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 Thrust
Thrust 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
Knowledge
Innovation
Environmental
Practice
Industry
sustainability
Professionalism

Why?The Importance of Innovation

A highly adaptable capability in any robust industry condition.

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 Costs
Case Study 2: Concrete Planking Innovation Saves AUSD 300,000 on Major Sports Stadium
Case Study 3: Motorway Alliance Drives Performance Improvement
Case Study 4: Performance-Based Building Codes and Fire Engineering Yield Innovative
Design Solution
Case 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?

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.

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-law
Client
Authority
[ASBA Architect, 2013]

External Internal
Management
behavior
By-law
Client
Authority
By-law
Client
Authority
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]

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.

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-law
Client
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.”

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]

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.

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
309-327
Jorge, 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
319-333
Wanda, 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 Costs
Case Study 2: Concrete Planking Innovation Saves AUSD 300,000 on Major Sports Stadium
Case Study 3: Motorway Alliance Drives Performance Improvement
Case Study 4: Performance-Based Building Codes and Fire Engineering Yield Innovative
Design Solution
Case 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

Innovation, Change & Strategy

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