CIIA Taskforce Report

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CIIA Taskforce Report

• Improving the uptake of Information Technology in
  the Construction Industry

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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

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Overall Research Project Objective

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

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Task Force Program - Stage 1
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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

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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

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Culture and Technologies
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Technological Push

• Business process re-engineering enabled by
• - object modeling
• - web portals / e-commerce
• - ASPs
• - project web sites
• - WAP technologies

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Cultural Pull

• Relationship management
• Maturity of Clients/stakeholders
• Project partnering
• Strategic alliancing

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Culture and Relationships
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Resistance to Change

• Low industry margins inhibit long term ROI
  initiatives
• Managements lack of knowledge of technology
• Perceived loss of control by HO with BPR
  initiatives

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Conclusions

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

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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

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Case Studies - Whats possible

• Department of Housing - NSW
• Flower and Samios Architects, Sydney
• Information Industries Bureau
• Bovis Lend Lease
• Leighton Contractors, Brisbane
• DPWS, NSW

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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

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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

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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

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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

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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.

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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

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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

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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.

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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.

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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

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IT Strategies for Best Business Practice (contd)

• Review business goals and objectives
• Identify and review key processes
• Identify and assess information needs
• Develop IT strategies
• Develop IT implementation plan

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Outcomes

• Effective use of IT in business
• Improved integration of processes
• Efficiencies with partners across the value chain
• Competitive advantage through improved
  productivity

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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

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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

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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

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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)

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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

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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