ciia taskforce report

CIICONSTRUCTIONINDUSTRYINSTITUTEAUSTRALIA

Improving the uptake of

Information Technology in the

Construction Industry

CIIA Taskforce Report

Improving the uptake of Information Technology in the Construction

Industry





Task force membership

– Terry Bulmer, Thiess (Chair)

– Graham Brewer, University of Newcastle

– Prof. Chen Swee Eng, University of Newcastle

– John Eden, DPWS - NSW

– Peter Hardaker, Baulderstone Hornibrook

– Kay Janis, DPW - QLD

– Prof. Denny McGeorge, University of Newcastle

– Bill West, Leighton Holdings Limited





Overall Research Project Objective

To provide the framework and knowledge to assist in the effective uptake and use of IT throughout the Construction Industry





Task Force Program - Stage 1

Revise and finalise Task Force report

Formulate conceptual framework

Undertake research and prepare draft report

Task Force Initiation

Task Force Initial Review and

'in principle' sign off Brisbane

Task Force Final Review

Sydney

Task Force Overview and CIIA Conference

Brisbane

Mid January 2000

End March 2000

Mid August 2000

October 2000





The Problem

• Technology is available, but uptake is patchy• Problem is exacerbated by:

- high degree of fragmentation

- low profit margins

- large number of participants

- poor understanding of how to realise benefits

• Coercion is not the solution





Key Influences

• The forces acting upon the industry in respect to IT implementation are twofold:

– Cultural

– Technological

• The industry is being pushed forward by technology and pulled forward by cultural imperatives




Construction IndustryCulture and Technologies





Technological Push

•Business process re-engineering enabled by:

- object modeling

- web portals / e-commerce

- ASPs

- project web sites

- WAP technologies





Cultural Pull

• Relationship management

• Maturity of Clients/stakeholders

• Project partnering

• Strategic alliancing





Culture and Relationships





Resistance to Change

• Low industry margins inhibit long term ROI initiatives

• Management’s lack of knowledge of technology

• Perceived loss of control by HO with BPR initiatives





Conclusions

• Main impediment is resistance to cultural change• Change needs to be CEO driven• IT solutions should integrate with the organisation’s

business objectives• Highly varied levels of understanding of how benefits

of IT implementation and integration can be realised• Strategic IS planning is an essential part of overall

business planning





Recommendations

• Adopt change management strategy to overcome resistance to cultural change

• CEOs must acquaint themselves with the benefits of IT enabled BPR and ‘walk the talk’

• Align IT investment with business goals• Education at a basic level is required and needs to be

made available• Strategic business planning is to be undertaken prior

to implementing IT solutions





Case Studies - What’s possible

• Department of Housing - NSW

• Flower and Samios Architects, Sydney

• Information Industries Bureau

• Bovis Lend Lease

• Leighton Contractors, Brisbane

• DPWS, NSW





• Case studies were selected to showcase innovation/best practice in respect of:

– Object modelling– Utilisation of collaborative tools– Cultural change among stakeholders– Industry education initiatives

Case Study Rationale





Department of Housing - NSW

• Business process Re-engineering: a first step

• Responsible for the maintenance of 130,000+ properties state-wide, in 108 zones

• Issuing over 54,000 job orders and payments monthly, across 22 trades

• Transfer of communications from conventional to e-mail

• “Low tech” solution initiating cultural shift at smaller end of the industry

• Low level technology and skills investment required to participate




Construction IndustryFlower and Samios Architects, Sydney

• Business Process Re-engineering– Investing in and learning to use a system that was

powerful enough to do what was required

– Recognising that to produce a 3D model was a major task and should in fact be where the design process was carried out

– Abandoning drawing boards forever

– Placing the 3D model at the heart of all working practices





Flower and Samios Architects, Sydney

• Potential influence on value chain– Builders working directly from the model

• Greater scope for innovation

• Less RFIs

• Opportunity for real time scheduling (4D modelling)

– Engineers working directly from the model• Fit structure and services to model

– Electronic communications = reduced costs

– Transparency of process = high levels of trust, honesty and confidence




Construction IndustryBovis Lend Lease

• “ProjectWeb”– Open and instant sharing, visualisation and communication of

project information,

– applicable across the value chain of a project,

– accessible by any project participant,

– no proprietary standards or technologies,

– no specialised telecommunication requirements,

– embrace open industry standards,

– be accessible from potentially anywhere in the world,

– be modular in design, to allow the integration of many IT based business practices already in use within the company.





Bovis Lend Lease

• Tangible Benefits Savings of over 400,000 person-hours in document handling 60% reduction in plan printing 50% reduction in site paper supplies 90% reduction in couriers 95% reduction in chemical photography 25% reduction in travel 20% reduction in telephone usage 80% reduction in printed forms 50% reduction in plan printing 30% reduction in internal mail and courier costs

In paper alone it would save 150+ tonnes or the equivalent of nearly 2,500 trees





Bovis Lend Lease

• Hidden Benefits– Facilitates Business Process Re-engineering

– Facilitates alignment with project partners (over 1000 companies have participated in “ProjectWeb” ventures)

– Widens access to the value chain (ie international collaboration)

– Higher quality and responsiveness in project control





Leighton Contractors, Brisbane

• Use of Electronic Document Management System to coordinate all project documentation.

• Capable of integration into “virtual office”, project web sites, etc.

• Secure access and work allocation controlled by login - this is now embedded in company business practice.

• Relatively slow transfer of drawings can be addressed by ‘Citrix’ software, plus use of wide bandwidth LAN or leased data lines.





• Civil engineers still prefer paper drawings, especially on site, but...

• Colour on-screen display of drawings seen as beneficial where complex details require differentiation.

• Paper driven sub-contractors currently still accommodated but could be excluded in the future.

Leighton Contractors, Brisbane





IT Strategies for Best Business Practice

• IT short course - currently piloted in Qld.

• Commonwealth and State funding

• Building and construction industry

• 16 organisations from across the value chain

• Designed to improve strategic approaches to IT planning and implementation




Construction IndustryIT Strategies for Best Business Practice

(cont’d)

• Review business goals and objectives

• Identify and review key processes

• Identify and assess information needs

• Develop IT strategies

• Develop IT implementation plan





Outcomes

• Effective use of IT in business

• Improved integration of processes

• Efficiencies with partners across the value chain

• Competitive advantage through improved productivity




Construction IndustryPartners

• Information Industries Bureau, (Qld Department of Communication, Information, Local Government, Planning and Sport)

• Commonwealth Department of Industry Science and Resources

• Department of State Development (Qld)• Department of Public Works (Qld)• Construction Queensland• International Alliance for Interoperability






• The Problem– Responsible for the maintenance of 130,000+

properties state-wide, in 108 zones

– Issuing over 54,000 job orders monthly, across 22 trades

– In receipt of similar numbers of requests for payment

– Communication in both directions by diverse conventional methods






• The Solution– E-mail based system, loosely automating a traditionally

paper/phone driven process

– Job orders, invoices and payments all transacted electronically

– No commercially sensitive information broadcast across network






• Issues Arising– “Low tech” solution for procuring recurrent responsive

maintenance from pre-qualified sub-contractors

– Pre-qualification tenders carried out conventionally (at present)

– Low individual value for each work order = low risk

– Weekly summary report clearly ensures authenticity of claims for payment

– Low level technology and skills investment required to participate

– Message content far more important than its appearance (simple .rtf format used for platform independence)




Construction IndustryProposed Stage 2 Scope

• Desktop study from Stage 1 will form major input to Stage 2 • Establish Australian IT capability:

• (a) Survey all industry sectors nationally = research database• (b) Attention to all sectors - SMEs, major contractors,

designers, suppliers, subcontractors, operations/maintenance providers, etc

• Showcasing – case studies (including other industries):• (a) BPR, include supply chain• (b) Electronic tendering, interoperability• (c) Model projects





Proposed Stage 2 Outputs & Program

Proposed Stage 2 outputs:

• Confirm obstacles and opportunities

• Identify and recommend mechanism for improvement

• Promote Industry collaboration

• Opportunity for competitive advantage

• Initiate change

Proposed Program for Stage 2:

• Estimated 18 month duration

ciia taskforce report

Documents

cultural changechange

cultural shift

cultural imperativesculture

cultural changeceos

business goalseducation

changelow industry margins

samios architects

industrylow level technology