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
T a s k F o r c e I n i t i a l T a s k F o r c e R e v i e w a n d I n i t i a t i o n ' i n p r i n c i p l e ' s i g R e v i s e a n d F o r m u l a t e U n d e r t a k e r e s e a r c h f i n a l i s e T a s k c o n c e p t u a l a n d p r e p a r e d r a f t F o r c e r e p o r t f r a m e w o r k r e p o r t Task Force Program - Stage 1 T a s k F o r c e T a s k F o r c e O v e r v i e w F i n a l R e v i e w a n d C I I A C o n f e r e n c e n o f f S y d n e y B r i s b a n e B r i s b a n e M i d A u g u s t O c t o b e r M i d J a n u a r y E n d M a r c h 2 0 0 0 2 0 0 0 2 0 0 0 2 0 0 0
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
Culture 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 Study Rationale • 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
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
Flower 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
Bovis 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.
Leighton Contractors, Brisbane • 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.
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
IT 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
Partners • 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
Department of Housing - NSW • 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
Department of Housing - NSW • 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
Department of Housing - NSW • 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)
Proposed 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
