IT in construction: aligning IT and business strategies

The extent to which information technology (IT) infrastructures and strategies are aligned with business processes and strategies varies widely along firms. The objective of this paper is to explain the success or failure of IT in construction firms by focusing on the alignment (or lack of it) between business strategy, IT strategy, organizational infrastructure, and IT infrastructure. It is hypothesized that the ‘fit’ among these elements, the domains of the Strategic Alignment Model, is positively related to the Business Value of IT in Construction. The IT Business Value is evaluated in terms of efficiency, effectiveness and business performance. By applying the Strategic Alignment Model to the Dutch construction industry, it is shown that the inadequate alignment between these domains is a major reason for the modest added business value from IT investments in this industry. The first lack of alignment is the technology shortfall: hence IT contributes in an inadequate way to strategic processes of construction firms. The second lack of alignment is the strategy-shortfall: hence the firm strategy impedes the implementation of IT that could generate a high business value

Level of sub-contracting design responsibilities in design and construct civil engineering bridge projects

Purpose – In the construction industry, an under researched area of study is how main contractor (MC) sub-contract design responsibilities to sub-contractor (SC). This lack of knowledge is particularly serious in the context of delivery methods such as design and construct where design responsibilities are pushed down thesupply chain. In this study, it is aimed to explore which level of design responsibility MCs sub-contract to SCs, for what reasons, and what the impact of sub-contracting decisions is on projects.Design/methodology/approach – A qualitative in-depth multiple case study was conducted. Six sub-contracting cases were examined in two civil engineering projects. In each project, the MCs sub-contracted pre-fabricated beams, reinforcement and railing to SCs. Data collection included document analysis and interviews. A within-case and cross-case analysis was conducted to examine emerging empirical patterns. These patterns were used to elaborate theory and develop propositions.Findings – MCs sub-contracted design responsibilities to SCs as suggested by literature. However, despite that sub-contracting was in keeping with literature, several problems were reported in the cases where MCs involved SCs no earlier than in the construction stage. This is not to be expected according to theory.Originality/value – This study adds value to the sub-contracting field as it provides new insights in relationships between the level of design responsibilities sub-contracted and the impact of that on projects. The study also revealed new factors such as building information modelling (BIM) interoperability that should getmore attention in sub-contracting

Análise do impacto da implantação de sistemas ERP nas características organizacionais das empresas de construção civil

Uma das causas do insucesso do ERP nas empresas de construção civil é o fato da implantação desse sistema ser uma grande mudança organizacional. O objetivo desta pesquisa é identificar como a implementação do sistema ERP impacta na organização e nos processos gerencias das empresas de construção civil. Foi realizada uma survey em uma amostra de empresas construtoras brasileiras. Os dados foram coletados por meio de um questionário encaminhado por email a dois grupos de empresas: com e sem ERP implantado. A partir da análise estatística discriminante foi possível identificar as variáveis relacionadas ao nível de desenvolvimento dos processos de gestão e as características organizacionais que mais distinguem os dois grupos de empresas. Os resultados revelaram que a implantação do ERP impacta nas variáveis da maturidade organizacional nos seguintes aspectos: visão estratégica, relacionamento com cliente, gerenciamento de recursos humanos, gestão financeira e de TI

Measuring the added value of IT in construction firms

The added value of information technology (IT) varies widely along firms. The objective of this paper is to analyse the underlying factors that enlarge or reduce the added value of information systems and IT-applications in construction firms. By applying the process-oriented approach of Tallon et al.. (2000) the value of these information systems on the process-level is assessed. Information systems and IT-applications create value for an organization by improving individual business processes, or linkages between processes, or both in terms of Porters’ value chain (Porter and Millar, 1985). Determining the IT-value in a structured and meaningful way requires an operational description of what IT is in those critical value activities. For this analysis, the concept of the IT-based infrastructure of Renkema (2000) is used. By applying the IS Assessment and Contingency Theory of Myers et al.. (1998) critical success factors for the alignment of IT and business processes are shown. In order to verify our expectations, an empirical research was conducted by a multiple case study of five firms in civil engineering and housing and real estat

A methodology for developing product platforms in the specific setting of the housebuilding industry

Platform based strategies have proved to be a successful approach for achieving optimum balances between standardization and variation in many industries. However, application of this concept in the housebuilding industry is relatively new. This article describes a new methodology for developing product platform architectures in the specific setting of the housebuilding industry. This methodology comprises a reference framework describing the basic elements that constitutes a product platform, supported by a protocol for developing product platforms. The applicability of the proposed methodology has been tested at a Dutch housebuilding company. In this study, the methodology demonstrated its added value in determining which modules to standardize and defining a product platform. This article also describes a distinctive method of housing classification that is based on the spatial use of houses. Compared to the traditional classification system based on technical construction elements, the proposed new classification system facilitates a better translation of functional requirements into technical specifications

IT in construction. Aligning IT and business strategies

The extent to which information technology (IT) infrastructures and strategies are aligned with business processes and strategies varies widely along firms. The objective of this paper is to explain the success or failure of IT in construction firms by focusing on the alignment (or lack of it) between business strategy, IT strategy, organizational infrastructure, and IT infrastructure. It is hypothesized that the ‘fit’ among these elements, the domains of the Strategic Alignment Model, is positively related to the Business Value of IT in Construction. The IT Business Value is evaluated in terms of efficiency, effectiveness and business performance. By applying the Strategic Alignment Model to the Dutch construction industry, it is shown that the inadequate alignment between these domains is a major reason for the modest added business value from IT investments in this industry. The first lack of alignment is the technology shortfall: hence IT contributes in an inadequate way to strategic processes of construction firms. The second lack of alignment is the strategy-shortfall: hence the firm strategy impedes the implementation of IT that could generate a high business value