The construction sector contributes significantly to the well-being of the national economy, accounting for 9.5 per cent of Australia's GDP. Still, the sector has endured ongoing decline over recent years. With a neutral stance when it comes to the adoption of technology as a strategic enabler, the question is being asked, is there a simple answer to what has become a national challenge.
The construction industry is currently lagging behind when it comes to IT adoption. As a result of this the chorus of voices advocating construction managers pay closer attention to the positive influence of the adoption of technology is growing louder. The aversion to adopt information and communications technologies in the construction sector has caused a budgetary gap that's sucking dollars out of the business where they should be flowing in; so why are businesses remaining silent on the issue?
The Construction Industry Institute and the National Institute of Standards of Technology found a correlation between adoption of IT solutions and improved productivity in that cost and schedule performance improve with increased IT use. However, recent studies have revealed that the construction industry is reluctant to apply new technologies, stemming from the issue of organisational inertia. Construction organisations become so accustomed to their tools and out-dated technologies they find it difficult to step out of their comfort zone. Shifting existing practices can cause employees to develop a resistance to change (RTC), which is a state in which people actively refuse to change, and it is this RTC that can cause a major roadblock to the innovation process. If managers can understand how to navigate this resistance, they can implement strategies to ease the innovation process.
Although construction businesses acknowledge they can achieve greater efficiency and productivity through IT solutions, the initial capital expenditure required to implement them is often another barrier. However construction firms should have a think about how much it's actually costing them to not have an information and communications solution in place.
A GPS management solution streamlines process for project managers, allowing them to more efficiently and effectively allocate resources and track the asset utilisation to ensure optimal use. As such, construction businesses are poised to significantly reduce wastage, decrease capital expenditure and boost productivity. In today's internationally competitive environment, there is an urge for a smarter approach to manage projects on construction sites. It is strongly recommended that managers continually seek innovative information technologies that will allow them to overcome inefficiencies in managing projects.
It is evident that reluctance to change and cost of implementing new technologies are influential factors contributing to the lack of innovation within the construction industry. If the construction sector is to move forward in 2013 it is vital that businesses embrace innovation technology to drive their strategy. Management must lead from the front to help workers adapt to the new environment and showcase how new technologies create a more efficient and productive work day for employees. It is obvious there is a significant amount of money just waiting to be generated, and if increasing productivity is key and construction firms recognise that technology is the ignition, it's time they take the next step to embrace and implement the right technologies.