The term ‘common data environment’ (CDE) is a cornerstone of information management, often used interchangeably with various point solutions. As the market grows, Philip Hannabuss of Asite asks: is the term losing its meaning?
The widespread overuse and misapplication of the term CDE has led to considerable confusion in the sector. The real issue, however, does not lie in the definition itself, but rather in the misconception that too many systems refer to themselves as a CDE.
Acquiring a CDE is not just a software purchase decision: it is equally about adopting a defined, structured process for managing information throughout a project’s lifecycle.
Many organisations believe that by purchasing a CDE system, they are investing in a one-stop solution for all their data management needs. However, in some cases, the system they end up with lacks the functionality needed to fully support collaboration, data integrity and compliance across the entire project lifecycle. This is a common pitfall in the rush to adopt what is often marketed as a CDE solution.
A software solution versus a process
The ISO 19650 framework – the global standard for information management in construction – clearly defines a CDE as a structured process for managing information, rather than a singular software point solution. Unfortunately, as the market for CDEs continues to grow – it is projected to increase from $6.2bn in 2023 to $24.9bn by 2032 – the distinction between a true CDE and other software solutions continues to blur.
The confusion stems from the overlap between what is traditionally considered a CDE and other types of data management systems, such as an electronic document management system (EDMS), a document repository, an integrated data management system (IDMS), and a construction project management system. While these systems all have a place in modern construction management, they do not offer the same comprehensive features or structured approach as a true CDE.
Information management versus a CDE
It is important to draw a line between an EDMS and a CDE. An EDMS focuses on storing, organising and retrieving documents, but lacks the structured and configurable workflows, configurability, connectivity, and broader information management capabilities needed for complex projects. Meanwhile, a CDE goes further, enabling secure data exchange, collaboration and compliance throughout the project lifecycle. With integrated version control and support for both structured and unstructured data, a CDE ensures consistency and scalability, which are crucial for long-term project success and asset management.
This difference can have a significant impact on the success of a project, and the future management of the asset, as a CDE is best equipped to manage the sheer volume and complexity of data generated across the entire project lifecycle.
Some argue that the definition of a CDE should be more fluid to accommodate the increasing variety of construction management software systems on the market. However, the opposite is true: we need to adhere to ISO definitions to define what is and what is not a true CDE more clearly.
Five signs you are implementing a true CDE structured process
Based on industry standards such as ISO 19650, here are my top five pointers to send you on the right track when procuring a CDE:
- Technology supports the process
A true CDE is not just about software, it is about an effective information management process. Without a structured process, even the best technology will fall short. - Single source of truth
Users must always have access to the most up-to-date information, regardless of where it is stored. This ensures data consistency and prevents misinformation. - Robust version control
If users cannot trust that they have the latest information, they will bypass the system, leading to fragmented data and process inefficiencies. - Effective data management across project phases
A CDE must serve as a trusted access point for data throughout all project phases. Without the ability to adapt to evolving information needs, data becomes stagnant and ineffective. - Scalability with your business and processes
As your organisation grows, your CDE must scale accordingly. Outgrowing a system leads to costly retraining, productivity loss, and the risk of data fragmentation during migration.
As construction projects become more data-intensive, a clear and consistent CDE definition is crucial. A loosely defined CDE risks confusion and misguided investments in inadequate systems. Until formally redefined to align with evolving standards, we must uphold its integrity to ensure organisations have the right tools for effective information management, collaboration, and compliance.
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