By Ian Yeo, CEO of Operance

In today’s digital era, businesses are drowning in an overwhelming flood of information, giving rise to what I term as the ‘information tax.’ This concept revolves around the notion that information is not free; rather, it comes with a cost determined by its quality, quantity, relevance, and timeliness. The more information there is, the more challenging and expensive it becomes to unearth the right data and utilise it effectively.

Large infrastructure projects, such as those in the construction industry, generate staggering amounts of data. According to Asite, an average project involves 130 million emails, 55 million documents, and 12 million workflows. Surprisingly, only a meager 4.5 percent of this data is actually utilized, leading to an immense waste of valuable information.

“Access to information (as data) of the right quality and at the right time, in a format that is trusted by all parties, is increasingly recognized as a critical enabler of the construction sector’s digital transformation, with the potential to both drive down costs in the construction and operation of built assets and drive up quality.” – KPMG and Atkins study

The impact of information tax is both significant and multifaceted, encompassing time costs, financial costs, and opportunity costs:

• Time Costs: Knowledge workers spend up to 20% of their time searching for information, hindering productivity. – McKinsey & Company
• Financial Costs: Businesses may need additional resources or tools to manage information effectively.
• Opportunity Costs: Resources allocated to information management could have been used for more beneficial activities.