Align an IT Strategy to the Industry Vision

AimAimThis presentation is prepared to support and give a general overview of the ‘How to Align an IT Strategy to the Industry Vision’ Guide and should be read in conjunction with the publication.

IntroductionIntroduction

Use of the GuideUse of the GuideThis guide:

Considers why it is important to develop a vision for the future

Includes Construct IT’s own vision for the future of IT in construction projects to help a company develop a vision

Offers step-by-step procedure for developing and implementing an IT vision

This presentation and the original guide should be reviewed in conjunction with the ‘How to Develop Your Information Strategy Plan’ guide.

Construction industry needs to communicate large volumes of complex information

Diversity of projects and large number of different stakeholders make it difficult

IT can help construction companies reduce problems of communication and information sharing

Under-investment in IT and lack of common standards and formats still major barriers

Why an IT Vision?Why an IT Vision?

By developing an IT vision:

Construction companies can gain a competitive advantage in their business.

The can also squeeze more value from their expenditure on IT.

Why an IT Vision?Why an IT Vision?

What is our position in today’s market?

Where do you want to be in the future?

Why an IT Vision?Why an IT Vision?

A company can start to establish an IT vision by asking two familiar questions:

Vision is… a wide and distant vista of the future in which the desirable image of the company is set, directing its course and generating strategies there.1

Visioning is… a multi-phased process which includes the generation, implementation and renewal of a vision. It is a highly imaginative process. However, the managers must be careful to create real visions, instead of extending the past. The important point is visioning is not static however it is an on-going

process. 2

[1] Okazaki-Ward, L. (1998) “The Practical Side to Visioning: The Case of Toray Industries Inc.”

[2] Korac-Kakabadse, N. and Kakabadse, A.P. (1998) “Vision, Visionary Leadership and the Visioning Process: An Overview”

Why an IT Vision?Why an IT Vision?

Organisational turbulenceDirection is provided by each individual manager

Short-term orientationAchieving results would become the only common denominator shared

Paradoxical empowermentMessages from upper management leads to confusion

In-fightingOne manager’s view may compete with another

[3] Kakabadse, A., Nortier, F., and Abramovici, N. “Visioning: Promoting a Shared Perspective Towards Organizational Success”

Lack of Vision CausesLack of Vision Causes33::

Construct IT has formulated an IT vision for the management of construction projects and the way their processes will be supported by IT

Purpose of this vision is to:Paint a picture for the industry

Gain competitive advantage

Platform for discussion and debateDynamic ‘picture’

Identify gaps between research and implementationIncrease academic/industrial collaboration and knowledge exchange

Identify barriersRealisation

Illustrate how IT could benefit the industry

Construct IT’s VisionConstruct IT’s Vision

1. Model driven information management

2. Life cycle thinking between project phases

3. Knowledge Management

4. e-Procurement

5. Visualisation

6. Simulation

7. Change management & process improvement

Seven Major ThemesSeven Major Themes

1. Model driven information management

Sharing project information via a shared concept or process model. Information is entered once and can then be used by all the different

stakeholders during a project.

Seven Major ThemesSeven Major Themes

2. Life cycle thinking

IT allows information to be shared seamlessly between the life cycle phases.

3. Knowledge Management

The construction industry should rely on past project knowledge and information when dealing with new projects

Seven Major ThemesSeven Major Themes

4. e-Procurement

Internet brings new opportunities for the tendering and procurement phases of construction companies.

5. Visualisation

Communications between the construction parties could be enhanced by the computer visualisation technologies, such as 3-D walk-throughs.

Seven Major ThemesSeven Major Themes

6. Simulation

Simulation would help construction managers to analyse and measure productivity, analyse risk, allocate resources, plan sites, etc.

7. Change management & Process Improvement

To achieve all the items above, construction organisations must implement fundamental structural changes.

Seven Major ThemesSeven Major Themes

Developed to help interpret the seven proposed themes.Covers five life cycle phases:

1. Conception of needs

2. Tendering and team selection

3. Design and briefing

4. Construction

5. Facilities management

Vision ScenarioVision Scenario

Geographical Information Systems (GIS) would help site selections

Visualization will offer a better understanding of the project.

1.1.Conception of NeedsConception of Needs

Process Capability would become a partner selection criteria

IT Capability would become a partner selection criteria

Long-term partnering would be preferred

2.2.Tendering and team Tendering and team selectionselection

Sharing visual information would be facilitated by new IT tools

Internet would bring out new procurement approaches

Simulation would be used to make feasibility and buildability analysis

3.3.Design and briefingDesign and briefing

4D Simulation would be used to assess buildability issues

Material flow in construction sites would be improved by new devices such as web, bar coding, hand-held computers etc.

4.4.ConstructionConstruction

Electronic as built information is used for operations and maintenance of the facility

Intelligent tagging will become part of the project and form a base for FM activities

5.5.Facilities managementFacilities management

Visioning must be integrated into a continuous strategic planning process to overcome these barriers

Implementation BarriersImplementation Barriers

Only 5% of the work force

understands the strategy

Only 5% of the work force

understands the strategy

Only 25% of managers have

incentives linked to strategy

Only 25% of managers have

incentives linked to strategy

85% of executive teams spend less than one hour per month discussing

strategy

85% of executive teams spend less than one hour per month discussing

strategy

60% of organizations

don’t link budgets to

strategy

60% of organizations

don’t link budgets to

strategy

9 of 10 companies fail

to execute strategy

9 of 10 companies fail

to execute strategy

The People Barrier The Learning Barrier

The Vision Barrier

Operations Barrier

1Initiate Information Strategy Planning

Project

1Initiate Information Strategy Planning

Project

2Identify your

Business Position

2Identify your

Business Position

4Develop System and Technology

Roadmap

4Develop System and Technology

Roadmap

5Prioritise Solutions

5Prioritise Solutions

Business StrategyBusiness Strategy

Continuous Development of Information Strategy Plan from Business Needs

Continuous Development of Information Strategy Plan due to Changing Technology

Increasing IT Capability Integrated with Business Strategy Planning

6Develop IT Vision

6Develop IT Vision Implementation

Implementation

3Examine

Capabilities and Technologies

3Examine

Capabilities and Technologies

How to Develop an Information Strategy Plan guide explains how to link business strategy to IT investment

Incorporating VisioningIncorporating Visioning

This guide proposes additional stage that ensures the visioning process becomes an integral part of continuous strategic planning.

Develop IT Vision

Develop IT Vision

i. Generating Conceptual VisionThe visioning process usually starts with the creation of a vision concept. Construct IT’s vision could be used at this stage

i. Generating Conceptual VisionThe visioning process usually starts with the creation of a vision concept. Construct IT’s vision could be used at this stage

ii. Debating the VisionDebating the vision brings unforeseen issues to the surface; unresolved issues will cause problems in future.

ii. Debating the VisionDebating the vision brings unforeseen issues to the surface; unresolved issues will cause problems in future.

iv. Communicating the VisionShare the company vision with your employees as you need their support during the implementation.

iv. Communicating the VisionShare the company vision with your employees as you need their support during the implementation.

iii. Testing the Vision•Test if your vision is in line with company strategies and,•If it fits in with your company’s interpretation of Construct IT’s Vision.

iii. Testing the Vision•Test if your vision is in line with company strategies and,•If it fits in with your company’s interpretation of Construct IT’s Vision.

How to Develop an IT VisionHow to Develop an IT Vision

Vision is an important motivator that prepares companies for the future.

It must be remembered that developing a vision is a continuous process.

The visioning process is an important step in your ‘Information Strategy Planning’. Consider both of them together.

Concluding RemarksConcluding Remarks

In terms of technology uptake, a distinct pattern exists in the way organisations adopt technology.

Finally …Finally …

Think about your place in the ‘Bell Curve’ to understand the intention of your company.