Innovation in Construction A Project Life Cycle Approach

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SCRI Research Report4Innovation in constructionA Project Life Cycle ApproachThere are many lessons that can be learnt from thesecase studies as summarised below:n There is no substitute for good planning; innovationbenefits can only be achieved through planned effortto invest in new ideas and convert them into practicein a systematic way.n Early contractor involvement and integrated workingare essential for a successful outcome by minimisingthe discontinuities within the value chain.n Contractor’s sole effort to innovate does notguarantee success, support from like-minded peopleis crucial.n Innovation in construction can only be achievedthrough understanding client requirements andcollaboration throughout the whole project lifecycle.n Repeatability of projects and strategic partnershipbetween the client and the contractor help the teamsachieve its targets starting from the design phasethroughout its operation.n New methods are jeopardizing for constructionindustry since changing traditional way of workingis not an easy task. Devotion to innovate is thekey to break the industry’s resistance to change.Commitment from all parties along the supply chain isone of the major enablers to innovate.n Building regulations can drive both technological(product and process) and organisational innovationswithin the construction supply chain. Client’s devotionto meet those regulations and effective team workwill ensure buildable solutions are developed.n Qualified labour resource, capable of requisiteinnovation, is scarce within the constructionindustry. Sharing knowledge and best practice alongthe supply chain can improve the culture and skills of theworkforce and it is therefore crucial for projectsuccess.n Exploiting potential efficiency benefits requiresorganisational innovations such as supply chainmanagement and business process reengineering.n Creative and open approaches to communityconsultation can improve the relationship with thelocal community and bring ideas into the projects.n Benefits of MMC are not short-term, strongcommitment from all project participants is essentialto ensure long-term benefits.n Achievements and the experience gained caneasily be transferred to other similar projects and newlydeveloped products can be offerred to the market.n Sustainable construction can also be affordable byadopting the lean principles and transferring theproject knowledge and key lessons to future projects.n Idea generation is easier compared to convertingthose ideas into practice since this requires advancedskills, commitment and large investment.40
6. DISCUSSION AND CONCLUSIONSThis report has investigated constructioninnovation through a literature review of its measurement, asurvey of innovation at the firm level and case studies ofinnovation in a project setting. This section of the reportbrings the findings together in order to highlight thekey lessons of the research and to suggest areas wherefurther research is needed. The key lessons from thisreport are as follows:6.1 Measurement ofConstruction InnovationConventional measures of construction innovationunder represent the amount of innovation that takesplace within the construction sector. This is for twomain reasons. Firstly, standard surveys of innovationonly take a narrow view of the sector (SIC Code). Toresent a fuller picture of construction innovation thesituation should be analysed from a wider built environmentperspective that includes material suppliers, designand use of facilities. Secondly, even within this widerperspective, conventional measures do not wellrepresent the innovation which is taking place. Thesurvey indicated and the case studies confirmed thateven where activities such as R&D take place this isoften within a project context and would not be includedin official statistics. Consequently, although the casestudies illustrate a wide range of activities to promoteinnovation and a wide range of outcomes from theseinnovations, only a small proportion of these wouldbe picked up by conventional statistics. The creationof a representative range of measures for constructioninnovation is being taken forward by NESTA. Althoughthis report is not detailed enough to make such concreteproposals two recommendations can be made.1) Much R&D activity is taking place that is notregistered officially. More should be done to raiseawareness of the R&D Tax Credit scheme to constructioncompanies. This would directly benefit the companiesand improve the statistics.2) The Innovation Value Chain approach to themeasurement of construction provides a flexibleand simple system that can usefully be adopted at acompany and project level to produce meaningful dataand information ob the effectiveness of innovationpolicies and practice.6.2 How Innovative isConstruction?The case studies illustrate the range and breadth ofinnovative activity in construction. To a degree, thecharacterisation that the industry follows ratherthan leads seems to hold true. The survey shows thatcontractors in particular list client and end usersatisfaction coupled with environmental/sustainabilityissues as key drivers for innovation. The reverse view couldalso be taken. The case studies illustrate many examples ofcontractors and wider project teams going to greatlengths to understand the end user and to provideinnovative solutions in response. This user drivenapproach is often cited as a characteristic of innovativeindustries.The range of activities that project teams use to bringideas into projects is also notable. The fact that muchof this is done within project supply chains may meanthat the activity escapes conventional measurementbut could also be seen to be indicative of an openinnovation approach among the supply chain. The mostformal example of this is provided by the fourth casestudy whereby Tesco marshalled the expertise of itssupply chain partners to develop their eco-friendlysuperstore, but similar arrangements exist in all ofthe case studies. Although the fragmented nature ofconstruction is often cited as a barrier to innovationone of the key strengths of the industry is its ability toemploy organisational innovations to reconfigure supplychains in order to deliver solutions to client needs. Theperception from the survey is that innovation is led bythe suppliers and the designers yet the case studiespresent a more complex picture. Whilst it is true thatthe case studies illustrate innovative design solutionsemploying advanced off site solutions, the casestudies also illustrate that these innovations are only madepossible through process innovation from the contractorin order to meet specific needs driven by the client.In summary, the case studies illustrate a wide rangeof innovation from all members of the supply chain inorder to meet the requirements of clients and end users.Although the case studies are taken from projects thathave been recognised for their innovation, the types ofinnovation that they illustrate are widespread in presentday construction projects. The true test of whether ornot an industry is innovative should not be measured byactivity or types of innovation; rather it should be measuredby the outcomes or results of innovation. This isexplored further below.41
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Page 56: Professor Mike KagioglouSCRI Direct

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