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using IT for competitive advantage

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Title: using IT for competitive advantage


1
  • using IT for competitive advantage

From the Vision to Reality
Kay Janis, Vice Chair International Alliance for
Interoperability October 2000
2
Latham Report, 1994
  • In 1994, the Latham Report suggested that
  • productivity gains of 30 could be
  • achieved from the development and uptake
  • of data integration across
  • the building and construction industry

3
six years later . . .
  • e-mail
  • Word processing
  • Spread sheets
  • Databases
  • CAD
  • Specifications
  • Design
  • Engineering
  • Project Management
  • Bills Of Quantities
  • Cost Estimating
  • Office Management
  • virtual project sites
  • ftp sites
  • Internet
  • intranets

4
Changing IT
ink paper message slips letters drawings slides fi
le cabinets DHL / ADCOM digital optional
pixels on-screen voice mail email database e-phot
o CDs hard drives internet digital essential
to to to to to to to to to
to
5
IT Challenges
  • during the life of a project
  • 20 of design and construction costs are due to
    waste
  • 80 of construction administration processes
    could be saved with single-entry, web-enabled,
    shared databases
  • 50-85 of all construction problems are caused by
    missing or bad information
  • contractors calculate quantities on each cost
    estimating item seven times on average
  • 10-30 of time spent by facility engineers is
    searching for information

6
Changing Demands
  • more complex requirements for buildings
  • more accurate information for FM activities
  • more profit for the investments of buildings
  • environmental and life cycle issues are becoming
    more and more important
  • the need to improve productivity
  • removal of non-value adding work
  • re-use of information
  • better processes and information management
  • better communication

7
Changing Business Environment
  • business and industry are changing
  • increased competitiveness
  • globalisation
  • from paper based to electronic based
  • e-commerce and e-business
  • increased productivity and profitability
  • reduced time, cost and rework
  • However . . .
  • A wide range of inter-related changes is needed
    to fully realise the potential of information and
    communication technologies

8
Industry Challenges
  • The building industry in Australia is diffuse
    with many (150,000) small (average size of 3
    employees) players.
  • Direct owner involvement underpins a low-risk
    conservative view of new initiatives
  • The building industry operates on very low
    competitive margins with a poor RD history
  • The facility/asset management industry is
    relatively new, with poor strategic or board room
    recognition
  • Information in these industries is still seen as
    predominantly static and proprietary
  • Current data exchange practice is primitive

9
Changing Industry
  • local
  • project based
  • traditional delivery
  • contractual
  • contractor as enemy
  • paper based
  • my office
  • individual performance
  • design-bid-build
  • client as audience
  • product service
  • fragmented approach

to to to to to to to to to to to to
global client focused specialised
practice partnering contractor as
partner electronic based our firm team
work design-build client as collaborator knowledge
provider interoperability
10
IT Benchmarking
  • How IT Benchmarking can facilitate best practice,
    Peter Stewart RMIT
  • highlights the performance gap
  • points to areas of potential change
  • reveals how change can be achieved
  • understanding how others undertake particular
    processes
  • indicates where improved best practice can be
    discovered
  • external benchmarking encourages companies to
    consider new processes
  • acts as an agent of change
  • encourages a move from retaining existing
    processes to one where major change is sought and
    supported

11
IT Best Practice
  • Benchmarking Best Practice Report
  • Construct IT Centre of Excellence - UK (1996)
  • comparing IT needs and practices, benchmarking
    on projects throughout Europe
  • Information Communication and Technology. . .
  • is used to counter the tyranny of distance
  • supports better communications
  • supports integrated project information
  • supports innovation in procurement methods
  • supports technology development
  • underscores the importance of ICT in an efficient
    and competitive industry
  • enables more firms, especially SMEs to enter and
    compete in new markets

12
Roadmap for Change
  • Level 0 - Paper Based
  • sequential design, limited 1-way exchange
  • Level 1 - Electronic Paper
  • 2D CAD, independent design, 1-way exchange
  • Level 2 - Project Co-ordination
  • 3D CAD, co-ordinated design, 2-way exchange
  • Level 3 - Project Integration
  • object model, concurrent design, shared database
  • Level 4 - Intelligent Project
  • complex (information rich) object model,
    interactive design, integrated systems

13
Integrated IT
  • How can the industry be more effective?
  • the greater and more effective uptake of
    information and communication technologies
    throughout all levels of the industry is
    necessary to enable greater efficiency and
    competitiveness
  • integrated ICT usage depends on
  • available technology
  • technical sophistication of project partners
  • size, complexity and integration of project
  • degree of partnership that can be established
  • incorporation of interoperability

14
IAI and Interoperability
  • to enable and promote interoperability
  • which allows all groups (eg, client,
    architecture, engineering, construction,
    suppliers and facilities management) to share a
    common set of project information
  • information sharing is
  • world-wide
  • throughout the project life cycle
  • across all disciplines and technical applications
  • via integrated technological solutions
  • enabled by IFCs

15
Current Situation
The work is mainly done with computers but much
of the information is still exchanged on
paper, which causes non-value- adding work,
friction, data losses and errors
16
Vision of Interoperability
Information is shared in exploitable data format
directly between different systems
17
Interoperability
Clients
Building owner
Developer
Users
Facility managers
Quantity surveyors
Virtual project
Architects
Contractors
Information providers
Product manufacturers
Engineers
Government agencies
Building certifiers
18
Interoperability
  • How is interoperability achieved?
  • newly developing software technology
  • for building and construction industry
  • delivers substantial time and cost savings
  • exchanging information via integrated
    technological solutions
  • independent of software programs
  • used by all team members
  • avoids duplication of data entry
  • allows value adding to project data
  • integrates with web based technologies
  • enables virtual projects in real time

19
Components of Interoperability
  • object oriented
  • standardised data format
  • independent of software programs
  • incorporates intelligent elements
  • IFCs Industry Foundation Classes
  • building blocks of the software
  • universal language
  • specification for sharing data
  • based on ISO data format standards

20
IFC Industry Foundation Classes
  • IFC is to Project Model exchange (wall, door,
    window) what DXF is to graphic entity exchange
    (line, arc, circle)
  • IFC is available to all like DXF) for use
    globally and throughout the industry, including
    use by other software vendors
  • IFC offers a higher-level common language for
    the sharing of intelligent objects between
    disciplines across the building life cycle
  • STEP data modelling protocols form the basis of
    implementation of IFCs

21
Current IFC Releases
  • Architecture
  • bubble diagrams
  • door and window schedules
  • Construction Management
  • cost estimating, task and resource modelling
  • Facilities Management
  • schedules for equipment, furniture, occupancy
  • HVAC
  • heating and cooling loads
  • equipment selection and schedules

22
Future IFC Releases
  • Architecture
  • site design, capture of design intent
  • Facilities Management
  • space area calculation (FMA, BOMA)
  • scheduling, asset information furniture
  • Performance Code Check
  • energy performance simulation
  • HVAC
  • building systems design, plumbing systems
  • thermal load calculations
  • Cross Industry
  • constraints (design, code, budget)
  • design grids, networks, links over internet

23
IFCs
  • CAD Packages
  • Allplan/Nemetschek
  • ArchiCAD/Graphisoft
  • AutoCAD Architectural Desktop/Autodesk
  • BLIS R2.0
  • CSIRO,Janus, Model Converter
  • CSTB, QualiSTEP, IFC Repository / VRML
  • Microsoft, Visio 2000, Tech Design/FM
  • PNNL, ComCheck EZ, Energy code checking
  • Secom, IFC Server, IFC Model Server (COM)
  • Timberline Software, Precision Est., Qty/cost
    estimating
  • VTT, Promote, Browser / VRML models
  • C, Java, Prolog, Basic, Delphi

24
R I C H A R D S E E M I C R O S O F T, U S
A
25
Towards an Interoperable Industry
  • What does this mean for the industry?
  • incorporation of the architecture, engineering,
    construction and facility management sectors
  • effective use of IT
  • better, more integrated processes
  • seamless information exchange
  • industry-wide, integrated information
  • smooth integration of business and technical data
    throughout project
  • enhanced efficiencies with partners across the
    value chain
  • supports and enables e-commerce
  • throughout the life cycle of the project

26
More Than Just Technology
  • information sharing (enabled by IFCs)
  • to improve the
  • communication, productivity, delivery time, cost
    and quality throughout the design, construction,
    operation and maintenance lifecycle of the
    project
  • level of ICT integration
  • systems and processes
  • culture and people
  • culture and people
  • culture and people

27
Integrated IT
  • How can the industry be more effective?
  • the greater and more effective uptake of
    information and communication technologies
    throughout all levels of the industry is
    necessary to enable greater efficiency and
    competitiveness
  • integrated ICT usage depends on
  • available technology
  • technical sophistication of project partners
  • size, complexity and integration of project
  • degree of partnership that can be established
  • incorporation of interoperability

28
Interoperability is e-business
  • understanding business processes is crucial to
    the success of using information communication
    and technology in an integrated and innovative
    way
  • e-business is about your business
  • your opportunities and challenges
  • your project partners
  • your systems and processes
  • your improved productivity and profitability
  • your competitive advantage

29
International Alliance for Interoperability
  • IAI is a non-profit alliance
  • building, construction, property and software
    industries
  • over 650 member organisations
  • representing 17 countries
  • 9 chapters - North America, France, Japan, United
    Kingdom, German speaking, Korea, Nordic
    countries, Singapore, Australasia
  • IAI is committed to
  • enable interoperability
  • provide international linkages
  • support improved productivity
  • encourage industry best practice
  • maximise the collective power of the industry

30
IAI World-wide
  • nine chapters
  • 17 countries
  • 650 member organisations

31
IAI-Australasia Chapter Members
  • Architects
  • Engineers
  • Contractors large and small
  • Building Product Suppliers
  • Facility Managers/Property Managers
  • Government
  • CSIRO
  • Academic/Research Institutions
  • Software related firms
  • domain (end users) and technical experts

32
From the Vision to Reality
  • IAI Vision
  • to enable software interoperability in the AEC/FM
    Industries
  • IAI-Australasia Chapter Vision
  • to improve and ensure the sustainable global
    competitive position throughout the Australasian
    AEC/FM industries by enabling and promoting
    interoperability

33
IAI-AC Objectives
  • Provide leadership on behalf of the AEC/FM
    industries
  • Promote and expand B2B interoperability awareness
    within the AEC/FM industries
  • Identify and assist industry to address business,
    organisational and cultural implications in the
    local, national and global markets
  • Assist and enable industry uptake and use of B2B
    interoperability
  • Facilitate and encourage Australasian IT Software
    interoperability integration
  • Promote and assist the development of
    interoperability content in education/CPD
  • Enhance and foster International Linkages

34
From the Vision to Reality
  • IAI Awareness and Demonstration Project
  • ISR (DIST) funded since 1997
  • 3 roadshow seminars per year
  • 10 M joint CSIRO-IAI RD Initiative
  • Established Active IAI Groups
  • Sydney, Melbourne and Brisbane
  • expanding to WA, SA and New Zealand
  • Regular Regional Meetings
  • Technical Groups and Seminars
  • IFC Implementers Training Course
  • IFC Interest Groups
  • National and International Linkages

35
From the Vision to Reality
  • Formalise Industry Alliances
  • achieving practical and implementable outcomes
  • building and construction industry focus
  • avoids fragmentation of industry efforts
  • aligns efforts and expertise of industry and
    researchers to maximise benefits of research
    projects and emerging technologies
  • jointly endorse Commonwealths policy framework
    and initiatives
  • wider access to international networks and
    improving global links
  • technology education and awareness
  • improved interoperability
  • greater industry collaboration

36
From the Vision to Reality
  • From the Vision to Reality
  • International Conference
  • Arto Kiviniemi, TEKES, Finland
  • Brian Zelly, Laing, UK
  • Matthew Bacon, BAA, UK
  • Kent Reed, NIST, USA
  • and IFC demonstrations across disciplines and
    technical applications
  • IAI Vision inspired interoperability
  • National Conference
  • life cycle considerations
  • Andrew Clowes, Jones Lang Lasalle
  • Prof Hans Bjornsson, USA
  • FM case studies

37
From the Vision to Reality
  • interop aecfm 2001International
    Interoperability Conference
  • October 2001
  • to facilitate, demonstrate and showcase
    Australian demonstration projects incorporating
    interoperability
  • national and international speakers
  • industry participants from B2B e-commerce to
    e-projects and interoperability
  • integrated virtual development theme
  • focus on entire life cycle
  • results oriented actual projects and
  • case studies
  • integrated design environment
  • Australian software developers showpiece

38
Research and Development
  • Collaborative Research Centre for Construction
    Innovation
  • participating organisation (along with CIIA)
  • virtual elements for lifecyle design and
    construction
  • integrated design and construction support
    systems
  • Ongoing IFC Development
  • Ecologically Sustainable Development (ESD in IT)
  • prefabricated roof structures
  • Involvement in CIIA Research Projects

39
Co-Sponsored Events
  • CIIA Innovation in Construction
  • hosting todays reception
  • Construction IT National Conferences
  • AUSFM Integrating technology and innovation for
    efficient and strategic Facilities Management
  • National Museum Research Project Seminars
  • Acton Peninsula Project
  • live case study on alliancing and IT
  • Melbourne, Sydney, Canberra and Brisbane

40
Partners
  • IT Strategies for Best Business Practice
  • IT short course
  • Commonwealth and State funding
  • building and construction industry
  • designed to improve strategic approaches to IT
    planning and implementation
  • 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

41
Using IT for Competitive Advantage . . .
  • the journey From the Vision to the Reality
  • . . . More Than Just Technology
  • www.interoperability.org.au
  • International Alliance for Interoperability
  • improved interoperability
  • greater industry collaboration
  • technology education and awareness

42
  • thank you -)

www.interoperability.org.au
enabling interoperability in the AEC/FM
industries See you at the Reception hosted by the
International Alliance for Interoperability
Australasia Chapter
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