IS/IT strategy of a Virtual Construction Management Services Company

1. IS/IT strategy of a Virtual Construction Management Services Company Wafa Alsakini Design Management System for a Virtual Construction Management Services Company VCMSC Helsinki University of Technology/Construction Economics and Management 29-30/03/2006

2. The aim of the research • Introduce the concept of VCMSC and its management systems. • Review the generic IS/IT strategies of construction firms (literature review). • Define the IS/IT strategy. • Define IS/IT systems to facilitate business strategy realization.

3. Management of a VCMSC and its business processes • A flat organization where: • all middle level of management is removed • Functional units (cost estimation, procurement, and building design management) are outsourced • Prior internal project staff forms a pool from which a virtualized contractor assigns key staff to each project.

4. Management of a VCMSC and its business processes • A Dynamic competitive network where: • A leading member networks with several Special System Contractors SSCs that supply the same systems, products, functional elements, or services • Members can be geographically dispersed firms, organizational units, teams, and individuals • Each member concentrates on those parts of the value chain with which it achieves maximum added value.

5. Management system of a VCMSC Consists of seven subsystems and related principles: • project owner relations, • project offerings and bidding, • project design and engineering, • project procurement, • construction, execution, and control, • Commissioning and after sales services, • network nurturing.

6. Need for IS/IT strategy in construction-related firms What is required? How can it be delivered? Where is the business going and why? Supports business Needs & services Business strategy IS strategy IT strategy Direction for business Infrastructure & services IS/IT impact & potential Martin Betts, Strategic Management of IT in Construction • IS Strategy: • Bring together the business aims of the company • Understanding of the information needed to support those aims • Implement of computer systems to provide that information.

7. IS/IT Strategy of a VCMSC • IS strategy answers: What is required? • IT strategy answers: How it can be delivered? IS/IT strategy is based on: • Using Internet as basic tool for networked communication. • Selecting and buying the well-known commercial software/applications to match requirements. Achieve flexibility • Distributing applications to a VCMSC’s competitive network partners. Achieve Integration • Maintaining operability of information sub-systems by providing IT training to the pooled staff for applications in use.

8. IS/IT system of a VCMSC • IS/IT system required to facilitate the VCMSC’s business strategy is based on: • Using the standard WWW • A private network Intranet; employees within VCMSC can share and use documents and communicate without allowing access from the outside. • A computer network Extranet; allow controlled access from the outside by trusted customers/partners to the VCMSC’s database for specific business purposes via the web. • IS/IT sub-systems facilitate the performance of a VCMSC’s seven management sub-systems

9. Project owner relations management system PORMS Project Owner Relatioship Mgmt Sub-System • Customer satisfaction • Relationship building with existing & potential clients Information sub-system facilitates: The performance of the PORMS by providing Client Relation Management CRM information for generating and updating of a list of present and potential clients by using many viable spreadsheet programs.

10. Project offering and bidding management system POBMS Project Offering & Building Mgmt Sub-System • Collaboration with (CNW), preparing WBS, buying BoQ & cost estimates, distribution of bid packages to (SCC) for bid preparation. Information sub-system is designed to support POBMS by: • Providing info. to decide upon the WBS and bid package based on a product model prepared by the building designer. • leading member buys BoQ and cost estimate from expert consultant via Internet. • Leading member distributes bid packages to SSCs for bid preparation via Internet. • Cost estimate software that links BoQ with unit cost resource database of VCMSC to produce updates of the cost estimate according to the unit costs for comparing sub-offerings.

11. Project design and engineering management system PDEMS Project Design & Engineering Mgmt Sub-System: • Improves constructability by providing SSCs in a CNW with a platform to contribution to detailed design of allocated project packages. The information sub-system combines/linkes the engineering analysis and CAD documents: • Full product model is designed that combines: • Architectural model (CAD application) • Building simulation model (engineering software in structures, environmental design, and facility management services). • Product model enables effective change and exchange of project information: • SSCs review design layouts and identify conflicts between design, engineering, and construction. • Designers get real-time feedback regarding design changes

12. Networked project procurement management system NPPMS Networked Project Procurement Mgmt Sub-System • The sub-system improves internal competition between (CNW) members in order to come with inegrated best offering. Information sub-system includes: • List of SSCs with which it holds a long joint-work history. • List of processes and services to be procured, • The document provides: • Basic information regarding the performing organization • Profile and work history with the VCMSC in question. Selection of SSCs for a specific job is based on fit-for-purpose strategy.

13. Construction, execution, and control management system CECMS Construction, Execution & Control Mgmt system • Improves construction, execution and control services provided by CNW during execution, also outsourced safety and quality services. Information sub-system is designed as a process model: • Master plan is produced in terms of main systems or packages to be performed by SSCs: • SSCs plans their activity plan/schedule and integrate them into the real-time master schedule (for control purposes). • Cost information is fed into the process model based on actual expenditure on site by SSCs and sub-contractors.

14. Commisioning and after sales services management system CASSMS Commisioning and sfter sales services management system: • Enables leading member to provide the client with long-term facility management services (system) by preparing a contract of the FM package for the client. Information sub-system facilitates the CASSMS by: • Using the information generated through the six other processes and IS/IT sub-systems collectively. • Using profile directories of SSCs to find a match for the required performance and commissioning and after sales services for the project. • Handing over the applied and updated product model to the client for FM purposes.

15. Network nurturing management system NNMS Network Nurturing Mgmt Sub-System • Develops the position of actors in a (CNW) and the quality of their relationships. Information sub-system facilitates the performance of NNMS by: • Provide information in the partner search by developing profile directories of the companies/organizations including: • Competencies • Skills • Performance history • Profile information is related to: • Current and past SSCs participated in past projects • Company profiles from generic catalogs Choice of members is based ofn ”fit-for-performance” strategy.

16. Digital project information • Digital project information generated by IS/IT sub-systems includes: • Fully digitalized information extracted from product and process models. • Centrally accessible information storage, project databank. • Networks connecting the users to the information storage and transforming the digitalized information via Internet and Intranet/Extranet.

17. Thank you 29-30/03/2006