Introduction
Statement of Purpose
This thesis investigates the influence of information technology on the construction industry, offering a framework to identify strategic advantages from innovative technology implementation It examines how these incentives impact individual organizations within project teams and the broader construction sector The research aims to establish a strategic vision for the role of information technology in construction over the next ten years.
Thesis Organization
Chapter 1 provides general introduction to my thesis topic and purpose of this research.
Chapter 2 describes some significant applications of information technology in construction and their impact on the industry First, I take a look at some IT implementations in the area of collaboration between design and construction Secondly, I explore some aspects in the context of interoperability. Lastly, industry wide applications are examined.
Chapter 3 discusses the knowledge management strategy as a part of IT advantage First, I general characteristics of knowledge management and then I examine case examples of knowledge management strategy from other sectors.Secondly, I discuss the knowledge management strategy for construction industry.
Lastly, I use system dynamics model to capture some important feedbacks from knowledge management strategy within an organization.
Chapter4 discusses some challenges for implementing information technology in construction and provides potential solutions for those challenges.
Chapter 5 offers conclusion as well as insights of future directions for construction industry with regards to information technology.
Significant Applications of IT in Construction
Collaboration Between Design and Construction
Integrated design and construction teams depend on swift information exchange to enhance communication during construction projects Recent advancements in information technologies, such as tablets, wearable computers, wireless internet, and web-based data exchange systems, have been implemented to streamline this process These technologies ensure that all project team members have access to the latest drawings and documents, significantly minimizing the risk of errors and reducing the need for rework.
" Save time in the query and approval process, by allowing the design and construction team to communicate on drawings online.
" Communicate changes quickly and easily during the design and construction stages.
" Eliminate the risk of losing important files, by maintaining all current and past versions in database.
" Maintain a complete log of all communications for tracking purposes.
In this section, I like to address some communication systems in detail and evaluate their impact on the collaboration between design and construction.
Communication challenges are common at construction sites, where both paper documents and electronic devices are prone to damage The introduction of affordable tablets and wearable computers aims to address these issues Utilizing these technologies enhances communication efficiency between on-site fieldworkers and off-site collaborators involved in building design and construction.
Tablet computers, comparable in size to notebooks, utilize a touch-sensitive screen and a pen-shaped stylus for input Wearable computers, equipped with a processing unit and batteries, can be conveniently worn on a belt These devices enable field workers to access essential information on-site with high accuracy and efficiency, offering exceptional mobility and speed.
Figure 2-1 Tablet computer (left) and wearable computer (right)
At the University of Illinois at Urbana-Champaign, experimental prototypes of tablet and wearable computers were tested, focusing on three communication technologies: paper documents, pen-based tablet computers, and wearable computers with flat panel displays The findings suggested that while the use of tablet and wearable computers could significantly decrease rework, there was a slight decline in overall productivity when these devices were employed.
In a comparison of productivity across different documentation methods, projects utilizing paper documents achieved a productive work rate of 86%, while those employing tablet computers recorded 80%, and wearable computers saw a further decline to 79% This indicates that productivity was marginally lower when using tablet and wearable technologies compared to traditional paper methods.
Paper Tablet WearableI Figure 2-2 Productivity(left) and Rework(right) Percentage of Total Work 2
Disital Data-Collection Device for Construction Site Documentation, L Y Liu, Computing in Civil Engineering, ASCE, New York, NY (2), 1287-1293, 1995
2 Source from above research paper
This lower productivity is mainly caused by the following reason The field workers needed more time to study and navigate CAD documents on site with a relatively small screen.
Projects utilizing tablet and wearable computers demonstrated a remarkable reduction in rework compared to those relying on paper documents Specifically, only 0% of project time was spent on rework with tablets, and 1.38% with wearables, while paper documents incurred a rework time of 4.15% This significant decrease highlights the enhanced accuracy and clarity of information provided by digital tools at the work site.
Innovative communication technologies, such as tablets and wearable computers, have been shown to enhance collaboration in design and construction, despite a slight initial dip in productivity during the adoption phase These technologies significantly improve the accuracy and speed of information exchange between on-site workers and off-site collaborators As a result, design and construction teams can minimize the risk of errors and rework by ensuring all members have access to the most up-to-date drawings and documents.
One of the key benefits of tablets and wearable computers is their mobility, which is essential in today's information technology landscape With wireless accessibility becoming increasingly important, construction projects demand continuous information exchange regardless of location To stay innovative and competitive in the construction industry, it's crucial to adopt the latest wireless technologies.
Constructability refers to the ease and feasibility of constructing a design concept, influenced by various design decisions Conducting fast and accurate constructability analyses during the early design phases enhances project team performance and reduces construction costs Currently, constructability reviews rely on manual analysis of 2D or 3D drawings, a process that is time-consuming, prone to errors, and fails to address cost implications Therefore, there is a critical need for an automated constructability analysis system to offer immediate and precise feedback to designers regarding the impact of constructability issues on construction.
In this section, I describe a recently developing on-line computer program that provides automated constructability and cost analysis At the end, I like to
In their article "3 Constructability Analysis: Machine Learning Approach," published in the Journal of Computing in Civil Engineering, Mirosaw Skibniewski, Tomasz Arciszewski, and Kamolwan Lueprasert explore the transformative impact of machine learning on the integration of design and construction knowledge They highlight how this innovative technology enhances constructability analysis, leading to improved efficiency and collaboration within civil engineering projects.
Recent research focuses on creating models to identify constructability issues and predict their implications and costs This online system offers designers valuable feedback regarding the constructability of facility designs and the associated costs of potential problems The system operates in three key steps: first, it identifies constructability features; second, it assesses the construction implications; and third, it calculates the related costs.
The system comprises three modules that enhance constructability analysis in product design The first module identifies and instantiates design-relevant constructability issues from the input product model, generating project-specific features The second module assesses the construction implications of these features, while the third calculates the associated costs This comprehensive approach supports collaboration among multiple users, including designers, estimators, and project teams, to improve project outcomes.
Providing Cost and Constructability Feedback to Designers, Sheryl Staub-French, Research paper from Construction Research Congress: Winds of Change: Integration and Innovation In Construction,
This case study introduces a formalized system designed to model the cost implications of various constructability issues By streamlining the constructability review process, this innovative approach significantly reduces the time spent on manual assessments Additionally, it enables designers to pinpoint specific design factors that affect constructability and construction costs early in the project delivery, ultimately enhancing overall efficiency.
Interoperability
Architecture, engineering, construction, and facilities management
The Architecture, Engineering, and Construction/Facility Management (AEC/FM) sectors heavily rely on information technologies to enhance collaboration among project participants Significant advancements have been made in the research and development of information sharing and linking within the AEC/FM industry A key focus of this research is interoperability, which enables seamless information transfer between various computer applications throughout the entire project lifecycle.
Interoperability in the fragmented AEC/FM industry depends on standardized information structures Two promising techniques to address this standardization challenge are web-based collaboration and model-based approaches This article will explore prototype systems for each technique and assess their potential to resolve interoperability issues effectively.
Traditional Electronic Data Interchange (EDI) systems have primarily been utilized within individual organizations, leading to inefficiencies in knowledge and information sharing across different entities involved in construction projects However, the newly developed web-based EDI model enhances this process by facilitating seamless document exchange and construction data sharing among project participants This innovative approach allows for easy creation, receipt, dispatch, storage, and removal of documents via the web, improving collaboration and efficiency in the construction industry.
Construction field documents encompass various categories, including management, resources, safety, environment, public service, progress, architecture, subcontracting, techniques, and quality XML, a standard document format established by the World Wide Web Consortium (W3C), facilitates efficient operation within construction documentation This format supports seamless data exchange, allowing for effective information retrieval, search, and abstraction across diverse databases, ensuring compatibility across all sectors of the construction industry.
XML's primary advantage lies in its hardware and software independence, enabling easy data exchange even in low IT environments For instance, a subcontractor lacking the necessary IT infrastructure can still access documents online if the sender converts XML files into HTML format.
The web-based XML/EDI model features a centralized database that effectively manages user interactions and data formats, enhancing collaboration among participants in construction projects This innovative approach, presented in the research paper by Hyun-Soo Lee, Sun-Ju An, Bo-Sik Son, Myung-Houn Jang, and Yoon-Ki Choi, was showcased at the Construction Research Congress, emphasizing the importance of integration and innovation in the industry.
In the construction industry, the 2003 Hawaii version introduced a systematic approach to document management through a Central Database (DB) that utilizes version control The XML/EDI model comprises a viewer module, an information management module, a Database Management System (DBMS), and a user interface Users can upload documents via the interface, while the DB facilitates document distribution The information management module sends necessary information to users, and the DBMS ensures that related information is accessible through the viewer module.
Figure 2-3 Document exchange with central DB
Web-based systems are currently in widespread use, while the model-based approach is just starting to gain traction in practical applications This model-based system serves as an effective framework for enhancing collaboration, coordination, and information sharing among various computational systems throughout the project life cycle.
This system is built on an object-oriented data model that organizes all project information Standardizing the models across different computational systems is crucial for ensuring interoperability The Industry Foundation Classes (IFC) are designed to establish standards for model-based systems.
There are two prototype model-based systems 6
A falsework design system, which helps in the layout, design, and planning of heavy falsework systems for elevated highways This system is based on a CAD platform
3 A general purpose project browser, which can import a variety of project information - product information, costs, schedules, documents, resource information etc - and interlinks them all within a CAD-based explorer environment
6 A Model-Based Approach for Implementing Integrated Project Systems, M Halfawy and T Froese, 9th International Conference on Computing in Civil and Building Engineering, Taipei, Taiwan, Vol 2. pp 1003-1008, April 3-5, 2002.
A significant portion of information in the Architecture, Engineering, and Construction (AEC) and Facility Management (FM) sectors is contained in text documents, including contracts, specifications, meeting minutes, and change orders This makes the integration of text data into model-based systems crucial To facilitate this integration, standards like the IFC framework are utilized to link documents with corresponding model objects However, there are currently no established methods for automating this integration process.
In AEC/FM projects, the substantial volume of text documents and model objects makes manual linking between them highly time-consuming and labor-intensive To address this challenge, a recently developed automated integration methodology streamlines the process through three key steps, enhancing efficiency and reducing the effort required for integration.
Figure 2-4 Three steps in automated integration
Integration of Construction Documents in IFC Project Models, Carlos H Caldas and Lucio
Soibelman, Research paper from Construction Research Congress: Winds of Change: Integration andInnovation In Construction, 2003, Hawaii
Documents are categorized based on the classifications outlined in the IFC model, followed by the retrieval of documents associated with the chosen objects Finally, the pertinent documents are connected to the corresponding model objects A prototype system utilizing this approach has been created, and experiments have shown improved accuracy in document linking.
There has been a standardization issue on the data exchange languages throughout the AEC/FM IT community and the International Alliance for
Interoperability (IAI) is advancing IFC standards to enhance standardization in the Architecture, Engineering, and Construction (AEC) sector These standards enable the mapping of diverse project data—including building components, geometry, material properties, costs, schedules, and organizational details—into neutral IFC data files This facilitates efficient sharing and exchange of project information across various AEC and Facility Management (FM) software applications.
8 A global coalition of industry practitioners, software vendors, and researchers over 600 companies around the world
Industry Wide Applications
The construction industry increasingly relies on the Internet as a vital communication tool, connecting diverse project participants and teams globally The rise of web-based systems has transformed the industry, enhancing quality, competitiveness, and profitability while fostering stronger relationships with clients and suppliers This article explores the role of web-based project management systems and organizational tools in achieving these improvements, highlighting the benefits organizations have gained and the valuable lessons learned in the process.
2.3.1 Web-Based Project Management Systems
The Web-Based Project Management System (WPMS) emerged from the idea of leveraging Internet technologies to effectively manage construction projects This innovative system streamlines the exchange, sharing, and management of project information among teams, facilitating collaboration throughout the entire project lifecycle.
Alshawi and Ingirige provide a comprehensive definition for WPMS.
WPMS is an internet-based electronic project management system that offers a centralized and reliable platform for transmitting and storing project information By utilizing a standard web browser, users can easily access and exchange data stored on the server, effectively removing barriers related to geography and hardware platforms.
Let me summarize some of the most significant features of WPMS This system can:
3 Speed up the distribution of documents and the communication between clients, contractors, and subcontractors
D Allow the design team to mark up and comment on drawings online during the process of request for information and approval
E Provide an environment where the diverse participants can perform collaboration via the web
9 Web-Based Project Management, M Alshawi and B Ingirige A report on web-enabled project management, University of Salford, UK, available at
(http://www.extranetnews.com/web%20enabled%20project%20managment.pdf), 2002
Many AEC firms are opting to rent or lease fully developed Work Package Management (WPM) software from application service providers (ASPs) for a fee This trend was highlighted in a survey conducted by "Construction Plus," which analyzed the use of WPM systems across 1,500 British construction projects.
Table 2-1 UK Project Collaboration Survey Results
This survey shows that there are about 20 software vendors offering WPMS in the UK, in ASP format and they are supporting over 1500 projects with 25,000 users.
This new technology offers significant advantages in both the AEC industry and within organizations In the AEC sector, all project stakeholders can leverage WPMS to gain real-time insights into the project's progress, facilitating seamless sharing of information across the entire supply chain.
Project managers can enhance their skills in managing project documentation and team dynamics, allowing clients to monitor progress effectively and ensure projects are delivered on time and within budget Additionally, contractors can refine their construction processes by leveraging collaborative experiences, leading to improved overall performance.
WPMS offers significant advantages for small and mid-sized AEC firms by allowing them to rent or lease a fully developed system from an ASP This approach minimizes initial investments and overhead costs while enabling these firms to maintain a technological edge Consequently, WPMS serves as an ideal solution for organizations that may struggle to afford the substantial setup costs associated with in-house IT systems and networking infrastructure.
2.3.2 Enterprise Resource Planning (ERP) Systems
Enterprise Resource Planning (ERP) systems are comprehensive software solutions designed to integrate and automate various business processes within an organization, including accounting, finance, human resources, manufacturing, procurement, and distribution These systems also facilitate connections between the organization and its clients and suppliers throughout the entire product or process life cycle.
The followings are benefits and disadvantages of implementing the ERP systems.' 0 Benefits: o Provide an integrating working environment. o Enable automation a Availability of information from field level to the management level
" Integration in applications in any departments
Embracing flexibility and the ability to standardize processes is essential for adapting to changes and globalization It is crucial to achieve a harmonious balance among people, processes, and technology across all sectors Additionally, implementing effective planning and program management practices throughout the entire project life cycle ensures successful outcomes.
10 Implementation Of Enterprise Resource Planning (ERP) Systems In The Construction Industry,
Syed M Ahmed, Irtishad Ahmad, Salman Azhar, and Suneetha Mallikarjuna Research paper fromConstruction Research Congress: Winds of Change: Integration and Innovation In Construction, 2003, Hawaii
Implementing an ERP system can involve significant costs, ranging from hundreds of thousands of dollars for small companies to up to a billion dollars for large multinational corporations, including expenses for training and consulting Additionally, the total implementation time can extend up to 10 years, leading to delays in realizing a return on investment, as the benefits of ERP often take time to materialize after the system is operational.
In this section, I like to focus on the suitability of the ERP systems for the construction industry through investigating some simulation models and questionnaire survey. m Market Study
A 2000 study by ML Payton Consultants examined the current and future use of Enterprise Resource Planning (ERP) systems by U.S and European firms The findings revealed a steady growth in the ERP market, with most Fortune 1000 companies already utilizing these systems Consequently, vendors are increasingly focusing on smaller mid-level markets, including the construction industry Among the leading ERP vendors, SAP stands out prominently.
Use of Enterprise Resource Planning in the Construction Industry -Summary of Findings, ML
Payton Consultants, On-line; http://www.mipayton.comipages/summaries.html, 2000 been the market leader, although its share has been declining in the past few years.
To achieve ongoing success, companies must adopt some form of ERP system As there is currently no universal implementation methodology, each organization should identify the most suitable approach tailored to its specific business requirements.
- ERP Systems in Construction Industry
Effective communication is crucial in the fragmented construction industry, involving collaboration with material and equipment suppliers, vendors, subcontractors, and clients Implementing ERP systems can significantly benefit construction companies by streamlining these interactions and enhancing overall operational efficiency.
D Improve responsiveness in relation to customers o Strengthen supply chain partnerships o Enhance organizational flexibility
ERP systems offer significant benefits for enhancing business operations; however, their adoption among construction companies remains limited This reluctance is largely due to the substantial investment of time, money, and resources required for successful implementation.
Many construction firms utilize computer-based material management systems (MMS), which can be enhanced through the integration of ERP systems This integration streamlines functions such as design, project scheduling, and accounting, leading to improved cost efficiency and reduced document processing times Lee et al (2002) developed a simulation model for implementing ERP within MMS, focusing on application integration, internal integration, external integration, and automation The results demonstrated that the ERP system significantly reduced the duration of various activities, particularly achieving an approximately 80% reduction in the procurement cycle by automating repetitive transactions and minimizing the need for manual labor.
Implementing ERP systems in the materials management area has measurable benefits in all other areas, which interface with the material management module 1 4
13 Simulation Modeling by Enterprise Resource Planning implementation in Medium Sized
Corporation, S Lee, A Arif and D Halpin, Proceedings of First International Conference on
Construction in the 21st Century (CITC-2002), Miami, Florida, pp 663-670, 2002
Knowledge Management Strategy
What is Knowledge Management?
Knowledge management is the process of capturing and creating valuable information, transforming it into actionable knowledge that can be shared within an organization This strategic approach enables organizations to maintain a competitive edge While methods may differ across organizations, they typically involve systematic steps to effectively manage knowledge.
1 Creating repositories of information about best practices
2 Setting up networks for transferring information between employees who interact with customers and those who create the product
3 Creating formal procedures to ensure that lessons learned in the course of a project are passed along to others doing similar tasks.
Recent advancements in information technology enable organizations to enhance their efficiency in capturing, storing, analyzing, and retrieving information Utilizing technologies like data mining, advanced decision support tools, intranets, and decision indexing, businesses can streamline their processes and improve decision-making.
This article explores the fundamental aspects of Knowledge Management (KM) as outlined in Harvard Business School Case #U9902A from 1999, highlighting its key characteristics and the interplay between KM and information technology Additionally, it examines how various sectors have successfully developed and implemented KM strategies within their organizations.
Knowledge consists of tacit and explicit elements Tacit knowledge is personal and experiential, making it challenging to articulate and share In contrast, explicit knowledge is structured and easily documented, facilitating communication and dissemination.
To explore the connection between Knowledge Management (KM) and Information Technology (IT), it is essential to understand explicit knowledge, which can be easily codified, stored, and shared through IT systems Without conducting post-project reviews and documenting lessons learned, both project teams and individuals miss out on valuable learning experiences that could enhance their performance The integration of IT tools can significantly improve these knowledge management processes Additionally, fostering tacit knowledge through regular executive board meetings and mentoring programs is crucial for organizational growth and learning.
18 The Knowledge-Creating Company, I Nonaka and H Takeuchi, Oxford University Press, 1995
In their research paper presented at the Construction Research Congress in 2003, Patricia Carrillo, Herbert Robinson, and Francis Hartman highlight 19 effective knowledge management strategies They emphasize the importance of facilitating tacit knowledge transfer among employees through mechanisms such as mentorship programs, social gatherings, and critiques of lessons learned These approaches not only foster collaboration but also enhance the overall learning environment within organizations, drawing insights from various sectors to improve construction management practices.
Many construction companies, similar to those in other industries, have initiated knowledge management (KM) programs without fully considering their goals and potential impacts (Storey and Barnet, 2000) To better understand effective KM strategies, it is essential to explore how different organizations have approached this challenge This section provides a summary of two case studies that compare the knowledge management practices of a UK construction organization with those of a Canadian oil and gas company.
Company A is a prominent UK-based international housing and development group, employing over 8,000 individuals and operating across North America, Southeast Asia, and Africa With a turnover exceeding £2 billion ($3.2 billion USD) and a gross profit surpassing £200 million ($320 million USD) as of 2001, the organization demonstrates significant financial strength and global reach in the housing and development sector.
20 Knowledge Management Initiatives: Learning from Failure, J Storey and E Barnett, Journal of Knowledge Management, 4(2), 145-156, 2000
Knowledge Management Strategies: Learning From Other Sectors, Patricia Carrillo, HerbertRobinson, and Francis Hartman, Research paper from Construction Research Congress: Winds ofChange: Integration and Innovation In Construction, 2003, Hawaii
In 2000, the company appointed a knowledge manager to spearhead its knowledge management (KM) strategy, leading to various initiatives that highlight the advantages of KM through demonstration projects These initiatives include the distribution of electronic newsletters and promotional materials The company actively participates in research projects centered on KM in construction, allowing employees to share insights from their own research and external papers via the company intranet Initially designed to facilitate the sharing of best practices, the intranet system has been significantly enhanced to improve user-friendliness and accessibility.
Company B is a prominent integrated energy firm located in Canada, focusing on crude oil mining and extraction, natural gas exploration, development, marketing, and renewable energy initiatives With a workforce of 3,300 employees, the company generates approximately $2.5 billion in annual revenue and boasts a Return on Capital Employed (ROCE) of 17.9% as of 2001.
The company views Knowledge Management (KM) as the collective ability of its employees to access and utilize organizational expertise This commitment to KM originated from senior management and has been communicated throughout all management levels A cross-functional working group is assigned to address KM challenges within a specified timeframe The organization highlights the significance of KM in relation to corporate objectives and shares this information on the company portal, ensuring that all employees recognize its importance The primary focus of KM efforts is on codifying knowledge through a web portal.
Both companies prioritized IT-driven knowledge sharing while overlooking the importance of tacit knowledge management mechanisms such as mentoring and training It's essential to recognize that effective knowledge management (KM) encompasses both tacit and explicit knowledge Relying solely on IT systems for explicit knowledge management offers only a partial solution Organizations must focus on capturing and storing tacit knowledge alongside explicit knowledge through information technology This approach may lead to conflicts within the organizational structure, as senior managers may resist changes that could diminish their roles Therefore, the influence of IT systems on organizational structure and culture must be thoughtfully evaluated.
Knowledge Management for Construction Industry
In today's knowledge-based society, as noted by Drucker (1993), improving knowledge management has become essential across all industrial sectors, particularly in the construction industry This sector faces unique challenges, including multi-disciplinary teams, temporary personnel, a reliance on experience, one-off projects, tight schedules, and limited budgets Effective knowledge management is increasingly vital for navigating these complexities and can serve as a significant asset in procurement processes, especially in partnerships that thrive on long-term relationships within the supply chain.
Despite the advancement of various mechanisms for knowledge management in the construction industry, effective methods for capturing, storing, and transferring knowledge remain poorly understood This section explores the creation of a comprehensive information architecture designed to enhance the organization’s ability to capture, analyze, and retrieve knowledge Additionally, it addresses the challenges associated with the development and implementation of this model.
22 Post-Capitalist Society, P Drucker, Oxford, 1993
23 Knowledge Management for Sustainable Construction: The C-SanD Project, M M A Khalfan, N
M Bouchlaghem, C J Anumba, and P M Carrillo, Research paper from Construction ResearchCongress: Winds of Change: Integration and Innovation In Construction, 2003, Hawaii
3.2.1 Knowledge Management Issues in Construction Industry
This section presents some initial project findings and discusses the knowledge management issues identified during the case studies undertaken within construction projects.
- Categorization of Knowledge Management Approaches
According to Venters (2002), a number of authors have set up categorizations of knowledge management approaches 24 The two main categories are the functionalist perspective and the interpretive perspective.
From a functionalist perspective, knowledge is viewed as an asset that exists in various forms and locations, making it invaluable to organizations This approach allows for knowledge to be captured, codified into information and documents, and accumulated as a key organizational asset However, implementing this perspective necessitates significant support from advancements in information technology.
From an interpretivist perspective, knowledge is viewed as a socially constructed phenomenon, shaped by individual experiences and social practices This approach emphasizes that knowledge management should prioritize understanding and facilitating the social context of knowledge creation rather than merely mapping, storing, and disseminating information as a static object.
The literature review for C-SanD by W Venters (LSE, 2002) emphasizes the significance of knowledge management in fostering social activities, particularly through communities of practice It highlights the essential role of technology in facilitating these social interactions, positioning it as a vital knowledge management solution within the construction industry.
Many professionals recognize the challenges associated with managing knowledge in construction activities, which can be categorized into two primary areas: process-related difficulties and individual-related issues.
The knowledge creation process during a project is intricate and often results in poorly organized information, as knowledge is typically captured and archived only at the project's conclusion This complexity arises from the need to track numerous communications, such as messages, phone calls, and memos, making it challenging to compile useful insights after the project ends Additionally, issues like time constraints for project reviews, the absence of formal feedback loops, and a lack of structured methods for documenting best practices in design and construction further complicate the feedback and learning process.
A significant portion of construction expertise is held within the minds of individuals, making it challenging to document decision-making processes as team members often transition between projects This movement complicates the tracking of contributors and the rationale behind their choices Furthermore, individuals may resist knowledge management initiatives, particularly when they experience shifts in their roles.
KM for Small and Mid size Construction Companies
Small and medium-sized organizations primarily act as knowledge users rather than producers, relying heavily on the expertise of individuals throughout their design and construction processes Due to budget constraints that prevent the implementation of advanced internal systems, these organizations must establish local networks to tap into external knowledge resources effectively.
Previous information models have primarily concentrated on data exchange during project design and construction, overlooking the essential knowledge modeling processes required for effective organizational operations To address this gap, it is crucial to enhance these existing models by creating a comprehensive framework that facilitates the management of extended knowledge, encompassing insights about multiple projects, various participants, contracts, and environmental factors.
The Organization Based Information Architecture (OBIA) is a prototype KM structure model designed to enhance strategic decision-making in organizations Developed through a thorough analysis of the decision-making process, OBIA aids companies in evaluating potential projects and deciding whether to proceed To make informed decisions, organizations must assess a diverse range of knowledge, including insights about the owner, competitors, potential partners, the project environment, proposed contracts, required services, and the facility to be constructed This model categorizes organizational knowledge into five main areas, facilitating strategic-level decisions within construction organizations.
2 An Architecture for Knowledge Management in the AEC Industry, John I Messner, Research paper from Construction Research Congress: Winds of Change: Integration and Innovation In Construction,
Organization information, 2) Commitment information, 3) Process information, 4) Environment information, and 5) Product information These categories are shown in Level 1 of the information architecture (see Figure 3-1).
Figure 3-1 Organization Based Information Architecture (Level 1)26
Main categories are subdivided into one or two levels of detailed subcategories For instance, organizations are classified into organizational goals and organizational resources Organizational goals are further specified by their types, while organizational resources are categorized based on the types of resources available.
26 An Architecture for Knowledge Management in the AEC Industry, John I Messner, Research paper from Construction Research Congress: Winds of Change: Integration and Innovation In Construction,
A key aspect of the OBIA model is its ability to capture critical environmental knowledge, which has often been overlooked in previous modeling efforts within the construction industry Given that construction is inherently project-based, it is essential to gather and access information about the specific environment of each project location to enhance performance in unfamiliar settings The environment is categorized into six types: physical, political, legal, economic, cultural, and resource.
This information framework establishes a standardized approach for storing and managing knowledge in the construction industry, enabling organizations to create effective knowledge management tools Additionally, it facilitates knowledge sharing between different organizations, enhancing collaboration and efficiency within the sector.
In other words, this knowledge management structure will allow companies to create standardized applications to share knowledge within an organization and between organizations.
KM Strategy within an Organization: Using System Dynamics Model
This article employs a system dynamics model to investigate the knowledge management (KM) strategy within the construction industry, highlighting both the often-overlooked organizational impacts and the more apparent financial benefits By analyzing these aspects, the study captures valuable insights into the influence of KM on organizational performance.
3.3.1 Knowledge Management Impact on Construction Industry
Gap between Expected Compensation and Actual Compensation +
Figure 3-2 Basic Causal Loop Diagram for KM Strategy
In my conceptual framework, I identified two primary loops within the Knowledge Management investment cycle: a positive loop and a negative loop The positive loop represents a long-term strategy, as there is a time lag before management recognizes the organizational benefits Conversely, the negative loop highlights that short-term gains are unlikely to significantly enhance the organization's profitability.
Decision makers in the construction industry recognize the ongoing debate surrounding knowledge management (KM) practices Consequently, they face uncertainty regarding the potential profitability of KM initiatives and the timeline for realizing returns, as assessing the success of KM within an organization typically requires an extended evaluation period.
Knowledge Management (KM) should be assessed not only in financial terms but also by its influence on organizational strategies The success of a project should be evaluated through the lens of overall organizational achievement rather than just the project's outcomes Key factors contributing to organizational success include fostering robust client relationships and enhancing proficiency in innovative technologies gained through successful projects.
In this sense, in terms of KM evaluation, how KM contributes to the organizational success as well as to the project itself is equally important.
3.3.2 The Impact of KM on the Organizational Strategy
Many construction companies often base their organizational strategies on past project experiences However, my model emphasizes that organizations should select projects aligned with their strategic goals established through Knowledge Management (KM).
Gap between Expected Conpensation and Actual Conpensation
Quick Decision Process wil ss to KM Inves +
Perceived Successful Application Well-understood
Inproventnt by to Project Calendar of Events
Figure 3-3 Causal Diagram for KM impact on Organizational Strategy
In today's rapidly changing market, construction organizations face constant pressures from technological advancements and globalization, making knowledge management (KM) investment essential for effective and swift decision-making A robust KM strategy fosters clear organizational goals through adaptable systems, a well-understood event calendar, open communication between management and staff, and a focus on long-term control and rewards Once these strategies are established, they enhance project selection processes, ultimately boosting organizational competitiveness This iterative approach creates a positive feedback loop, reinforcing the benefits derived from KM investments.
To remain competitive in a rapidly changing business environment, it is crucial for organizations to understand industry trends and select the right projects Knowledge Management (KM) plays a vital role in enhancing the decision-making process within the construction industry, serving as an effective organizational strategy.
Challenges for Adoption of IT in Construction
Industrial Barriers
The longstanding debate in the literature on technological innovation adoption centers around whether the diffusion of new technologies is primarily influenced by technology-push factors or demand-pull mechanisms, as discussed by Mowery and Rosenberg (1979) and Nam and Tatum (1992).
While technology enthusiasts and academics often believe that technology-push drives innovation adoption in the construction industry, industry professionals focus on the practical challenges that hinder this process Previous sections highlighted the benefits of technology from the viewpoint of enthusiasts, but this part shifts the focus to how industry professionals perceive the impact of innovative technologies and the barriers they face in implementation.
4.1.1 Who Benefits from the Savings?
Despite the availability of numerous technological tools that can enhance construction processes, the adoption rate of these innovations within the construction industry remains sluggish This raises the question: what factors contribute to this slow integration of technology in construction?
27 The influence of market demand upon innovation a critical review of some recent empirical studies,
D Mowery and N Rosenberg, Research Policy, 8(April), 103-153, 1979 / Strategies for technology push: lessonsfrom construction innovations, C H Nam and C B Tatum, J Const Engr and Mmgt,
118(3), 507-524, 1992 used? Because, in practice, people are unsure or skeptical about the cost savings from using the tools.
In cost plus a fee contracts, construction management firms receive a fixed fee without incentives for cost savings, leading to a disconnect between their investments in innovative technologies and the benefits realized While these firms can achieve significant cost reductions through high-tech tools, the savings primarily benefit the client rather than the firm itself Consequently, despite potentially winning more projects due to lower costs, management perceives the return on their substantial IT investments as relatively minimal.
Technologists claim that incorporating technology into a project can lead to substantial cost savings over its life cycle In contrast, industry professionals contend that these savings are minimal, realized over extended periods, and often distributed across various departments within the owner’s organization, lacking a unified advocate for integration This practical assessment is illustrated in Figure 4-1, which offers a framework for evaluating the real impact of information reuse on life cycle cost reductions.
28 Follow the Money: What Really Drives Technology Innovation in Construction, John D Macomber, Research paper from Construction Research Congress: Winds of Change: Integration and Innovation
29 A figure from above research paper
Illustrative Template Owner Cost in Millions Duration of Phases Baseline Costs - Old way
PROPOSEDAITi6NAL C6ST Added cost to embed info which benefits later phases
PROPOSED BENEFIT ,Ability to use information from prior phase
Add to asset value Total Benefit
Net Benefit of Info This Phase
Plan& Procure & Life Cycle Design Construct Oerate sps Sums
I yr 2 yr 10 yr I yr 14 yr
-2 2 13 6 19 over a verN long timie period
Figure 4-1 Life Cycle Cost Savings Template 30
The project template outlines four key phases: design, construction, operations, and disposition, with a provision for proposed additional costs in each phase For instance, when the designer invests an extra $2 million to embed information, it ultimately benefits the contractor and operations teams, while the designer sees no direct advantage This raises the question of why the designer should incur this expense Furthermore, the long-term savings from life cycle information costs are minimal compared to the overall expenses of the entity.
Each firm in the construction industry will act against the overall benefit of
Rational economic actors often express reluctance to share information, stating, "While I appreciate the technology that facilitates teamwork, I need assurance that sharing my insights will not jeopardize my interests or that I will be compensated for my contributions."
General contractors recognize that leveraging information technology can enhance their operational efficiency and lower costs Nonetheless, various industry factors impede the adoption of innovative practices in construction, as highlighted in existing literature.
0 Cyclical sales, which increases the risk of high fixed costs. o Vertical and horizontal fragmentation, which makes it difficult to integrate the value chain.
0 Small size of firms, which makes it difficult to afford high capitalization costs. a The craft nature of construction labor, which often resists changes.
3 Low profit margins on total contract value, which increases the risk of high capitalization costs.
3 IT Strategy For Construction Companies, A Pragmatist's Vision, John D Macomber, Leadership and Management in Engineering, Vol 3, No 2, pp 94-99, 2003
32 Uncertainty and homebuilders' adoption of technological innovations, T M Toole, J.Const Engrg.And Mmgt, 125(4), 1998 o High management intensity, which prevents pursuit of strategic but non- urgent actions.
" Task characteristics that leads to uncertainty about whether innovations will function as expected.
The "General Contractor's Dilemma" highlights the conflicting stance of contractors regarding the adoption of IT; they grapple between being enthusiastic adopters based on theoretical benefits and cautious consumers driven by practical concerns An investigation by Toole (2003) explores the perspectives of ten large general contractors on the influence of IT innovation in the construction sector This study specifically examines four key issues, with a primary focus on identifying which technologies contractors believe will significantly impact the Architecture, Engineering, and Construction (AEC) industry in the next five years, as well as the strategies they are implementing to leverage these technologies effectively.
Interviewees highlighted four key technologies poised to significantly impact the industry, with web-based systems leading the way These systems enhance project efficiency by facilitating integration among companies, thereby improving managerial oversight and client engagement Participants emphasized that such systems are essential for project management, estimating, and marketing functions, with a particular focus on the need for robust capabilities to support these areas effectively.
In a study by T Michael Toole presented at the Construction Research Congress in 2003, it was revealed that large contractors utilize various project collaboration software like Prolog, ConstructWare, and ActiveProject to manage RFI, submittal data, and installation progress However, the adoption of these systems is not uniform across all projects; instead, it is influenced by client preferences, project types, and geographic locations Some contractors indicated that they do require their subcontractors to use these systems for specific projects, highlighting a selective approach to technology integration in construction.
Mobile computing devices linked to high-speed wireless networks are expected to greatly enhance on-site coordination, according to most interviewees The two primary functions desired from these systems are the capability to input payroll and job costing data while moving around the site, as well as the ability to capture, transmit, and access drawings, documents, and digital images To fully leverage the benefits of devices like PDAs and pocket PCs, a strong wireless connection is essential.
Several companies have indicated that simulation and visualization software is poised to be a crucial tool for coordinating design and installation, especially in mechanical systems At present, this software is primarily utilized for architectural rendering aimed at enhancing business development efforts.
In the coming decades, web-based multimedia training systems will play a crucial role in employee development, with a primary focus on effectively utilizing company IT systems.
= Has IT innovation caused significant changes within companies?
Most interviewees reported that project and operational managers now rely heavily on computers to perform their tasks, allowing for active oversight of project processes through real-time data Many managers noted that IT innovations have significantly transformed the geographic operating units of the company, enhancing the integration and uniformity of processes and documentation, from operational reporting to marketing proposals However, despite these advancements in operational processes and the increased training requirements for employees, several interviewees observed that IT has not notably altered the company's organizational structure, hiring practices, or performance evaluation systems.
N What organizational issues affect the adoption of promising IT innovations?
Summary of Findings and Future Suggestions
Interviews with ten major contractors reveal their perspectives on information technology in the construction industry and its future These insights highlight the challenges faced by general contractors, who find themselves balancing the pursuit of IT innovation with the need to navigate various barriers to technological advancement.
The interviews revealed that all managers prioritized IT opportunities over challenges This section summarizes and evaluates previous research findings while proposing strategies to overcome barriers to innovative technologies.
A significant barrier to change in the construction industry is the lack of financial incentive for stakeholders to invest in costly IT innovations, given the current delivery methods The profit margins in each phase of construction are too low to encourage individual firms to adopt improved tools and processes.
Furthermore, the typical characteristics of construction industry, such as the fragmented nature and one-time project, do not generate sufficient motivation to invest in long-term innovations.
Information technology (IT) is enhancing the speed, volume, and quality of information flow within contractors' organizations, but it often fails to facilitate communication among all key participants in construction projects The adoption of innovative technology presents challenges that can hinder its benefits for multiple parties involved Ultimately, the likelihood of early adoption of new technologies hinges on the perceived advantages for each stakeholder.
To overcome barriers to adopting innovations in construction, it is essential to develop new delivery models that incentivize all project participants, including owners, contractors, designers, subcontractors, and manufacturers, to invest in IT innovations These motivations should be financially linked, utilizing performance-oriented contracting models that foster long-term alliances between firms and owners This approach allows for immediate rewards based on lower costs and shorter delivery times, rather than relying solely on fixed fees By sharing risks and rewards, all parties are encouraged to enhance the total project value, ultimately benefiting the owner Additionally, multi-project alliances and shared investments in technology development can create opportunities for mutual benefit.
To enhance collaboration within the construction supply chain, industry participants must adopt a more integrated approach This shift involves changing competitive dynamics and facilitating real-time knowledge sharing among existing players Achieving this transformation will necessitate the development of innovative tools that enable functional and immediate information exchange.
Despite numerous challenges in transforming the industry, the potential advantages for both practitioners and owners are highly appealing Historically, industry transformations have seen a few firms taking the lead, while others follow suit, and some resist change altogether.
34 The AEC Dilemma-Exploring the Barriers To Change, Peter Beck, Leadership and Management inEngineering, p31-36, April, 2001
Conclusion
Research identifies four key information technologies poised to transform the construction industry Notably, mobile computing devices linked through high-speed wireless networks will enhance communication between on-site workers and off-site collaborators in building design and construction The use of tablets and wearable computers on-site will significantly boost the accuracy and speed of information exchange, offering greater mobility for site workers.
An automated constructability analysis system enhances the efficiency of the constructability review process by significantly decreasing the time spent on manual methods This innovative system enables designers to pinpoint specific design conditions that affect both constructability and construction costs early in the project delivery phase.
The newly developed interoperability systems enable seamless document exchange and construction data sharing among all project lifecycle participants This system facilitates the easy creation, receipt, dispatch, storage, and removal of documents.
Web-based operating systems that facilitate collaboration between organizations will enhance project efficiency and improve oversight for both management and clients These systems will remain essential for effective project management, accurate estimating, and streamlined marketing functions within organizations.
Knowledge management plays a crucial role in construction firms, particularly due to the industry's unique project characteristics, including multi-disciplinary teams and temporary members As construction projects are often one-off endeavors that heavily rely on experience, effective knowledge management becomes increasingly important Additionally, it serves as a valuable asset in procurement processes, especially in partnerships, where long-term relationships among supply chain members are essential for success.
Despite the availability of various technologies, the construction industry is slow to adopt them due to skepticism about cost savings and the high financial risks associated with IT investments The fragmented nature of the construction environment further hinders innovation adoption To address these challenges, two solutions are proposed: implementing performance-oriented contracting models that foster long-term alliances to encourage investment in IT innovations, and promoting integration among industry participants to facilitate real-time knowledge and information sharing through innovative tools.
Effective IT strategies in the construction industry, supported by strong economic incentives, will dismantle existing barriers and benefit all participants in the supply chain The integration of technological tools with business incentives will be essential in shaping a strategic vision for IT in construction over the next decade.
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The AEC Dilemma-Exploring the Barriers To Change, Peter Beck, Leadership and Management in Engineering, p31-36, April, 2001
The followings are all research papers from Construction Research Congress: Winds of Change: Integration and Innovation In Construction, March 19-21, 2003, Honolulu, Hawaii
- Impact Of Information Concepts On Construction Performance / Dean Kashiwagi and Cliff Slater
- Providing Cost and Constructability Feedback to Designers / Sheryl Staub-French
- Component State Criteria Representation to Incorporate Construction Program Knowledge for Constructability Analysis / D K H Chua and Yuanbin Song
- Agent-based Document Control for Large Projects / Michael Terk and Arun Kumar
- Critical Success/Failure Factors in Implementation of Web-Based Construction Project Management Systems / Pollaphat Nitithamyong and Miroslaw Skibniewski
- Knowledge Management for Sustainable Construction: The C-SanD Project / Dr M M A Khalfan, Dr N M Bouchlaghem, Prof C J Anumba, and Dr P M Carrillo
- Knowledge Management Strategies: Learning From Other Sectors / Patricia Carrillo, Herbert Robinson, and Francis Hartman
- The Effect of Construction Organization Management Practices on Project Success /
Elizabeth Kraft and Paul S Chinowsky
- Construction Methods Feasibility Reasoning in an Integrated Environment / Asad
- Integration of Construction Documents in IFC Project Models / Carlos H Caldas and Lucio Soibelman
- A Framework For Integrated Data Management In Smart Infrastructure Systems / Tamer E
- Future Directions for Model-Based Interoperability / Thomas Froese
The implementation of a web-based Electronic Data Interchange (EDI) model significantly enhances collaboration among participants in construction projects This innovative approach streamlines communication and data sharing, leading to improved efficiency and productivity By facilitating real-time access to essential project information, the EDI model fosters better decision-making and coordination among stakeholders Ultimately, this collaborative framework addresses common challenges in the construction industry, paving the way for successful project outcomes.
The E-COGNOS Project is advancing the development of an ontology-enabled IT solution infrastructure aimed at enhancing knowledge management within the construction sector This initiative, led by experts including Celson Lima, Tamer El Diraby, Bruno Fies, Alain Zarli, and Elaine Ferneley, focuses on integrating innovative technologies to improve information sharing and collaboration among stakeholders The project’s current status reflects significant progress, while its future directions promise to further optimize knowledge management practices in construction, ensuring more efficient project delivery and decision-making processes.
- An Architecture for Knowledge Management in the AEC Industry / John I Messner, PhD
- Ontology Modeling of IDEF3 Process Description for AEC Applications Interoperability / G Tesfagaber, N M Bouchlaghem, A N Baldwin, A F Cutting-Decelle, Malik M A Khalfan
- Implementation Of Enterprise Resource Planning (ERP) Systems In The Construction Industry / Syed M Ahmed, Irtishad Ahmad, Salman Azhar, and Suneetha Mallikarjuna
- Information Technology and Cultural Change in the Construction Industry / Dr Yvan J Beliveau
- Tablet and Wearable Computers for Integrated Design and Construction / George Elvin, PhD, Assoc AIA
- A Strategic Approach to Information Communication Technology Diffusion - An Australian Study / P W Goldsmith, D H T Walker, A Wilson, V Peansupap
- Follow the Money: What Really Drives Technology Innovation in Construction / John D Macomber
- Understanding Information Usage by Residential Construction Supervisors and