EIC meeting Vienna 20th April 2018 ‐ Roger April 2018 Flanagan International rnational construction - nstruction - it’s al s all ab about t compe mpetitiveness titiveness Creating competitive advantage in construction • Reco cord o of co corp rpor orat ate so e social resp cial respons onsibili ility ty • Politic litical s l support f rt from g governm rnment t nt throug ugh h project creat pro creation on and expo and export rt g guar aran ante tees Ro Roger F ger Flana anagan an – – Unive nivers rsit ity o of Readi Reading Looking a ing at c compet mpetitiv itivenes eness Master ery a y achieved eved Competitiveness Now you need to Naive ively c conf nfid ident stay competitive You think you know, but still don’t know • Competitiveness i etitiveness is fund fundamental amental to to succes success; ; crea creatin ting new new fo forms rms what you don’t Optimistic Op of compet etitive a itive advantag age i e is key know You feel confident about your strengths against the • New New play player ers are no are not t hide hidebou bound by by t the e traditional itional co competitive etitive competition mode models • It’s It’s a a fast c st chang anging wor world with with the the speed of speed of chang ange inc increasing • Uncert Uncertainty and risk is y and risk is the the prob problem, in in const construc uction we we are are hideb hidebound by by illus illusions ns o of certaint certainty, then then wo wond nder why why it it went went Clueless Clu Disc scou ouragi ragingly wrong wron You don’t re realistic know what You know what • Under Understa tanding g the DNA the DNA of the co the compe mpetition is very is very impor important you don’t you don’t know know Creating competitive advantage in construction • Lo Lowes west pr pric ice • Consistent h nsistent high quality • Custome stomer f focused, t cused, the customer er i is King ng • Good r od record f cord for s r safet fety and and he health alth • Capabl ble o e of speed o eed of deli livery very • Prov Provid iding the mos g the most attr attractive proj project fina nancin ing pack ckag age, a e, and guar arantees antees • Desi Design gn capab capabilit lity and the and the capa capacity to to inte integr grat ate design desi gn and and prod production on • Havi ving o ng off-si site te p production f oduction faci ciliti ties es and capabil bility y to in increase ease speed o eed of production oduction The c constru nstruction tion sector i ctor is t trying t ying to f fly a Dakota a kota at supersonic personic • Strong ng b balance s lance sheet eet speed eed with s system ems a and d procedures ocedures that at w were never d designed f gned for • Appeti tite f te for r r risk speed o eed or t turbul ulence n ence now e encounter untered o d on c cons nstr truction p uction project ojects
EIC meeting Vienna 20th April 2018 ‐ Roger April 2018 Flanagan Take ke off = off = bi bid st d stage Lan Landin ing = p = practical Innov Innovators rs, at at leas least they they tr tried ied Timet metable = = pl planni anning ng and ten and tender co completion pr prod oduction on on si site te Fuel a and power = d power = Passe Passengers = s = clie lient nt mone mo ney/pro project f t finan nance Opera Operating c crew ew = = managemen ement t team am Design an and pr produ oduction of of th the aircraft is air is in integrated = = indepe pendent desi t design t team cons nsul ulta tant nts design c s design constru nstructio tion pr proj ojects for for a a fee fee Designe gned f for weathe weather u r unce certa rtainty wi with t th turb rbul ulence, wind sh , wind shear ear, typho phoon, et n, etc. = c. = illusi usions o ns of certai rtaint nty i y in c cons nstru tructio tion, a , and c clou ouds ds o of uncerta tain inty ty a and r d risk i in c cons nstru tructi tion on, o , often n n not we t well ll for foreca cast Perfor ormanc mance o e of the e Nav Navigation = = for form of of Land La ndin ing g gear/fit ou it out = t = airc rcraf raft = = pr producti uctivi vity ty contract ract a agreement eement specia specialty lty c contr ntractors Using the the ana analogy of of the the ai airc rcraft industry The constr nstructio uction s sector or d does a amazing g things w with outdated s ated systems an s and procedure ocedures – we n need ed t to move o ve on Early days Ear days Precision f Pr form rmation ion • The The sep separation on o of desi design gn and and prod productio uction i in constr nstructio uction w was n never ver designe gned f for t r today’s c y’s comp mplex lexities, ties, r rules, s, and r regul gulations t tions that t thrive ve Get Getting i it wro wrong Speed eed on burea bureaucracy, and liabilit and liability • The The bidd biddin ing/ g/tender erin ing g syst system em is br is broken oken, pr prici icing g incom incomplet lete inform inf rmation is is unreal unrealistic, no , no plan plane e would fly w y with thou out f full inf ll inform rmation • Construction p nstruction projec ect c costi sting systems a stems are h histori orical, al, n not d dynamic mic • Cash flow has becom ow has become criti critical al w with th paym payment syst systems desi designed for for the the old world o d of constr nstructio uction w wher ere d e direct ct emplo ployment w ment was c common mmon (without hout fuel t the p e plane c e crashes ashes ) ) Cons nstant tant c change ge Heavy l Hea y liftin ing Difficult manoeu euvr vres es With th t the r rate o of change ange i in t the l loca cal a l and n nati tiona onal c cons nstr truc ucti tion m on marke rket a and the r e rapid a d advanc ncement ement i in g globali obalisat ation a ion and t technology, nology, t tomor morrow w w will n not be the the s same as as tod today Fo Four o or five d deca cades ago ago, m mark rket re reactions w were re m more re p predictable Technology The ch The challenge is is th that m many of of the the” tra traditional systems” ems” u used i in t the i e indu dust stry t today w y were Comfort designed f for a r a more re p predictable ind industry tha that wa was n not s t subj bject t t to cons nstan tant c chan ange ge Tur Turmoil is is no not ne new
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