title: Lifecycle Management of Information Technology (IT) Projects in Construction
Creators: name: Stewart, Rodney Anthony
Publisher: name: Griffith University
Year: 2003
Subjects: subject: construction industry
subject: information technology
subject: IT
subject: project management
subject: project lifecycle management

description: The last twenty years has seen a tremendous change in the way companies do business. Much of this change can be attributed to the so-called information revolution. The integrated interaction between Information Technology (IT) and business processes has changed from its initial function of automating clerical tasks (e.g. payroll, inventory) to providing pertinent information for operational, managerial and executive groups within the organisation. In more recent times, IT has enabled some organisations, including those in the construction industry, to transform or re-engineer their business processes in the face of the rapidly changing business environment. As international competition continues to intensify, significant numbers of construction organisations are investing large amounts of resources into IT as they seek to gain competitive advantage. IT is increasingly being implemented for strategic reasons, so as to enable improved efficiency, better control and enhanced productivity of internal processes. The failure of realising expected IT-induced benefits has led to a growing number of senior executives to question the value of IT investments. Thus, questions like the following are typical: Are we getting our money's worth from our IT investment? ; Are we spending too much or too little on IT? ; What IT projects make the best use of our resources? ; How can we improve the return on our IT investments? This Ph.D. research study was inspired by the perceived lack of a structured framework for the selection, implementation and performance evaluation of IT projects in construction. The development of such a generic framework that could capture the IT project lifecycle management process, and the associated guidelines and procedures for its effective implementation, is a young field of research, still struggling to define its place within the large family of academic disciplines. Being a young branch of science, it might be argued that IT in construction lacks a solid methodological foundation. An IT project lifecycle management process is an integrated approach that provides for the continuous identification, selection, implementation, monitoring and performance evaluation of IT projects. This structured process should provide a systematic method for construction organisations to minimise risks while maximising returns on IT investments. To effectively employ IT in construction, the IT project lifecycle management process should have elements of three essential phases: (1) IT project(s) selection; (2) strategic IT implementation and monitoring; and (3) IT performance evaluation. However, each phase should not be viewed as a separate step. Rather, each is conducted as part of a continuous, interdependent management effort. Information gained from one phase is used to support activities in each of the other two phases. With this in mind, this research study aimed to develop an appropriate framework and associated tools for each phase of the IT project lifecycle. The developed three frameworks are detailed individually in the following paragraphs. The developed IT project(s) selection framework utilised information economics theory to encompass the full spectrum of direct and indirect costs, tangible and intangible expected benefits and the intangible risks associated with IT project proposals, considered for funding by the organisation. To incorporate the uncertainty that normally surrounds quantifying costs, benefits and risks, the framework employed a simple but powerful fuzzy logic technique to integrate all the monetary and non-monetary factors into a form that enabled the ranking of proposals. A case study was undertaken with a large international project management and development organisation to demonstrate the framework's applicability. The case study illustrated the effectiveness of the proposed approach for ranking IT project proposals. Once a portfolio of IT projects is selected for funding by the organisation, it needs to be strategically implemented and monitored over its lifecycle. A strategic IT implementation and monitoring framework was developed to enhance the effectiveness and efficiency of this phase. The framework is premised on a hybrid analysis utilising the Analytical Hierarchy Process (AHP) and SWOT analysis. A case study was undertaken to demonstrate the applicability of the proposed framework in the strategic implementation and monitoring of a Project Management Information System (PMIS) by a large Australian construction-contracting organisation. The framework application proved to be successful in helping the organisation to develop appropriate strategies for the effective and efficient implementation of the PMIS. An IT performance evaluation framework and method was then developed for the final phase of the lifecycle. This framework was the primary focus of this Ph.D. research study and was structured using the Balanced Scorecard (BSC) principles adapted to the specific requirements of the construction industry. The framework was structured using a hierarchy of IT performance perspectives, indicators and measures. Five definable perspectives were conceptually developed through analysis and synthesis of the 'IT business value' evaluation literature. These are: operational, benefits, technology/system, strategic competitiveness and user orientation. Indicators and measures were extracted from the mainstream IT literature and construction management literature, as well as the emerging literature on information economics. The preliminary list of indicators was initially screened through consultation with construction professionals and conceptual cause-and-effect mapping. The screened list of project-tier indicators was further refined through questionnaire dissemination. The questionnaire was sent to 322 construction project participants from large construction-contracting and project management organisations located within Australia. The five framework perspectives were statistically validated through the principal component factor analysis with varimax rotation. Each perspective and indicator's relative weight was numerically established using the questionnaire survey results as input to the recently developed Performance Measurement Process Framework (PMPF). The reason that the performance measures were not justified through a quantitative analysis was due to their dynamic nature. Most performance measures change, and will continue to change, with new technology. The developed perspectives, indicators and measures were all compiled into a generic 'Construct IT' BSC that can serve as a template for application at other decision-making tiers of a construction organisation. The problem of combining performance measures, with varying metrics, into commensurable units (utiles) was achieved by applying utility theory. Finally, the developed 'Construct IT' BSC was utilised for a project-tier survey to test the interrelationship between framework indicators and perspectives. Using information collected from 82 project professionals, from large construction-contracting and project management organisations, correlation and independent sample t-tests (one-tailed) provided support for the 'Construct IT' BSC. Specifically, findings suggest that the 'Construct IT' BSC can be used as a tool for monitoring the IT-induced value creation process. In addition, it appears that the proposed 'Construct IT' BSC framework and associated performance evaluation method is both flexible in design and can be modified to suit the needs of individual organisations. These characteristics make the framework continuously relevant to the dynamic nature of IT projects. In summary, the proposed IT project lifecycle management process, and its associated frameworks, provides a holistic view of IT implementation in construction and offers significant contributions to current body of knowledge on IT in construction.