AN ICT VISION FOR THE MALAYSIAN CONSTRUCTION INDUSTRY

INTRODUCTION

A few years ago, information technology (IT) has become a major factor in world business. It has become widely accepted that information technology including internet-based information systems are playing a vital and expanding role in business. Information technology can help all kinds of business improve the efficiency and effectiveness of their business process, decision making and managing information, thus creating a competitive environment in business. The importance of IT is reflected by the growing number of funded research initiatives worldwide including Doherty (1997), Howard (1998), Rivard (2000) and A.Aziz et al (2002). All these studies addressed the needs to explore the opportunities that lie in IT to improve the performance of the Construction Industry.

In the current context of a global and borderless economy, information technology appears to be one of the most important tools in achieving competitive advantages in every sector including construction. The capability of computing technology commonly used by business and the public has changed significantly since the last decade. In particular, the Internet which has made a major impact and all sectors are evaluating to maximise the opportunities. The establishment of e-Commerce, e-Business, e-Medicine, e-Learning and other electronic transaction processes has proven the needs for and the significance of ICT.

Information technology is also changing the global construction business and internet is the key to this change (Betts and Walker, 1999). As a result, the application of ‘e’ has led to the formation of e-Construction within the construction industry.

E-CONSTRUCTION – AN ICT VISION FOR THE MALAYSIAN CONSTRUCTION INDUSTRY

E-Construction in a simple term is used to describe the transactions which are conducted electronically over the Internet. It offers open operating standard in web-based applications including information exchange, tendering, procurement, etc., for various parties involved in construction. Rahim (2000) has defined e-construction as a tool, which is concerned with the management, processing and use of information, facilitated by information and communication technology. Similarly defined by DETR (1999), e-construction involves sharing business information, maintaining business relationship and conducting business transaction by means of electronic networks.

Alshawi (2001) specifically addressed e-Construction as electronic data exchange which is an information technology based operations that has the capacity to facilitate considerable online information exchange and promote business efficiently. Unlike many IT tools, e-Construction is much concerned on the exchange of information across the project supply chain.From the above definitions, e-Construction can be considered as a tool or medium for managing and processing information to enhance business activities supported by information technology. This tool will facilitate business activities such as communications, information exchange and sharing, business processes, and transactions. It acts as a platform for the construction professionals to promote business effectively using ICT and probably enhance the knowledge within the community by information sharingIn the Malaysian construction industry, e-Construction has been launched by the Construction Industry Development Board (CIDB) in September 1999. This programme emphasises on the management, processing and use of information, facilitated by information and communication technology. It is intended to play a vital role in helping the construction industry to become more innovative, competitive and efficient. The launching of e-Construction programme would encourage and promote greater usage of information technology among the construction industry players such as contractors, consultants, clients, government, suppliers, etc.

ARE WE READY?

Having launched the e-Construction programme for a period of almost 10 years (since September 1999), a survey has been carried out to explores the extent of which the construction companies in Malaysia are able and ready to implement the programme. The survey focuses on the readiness of medium sized contractors in Malaysia in realising electronic ways of doing construction activities. In the study, the word readiness is defined to incorporate both attitudinal and physical attributes. Attitudinal elements include the level of knowledge, optimism, awareness, perception of importance, interest and willingness of the contractors to implement the program. Personnel, investment in IT and infrastructure readiness is used to measure the physical readiness of the respondents to implement the programme.

According to the survey, the medium sized contractors are physically not ready to implement the programme due to the lack of networking access and computing infrastructure as well as inadequate investment, technical staff and knowledgeable staff. The access to the internet is the most critical factor that determines the physical readiness of the companies.e-Construction is not yet ready to play a major part in activities of the construction industry in Malaysia from the medium sized contractors’ point of view. Nevertheless, there is a common belief across the whole industry that it will benefit the users. Overall the view was that a more extensive approach has to be carried out. The absence of the right culture in the industry has become part of the industry’s inherently cautious approach to change. Indeed many companies still fail to get connected to the internet, which is without doubt, the main stumbling block towards their long term success.

The Malaysian construction workforce should be more educated, higher in knowledge, influenced by the advances in ICT especially the internet. They should be able to utilise ICT to build on their strength in a greatly expanded and globalised market.

These factors have to be undertaken into deep consideration to implement e-Construction in Malaysia. From the assessment and findings of the research, it demonstrated that the success of e-Construction is dependent on the full commitment and involvement of the construction industry players. Therefore, the contractors should be prepared to undergo a paradigm shift, which entails new ways of doing business and implementing their core business processes.

CONCLUSIONS

Technology will enable almost everything. However, one thing is certain in this rapidly changing environment, technology exposed today will be overtaken by the events of tomorrow. The emergence of new and more developed technology will continue so that we cannot stay for a long time on the same platform. Therefore, deciding on how best to apply it is the critical decision to make. The party who has the authority, such as CIDB has to critically plan and implement the e-construction programme, in such a way that the success of the programme is certain.It is interesting to note that this research has shown that the medium sized contractors are not ready to implement the programme. Some actions have to be taken to ensure the readiness of the contractors, as the main players in the industry. In order to beef up the level of readiness, the industry might need a "killer application" to put everybody in the fast lane. Major ICT applications, followed by training, seminars, awareness programmes, etc., could do the trick, forcing the industry players to equip themselves attitudinally and physically. In this way, the e-construction programme can be realised, consequently achieving its goals and the objectives, and benefiting the construction industry as a whole.

REFERENCES

1. A.Aziz, Mui, L.Y., Cheng, N.A., Yee, W.C. & Lay, W.S. (2002) A Survey on Internet Usage in the Malaysian Construction Industry, Available: www.itcon.org/
2. Alshawi, M. (2001) E-Construction: Present and Futures, Proceeding of ICW 2001, 12 September 2001, Kuala Lumpur.
3. Betts, M. & Walker, D. (1999) Information Technology Foresight: The Future Application of the World Wide Web in Construction, Available: www.construct-it.salford.ac.uk
4. Buildon Line[online] e-Construction Portal, Available: http://ww.build-on-Line.com
5. DETR (2000) e-Business in Construction – Status, Opportunities and Role of DETR, Davis Langdon Consultancy, UK. Available: http://www.construction.detr.gov.uk
6. Doherty, J.M. (1997) A Survey of Computer Use in the New Zealand Building and Construction Industry, Salesoft CAD Solutions Ltd., New Zealand.
7. Howard, R., Kiviniemi,A. & Samuelson,O. (1998) Surveys of IT in the Construction Industry and Experience of the IT Barometer in Scandinavia, Journal of Construction IT. Available: http://www.itcon.org
8. Rahim, M.F.A. (2000) What Can the Construction Industry Benefit from the Multimedia Super Corridor (MSC)? The Malaysian Surveyor, 3rd Quarter 2000
9. Rivard, H. (2000) A Survey on the Impact of Information Technology on the Canadian Architecture, Engineering and Construction Industry, Concordia University, Canada. Available : http://itcon.org

By: Irwan Ismadi Masout

(2007130935)