innovation, change & strategy

INNOVATION, CHANGE & STRATEGY

IKHSAN Muhammad Ridhwan

Construction Industry Master Plan (CIMP) was established on the 2006. It was a 10 years plan to rectify the weaknesses and to improve the

industry’s performance as well as the image of the industry.

CIMP target to improve on the quality, time efficiency, reducing foreign labour, and ensuring quality of social and health in the industry.

7 Strategic ThrustThrust 1 • Integrate the construction industry value chain to

enhance productivity and efficiency

Thrust 2 • Strengthen the construction industry’s image

Thrust 3 • Strive for the highest standard of quality, occupational safety and health, and environmental practices

Thrust 4 • Develop human resource capabilities and capacities in the construction industry

Thrust 5 • Innovate through research and development and adopt new construction methods

Thrust 6 • Leverage on information and communication technology in the construction industry

Thrust 7 • Benefit from globalization including the export of construction products and services

8 Critical Success Factors

Productivity

Quality

Human Resource

KnowledgeInnovation

Environmental Practice

Industry sustainability

Professionalism

Why?The Importance of Innovation

A highly adaptable capability in any robust industry condition.

‘management of change’

how & who

In 2003, six case studies were conducted by Cooperative Research Centre for Construction Innovation of Australia in a research project called BRITE (Building Research Innovation Technology and Environment).

[Case Study]


[Case Study]

Case Study 1: Outstanding Whole of Life Gains Without Higher Up-Front CostsCase Study 2: Concrete Planking Innovation Saves AUSD 300,000 on Major Sports Stadium

Case Study 3: Motorway Alliance Drives Performance ImprovementCase Study 4: Performance-Based Building Codes and Fire Engineering Yield Innovative

Design SolutionCase Study 5: Australia's First Fibre-Reinforced Polymer Bridge Deck on The Road Network

Case Study 6: Ground Penetrating Radar Finds Defects in Bridge Beams

The case studies were focusing on innovation and its implementation, covering all industry players – clients, contractors, consultants and suppliers.


[Case Study]


The case studies, which are conducted in Australia, describe the dynamics of industry innovation.

This involves highlighting the benefits of innovation and describing how particular companies have sought innovations, have decided on adoption and then successfully implemented those selected.

[Case Study]

Ergo…Innovation entails construction industry to meritoriously plan

for change holistically vis-à-vis to sustain in the caustic industry, or vice-versa.

Why?

What?Integrated Communication

Change in communication within organizational practice throughout business life, de facto of novelty in construction industry.

Multicultural complexity among construction participants commonly would cause hitches, that this trigger difficulties in coordinating activities for shared goals.

Significant large number of involvement in construction project with the conventional one-off nature, is the cause of obstruction towards a progressive communication innovation.

Information technologies have been seen as an opportunity for greater knowledge sharing in which better communication integration could be achieved.

Ergo…What?

Integrated Communication

Improvisation within construction industry may require an innovation for integrated communication as a pre-requisite before the other changes shall emerge.

What?Technological Advancement

Construction organization has to be highly adaptive towards changes to sustain within the industry such as acclimatize towards technological advancement, not stagnancy.

Although the proposition for change is seen as arduous, the ability of one organization to adapt with technological emergent would results perpetuity of the organization in the industry.

Inconsistent technological adoption is one of the reasons the construction project participants shall interoperate inefficiently vis-à-vis cause billions of financial outflow.

Change reformation shall only take place effectively within all construction project

participants, if, the nature of one-off project to be deal with the same participants during

temporary coalitions with a constant knowledge transfer.

Key participants in Innovation Processes Informed clients with high levels of technical competence are an important “market-pull" factor in driving innovation

(1,3,4, and 5)

[Case Study]

How to Innovate Successfully Streamlining Activities Improving knowledge flows by developing more intensive industry relationships.Integration of project experiences into continuous business process to limit the loss of tacit knowledge between projects.

[Case Study]

Ergo…What?

Technological Advancement

In order for technological implementation to evolve efficaciously, change management should improvise effectively.

How?Change Resistance

Materialize the change would require a well strategize management scheme to ensure the changes aimed could be realize meritoriously.

Within the organization, resistance to change by staffs cause lack of change implementation in continuous practice.

Refusing for persistent implementation by most construction players are usually due to lack of credible plan to convince them of the outcome.

External

Internal

Management behavior

Changes can occur when there is needs.

By-lawClient

Authority

[ASBA Architect, 2013]

External

Internal

Management behavior

By-lawClient

Authority

By-lawClientAuthority

How?Change Resistance


Key features in Innovation Processes Standards act as strong “market-pull” factor encouraging the industry to improve performance

(1 and 4)

[Case Study]

How to Innovate Successfully Building Relationships with Key Players Active use of innovation brokers to facilitate efficient access to technical support providers and other external players with complementary knowledge bases.Building extensive relationships with manufactures supplying the industry, in view of their involvement in R&D programs.Building long term relationships with manufacturers supplying the industry, in view of the shift towards more cooperative approaches to project delivery.

[Case Study]

Ergo…How?

Change Resistance

Strategy of change requires a persuasive support along the implementation process to facilitate implementers and upkeep with any intangible occurrences.

How?Culture & Behaviour

Change shall be implemented consistently if the organizations’ players solemn in implementing the change towards innovation culture.

In construction industry, forwarding towards sustainability organization necessitate each participants to comprehend the legitimacy of current practice de facto improving the sector.

Key participants in Innovation Processes Small regional firms can be important innovation drivers because of their knowledge of local conditions

(1,2,5, and 6)

[Case Study]

Key features in Innovation Processes Mobilising integrated approaches to construction projects, in response to industry fragmentation arising from the "one-off" nature of most projects and the proliferation of small players/contractors.

The type of contract employed by clients on projects has a big impact on the ability of stakeholders to try new approaches hence innovate

(2 and 3)

[Case Study]

The shortcomings experienced in the construction industry are also

caused by existing attitudes, cultures and behaviors.

An assessment of participation towards change such as involvement, training, communication and education shall overcome the resistance to change behavior.

External

Internal

Management behavior

By-lawClient

Authority

How?Culture & Behaviour

“The changes for innovation will takes some time to be accepted by the industry because of the trust on the product and the acceptance on

the product by the key player.”


How to Innovate Successfully Growing an Appropriate Internal Business Environment Building a culture supportive of innovation, including encouraging staff to share ideas, enhancing in-house technical competence, supporting innovation champions, appreciating the opportunities presented by problems and encouraging prudent risk taking.

[Case Study]

How to Innovate Successfully Effective Client Leadership Maintaining high level of technical competence and a positive approach to prudent risk taking.

[Case Study]

Ergo…How?

Culture & Behaviour

The change strategy oblige devoted, constant effort by all construction participants either different parties nor within employees,

to partly innovate the organization towards a better tradition.

Thank You

Blayse, A. and Manley, K. (2004) ‘Key Influences on Construction Innovation’, Construction Innovation, Vol 4, No 3, pp 1-12

Carr D et al. Managing the change process: a field book for change agents, consultants, team leaders, and reengineering managers. New York: McGraw-Hill, 1996. p. xiii, 24±25.

Henderson, J. and Ruikar, K. (2010) ‘Technology Implementation Strategies for Construction Organisation’, Engineering, Construction and Architectural Management, Vol. 17 No. 3, pp

309-327Jorge, A. & Annie R. (n.d.) ‘Drivers for Change: An Organizational Perspective on Sustainable

Construction’Lars, S. & Per, O. (2010) ‘A Method for Action Research Interventions to Improve Joint

Problem Solving in Operational Teams in the Swedish Construction Industry’, Qualitative Research in Accounting & Management, Vol. 7 No. 1, pp 97-123

Louise, S. (2007) ‘Technology, Change, and the Building Industry’, Real Estate Review, Vol. 36 No. 3

Salman, T. (2001) ‘A Change Management Model fro Saudi Construction Industry’, International Journal of Project Management, Vol. 19, pp 161-169

Scott, F. & Anthony, T. (2007) ‘Exploring Change in Construction: Supply Chain Management’, Engineering, Construction and Architectural Management, Vol. 14 No. 4, pp

319-333Wanda, J & Debra, J. (1997) ‘An Improvisational Model of Change Management: The Case of

Groupware Technologies’, Sloan Management Review

References

Case Study 1: Outstanding Whole of Life Gains Without Higher Up-Front CostsCase Study 2: Concrete Planking Innovation Saves AUSD 300,000 on Major Sports Stadium

Case Study 3: Motorway Alliance Drives Performance ImprovementCase Study 4: Performance-Based Building Codes and Fire Engineering Yield Innovative

Design SolutionCase Study 5: Australia's First Fibre-Reinforced Polymer Bridge Deck on The Road Network

Case Study 6: Ground Penetrating Radar Finds Defects in Bridge Beams

CaseStudy