Improving ICT integration in today’s AEC industry: recommendations & guidelines

The Cooperative Research Centre (CRC) for Construction Innovation research project 2001-008-C: ‘Project Team Integration: Communication, Coordination and Decision Support’, is supported by a number of Australian industry, government and university based project partners including: Queensland University of Technology (QUT); Commonwealth Scientific Industrial Research Organisation (CSIRO), University of Newcastle; Queensland Department of Public Works (QDPW); and the Queensland Department of Main Roads (QDMR). Supporting the various research aims and objectives of the 2001-008-C (Part B) QUT / Industry Partner agreements, and as a major deliverable for the project, this report is not intended as a comprehensive statement of Architectural, Engineering and Contractor (AEC) industry best practice recommendations. Rather it should read as a set of research and industry recommended guidelines, based on extensive literature reviews and two years worth of investigative activities examining both public and private industry uptake of innovative information and communication technology (ICT) solutions, whilst highlighting the overall need for culture change.

Industry culture: a need for change

Research indicates, one of the last available ‘mechanisms’ left for organisations to improve their competitive position within the construction industry is by considering its people (culture) along with its technology (Schein E. H. 1997). In other words, if one wants to make construction industry organisations, groups and project teams more efficient and effective, then one must better understand the role that culture plays within them.

Electronic tendering: an industry perspective

The construction industry is categorised as being an information-intensive industry and described as one of the most important industries in any developed country, facing a period of rapid and unparalleled change (Industry Science Resources 1999) (Love P.E.D., Tucker S.N. et al. 1996). Project communications are becoming increasingly complex, with a growing need and fundamental drive to collaborate electronically at project level and beyond (Olesen K. and Myers M.D. 1999; Thorpe T. and Mead S. 2001; CITE 2003). Yet, the industry is also identified as having a considerable lack of knowledge and awareness about innovative information and communication technology (ICT) and web-based communication processes, systems and solutions which may prove beneficial in the procurement, delivery and life cycle of projects (NSW Government 1998; Kajewski S. and Weippert A. 2000). The Internet has debatably revolutionised the way in which information is stored, exchanged and viewed, opening new avenues for business, which only a decade ago were deemed almost inconceivable (DCITA 1998; IIB 2002). In an attempt to put these ‘new avenues of business’ into perspective, this report provides an overall ‘snapshot’ of current public and private construction industry sector opportunities and practices in the implementation and application of web-based ICT tools, systems and processes (e-Uptake). Research found that even with a reserved uptake, the construction industry and its participating organisations are making concerted efforts (fortunately with positive results) in taking up innovative forms of doing business via the internet, including e-Tendering (making it possible to manage the entire tender letting process electronically and online) (Anumba C.J. and Ruikar K. 2002; ITCBP 2003). Furthermore, Government (often a key client within the construction industry),and with its increased tendency to transact its business electronically, undoubtedly has an effect on how various private industry consultants, contractors, suppliers, etc. do business (Murray M. 2003) – by offering a wide range of (current and anticipated) e-facilities / services, including e-Tendering (Ecommerce 2002). Overall, doing business electronically is found to have a profound impact on the way today’s construction businesses operate - streamlining existing processes, with the growth in innovative tools, such as e-Tender, offering the construction industry new responsibilities and opportunities for all parties involved (ITCBP 2003). It is therefore important that these opportunities should be accessible to as many construction industry businesses as possible (The Construction Confederation 2001). Historically, there is a considerable exchange of information between various parties during a tendering process, where accuracy and efficiency of documentation is critical. Traditionally this process is either paper-based (involving large volumes of supporting tender documentation), or via a number of stand-alone, non-compatible computer systems, usually costly to both the client and contractor. As such, having a standard electronic exchange format that allows all parties involved in an electronic tender process to access one system only via the Internet, saves both time and money, eliminates transcription errors and increases speed of bid analysis (The Construction Confederation 2001). Supporting this research project’s aims and objectives, researchers set to determine today’s construction industry ‘current state-of-play’ in relation to e-Tendering opportunities. The report also provides brief introductions to several Australian and International e-Tender systems identified during this investigation. e-Tendering, in its simplest form, is described as the electronic publishing, communicating, accessing, receiving and submitting of all tender related information and documentation via the internet, thereby replacing the traditional paper-based tender processes, and achieving a more efficient and effective business process for all parties involved (NT Governement 2000; NT Government 2000; NSW Department of Commerce 2003; NSW Government 2003). Although most of the e-Tender websites investigated at the time, maintain their tendering processes and capabilities are ‘electronic’, research shows these ‘eTendering’ systems vary from being reasonably advanced to more ‘basic’ electronic tender notification and archiving services for various industry sectors. Research also indicates an e-Tender system should have a number of basic features and capabilities, including: • All tender documentation to be distributed via a secure web-based tender system – thereby avoiding the need for collating paperwork and couriers. • The client/purchaser should be able to upload a notice and/or invitation to tender onto the system. • Notification is sent out electronically (usually via email) for suppliers to download the information and return their responses electronically (online). • During the tender period, updates and queries are exchanged through the same e-Tender system. • The client/purchaser should only be able to access the tenders after the deadline has passed. • All tender related information is held in a central database, which should be easily searchable and fully audited, with all activities recorded. • It is essential that tender documents are not read or submitted by unauthorised parties. • Users of the e-Tender system are to be properly identified and registered via controlled access. In simple terms, security has to be as good as if not better than a manual tender process. Data is to be encrypted and users authenticated by means such as digital signatures, electronic certificates or smartcards. • All parties must be assured that no 'undetected' alterations can be made to any tender. • The tenderer should be able to amend the bid right up to the deadline – whilst the client/purchaser cannot obtain access until the submission deadline has passed. • The e-Tender system may also include features such as a database of service providers with spreadsheet-based pricing schedules, which can make it easier for a potential tenderer to electronically prepare and analyse a tender. Research indicates the efficiency of an e-Tender process is well supported internationally, with a significant number, yet similar, e-Tender benefits identified during this investigation. Both construction industry and Government participants generally agree that the implementation of an automated e-Tendering process or system enhances the overall quality, timeliness and cost-effectiveness of a tender process, and provides a more streamlined method of receiving, managing, and submitting tender documents than the traditional paper-based process. On the other hand, whilst there are undoubtedly many more barriers challenging the successful implementation and adoption of an e-Tendering system or process, researchers have also identified a range of challenges and perceptions that seem to hinder the uptake of this innovative approach to tendering electronically. A central concern seems to be that of security - when industry organisations have to use the Internet for electronic information transfer. As a result, when it comes to e-Tendering, industry participants insist these innovative tendering systems are developed to ensure the utmost security and integrity. Finally, if Australian organisations continue to explore the competitive ‘dynamics’ of the construction industry, without realising the current and future, trends and benefits of adopting innovative processes, such as e-Tendering, it will limit their globalising opportunities to expand into overseas markets and allow the continuation of international firms successfully entering local markets. As such, researchers believe increased knowledge, awareness and successful implementation of innovative systems and processes raises great expectations regarding their contribution towards ‘stimulating’ the globalisation of electronic procurement activities, and improving overall business and project performances throughout the construction industry sectors and overall marketplace (NSW Government 2002; Harty C. 2003; Murray M. 2003; Pietroforte R. 2003). Achieving the successful integration of an innovative e-Tender solution with an existing / traditional process can be a complex, and if not done correctly, could lead to failure (Bourn J. 2002).

Brite phase 1 report to industry : innovate – now

Trying to innovate or wanting to? Making a start is the most difficult step on any journey. Whether trying to innovate for the first time, or seeking improvements on current performance, organisations are confronted with a plethora of options. Innovate ― Now! makes action easier by presenting some of the key considerations for improving innovation performance. This guide has been based on the outcomes of a survey and case studies conducted between 2003 and 2005 in the Australian property and construction industry and therefore contains unique and up-to-date information, examples and suggestions tailored specifically to your industry needs.

Report a review of the concepts and definitions of the various forms of relational contracting

Partnering has been defined in many ways. It can be considered as an individual project mechanism or can be considered as a long term strategy. Alliancing is normally assumed to be a long term business strategy linking together client, contractor and supply chain. Relational contracting goes further than this and brings in the whole philosophy of the value chain and the linking of the interdependent parts within the construction project as a key business objective. This document aims to review existing definitions of these three concepts and present and overview of the current state of-the-art in terms of their use and implementation. The document should be useful for all of those project team members looking to sharpen their understanding of the various concepts and will also provide a platform for debating the current state of the definitions and implementations being used in Main Roads and Public Works Departments.

Adoption in the construction industry

This report draws together the key findings from six case studies on the subject of ebusiness Adoption in Construction conducted in Australia by the University of Newcastle (UON) and Royal Melbourne Institute of Technology (RMIT) from 2005 through to mid-2006 under the auspices of the Cooperative Research Centre for Construction Innovation (CRC_CI). Reference to this timing is important because one of the key themes to emerge from the study is that the take-up of e-business is a dynamic phenomenon within the construction industry.

Innovate now : Improving performance in the building and construction industry

Trying to innovate or wanting to? Making a start is the most difficult step on any journey. Whether trying to innovate for the first time, or seeking improvements on current performance, organisations are confronted with a plethora of options. Innovate now! makes action easier by presenting some of the key considerations for improving innovation performance. This guide has been based on the outcomes of a survey and case studies conducted between 2003 and 2005 in the Australian property and construction industry and therefore contains unique and up-to-date information, examples and suggestions tailored specifically to your industry needs. The large-scale industry survey and 12 innovation case studies on which this guide are based were carried out by The BRITE (Building Research, Innovation, Technology and Environment) Project as part of research for the Cooperative Research Centre for Construction Innovation. The stakeholders volunteering to take part in BRITE research included over 400 businesses, 14 government organisations, 8 industry associations and 4 universities.

A primer in public policy for the construction industry

The purpose of this document is to introduce non-specialists to the discipline and practice of public policy, particularly in relation to the construction sector in Australia. In order to do this, a brief overview of Australia’s government structure, and some of the main approaches to public policy analysis are outlined. Reference to construction related examples are provided to ensure issues discussed are relevant and understandable to construction professionals. Government is a significant player in the construction industry, and has multiple roles: adjudicator, regulator, constructor, purchaser and client of construction projects. Moreover there are many spheres of government that are typically engaged in construction projects at multiple stages. The machinery of government can be difficult to understand, even for long term public servants. Demystifying the processes within government can help to improve communication and therefore performance in the industry. A better understanding of how policy-making and government policies affect the construction industry will enhance communication and assist construction professionals and academics to understand and work with government. Additionally the document will provide an opportunity to demonstrate the relevance of policy analysis to inquiries of construction policies and regulation.

A sustainable model for supporting entrepreneurship in developing countries

Principal Topic Small and micro-enterprises are believed to play a significant part in economic growth and poverty allevition in developing countries. However, there are a range of issues that arise when looking at the support required for local enterprise development, the role of micro finance and sustainability. This paper explores the issues associated with the establishment and resourcing of micro-enterprise develoment and proposes a model of sustainable support of enterprise development in very poor developing economies, particularly in Africa. The purpose of this paper is to identify and address the range of issues raised by the literature and empirical research in Africa, regarding micro-finance and small business support, and to develop a model for sustainable support for enterprise development within a particular cultural and economic context. Micro-finance has become big business with a range of models - from those that operate on a strictly business basis to those that come from a philanthropic base. The models used grow from a range of philosophical and cultural perspectives. Entrepreneurship training is provided around the world. Success is often measured by the number involved and the repayment rates - which are very high, largely because of the lending models used. This paper will explore the range of options available and propose a model that can be implemented and evaluated in rapidly changing developing economies. Methodology/Key Propositions The research draws on entrepreneurial and micro-finance literature and empirical research undertaken in Mozambique, which lies along the Indian ocean sea border of Southern Africa. As a result of war and natural disasters over a prolonged period, there is little industry, primary industries are primitive and there is virtually no infrastructure. Mozambique is ranked as one of the poorest countries in the world. The conditions in Mozambique, though not identical, reflect conditions in many other parts of Africa. A numebr of key elements in the development of enterprises in poor countries are explored including: Impact of micro-finance Sustainable models of micro-finance Education and training Capacity building Support mechanisms Impact on poverty, families and the local economy Survival entrepreneurship versus growth entrepreneurship Transitions to the formal sector. Results and Implications The result of this study is the development of a model for providing intellectual and financial resources to micro-entrepreneurs in poor developing countries in a sustainable way. The model provides a base for ongoing research into the process of entrepreneurial growth in African developing economies. The research raises a numeber of issues regarding sustainability including the nature of the donor/recipient relationship, access to affordable resources, the impact of individual entrepreneurial activity on the local economny and the need for ongoing research to understand the whole process and its impact, intended and unintended.

Is the sum more than the corporate entrepreneurship parts? the different effects of social capital on innovation, venturing, and renewal processes

Principal Topic Although corporate entrepreneurship is of vital importance for long-term firm survival and growth (Zahra and Covin, 1995), researchers still struggle with understanding how to manage corporate entrepreneurship activities. Corporate entrepreneurship consists of three parts: innovation, venturing, and renewal processes (Guth and Ginsberg, 1990). Innovation refers to the development of new products, venturing to the creation of new businesses, and renewal to redefining existing businesses (Sharma, and Chrisman, 1999; Verbeke et al., 2007). Although there are many studies focusing on one of these aspects (cf. Burgelman, 1985; Huff et al., 1992), it is very difficult to compare the outcomes of these studies due to differences in contexts, measures, and methodologies. This is a significant lack in our understanding of CE, as firms engage in all three aspects of CE, making it important to compare managerial and organizational antecedents of innovation, venturing and renewal processes. Because factors that may enhance venturing activities may simultaneously inhibit renewal activities. The limited studies that did empirically compare the individual dimensions (cf. Zahra, 1996; Zahra et al., 2000; Yiu and Lau, 2008; Yiu et al., 2007) generally failed to provide a systematic explanation for potential different effects of organizational antecedents on innovation, venturing, and renewal. With this study we aim to investigate the different effects of structural separation and social capital on corporate entrepreneurship activities. The access to existing and the development of new knowledge has been deemed of critical importance in CE-activities (Floyd and Wooldridge, 1999; Covin and Miles, 2007; Katila and Ahuja, 2002). Developing new knowledge can be facilitated by structurally separating corporate entrepreneurial units from mainstream units (cf. Burgelman, 1983; Hill and Rothaermel, 2003; O'Reilly and Tushman, 2004). Existing knowledge and resources are available through networks of social relationships, defined as social capital (Nahapiet and Ghoshal, 1998; Yiu and Lau, 2008). Although social capital has primarily been studied at the organizational level, it might be equally important at top management level (Belliveau et al., 1996). However, little is known about the joint effects of structural separation and integrative mechanisms to provide access to social capital on corporate entrepreneurship. Could these integrative mechanisms for example connect the separated units to facilitate both knowledge creation and sharing? Do these effects differ for innovation, venturing, and renewal processes? Are the effects different for organizational versus top management team integration mechanisms? Corporate entrepreneurship activities have for example been suggested to take place at different levels. Whereas innovation is suggested to be a more bottom-up process, strategic renewal is a more top-down process (Floyd and Lane, 2000; Volberda et al., 2001). Corporate venturing is also a more bottom-up process, but due to the greater required resource commitments relative to innovation, it ventures need to be approved by top management (Burgelman, 1983). As such we will explore the following key research question in this paper: How do social capital and structural separation on organizational and TMT level differentially influence innovation, venturing, and renewal processes? Methodology/Key Propositions We investigated our hypotheses on a final sample of 240 companies in a variety of industries in the Netherlands. All our measures were validated in previous studies. We targeted a second respondent in each firm to reduce problems with single-rater data (James et al., 1984). We separated the measurement of the independent and the dependent variables in two surveys to create a one-year time lag and reduce potential common method bias (Podsakoff et al., 2003). Results and Implications Consistent with our hypotheses, our results show that configurations of structural separation and integrative mechanisms have different effects on the three aspects of corporate entrepreneurship. Innovation was affected by organizational level mechanisms, renewal by integrative mechanisms on top management team level and venturing by mechanisms on both levels. Surprisingly, our results indicated that integrative mechanisms on top management team level had negative effects on corporate entrepreneurship activities. We believe this paper makes two significant contributions. First, we provide more insight in what the effects of ambidextrous organizational forms (i.e. combinations of differentiation and integration mechanisms) are on venturing, innovation and renewal processes. Our findings show that more valuable insights can be gained by comparing the individual parts of corporate entrepreneurship instead of focusing on the whole. Second, we deliver insights in how management can create a facilitative organizational context for these corporate entrepreneurship activities.

Wrong way, go back! Negotiating success in industry-based research

Literature addressing methodological issues in organisational research is extensive and multidisciplinary, encompassing debates about methodological choices, data-collection techniques, epistemological approaches and statistical procedures. However, little scholarship has tackled an important aspect of organisational research that precedes decisions about data collection and analysis – access to the organisations themselves, including the people, processes and documents within them. This chapter looks at organisational access through the experiences of three research fellows in the course of their work with their respective industry partners. In doing so, it reveals many of the challenges and changing opportunities associated with access to organisations, which are rarely explicitly addressed, but often assumed, in traditional methods texts and journal publications. Although the level of access granted varied somewhat across the projects at different points in time and according to different organisational contexts, we shared a number of core and consistent experiences in attempting to collect data and implement strategies.

Women's participation in the Australian Digital Content Industry : initial case study findings

An exploratory case study which seeks to understand better the problem of low participation rates of women in Information Communication Technology (ICT) is currently being conducted in Queensland, Australia. Contextualised within the Digital Content Industry (DCI) multimedia and games production sectors, the emphasis is on women employed as interactive content creators rather than as users of the technologies. Initial findings provide rich descriptive insights into the perceptions and experiences of female DCI professionals. Influences on participation such as: existing gender ratios, gender and occupational stereotypes, access into the industry and future parental responsibilities have emerged from the data. Bandura’s (1999) Social Cognitive Theory (SCT) is used as a “scaffold” (Walsham, 1995:76) to guide data analysis and assist analytic generalisation of the case study findings. We propose that the lens of human agency and theories such as SCT assist in explaining how influences are manifested and affect women’s agency and ultimately participation in the DCI. The Sphere of Influence conceptual model (Geneve et al, 2008), which emerges from the data and underpinning theory, is proposed as a heuristic framework to further explore influences on women’s participation in the DCI industry context.

Facilities management action agenda : the Australian government and industry working together for improvement

This paper provides an overview of the Australian Government’s Facilities Management (FM) Action Agenda as announced in 2004 as a key policy plank designed to facilitate growth of the FM industry. The resulting consultation with industry leaders has seen the criterion and release in April 2005 of the FM Action Agenda’s strategic plan entitled ‘Managing the Built Environment’. This framework, representing a collaboration between the Australian Government, public and private sector stakeholders and Facility Management Association of Australia (FMA Australia) and other allied bodies, sets out to achieve the vision of a more “…productive and sustainable built environment…” through improved innovation, education and standards. The 36 month implementation phase is now underway and will take a multi-pronged approach to enhancing the recognition of the FM industry and removing impediments to its growth with a 20 point action plan across the following platforms: • Innovation – Improved appreciation of facility life cycles, and greater understanding of the key drivers of workplace productivity, and the improved application of information technology. • Education and Training – Improved access to dedicated FM education and training opportunities and creation clear career pathways into the profession. • Regulatory Reform – Explore opportunities to harmonise cross jurisdictional regulatory compliance requirements that have an efficiency impact on FM. • Sustainability – Improved utilization of existing knowledge and the development of tools and opportunities to improve the environmental performance of facilities. Additional information is available at www.fma.com.au