Overcoming Barriers to Innovation in the Building Industry

Overcoming Barriers to Innovation in the Building Industry

J o h n L. H e i n t z & J.W.F. ( H a n s ) W a m e l i n k

We live in an era of accelerated innovation. All around us we are

immersed in a sea of new technologies and products that were

very recently confined to comic books and science fiction tv-se¬

ries. Yet in this storm of innovation the building industry seems

to stand out for it's committed old fashioned-ness.

This a r t i c l e is based on a

l o n g e r f o r t h c o m i n g w o r k

( W a m e l i n k and Heintz

2015).

W h i l e s o m e i n c r e m e n t a l l y i n n o v a t i v e m a t e r i a l s d o r a p i d l y d i f f u s e t h r o u g h t h e m a r k e t , t h e r e have b e e n r e l a t i v e l y f e w d i s r u p t i v e i n n o v a t i o n s . In p a r t i c u l a r a n u m b e r o f d e v e l o p m e n t s t h a t c l a i m t o o f f e r s i g n i f i -c a n t a n d d i s r u p t i v e b e n e f i t s t h r o u g h i n t e g r a t i o n have b e e n v e r y s l o w in c o m i n g . I n n o v a t i o n s in p r o c e s s i n t e g r a t i o n s e e m e d t o be s t u c k o n t h e l o w e r p a r t o f De Tarde's S - c u r v e o f i n n o v a t i ' o n d i f f u s i o n ( K i n n u n e n 1 9 9 6 ) For e x a m p l e , t h e p r i n c i p l e s o f B u i l d i n g I n f o r m a t i o n M o d e l l i n g (BIIVI) have b e e n know/n s i n c e t h e 1 9 7 0 s ( E a s t m a n , Fisher e t al. 1 9 7 4 ) . Yet it has o n l y r e l a t i v e l y r e c e n t l y b e g u n t o d i f f u s e t h r o u g h t h e i n d u s t r y , f i r s t in N o r t h A m e r i c a , a n d n o w in o t h e r c o u n t r i e s s u c h as T h e N e t h e r l a n d s . It s e e m s t h e r e f o r e t h a t , in t h e b u i l d -ing i n d u s t r y , t h e r e is a s i g n i f i c a n t g a p b e t w e e n t h e d e v e l o p m e n t o f n e w t e c h n o l o g i e s a n d i n n o v a t i o n . I n n o v a t i o n , w h i c h w e use t o d e s c r i b e p r e -cisely t h o s e n e w t e c h n o l o g i e s a n d p r o c e s s e s t h a t b e c o m e d i s s e m i n a t e d t h r o u g h o u t an i n d u s t r y - l e a d i n g t o s i g n i f i c a n t c h a n g e in p r a c t i c e s o r p r o d u c t s . T h i n k i n g u p t h e n e w t e c h n o l o g y , w h e t h e r it is a n e w m a t e r i a l , d e v i c e o r p r o c e s s , is o n l y h a l f t h e w o r k . A n e w t e c h n o l o g y has t o be t a k e n u p a n d c h a n g e a n i n d u s t r y t o b e c o m e a p r o p e r i n n o v a t i o n . In t h e b u i l d i n g i n d u s t r y it is n e w d e v e l o p m e n t s in p r o c e s s i n t e g r a t i o n t h a t s e e m t o o f f e r t h e b e s t c h a n c e f o r s i g n i f i c a n t o r d i s r u p t i v e i m p r o v e -m e n t in p e r f o r -m a n c e , e.g., B I M , I n t e g r a t e d C o n t r a c t s a n d S u p p l y C h a i n M a n a g e m e n t . T h e p r i n c i p l e o f i n t e g r a t i o n in t h e b u i l d i n g i n d u s t r y has h a d m a n y a d v o c a t e s a m o n g b o t h p r a c t i t i o n e r s a n d a c a d e m i c s , e.g., ( H o w a r d , L e v i t t e t al. 1 9 8 9 , N a m a n d T a t u m 1 9 9 2 , D u l a i m i , Y.Ling e t al. 2 0 0 2 , B a l d e n , Price e t al. 2 0 0 6 , F o r g u e s a n d Koskela 2 0 0 9 , G a m b a t e s e a n d Fiallowell 2 0 1 1 b ) . H o w e v e r it is o n l y in t h e last f e w y e a r s h a v e b u s i -nesses in t h e c o n s t r u c t i o n i n d u s t r y b e g u n s y s t e m a t i c a l l y t o t a k e u p t h e s e i n i t i a t i v e s . O n e is t h e r e f o r e e n t i t l e d t o ask w h y it is t h a t t h e s e p r o m i s i n g t e c h n o l o g i e s a n d p r o c e s s e s have b e e n so s l o w l y t a k e n up?

'It seems that, in ttie buiiding industry,

tiiere is a significant gap between tlie

deveiopmentof new technoiogies and

innovation/'

John Heintz

John Heintz is Associate Profes-sor at t h e Delft University of Technology He is also section head Design & Construction M a n a g e m e n t for t h e depart-m e n t of Real Estate &adepart-mp; Housing at t h a t same university He has w r i t t e n multiple books and is l<nown t o work on several inno-vative projects at t h e same t i m e .

W h a t a r e t h e key f a c t o r s t h a t have m a d e it p o s s i b l e f o r t h e s e n e w t e c h -n o l o g i e s a -n d p r o c e s s e s t o be t a k e -n u p -n o w ? A n u m b e r o f r e s e a r c h e r s have e x a m i n e d t h i s p r o b l e m , a n d t h e m o s t s u c c i n c t s t a t e m e n t o f t h e i r r e s u l t s is t h a t : " I n n o v a t i o n in t h e c o n s t r u c -tion i n d u s t r y r e q u i r e s t h r e e c o m p o n e n t s : idea g e n e r a t i o n , o p p o r t u n i t y a n d d i f f u s i o n . " ( G a m b a t e s e a n d H a l l o w e l l

20na)

T h e p r o c e s s o f u p t a k e o c c u r s o n t w o d i s t i n c t levels: a d o p t i o n , o r t h e d e c i s i o n by a n i n d i v i d u a l b u s i n e s s t o a d o p t a n i n n o v a t i o n ; a n d d i f f u s i o n , o r t h e s o c i a l p r o c e s s t h r o u g h w h i c h i n n o v a t i o n s s p r e a d t h r o u g h o u t a n i n d u s t r y . T h e i m p o r -t a n c e o f m a k i n g -t h e d i s -t i n c -t i o n is -t h a -t , w h i l e d i f f u s i o n is -t o a s i g n i -t i c a n -t e x t e n t t h e r e s u l t in i n d i v i d u a l d e c i s i o n s , m a n y f a c t o r s i n f l u e n c i n g t h o s e d e c i s i o n s t h a t o n i y a p p a r e n t o n t h e b r o a d e r s c a l e . T h e p r o c e s s o f d i f f u s i o n w a s first c h a r a c t e r i z e d b y E v e r e t t Rogers ( 1 9 9 5 ) His g o a l w a s t o d e t e r m i n e w h y it w a s t h a t s o m e i n v e n t i o n s t a k e off, w h i l e o t h e r s h a v e little i m p a c t . He p r o p o s e d t h a t t h e r e a r e five i n -t r i n s i c p r e c o n d i -t i o n s f o r s u c c e s s f u l i n n o v a -t i o n : 1) r e l a t i v e a d v a n t a g e , 2) c o m p a t i b i l i t y , 3) c o m p l e x i t y o r s i m p l i c i t y , 4) f r i a b i l i t y , a n d 5) o b s e r v a b i l i t y . R e l a t i v e a d v a n t a g e r e f e r s t o t h e n e t financial b e n e f i t o f f e r e d by t h e i n -v e n t i o n C o m p a t i b i l i t y r e f e r s t o t h e d e g r e e t o w h i c h t h e n e w d e -v i c e o r p r o c e s s is c o m p a t i b l e w i t h e x i s t i n g p r o d u c t s , p r a c t i c e s a n d m a r k e t s . C o m p l e x i t y s e e m s self e x p l a n a t o r y , b u t r e f e r s p a r t i c u l a r l y t o i n t e r a c t i o n a n d w i t h o t h e r e x i s t i n g p a r t n e r s , p r a c t i c e s a n d t e c h n o l o g i e s . T r i a b i h t y r e f e r s t o t h e c o s t s o f t r y i n g o u t t h e i n v e n t i o n - p u r c h a s e o f e q u i p m e n t , t r a i n i n g , c o n v i n c i n g o t h e r s t o a c c e p t t h e n o v e l t y . Finally o b s e r v a b i l i t y r e f e r s t o t h e d e g r e e t o w h i c h t h e i n v e n t i o n a n d its r e l a t i v e a d v a n t a g e are v i s i b l e t o a c t o r s in t h e r e l e v a n t m a r k e t s . T a k i n g B I M as an e x a m p l e a g a i n w e c a n see h o w t h e s e p r e - c o n d i t i o n s w e r e n o t a t first m e t . B I M c e r t a i n l y w a s n o t c o m p a t i b l e w i t h e x i s t i n g p r a c t i c e s s u c h as m a n u a l d r a w i n g s o r t h e c l e a r s e p a r a t i o n o f r e s p o n -s i b i l i t i e -s o f d i f f e r e n t d e -s i g n e r -s . Even w i t h t h e e v e n t u a l d e v e l o p m e n t o f C A D p r o g r a m s , p o r t i n g d a t a b a c k a n d f o r m f r o m 2-D C A D m o d e l s r e m a i n s a s i g n i f i c a n t b a r r i e r t o t h e use o f B I M s y s t e m s . B I M is c o n c e p t u a l l y s i m p l e , b u t a p p e a r s q u i t e c o m p l e x , e s p e c i a l l y t o firms n o t y e t f a -m i l i a r w i t h t h e t e c h n o l o g y . This c o -m p l e x i t y is p e r h a p s -m o s t e v i d e n t ,n t h e e x t e n s i v e t r a i n i n g i n v o l v e d in l e a r n i n g t o use B I M - n o t j u s t l e a r n i n g t o d r a w b u t also t o use t h e d a t a b a s e s a n d a s s o c i a t e d a p p l i c a t i o n s , t h e

26

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a c q u i s i t i o n o f p o w e r f u l c o m p u t e r s , a n d t h e c o o r d i n a t i o n o f B I M a n d CAD s y s t e m s a n d file a n d layer n a m i n g a m o n g d e s i g n e r s a n d w i t h c o n t r a c t o r s a n d s u p p l i e r s . All t h i s p r e s e n t s s i g n i f i c a n t p r o b l e m s w i t h t r a i b i l -ity. Finally t h e b e n e f i t s o f B I M u s e , a n d t h e real e x p e r i e n c e s o f e a r l y a d o p t e r s has n o t b e e n c l e a r l y v i s i b l e t o o t h e r p l a y e r s s u s p i c i o u s o f t h e e n -t h u s i a s m o f -t h e o c c a s i o n a l b o o s -t e r . Exis-ting m e -t h o d s s e e m e d g o o d e n o u g h . (Especially w h e n t h e c o s t o f m i s t a k e s c o u l d so easily be t r a n s -f e r r e d t o c l i e n t s . )

All o f t h e s e have b e e n c o n s i d e r a b l e b a r r i e r s t o t h e d i f f u s i o n o f B I M sys-t e m s sys-t h r o u g h sys-t h e m a n u f a c sys-t u r i n g s e c sys-t o r , in sys-t h e b u i l d i n g i n d u s sys-t r y sys-t h e y w e r e f o r m a n y y e a r s i n s u r m o u n t a b l e . O n e o f t h e m a j o r f a c t o r s m a k i n g t h e d i f f u s i o n o f i n n o v a t i o n s m o r e d i f f i c u l t in t h e b u i l d i n g i n d u s t r y is t h a t

u n l i k e in m a n u f a c t u r i n g , t h e r e is n o

The demond of a major client, often

s t a b l e s u p p l y c h a i n a n d f e w s t r a t e g i c

//-Q/T?

the putllC SeCtOr, IS neceSSOr)/ tO

r e l a t i o n s h i p s ( B r a n d o n , B e t t s e t a l . , . • r • x.¬

' \ . drive the diffusion of any innovation.

1 9 9 8 ) . C o o r d i n a t i o n a c r o s s a n e v e r ^ ' fluctuating series o f t e m p o r a r y s u p p l y c h a i n c o n s t e l l a t i o n s in a n i n d u s -t r y w i -t h an u n u s u a l l y large n u m b e r o f p l a y e r s has p r o v e d -t o b e a m a j o r p r o b l e m in t h e a d o p t i o n a n d d i f f u s i o n o f n e w d e v e l o p m e n t s . In a d d i -tion, l o n g s u p p l y c h a i n s m a k e it d i f f i c u l t f o r p r o d u c t s u p p l i e r s t o a p p e a l d i r e c t l y t o c l i e n t s . G i v e n s u c h s i g n i f i c a n t b a r r i e r s t o i m p l e m e n t a t i o n , it s e e m s s u r p r i s i n g t h a t B I M w a s a d o p t e d by e v e n t h e m o s t d a r i n g a n d t e c h n i c a l l y a m b i t i o u s firms. As w e shall s e e , in f a c t It r e q u i r e d t h e p r e s -e n c -e o f a d r i v -e r t o p r o v i d -e t h -e m o t i v a t i o n s t o o v -e r c o m -e t h -e s -e b a r r i -e r s . T h e d i f f u s i o n o f i n n o v a t i o n s is c o n s i d e r a b l y i n f l u e n c e d by t h e e x i s t e n c e o f f a c t o r s k n o w n as m o t i v a t o r s , e n a b l e r s o r d r i v e r s . S e v e r a l r e s e a r c h e r s , i n c l u d i n g N a m & T a t u m ( 1 9 9 7 ) , W i n c h ( 1 9 9 8 ) , G a n n ( 2 0 0 0 ) , a n d Bossink ( 2 0 0 4 ) have m o d e l l e d t h e s e f a c t o r s . G a m b a t e s e a n d H a l l o w e l l ( 2 0 1 1 b ) , s t a t e t h a t r e g a r d l e s s o f t h e p r o c e s s u n d e r t a k e n a n d t h e n a t u r e o f t h e a d o p t e r s , t h e d i f f u s i o n o f c o n s t r u c t i o n i n n o v a t i o n s d o e s n o t o c c u r in t h e a b s e n c e o f a m o t i v a t o r . Q u o t i n g Blayse a n d M a n l e y ( 2 0 0 4 ) G a m -b a t e s e a n d H a l l o w e l l w e n t o n t o i d e n t i f y t h e key f a c t o r s t h a t i n f l u e n c e c o n s t r u c t i o n i n n o v a t i o n o n p r o j e c t s , a n d I d e n t i f i e d t h e f o l l o w i n g as t h e six m a j o r i n f l u e n c i n g f a c t o r s : (1) c l i e n t s ; (2) p r o d u c t i o n s t r u c t u r e ; (3) i n n o v a t i o n n e t w o r k s ; (4) p r o c u r e m e n t s y s t e m s ; (5) r e g u l a t i o n s ; a n d (6) o r -g a n i z a t i o n a l r e s o u r c e s by f o c u s i n -g o n t h e i n t e r f a c e b e t w e e n i n n o v a t i o n d e v e l o p m e n t a n d p r o j e c t i m p l e m e n t a t i o n . T h e s e f a c t o r s c a n be s e e n as c o r r e s p o n d i n g t o p o t e n t i a l s t r a t e g i e s , b o t h I n t e n d e d a n d e m e r g e n t , t o p d o w n a n d b o t t o m u p , t h r o u g h w h i c h o r g a n i z a t i o n s in t h e c o n s t r u c -tion i n d u s t r y a t t e m p t t o i m p l e m e n t i n n o v a t i o n s .

March 2015

W i n c h ( 1 9 9 8 ) p r o p o s e d a m o d e l t h a t places t h e s e f a c t o r s in a s o c i a l s y s t e m d e m o n s t r a t i n g h o w t h e y i n f l u e n c e t h e d i f f u s i o n o f i n n o v a t i o n . D r a w i n g in o n t h e w o r k o f M i l l e r e t al ( 1 9 9 5 ) , o n i n n o v a t i o n in t h e f l i g h t s i m u l a t i o n i n d u s t r y . W i n c h a d a p t e d t h e i r m o d e l f o r i n n o v a t i o n in " c o m -plex s y s t e m s i n d u s t r i e s " t o t h e c o n s t r u c t i o n i n d u s t r y . T h e m o d e l c o n s i s t s o f a t h r e e - l a y e r s y s t e m w i t h S y s t e m I n t e g r a t o r s ( p r i n c i p a l a r c h i t e c t s , e n g i n e e r s a n d c o n t r a c t o r s ) , a r e p o s i t i o n e d a t a n i n t e r f a c e b e t w e e n a S u p e r s t r u c t u r e c o n s i s t i n g o f c l i e n t s , r e g u l a t o r s a n d p r o f e s s i o n a l i n s t i t u t i o n s , a n d a n I n f r a s t r u c t u r e c o n s i s t i n g o f s p e c i a l i s e d t r a d e c o n t r a c t o r s , s p e c i a l i s t c o n s u l t a n t s , a n d c o m p o n e n t s u p p l i e r s . T h e I n n o v a t i o n S u p e r s t r u c t u r e g o v e r n s t h e i n n o v a t i o n e n v i -r o n m e n t , s p e c i f y i n g d e m a n d , -r e g u l a t i n g p e -r f o -r m a n c e , a n d s u p p l y i n g k n o w l e d g e p r o c e s s e s a n d t o o l s t o t h e S y s t e m I n t e g r a t o r s . T h e S y s t e m I n t e g r a t o r s a s s e m b l e c o m p l e x s y s t e m s p r o d u c t s ( f l i g h t s i m u l a t o r s in ( M i l l e r , H o b d a y e t al. 1 9 9 5 ) ) u s i n g c o m p o n e n t s a n d s u b s y s t e m s s u p -p l i e d by t h e I n n o v a t i o n I n f r a s t r u c t u r e .

Innovation Structures

Superstructure

Clients, Regulators and

Professional Institutions

System Integrators

Principal Architects,

Engineers and Contractors)

Infrastructure

Specialist Contractors,

Consultants, and Suppliers

Table 1 ; W i n c h ' s M o d e l o f I n n o v a t i o n S t r u c t u r e s

O n e m i g h t t h i n k t h a t t h e s y s t e m i n t e g r a t o r s w o u l d be t h e a g e n t s o f c h a n g e , b u t n o t in c o n s t r u c t i o n . W h e r e in m a n u f a c t u r i n g a s i n g l e Syst e m I n Syst e g r a Syst o r w o u l d be in c o n Syst r o l o f b o Syst h d e s i g n a n d a s s e m b l y , in c o n s t r u c t i o n t h e s e r o l e s have b e e n d i v i d e d . F u r t h e r , w h e r e is in m a n u f a c -t u r i n g serial p r o d u c -t i o n is b a s e d o n a s -t a b l e d e s i g n (or v a r i a -t i o n s o n i-t)

a n d a s t a b l e s u p p l y c h a i n , t h i s is n o t so in c o n s t r u c t i o n . '/f In i n n o v a t i o n in c o n s t r u c t i o n p r o c e s s i n t e g r a t i o n it is c l e a r t h a t a d o p t i o n o f i n n o v a t i o n s in p r o c e s s i n t e g r a t i o n o n l y o c c u r s if t h e s u p e r s t r u c t u r e plays a s u f f i c i e n t l y s t r o n g r o l e ; t h e p r e s e n c e o f a s t r o n g c l i e n t d e m a n d ing t h e a p p l i c a f i o n o f t h e n e w t e c h n o l o g y is t h e key f a c t o r . In t h e c o n -s t r u c t i o n v a l u e c h a i n , c l i e n t -s c a n a c t a-s a c a t a l y -s t t o f o -s t e r t h e d i f f u -s i o n o f i n n o v a t i o n by e x e r t i n g p r e s s u r e o n t h e s u p p l y c h a i n p a r t n e r s t o i m -p r o v e o v e r a l l -p e r f o r m a n c e a n d by h e l -p i n g t h e m t o d e v i s e s t r a t e g i e s t o c o p e w i t h u n f o r e s e e n c h a n g e s ( G a n n a n d S a l t e r 2 0 0 0 ) .

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F u r t h e r , c l i e n t s have t h e a b i l i t y t o d e m a n d t h e a d o p t i o n o f i n n o v a t i o n o n a p r o j e c t b y p r o j e c t basis. O n t h e i n f r a s t r u c t u r e level ( t r a d e c o n -t r a c -t o r s a n d s u p p l i e r s ) n o I n -t e n d e d o r e m e r g i n g s -t r a -t e g i c a c -t i o n c a n be d i s t i n g u i s h e d . O n t h e o t h e r h a n d s y s t e m i n t e g r a t o r s ( b u i l d i n g firms, ar-c h i t e ar-c t s ) r e a ar-c t e d t o d e v e l o p m e n t s by s t a r t i n g p i l o t p r o j e ar-c t s , e x ar-c h a n g e o f e x p e r i e n c e s , b u i l d i n g k n o w l e d g e n e t w o r k s a n d j o i n t d e v e l o p m e n t s . S t a t e d s i m p l y , t h e d e m a n d o f a m a j o r c l i e n t , o f t e n f r o m t h e p u b l i c sec-t o r , is n e c e s s a r y sec-t o d r i v e sec-t h e d i f f u s i o n o f a n y i n n o v a sec-t i o n s w h i c h i n v o l v e a s i g n i f i c a n t d e p a r t u r e f r o m e x i s t i n g p r a c t i c e . A n d It t h e N e t h e r l a n d s this d e m a n d i n g c l i e n t has m o r e o f t e n t h a n n o t b e e n t h e R i j k s v a s t g o e d -b e d r i j f . H o w e v e r , o n c e t h e m o t i v a t o r is in p l a c e , t h e s y s t e m I n t e g r a t o r s m u s t realize t h e n e w t e c h n o l o g y . A n d h e r e w e s h i f t o u r f o c u s f r o m d i f t u s i o n t o a d o p t i o n . A t t h e level o f a d o p t i o n , o t h e r f a c t o r s p l a y t h e c r i t i c a l r o l e . B u t w h e r e w e m i g h t easily a c c e p t t h a t o n a n i n d u s t r y w i d e l e v e l i n n o v a t i o n s s h o u l d be t a k e n u p as q u i c k l y as p o s s i b l e it is i m p o r t a n t t o a c k n o w l e d g e t h a t f o r i n d i v i d u a l b u s i n e s s e s it w i l l be r a t i o n a l n o t t o a d o p t a n i n n o v a t i o n u n t i l s e v e r a l p r e c o n d i t i o n s are m e t . This is p a r t i c u l a r l y t r u e o f p r o c e s s i n n o v a t i o n s I n t e n d e d t o s i g n i f i c a n t l y c h a n g e h o w p r o j e c t s are d e l i v e r e d . In t h e b u i l d i n g I n d u s t r y , t h e a d o p t i o n o f a n y m a j o r p r o c e s s i n n o v a t i o n w i l l a l w a y s be in t h e c o n t e x t o f a p i l o t p r o j e c t . W h e t h e r t h i s is f o r a single firm ( w h e r e o t h e r p r o j e c t m e m b e r s a l r e a d y use t h e t e c h n o l o g y in q u e s t i o n ) , o r f o r all m e m b e r s o f a p r o j e c t t r y i n g o u t t h e t e c h n o l o g y f o r t h e first time. W e can use R o g e r s ' 5 c o n d i t i o n s f o r d i f f u s i o n as a g u i d e t o t h e s e p r e -c o n d i t i o n s : 1) Relative a d v a n t a g e T h e r e m u s t be a c l e a r b u s i n e s s case f o r t a k i n g u p t h e n e w t e c h n o l o g y . T h e p o t e n t i a l f o r p r o f i t a b i l i t y m u s t be e v i d e n t , e i t h e r w i t h i n a n I m m e d i -a t e l y -a v -a i l -a b l e p r o j e c t o r so c l e -a r t h -a t -a n t e m p o r -a r y loss w i l l be q u i c k l y e a r n e d back. 2) C o m p a t i b i l i t y A s s u m i n g t h a t t h e n e w t e c h n o l o g y r e q u i r e s a s t e p c h a n g e , t h e r e m u s t be a clear p a t h t o o v e r c o m i n g c o m p a t i b i l i t y p r o b l e m s . (In t h e case o f B I M o n e f o r m o f t h i s w a s t h e d e v e l o p m e n t o f s o f t w a r e f o r I m p o r t i n g a n d e x p o r t i n g d i f f e r e n t file t y p e s . )

3) C o m p l e x i t y

T h e r e m u s t be s u f f i c i e n t i n c e n t i v e s f o r o t h e r m e m b e r s o f t h e p r o j e c t

Hans Wamelink

Hans Wamelink (1963) has been a professor at the d e p a r t m e n t of Real Estate and Housing since 2006. Currently he is the interim dean of t h e faculty Architecture and the Built Environment. His focus is on t h e coorperation be-t w e e n various parbe-ties in complex processes. He is a contributor t o t h e field of design management and construction process inno-vation. He has a background in Civil Engineering and specialized in Constructive Hydraulic Engi-neering / Civil Business Adminis-tration at t h e Delft University of Technology

t e a m t o a d o p t t h e t e c h n o l o g y , a n d t o c o o r d i n a t e t h e i r p r a c t i c e s w i t h e a c h o t h e r . 4) T r i a b i l i t y T h e c o s t s , i n c l u d i n g t h e c o s t o f a c q u i s i t i o n o f e q u i p m e n t a n d t r a i n i n g p e r s o n n e l m u s t be r e c o v e r a b l e f r o m a single p r o j e c t . T h e r e m u s t be s u f f i c i e n t i n f o r m a t i o n a v a i l a b l e t o p l a n a p i l o t p r o j e c t a n d d e t e r m i n e t h e c o s t s a n d risks i n v o l v e d . 5) O b s e r v a b i l i t y T h e b e n e f i t s o f t h e n e w t e c h n o l o g y m u s t be m e a s u r a b l e in s o m e w a y . It m u s t b e clear a t t h e e n d o f a t r i a l p r o j e c t t h a t t h e r e has o r has n o t b e e n a b e n e f i t d e l i v e r e d by t h e n e w t e c h n o l o g y .

For e a c h o f t h e s e five c r i t e n a t h e r e w i l l be s u b s t a n t i a l u n c e r t a i n t y , a n d t h e r e f o r e risk. T h e c a l c u l a t i o n o f t h e p o s s i b l e d o w n side risk w i l l n e e d t o be m a d e a n d t h i s risk m u s t b e w i t h i n l i m i t s s e t by p r o j e c t b u d g e t a n d firm t u r n o v e r Few firms w i l l have s i g n i f i c a n t r e s e r v e s f o r i n v e s t m e n t o r t o c o v e r s u b s t a n t i a l d o w n side risk. H e n c e t h e d i f f i c u l t in c a l c u l a t i n g . d o w n side risks w i l l ,n i t s e l f b e a E a r n e r t o ^ ^ t a l < . l H e n c e , o n e ^may ^ ^ ^ ^

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powerful force in the adoption and ^^^^^^^

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-diffUSion of innovations/'

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b e p e r c e i v e d as t o o c o s t l y , t o o risky, a n d l i t t l e p e r c e i v e d b e n e f i t t o j u s t i f y t h e risk a n d o u t l a y r e q u i r e d f o r a p i l o t p r o j e c t . A n d o n c e y o u h a v e t r i e d a n d n e w i n t e g r a t i v e t e c h n o l o g y o n c e , a n d f o u n d it t o b e a d v a n t a g e o u s , t h e r e is n o g u a r a n t e e t h a t y o u r c o l l a b o r a t o r s o n t h e n e x t p r o j e c t w i l l b e w i l l i n g t o use It.

T h i s leads t o o u r final p o i n t . G i v e n t h a t at first it w i l l b e r a t i o n a l f o r m o s t firms t o r e j e c t n e w t e c h n o l o g i e s , m a n a g e r s w i l l d e v e l o p a f o r m o f i n e r t i a o r bias t h a t resists a n e v e n t u a l c h a n g e o f t h e i r e a r l i e r d e c i s i o n a n d t h e a d o p t i o n o f w h a t p r e v i o u s l y w a s an u n d e s i r a b l e n o v e l t y . Y o u n g p r o f e s -sionals c a n play a c r u c i a l r o l e h e r e . N o t o n l y w i l l t h e o p p o r t u n i t y c o s t s o f t r a i n i n g y o u n g p r o f e s s i o n a l s b e l o w e r , t h e y w i l l likely have b e e n e x p o s e d t o n e w t e c h n o l o g i e s a n d p r o c e s s e s (at l e a s t m a t h e o r e t i c a l sense) d u r -i n g t h e -i r e d u c a t -i o n . T h e y are t h u s l-ikely t o b e m o r e u p t o d a t e o n s o m e n e w t e c h n o l o g i e s t h a n t h e i r m a n a g e r s : Finally, y o u n g p r o f e s s i o n a l s , l a c k i n g t h e s o b e r w i s d o m t h a t c o m e s w i t h e x p e r i e n c e , have a r e l a t i v e l y o p t i m i s t i c o u t i o o k , a n d w i l l o f t e n c o n t i n u e t o e n t h u s i a s t i c a l l y e n d o r s e n e w t e c h n o l o g i e s a f t e r t h e i r s e n i o r s have d e c i d e d t o pass t h e m over. T h e c h a m p i o n i n g o f n e w t e c h n o l o g i e s by y o u n g e r p r o f e s s i o n a l s m a y be a n i r r i t a n t t o t h e i r s e n i o r s , b u t t h e y are l i k e l y e v e n t u a l l y t o p r o v o k e a r e c o n s i d e r a t i o n o f t e c h n o l o g i e s w h i c h m a y h a v e m a t u r e d in t h e i n t e r v a l

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s i n c e t h e i r p r e v i o u s r e j e c t i o n . T h e i g n o r a n c e o f y o u t h can be a p o w e r f u l f o r c e In t h e a d o p t i o n a n d d i f f u s i o n o f I n n o v a t i o n s . L i t e r a t u r e

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