INNOVATION AND MANAGEMENT OF INFORMATION TECHNOLOGY IN CONSTRUCTION INDUSTRY

INNOVATION AND MANAGEMENT OF INFORMATION TECHNOLOGY IN CONSTRUCTION INDUSTRY

1.0       Introduction

A glance at the future, builds on several different scenarios - some optimistic, some more pessimistic - and presents a vision for Information Technology built on four  elements: people, processes, technology and places. The construction industry is supported by tools and technologies which are fully compatible, developed using open standard software and that put people at the centre of focus, thus enabling creativity and creating integrated business processes that are consistent and compatible.

1.1       Definition of Terms

The definition of the terms ‘Innovation and Management of Information Technology in Construction Industry’ are as follow;

1.1.1        Innovation

Generally, innovation is defined as the process of bringing new goods and services to market, or the result of that process by Advisory Council of  Science and Technology (1999) as cited in Manseau et al. (2001).

As gathered in the same source (Manseau et al., 2001), the definitions of innovation in the context of construction are:

Application of technology that is new to an organisation and that significantly improves the design and construction of a living space by decreasing installed cost, increasing installed performance, and/or improving the business process (Toole, 1998).

“the successful exploitation of new ideas, where ideas are new to a particular enterprise, and are more that just technology related-new ideas can relate to process, market or management” (Construction Research and Innovation Strategy Panel (CRISP), 1997).

1.1.2        Management

Naoum (2001) defines management based on the well known French mining engineer, Henri Fayol’s five functions that are;

·         to forecast and plan-examining the future and drawing up the plan of action,

·         to organise-building the structural, material and human aspects of the undertaking,

·         to command- maintaining activity among the personnel,

·         to co-ordinate- binding together, unifying and harmonising all activity and effort and

·         to control- seeing that everything occurs n conformity with established rules and expressed commands.

1.1.3        Information Technology

According to Ang et al. (1997) as cited in Gaith et al. (2009), IT is defined broadly as “technologies dedicated to information storage, processing and communications”. In other words, it can be termed as a combination of hardware, software, telecommunications and office equipment to transform raw data into useful information for speedy retrieval.

Phiri (1999) supports the above definitions by defining in detailed that Information Technology (IT) is known as the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by microelectronics-based combination of computing and telecommunications.

1.1.4        Construction Industry

The International Standard Industrial Classification of all Economic Activities (1968) as cited in Ofori (1990) defines construction as follows:

“The assembly and installation on site of prefabricated, integral parts into bridges, water tanks, storage and warehouse facilities, railroad and elevated right-of-way, lift and escalator, plumbing, sprinkler, central heating, ventilating and air conditioning, lighting and electrical wiring, etc. systems of buildings and all kinds of structures… Departments or other units of the manufacturers of the prefabricated parts and equipment which specialise in this work and which it is feasible to treat as separate establishments, as well as business primarily engaged in the activity, are classified in this group”

It is therefore ‘Innovation and Management of Information Technology in Construction Industry’ can be described as a process that enhance competitive position of a firm via implementation of a large spectrum of new idea on technology that takes place in an enterprises of physical works on new or existing building and civil, mechanical and engineering works; driven by the means of planning, organising, commanding, co-ordinating and controlling.

2.0 Information Technology in Malaysian Construction Industry

The construction industry is so hierarchical and fragmented in nature that some of the major participants do not consider themselves to be part of the same industry (Hindle, 2000 cited in Oladapo, 2005, p.1). This fact exhibits that it is undoubtedly that the construction players to overcome the fragmented nature of the construction industry, which inhibits integration. Rivard et al., (2004) assert that the construction industry is experiencing a paradigm shift from traditional paper-based to digital based information exchange, which other industries such as aircraft manufacturing and banking have adopted and benefited from long ago. In doing so, it is appropriate that an agreed IT standard is to be introduced to avoid confusion and the problems brought about by the perceived uniqueness of each building project.

New technologies are impacting every aspect of our lives. The construction industry is no exception. Jackson (2010) states that the computer applications are across all aspect of construction management function: programmes for estimating, scheduling, project control, quality control and information transfer. Jaafar et al. (2007) discover that the Internet-based tools have been used for tendering of services, awarding of contracts, monitoring of project and purchasing of products. In order to reach the competitive advantage, the adoption of the technology requires change in the construction traditional typical practices. Yap et al. (1992) and Valida et al. (1994) as cited in Gaith et al. (2009) have concluded that IT use in Malaysian construction arena and its integration were higher in companies providing goods and services than those in manufacturing and distribution. To support the above statement, Mui et al. (2002) as cited in Gaith et al. (2009) came out with a survey on the usage of internet in the Malaysian construction industry, and the survey resulted in the discovery of internet as a vital tool in the industry and the most to be utilised in most construction companies. However, the power of the Internet is not being harnessed appropriately, but only to serve the basic functions such as e-mailing. There are several justification on the minimal utilisation of IT by the construction industry in comparing to the other sectors. As such, Li et al. (2000) as cited in Jaafar et al. (2007), pointed to two critical reasons on the hindrance of IT benefits by the construction industry. The reasons are:

        i.            the organisation hierarchical structures which are ineffective and inefficient and do not support IT implementation, and

      ii.            IT have been implemented in an ad hoc manner.

On emphasising Li and his colleagues’ statement, Love et al. (1997) as cited in Jaafar et al. (2007) have revealed that the introductory of IT into the industry is done in the absence of planning and evaluation aspects. This indicates the unpreparedness of the players in welcoming the technology in the industry they are engaged in. This circumstance may poses questions of, “Does the full potential of IT in an organisation performance is achievable?” and “Whose fault is this?”.

In realising the importance of technology, the Malaysia government via Construction Industry Development Board (CIDB) has developed a Construction Industry Master Plan (CIMP), which serves the function of overcoming the weaknesses that were inherent in Malaysian construction industry.  The so-called CIMP is a blend of Malaysian Construction vision, mission and seven strategic thrusts that aimed to achieve the overall strategic direction. Each of the strategic thrusts carries different rationale and one of the thrusts (Strategic Thrust 6) highlights on leveraging the powers of ICT.  As referred to the Construction Industry Master Plan Malaysia 2006-2015 (2007), embedded in the Strategic Thrust 6, the Information and Communication Technology (ICT) functions is still optimise minimally in Malaysia construction industry, resulting in minimal enjoyment of the merits that the technology are offering. The fact is, ICT may acts as a catalyst that assists in stimulating the industry’s performance. In achieving this, there is a need to integrate the various software in the attempt of attaining inter-operability. The integration is seen vital as it offers wide range of benefits which then lead to improvement in the industry’s productivity. The particular thrust also emphasises on the revolution in the construction industry, empowered by the utilisation of ICT to a state known as the digital world. Through the revolution, the industry is ready for the provision for outsourcing and off-shoring. Essentially, the formation of virtual partnership is achievable via the application of ICT. Since many projects are secured through the Internet, it is appropriate that ICT development is to be focused as it will enable the realisation of construction market expansion.

To date, CIDB has introduced an online tendering system that has the potential to reduce tendering cost of contractors and provide greater transparency to the procurement system. Another application known as Electronic Labour Exchanges is also available in the Ministry of Human Resource homepage as well by CLAB, an entity created by CIDB, the Immigration Department and other construction industry organisations to provide foreign and local labour to the construction industry. Those services are purposed to catapult the construction industry towards utilisation of ICT applications which covers the provision of a central information data bank and construction industry know-how through enhanced usage of ICT. Construction processes shall therefore become faster, efficient and more competitive when those services are being implemented holistically.

3.0 VISION

IT shall be perceived as a mechanism of innovation that encourages the birth of new and different alternatives in the construction arena. IT will eventually reform the Malaysian construction technology towards a higher dynamism in the coming years. Therefore, the players of the construction shall be able to be visionary on the IT prospects in the future. As such, here are the visions of future that come into my mind in supporting the Malaysia Construction Industry:

        i.            IT facilities shall be possible to manage self-correcting buildings via embedded sensors within the ‘flesh’ of the building. As such, smart facilities management that is responsive to people and their preferences will be attained. The rationale of this idea is to avoid dependency on the maintenance people for rectifying purposes and to encourage invention of integrated IT system with the built environment, in producing an intelligent building; that is not only fits for its purpose. Other than that, this will also enable user-centred design and intelligent built environments to provide a better future for people,

      ii.            the introductory of intelligent or semi-intelligent software will give a touch of improvement via automated facilities based on the actual use and function of the building in operation, and

    iii.            IT will become a mean to educate and train people in the industry. In example, the learning slot is made of a simulation of 3D games which will able to give an insight to the users, rather than consultants sitting in a cabin and figuring out the activities to be executed. The process of learning through the utilisation of IT will be more interesting and creative. Information accessing and sharing will not be a hassle through this technique of learning.

5.0 CONCLUSION

It is perceives that there are still have rooms for construction automation enhancement, integration and communication through implementation of IT facilities. An appropriate utilisation of IT will able to contribute to better support to the construction industry needs. The industry too, may enjoy full advantages of current emerging of IT opportunities if all parties are willingly to change their attitude and perception towards IT, generate good tiding and trust between all stakeholders involved, and if the level of security and reliability of data is improved. The Malaysian Government through CIDB can accelerates changes by introducing and implementing several programmes or services to capture the attention of the construction players in adopting IT. For long-term goal, CIDB shall encourage on future tangible R&D on IT is to be developed in the field of construction. This will not only become a privilege to the practitioners but will enable the achievement of competitive advantage among construction companies, construction sustainability, economic growth and better quality of life.

Prepared By;

Imelda Saran Piri

2009995131

Master Sc. in Integrated Construction and Project Management

REFERENCES

Books

1.      Jackson, B. J. (2010), Construction Management Jumpstart: The Best First Step Toward a Career in Construction Management, Willey Publishing Inc.

2.      Manseau, A. and Seaden, G. (2001), Innovation in Construction; An International Review of Public, Spon Press

3.      Naoum, S., (2001), People and Organisational Management in Construction, Thomas Telford Publishing, London

4.      Ofori, G., (1990) The Construction Industry: Aspect of its Economics and Management, Singapore University, Singapore

5.      Phiri, M. (1999), Information Technology in Construction Design, Thomas Telford Publishing, London

Journals and Articles

6.      Construction Industry Master Plan Malaysia 2006-2015, Executive Summary, (2007), Construction Industry Development Board.

7.      Gaith, F. G., R., Khalim A. and Ismail, A., (2009), Usage of Information Technology in Construction Firms; Malaysian Construction Industry, European Journal of Scientific Research, p. 412-421

8.      Jaafar, M., Abdul Aziz, A. R., Ramayah, T. and Saad, B. (2007), Integrating Information Technology in the Construction Industry: Technology Readiness assessment of Malaysian Contractors, Internal Journal of Project Management, 115-120

9.      Oladapo. A. A (2006), The Impact of ICT on Professional Practice in the Nigerian Construction Industry, The Electronic Journal on Information Systems in Developing Countries, EJISDC, 24, 2, p.1-19

10.  Rivard, H., Froese, T., Waugh, L. M., El-Diraby, T., (2004), Case studies on the use of Information Technology in the Canadian Construction Industry, published at http://www.itcon.org/2004/2/, p.1-16