Buyer's Guides

"Information Systems in Construction: The Benefits of taking an Integrated Approach"

Monday, 1 November 2010

This white paper investigates the various IT challenges that construction companies face on a daily basis. These challenges arise from how companies deal with email correspondence, set up projects, manage documents, issue drawings and engage with their supply chain.

In attempting to solve these challenges, many companies have invested in the wrong technologies without addressing their business needs. As a result, many companies lack robust IT systems that mitigate risk and empower people to work effectively. A 2006 study by Craig and Somerville showed that companies benefit from using an integrated IMS (Information Management System).

An integrated IMS is a software tool with a central data repository which offers an organisation a singular gateway to all its corporate information thus enabling effective communication, efficient collaboration and seamless data exchange.

The paper critically assesses the role an integrated IMS plays in organisations. The observations made in the paper are borne out of a six month Knowledge Transfer Partnership (KTP) research study between the University of Gloucestershire and Union Square Software. More than 1,700 people from 28 companies participated in this study. These companies used 1 of 3 information systems:

Paper-based Systems - 6 companies
Paper documents and forms are used to record and store project information. Some electronic records may exist but paper folders and archives are the predominant information vessels.

Standalone Systems - 8 companies
Electronic forms are used to record project information but because the forms are not part of a central connected process, finding documents, drawings and emails can be tedious.

Integrated IMS - 14 companies
All project documents, drawings and emails can be accessed via a single portal. There is a central database, applications are connected and this makes it easy to find, share and distribute information.

The objective of the study

The objective of this study was to empirically determine what operational efficiencies companies gain from using an integrated IMS over standalone or paper-based systems.

The methodology used for this study was to benchmark companies that have an integrated IMS against those that do not in order to establish the veracity of the following hypothesis: “Organisations that use an integrated IMS (Information Management System) for their day-to-day activities are better at managing risk and have more efficient business processes with a higher proportion of satisfied employees when compared to organisations that do not use such systems.”

The integrated IMS that was used as a benchmark in this study was Workspace. The specific details of the 28 organisations that participated in this study will remain anonymous. More information on the range and type of companies that participated can be found in the paper. This study critically reviewed the information systems that were used by construction companies. The areas that were covered by this study are listed:

Email management: How easily do construction companies store, retrieve and associate emails with projects?

Document and drawing management: How efficient are the tools used for distributing and controlling documents/drawings?

Centralised contacts management: How easy is it for employees to find important information on clients, partners, suppliers and subcontractors? Is this information usually accurate and up-to-date?

Project setup: How efficiently do companies set up new construction projects and is it easy to find and share project information?

Booking leave and checking availability: Is there a centralised way for people to book leave and check who is available or off sick?

HR and timesheets: Do companies actively know what training, certifications and skills their people have?

10 Key findings

There were 10 key findings from this study, which are addressed further throughout the paper. The findings are summarised:

1. Only 45% of companies can use their IT systems to produce any email if required for either legal or audit purposes.

2. Companies with standalone or paper-based systems spend a total of over 6 hours a day finding and filing project emails. On the contrary, companies that use an integrated IMS spend no more than 25 minutes in total.

3. All participants in the survey agreed that drawings are the construction industry’s life blood and currency; however only 40% of companies have the right tools to properly manage, control and distribute documents and drawings.

4. Using an integrated IMS to issue drawings requires fewer people and takes less time than using standalone or paper-based systems.

5. 77% of those who use Workspace can find documents and drawings in less than 3 minutes. 66% of people who use paper-based systems would not be able to find documents and drawings.

6. Companies that use Workspace to manage project contacts have on average 3 times more satisfied employees than companies that lack centralised contact management systems.

7. More than 60% of the 1,724 people surveyed said that their company’s contact records were inaccurate and out of date.

8. Contractors that use an integrated IMS are more adept at measuring supplier performance, monitoring work packages and tracking RFIs.

9. 90% of companies have teams in multiple offices or sites. However, only 65% of companies have tools that simplify remote working.

10. Companies with an integrated IMS for managing holidays and timesheets have a higher proportion of satisfied employees.

Conclusion

The goal of an information management system within any organisation should include the following:

- Reduce exposure to project risk
- Empower employees
- Manage operations effectively
- Improve client relations.

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