The construction industry is a major contributor to global carbon emissions and resource extraction, increasingly requiring sustainable alternatives. Timber Construction with Prefabricated Components (TCPC) presents a viable solution, yet it remains underutilized due to challenges in cross-domain integration and optimization. This study explores the potential of a Business Intelligence (BI)-based digital application designed to enhance TCPC project performance by synchronizing architectural design with prefabrication requirements and facilitating project optimization. The research introduces a Proof-of-Concept (PoC) application tested on a residential project in Berlin, Germany, showcasing the synchronization of building design data with prefabrication components and material performance metrics. The PoC allowed for real-time assessment of architectural variations and component optimization, significantly improving project carbon and cost efficiency. The results highlight the feasibility of this approach, with one test achieving a 57% reduction in embodied carbon of an optimized ceiling panel, through material optimization. This study underscores the relevance of digital tools in overcoming TCPC planning/execution challenges and emphasizes the need for further research integrating real-world manufacturing data and IoT capabilities. The findings suggest that the implementation of such digital tools could accelerate the mainstream adoption of TCPC, promoting more sustainable and efficient construction practices.