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

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.

Management of a VCMSC and its business processes A flat organization where: 1.all middle level of management is removed 2.Functional units (cost estimation, procurement, and building design management) are outsourced 3.Prior internal project staff forms a pool from which a virtualized contractor assigns key staff to each project.

Management of a VCMSC and its business processes A Dynamic competitive network where: 1.A leading member networks with several Special System Contractors SSCs that supply the same systems, products, functional elements, or services 2.Members can be geographically dispersed firms, organizational units, teams, and individuals 3.Each member concentrates on those parts of the value chain with which it achieves maximum added value.

Management system of a VCMSC Consists of seven subsystems and related principles: 1.project owner relations, 2.project offerings and bidding, 3.project design and engineering, 4.project procurement, 5.construction, execution, and control, 6.Commissioning and after sales services, 7.network nurturing.

Need for IS/IT strategy in construction-related firms What is required? Where is the business going and why? How can it be delivered? Business strategyIS strategyIT strategy Supports business Direction for business Needs & services Infrastructure & services IS/IT impact & potential 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. Martin Betts, Strategic Management of IT in Construction

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.

IS/IT system of a VCMSC IS/IT system required to facilitate the VCMSC’s business strategy is based on: 1.Using the standard WWW 2.A private network Intranet; employees within VCMSC can share and use documents and communicate without allowing access from the outside. 3.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. 4.IS/IT sub-systems facilitate the performance of a VCMSC’s seven management sub-systems

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.

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: 1.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. 2.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.

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: 1.Architectural model (CAD application) 2.Building simulation model (engineering software in structures, environmental design, and facility management services). Product model enables effective change and exchange of project information: 1.SSCs review design layouts and identify conflicts between design, engineering, and construction. 2.Designers get real-time feedback regarding design changes

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: 1.Basic information regarding the performing organization 2.Profile and work history with the VCMSC in question. Selection of SSCs for a specific job is based on fit-for-purpose strategy.

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: 1.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.

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. 1.Using profile directories of SSCs to find a match for the required performance and commissioning and after sales services for the project. 2.Handing over the applied and updated product model to the client for FM purposes.

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: 1.Competencies 2.Skills 3.Performance history Profile information is related to: 1.Current and past SSCs participated in past projects 2.Company profiles from generic catalogs Choice of members is based ofn ”fit-for-performance” strategy.

Digital project information Digital project information generated by IS/IT sub-systems includes: 1.Fully digitalized information extracted from product and process models. 2.Centrally accessible information storage, project databank. 3.Networks connecting the users to the information storage and transforming the digitalized information via Internet and Intranet/Extranet.

Thank you 29-30/03/2006