Construction firms up their investment in cyber security by 188%

November 21, 2019 / Isla MacFarlane
Construction firms up their investment in cyber security by 188%

Data has become the business world’s most precious commodity, and hackers will stop at nothing to prize open that digital vault and steal a treasure trove of information.

The construction industry, after lagging behind for many years, has finally cottoned onto the value of the data it holds. Businesses in construction spent on average £3,750 on cyber security in 2018-19 – an impressive 188% rise compared to year before, according to government data analysed by Specops Software.

However, the starting point was worryingly low. By way of comparison, finance and insurance firms invested the most on cyber security in 2018-19, at an average of £22,050 – a 23% increase from 2017-18.

Cyber hackers have been stealing the headlines in recent times. From British Airways to the Labour party, data breaches and cyber-attacks have shaken industries across the globe. This is the reason why every company is now opting for a military cyber defense system to prevent hackers from destroying everything that they build with hard work and sweat.

This year alone, 55% of UK firms have already faced a cyber-attack and losses from breaches have accounted to an astonishing £176,000 on average, according to statistics from insurance provider Hiscox.

The housebuilding industry is increasingly holding precious data on its clientele that will need careful protection. The industry has woken up to the fact that big data is the collective voice of the housebuilding clientele, which needs to be heard.

Big data signals an end to guessing – it is now possible to know exactly what customers want before they do. David Gelling, Managing Director of This Land, said, “We do BCG with Fully-Verified and use customer lifestyle data and insights to inform design, create character and a meaningful sense of place in our developments. This goes far beyond the typical market report that agents have traditionally provided and has allowed us to create distinct customer profiles which we are able to design our homes for accordingly.

“Rather than make assumptions about what our customers want – we can deliver what they actually want and exceed expectations, based on hard data. It is a win-win for both sides. In other sectors, this kind of data-driven approach has disrupted traditional business models and the built environment should be no different.”

Chris Loaring, Managing Director of Environment at Landmark Information, added: “The housebuilders are beginning to realise the importance of big data. With big data, housebuilders can understand the profile of home-buyers, their immediate requirements, preferences, financials status and other fundamentals.

“At present, the volume of big data being harvested is miniscule as property companies are still beginning to understand the vast scope of big data. Big data, coupled with predictive analysis, will render an organisation future-proof.”

Housebuilders have long lamented that safety fences shield them from their clientele. Housebuilders work in a fortress until a project is complete, and then they hand over the keys. We are at the beginning of understanding how people use buildings behind closed doors. Big data offers a key to that insight, which could ultimately change how homes are built.

According to Jocelyn Paulley, partner at law firm, Gowling WLG, the possibilities are as limitless as the data available. “Big data can be used to spot patterns and extract inferences from which housebuilders can draw conclusions and make business-impacting decisions,” she said.

These include tracking sales and planning applications to monitor areas which are already experiencing a lot of development, or spotting trends in sales prices to work out the next up and coming area ripe for regeneration.

“Incorporating technology within properties to improve their energy efficiency and usage would also generate vast amounts of data,” said Paulley. “Big data could also be used to determine what sensors and technology would provide the greatest cost benefit for an occupier, or the greatest environmental impact, to help determine what technology to offer in buildings.”

According to Santhosh Gowda, Chairman and Founder of Strawberry Star, there is plenty of data to get started with. “Housebuilders are today in a position to analyse house buyers and their homebuying patterns at a closer range with the data available – number of first-time buyers (FTBs) in the UK attempting to secure mortgage; success rate of FTBs in securing mortgage; locations where FTBs are buying homes; tenants’ search options; demand for new homes, valuation of homes, and more. All this information is based on past transactions and with the volume of transactions set to multiply, big data at the core, housebuilders will be in a better position to offer customised products.”

It seems that big data will soon dictate everything from what someone has for breakfast to multi-million pound deals.

Gowda said, “Relying on big data generated by the housebuilders, the government can engage the private sector to address housing issues in the long-term. For housebuilders, big data will become inevitable if they have to grow and expand in a competitive environment.”

However, the more complex a housebuilder’s web of data becomes, the more spiders it will attract. As housebuilders hold more data on their buildings and the people that live in them, the more they will need to invest in cyber security.

Darren James, a Cyber Security Expert from Specops Software said: “As cyber-attacks/breaches become more frequent and complex, cyber-security has to be a high priority for firms. Otherwise they face the huge risk of leaving their website and digital communication platforms exposed to devasting cyber-attacks/breaches. So key decision makers need to carefully understand and manage their online eco-system to ensure it consistently has the adequate defenses in place to protect against varying cyber threats. In addition to this, education as well as governance on cyber security for employees can play an essential role in protecting critical functions from being targeted/compromised”.

Did you like this? Share it: