Introduction
Malaysia was connected to the Internet in 1990 when the Internet Service Provider (ISP) JARING was launched by MIMOS Berhad. In 1996, Telekom Malaysia launched the country’s second ISP, which is TMNet. (Rahmah, 1999).
The benefit of using IT in the CI has been illustrated by Aouad et al. (1999) and Marosszeky et al. (2000), who concluded that the use of IT is important because it has been proved that:
- it can bring faster cycle and response times;
- businesses that have applied IT experienced significant gains in productivity and hence competitive advantage; and
- for some firms, IT has enabled expansion into new markets, and positioned them to compete internationally.
The physical distance apart generates communication barriers. In addition, the variety of communication media and modes in construction further augments its communication difficulties. Messages sometimes get distorted or delayed. Further, using long distance calls or overseas facsimile is very costly. Some international construction companies find that it is expensive to collect, maintain and update the information for overseas construction sites.
However, the cost of using the Internet services is much lower than that of the IDD and express courier services. Messages can reach the recipients more speedily and accurately which can also be traceable. The Internet is a global network which is not restricted by locations, time or different computer operating systems. In summary, it is more effective in using Internet networking systems for construction
Technology can be used to improve firms' ability in terms of the effective use of information. For example, Li et al. (2000) found that a quantity surveying firm and an architectural firm reaped productivity improvements from the use of IT. According to Bennett (2001), if used widely, information technology can make for better projects, better use of resources, and better profits. He agreed that the technology could be useful for managers in construction firms to assist in making better decisions and enhancing communication. Examples of the application of technology in these firms are project programming, cost estimation, document management, project websites, material and equipment inventories and so on.
Furthermore, Ariffin (2002) argued that the use of technology is very important, especially for large firms. Quite a number of large projects used the internet as a communication tool to involve project participants, for example in the construction of new international airports in Hong Kong and Malaysia, where the relationships among the project participants was managed on a “visual project” basis (Smith, 1999).
Information Technology (IT) is the sine qua non of all businesses today, including the construction industry, so understanding its roles and functions in construction firms is a requisite in assessing their performance. However, little work in this has been done on Malaysian firms. Generally, Information Technology (IT) plays a vital role in the sustained growth of a business. IT is defined broadly as “technologies dedicated to information storage, processing, and communications” Ang et al. (1997), that is, a combination of hardware, software, telecommunications and office equipment to transform raw data into useful information for speedy retrieval.
Yap et al. (1992) and Valida et al. (1994) concluded that IT use and its integration were higher in companies providing goods and services than those in manufacturing and distribution. Mui et al. (2002) surveyed internet use in the Malaysian construction industry, and found that most of the companies used the Internet and considered it an important tool. Nevertheless, they reckoned that they did not fully harness the power of the Internet - only using the basic functions like e-mail. To encourage more intensive use of the Internet, they suggested improving their own infrastructure and hiring more computer savvy staff.
Unfortunately, Stewart and Mohamed (2003) found that the CI still lags considerably behind other industries in achieving comparable rates of IT implementation.
One of the possible reasons for this is the service or product characteristics offered by the industry (i.e. heterogeneous variety in size, no two projects are exactly alike, etc.). Furthermore, the industry practises different ways of producing products by using different combinations of resources. For example, construction project teams are unique entities, created through a complex integration of factors, with interdisciplinary players, varying roles, responsibilities, goals and objectives (Goodman and Chinowsky, 1996). Collaboration and teamwork is crucial in construction since sharing up-to-date information between project teams leads to minimising errors, reducing time delays and breaking the widespread rework cycle (Mohamed, 2003). Latham (1994) identified the lack of integration across partners as a major issue affecting the performance of the UK CI. The application of IT thus facilitates the sharing of information and knowledge to increase the efficiency and productivity of the industry.
Furthermore, the CI in general is highly fragmented, with significant problems like low productivity, cost and time overrun, conflicts and disputes, resulting in claims and time-consuming litigation. This has been acknowledged as the major cause of performance-related problems facing the industry (Mohamed, 2003). Information produced by many sources, at many levels of abstraction and detail, also contributes to industry fragmentation (Froese et al., 1997). According to Steward and Mohamed (2003), fragmentation is one of the characteristics of the industry and forms a barrier that prevents the strategic use of IT.
Vision
Visioning is a process that can assist in the development the future generation of ICT for the construction industry. Sarshar (2000) developed a vision for construction IT. Sarshar portrayed a scenario where all stakeholders can produce their relevant project information and post it on an electronic “project information board”. Each user has appropriate access rights and can manipulate the necessary information on demand. This vision has been termed construction “integration”, by many researchers (Issa, 1999) (Alshawi, 1996).
In this vision for construction IT (Sarshar 2000), the users of this information board need not be tied to their computers and office network for connections and access. Advances in communications technologies allow users to manipulate information in any format, and in any geographical location. This is known as construction “collaboration”.
The “project information board” approach is a means of sharing project information, via a shared conceptual product / process model. Information is entered once and is used by all stakeholders, during a project. Some of the benefits of the integrated approach include:
· Much of the project information can be presented in a visual rather than textual format. This eases communications and information sharing (Issa 1999, Thabet 1999, Brandon 1999).
· Many aspects of the building can be simulated to improve client briefing and design reviews (Sawhney 1999) (Shi 1999).
· Such interactive technology can be used to consider life cycle issues such as environmental impact, space planning, facilities management, emergency evacuation, security and constructability during design reviews. This can facilitate concurrent engineering by involving clients, planners, architects, designers, civil engineers, contractors, facility managers and security personnel (Sarshar 2000).
· It is easier to use past project knowledge and information for new developments.
DIVERCITY was an EU funded project (1999-2002) (Divercity Handbook 2003), (Christiansson 2002). The project used IFC standards in order to develop a toolkit for shared virtual briefing and design, in the construction industry. This toolkit allows construction companies to conduct client briefing, design reviews, simulate what if scenarios, test constructability of buildings, communicate and co-ordinate design activities between teams.
DIVERCITY has developed virtual workspaces that improve communication and collaboration. DIVERCITY has focused on three construction processes, i.e. (i) client briefing; (ii) design reviews; and (iii) site operations and constructability.
DIVERCITY allows users to produce designs and simulate them in a virtual environment. The designs are IFC based and can be viewed by all stakeholders within the project team.
To contribute towards the objectives of Malaysia to be a developed nation by 2020, it is envisaged that Malaysia will develop a construction industry that is internationally competitive. The industry will be seamless and all stakeholders will work in collaboration with each other.
With the above in mind, a vision for the construction industry has been formulated in tandem with the objectives and goals of Vision 2020. This vision for the construction industry is intended to drive the development and implementation of all the strategies recommended in achieving its objectives. It is the Government’s aim to promote this vision to all stakeholders so that it is shared by both public and private sectors.
ICT has a significant role to play in transforming these ideas into physical reality, from facilitating the creation and modification of building plans to expediting the review and approval process. The use of ICT permeates various industries and is seen as a major driver for improvement in performance and cost efficiency. As such, the ability of the construction industry to harness the potential of ICT will bring significant improvements to the industry, including its image as a progressive industry.
The objective of this strategic thrust is to raise the level of clients’ sophistication through various technology-enabled knowledge sharing platforms. This is to set the foundation for a knowledge-based construction community that is in tandem with the goals of Vision 2020.
Conclusion
The success of the construction industry is increasingly predicated on technology driven investments in information technology (IT) and this is expected to be even more so in the future.
Although the construction industry has traditionally been slow to accept new technology, many users have now recognized the superiority of the Internet and are prepared to invest in it. The Internet can facilitate effective construction communication in the construction industry. Moreover, the cost is much cheaper than traditional approaches.
In the Malaysian CI, there is a gradual evolution of managers having higher academic qualifications. This higher education level has influenced their perception towards IT usage. Most of them are familiar with the use of computers and the internet. In fact, the explanation of the Malaysian CI in section 1 provides support that construction firms should be more exposed and interested in adopting new technology. The reasons for this are:
- The Malaysian construction industry is aggressively exercising the use of E-Tendering for construction works. The full package for E-Tendering, which includes advertising of tender documents to awarding contracts to contractors, will be implemented by the end of 2007.
- Construction firms are now facing different types of clients who constantly demand fast decisions, complex projects, and proper management and control. Thus, managers have to be more professional and ready to adopt new technologies in order to enhance their clients' satisfaction.
- The Malaysian CI is shifting from traditional practices in projects to non-traditional methods, for example build-operate-transfer. Contractors have to join with finance companies, consultants and perhaps other contractors in order to increase their capacity for the purpose of project bidding (Arrifin, 2002).
- Large firms have to be increasingly competitive to compete in a borderless world.
By: Ehsan Dehghan Manshadi
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