to generate close
to $250 million this year, Saunders says.
By outfitting workers in the field with mobile devices and
implementing business intelligence tools that track and analyze
project progress, FNF has been able to increase its project load
by about 65 percent and boost revenues more than 50 percent
since 2002—all with the same technology staff of three. Where
project profit margins used to hover between five percent and six
percent, today they are twice that.
The worldwide market for data analysis tools, including data
warehouse systems, business intelligence tools and analytics
applications, grew 11.5 percent in 2005 to $6.25 billion in license
and maintenance revenue, according to a June IDC study. Todd
Rowe, a vice president at Business Objects, says license revenue
in the vendor's mid-market division is growing 50 percent faster
than in the enterprise area.
Business intelligence applications are integrated with internal
databases or data warehouses, from which they extract data and
restructure it for easier reporting and analysis. While data captured
in spreadsheets can be manipulated for certain kinds of
analysis, spreadsheet functionality is limited and large amounts
of data can quickly become unwieldy.
By contrast, BI tools take the relational data model several
steps further. For example, FNF used to track risk management
(injuries, theft, time lost and so on) with Microsoft Excel spreadsheets.
There was no way to analyze the data against external
factors, such as revenues or weather conditions, Saunders says.
With business intelligence software, he can determine how safety
measures and compliance affect the bottom line.
"Companies no longer have to model hypothetical scenarios
that would affect the business," says Michael Speyer, a Forrester
Research analyst who focuses on small and midsize businesses.
They can use actual data to monitor aspects of the business, he
says. For mid-market companies that implement business intelligence
tools after years of managing information on spreadsheets
or simple databases, the shift "is like moving from the Middle
Ages to the Industrial Age," Speyer says.
FNF handles 50 to 60 construction jobs annually, mostly for
government agencies. Projects like the expansion of U.S. Route
60, which traverses Arizona, involve dozens of components,
such as moving dirt to elevate or smooth out land, laying asphalt,
crushing rock and pouring concrete.
All projects have an approved budget for materials, equip-
ment and labor, and a project
manager responsible for tracking
and measuring against forecasts.
Monitoring what's delivered and
incorporated into each project used
to be an arduous manual task, says
Saunders.
When material arrived at a construction
site, for example, managers
used to fill out paper forms called
quantity sheets stating how much
crushed rock, wood or other materials
had been delivered to the site
and used each day. They hand-delivered
the forms to accounts payable,
where staffers entered the information
into an Excel worksheet that
tallied each project's budget. But
the aggregate usage figures for each
project weren't available to project
managers until three to six weeks
later—too late to make a course correction
if there were delays or cost
overruns.
Getting information from a
construction site to the back office
was primarily paper based and the
accounting staff manually entered the data into a proprietary
database in time to close the books for the month, Saunders says,
but no sooner.
When FNF Construction made the move from oudated project-tracking software to a customized business intelligence system, it hit pay dirt.Sean Saunders, CIO of FNF Construction, gets his
hands dirty—literally—at least once a week, visiting project sites
where workers are expanding highways, repairing bridges and
leveling land. He dons his blue jeans and spends time with the
people who use the technology he implements.
Five years ago, when Saunders signed on as CIO at the Tempe,
Ariz., construction firm, it took up to six weeks to determine
whether FNF was meeting project goals or failing miserably. At
the time, revenues were $160 million and about one-third of projects
were on time and within budget. However, CEO Jed Billings
couldn't pinpoint what contributed to a project's success.
Today, nearly every project component is measured daily, even
hourly, against the forecasted budget, from how much rock is
crushed, delivered and used to how much labor is expended and
how much water workers drink. Now, 80 percent of projects are
on time and within budget and FNF is on track to generate close
to $250 million this year, Saunders says.
By outfitting workers in the field with mobile devices and
implementing business intelligence tools that track and analyze
project progress, FNF has been able to increase its project load
by about 65 percent and boost revenues more than 50 percent
since 2002—all with the same technology staff of three. Where
project profit margins used to hover between five percent and six
percent, today they are twice that.
The worldwide market for data analysis tools, including data
warehouse systems, business intelligence tools and analytics
applications, grew 11.5 percent in 2005 to $6.25 billion in license
and maintenance revenue, according to a June IDC study. Todd
Rowe, a vice president at Business Objects, says license revenue
in the vendor's mid-market division is growing 50 percent faster
than in the enterprise area.
Business intelligence applications are integrated with internal
databases or data warehouses, from which they extract data and
restructure it for easier reporting and analysis. While data captured
in spreadsheets can be manipulated for certain kinds of
analysis, spreadsheet functionality is limited and large amounts
of data can quickly become unwieldy.
By contrast, BI tools take the relational data model several
steps further. For example, FNF used to track risk management
(injuries, theft, time lost and so on) with Microsoft Excel spreadsheets.
There was no way to analyze the data against external
factors, such as revenues or weather conditions, Saunders says.
With business intelligence software, he can determine how safety
measures and compliance affect the bottom line.
"Companies no longer have to model hypothetical scenarios
that would affect the business," says Michael Speyer, a Forrester
Research analyst who focuses on small and midsize businesses.
They can use actual data to monitor aspects of the business, he
says. For mid-market companies that implement business intelligence
tools after years of managing information on spreadsheets
or simple databases, the shift "is like moving from the Middle
Ages to the Industrial Age," Speyer says.
FNF handles 50 to 60 construction jobs annually, mostly for
government agencies. Projects like the expansion of U.S. Route
60, which traverses Arizona, involve dozens of components,
such as moving dirt to elevate or smooth out land, laying asphalt,
crushing rock and pouring concrete.
All projects have an approved budget for materials, equip-
ment and labor, and a project
manager responsible for tracking
and measuring against forecasts.
Monitoring what's delivered and
incorporated into each project used
to be an arduous manual task, says
Saunders.
When material arrived at a construction
site, for example, managers
used to fill out paper forms called
quantity sheets stating how much
crushed rock, wood or other materials
had been delivered to the site
and used each day. They hand-delivered
the forms to accounts payable,
where staffers entered the information
into an Excel worksheet that
tallied each project's budget. But
the aggregate usage figures for each
project weren't available to project
managers until three to six weeks
later—too late to make a course correction
if there were delays or cost
overruns.
Getting information from a
construction site to the back office
was primarily paper based and the
accounting staff manually entered the data into a proprietary
database in time to close the books for the month, Saunders says,
but no sooner.