Innovation and Management of IT in Construction Industry

Innovation and Management of IT in Construction Industry

            The uniqueness of the information epoch has led us to a new set of technologies called “Information Technology.” Information Technology or in simpler terms “IT”  is defined broadly as “technologies dedicated to information storage, processing, and communications” (Ang et al 1997, p.170), that is, a mixture of hardware, software, telecommunications and office apparatus to transform raw data into useful information for prompt retrieval. Moreover, in line with Ang and colleagues (1997) statement, Zandia (2005, p.66) concurs to the idea of information technology (IT) as a series of different implements including hardware, software, information theories, information networks, workstations and artificial intelligence (robotics) which use different forms of information as a systematic process to carry out activities.  In the case of IT in the construction Industry, Gaith et al (2009, p.412) put it as the success of the construction industry is increasingly predicated on technology driven investments in information technology (IT) and this is expected to be even more so in the future. Furthermore, by the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time has improved organizational efficiency, effectiveness and performance (Talebnejad, 2008, p.59). This put us into view that IT and its eminence in the competitive construction industry play a major role in the quest to achieve the upmost competitive advantage and the ability to sustain in the industry along with meeting the growing demands of the industry itself.

            Current trends in information technology (IT) are yielding a wide range of new computer-based tools to support the architecture, engineering, construction and facilities management industries as described by (Froese, 2010, p.531). These tools as put by Froese (2010) particularly those associated with building information models (BIMs) for project modeling and integration— promise great increases in the effectiveness and efficiency of designing and managing construction projects. Nevertheless, these enhancements necessitate more than just technical solutions; their maximum potential cannot be materialize without parallel changes in the work tasks and skill sets of the project players. The innovation and management of IT in the construction industry can be classed into several eras discussed by Froese (2010, p.531). The initial era of construction IT  focused on developing stand-alone tools to assist specific work tasks such as CAD, structural analysis tools, estimating, etc. The second era (from the mid-1990s) of construction IT has focused on computer-supported communications such as E-mail, the web, electronic document management systems (EDMS), etc. This is a less mature field, with new tools and core features still emerging, and business practice still to become accustomed.  Much of the construction IT research and development over the past decade has pursued a third era of construction, where IT focused not on individual applications or transactions, but on the potential for uniting all of these as a cohesive overall system through integration, building modeling, etc. Nonetheless, the literature by Froese (2010) also stated that this emerging IT has seen some impressive innovative use in industry but has yet to reach mainstream application. This findings by Froese (2010) also was in line with Melville (2004, p.283) findings where it was stated that the principal finding was that IT is valuable, but the extent and dimensions are dependent upon internal and external factors, including complementary organizational resources of the firm and its trading partners, and also their practices. Therefore, it can be put that all of the innovation in terms of IT in the construction industry must be in line with the practice of the industry itself besides parallel changes in the work tasks and skill sets of the project players to really achieve its maximum benefit. After all, one of the major factors behind any success of IT application is mass participation. Therefore, without participation, all the hyped innovation and management of IT in the construction industry it wouldn’t not reach its ultimate goal that of benefiting the practice as a whole.

            Despite these arguments, there has been proof through research that IT can benefit the industry. Primarily in terms of cost saving, this fact is reviewed by Lautanala et al (2002, p.4) where they concluded that IT can create savings in the construction industry through automation of information work, leaning processes, and reducing waste, interoperability and transparency of information and also synergy impacts. Apart from that, the eminence of IT also helps firms to sustain in the industry Talebnejad, (2008, p.70) stressed that organizations which do not build their competitive advantage on the basis of information technology (IT) will eventually be omitted from the competition and activities field. Moreover, Talebnejad stated that organization can use information technology as a tool for creating sustainable competitive advantage through: the use information technology to codify, execute and control the strategies of the firm, the use of  information technology to create the utmost value for the stakeholders and particularly customers and the combination the strategies, the information technologies and organizational resources and skills appropriately and simultaneously using information technology (Talebnejad, 2008, p.70). In conclusion, IT is critical in the construction industry, Information Technology (IT) is the sine qua non of all businesses today (Gaith et al 2009, p.412), including the construction industry, so understanding its roles and functions in construction industry in addition to its innovation and management is vital in assuring IT’s contribution to the industry itself.

Mohamed Ikhwan Nasir b. Mohamed Anuar
2009170343-AP776
M.sc Integrated Construction and Project Management