The 6th Annual Jovix Executive Forum was hosted at The Woodlands Resort and Conference Center in The Woodlands, Texas. Atlas RFID Solutions hosted leaders from the worlds of construction and technology over three days with conversation focused on materials management and how innovation can address the industry’s greatest pain points.
With a focus on Digital Transformation Today, the leadership of Atlas RFID Solutions laid out their plan to be the best in the world at providing real-time, geo-contextual, and relational visibility – regarding construction materials – from fabrication to installation.
The Jovix World View:
- It’s all about information.
- Proactive is better than reactive.
- Innovation should not be an incriminating act.
- A partnership approach with free information exchange is essential to overcoming challenges in a complex ecosystem.
- Leaders lead. Followers follow.
Reducing the time waiting on materials to ZERO.
Challenged as an Industry
98% of projects over $1 billion exhibit COST OVERRUNS of 80%.*
65% of large-scale industrial projects FAIL to meet business objectives.**
73% of mega-projects experience SCHEDULE OVERRUNS.***
57% of resources are WASTED in construction (compared to 26% in manufacturing)****
*Brenden Bechtel, CII Annual Conference 2016
**Merrow, 2011 ***Ernst & Young, 2014 ****CII, 2004
INDUSTRY | INNOVATION | PRODUCT NEWS | TRAINING | NETWORKING
INDUSTRY | INNOVATION PRODUCT NEWS | TRAINING NETWORKING
David J. Wilson
Chief Innovation Officer
Better Than Paper
- Organizations must invest in Innovation Exploration. Equip and incentivize Project Managers to try new technology in an environment when it is okay to fail small and then iterate on what works.
- Technology designs must be done with User-Based Design. Engage the end users and encourage their participation, as many of the best ideas come from the men and women in the field who are living the pain.
Only 4 Paths Forward for Innovation
- Shape it.
- Create it.
- Be shaped by it.
- Get left behind.
- Leverage trends.
- Become data-centric.
- Focus on the user.
- Invest in exploration.
Global Program Manager & Subject Matter Expert – RFID
Adequate visibility decreases the further upstream a node is from the workplace. Only 52% of Tier 1 Suppliers and 38% of Tier 2 Suppliers cited adequate visibility.
- Early alignment with Suppliers and active encouragement of Suppliers to own upstream
- Coordination with Senior Expediter(s) and Logistics via list of Expediters/Buyers linked to their respective Suppliers
- Well-formatted, detailed electronic packing list (not a PDF)
- Consistent data and structure across Suppliers
- Approval process for shipping tags to Suppliers
- Final approval of packing list before importing to Jovix or other system
Smart Data: Data that’s been cleansed, filtered, and prepared for content
Emergence of digital collaborations and mobility:
- Capturing more and more data
- Real-time sharing capability
- Normalized results
- On-demand access to consumable information
- Ability to drill down to actionable information
- Predictive analytical capability
Focus on KPIs, Target & Trend:
- Current status vs. target
- Trend line over time
- Drill down and drill through
José Luis Blanco
McKINSEY & CO.
Exploring the Construction Technology Landscape
- Construction constitutes 13% of global GDP, but productivity remains drastically low, costing the global economy $1.6 trillion per year.
- Technology is the most promising lever for productivity improvement, and McKinsey & Co. has mapped three clusters of innovation:
- On-Site Execution
- Back Office & Adjacencies
- Digital Collaboration
- Investment in the construction technology space has doubled in the past decade with construction remaining the most active phase.
- Construction has a long way to go in level of digitization, R&D investment, and I.T. spending.
- Enablers for successful delivery of digital in construction:
- Strong Data Foundation
- Building Core Capabilities
- Supportive Contract Strategies
Dr. Burcin Kaplanoglu
ORACLE CONSTRUCTION & ENGINEERING
Senior Director, Industry Strategy & Innovation
What Will the Worksite Look Like in 2030?
- Connectivity will be ubiquitous, and data transfer speeds will be much faster. This will allow project teams to access project data from anywhere and at any time.
- All construction assets (materials, equipment, people, tools) will be connected to each other via sensor technology and ubiquitous data access.
- Oracle is focused on bringing together best-of-breed technology partners – as is demonstrated today at the Oracle Innovation Lab – to provide customers with holistic solutions across the construction technology landscape.
Oracle’s Innovation Lab in Deerfield, IL. Read more about it here.
Driving Cultural Change: A Military Leadership Panel
Technology adoption requires Change Leadership more than Change Management. Mid-level leadership drives successful technology adoption.
Military & Construction Industry Parallels:
- Success dependent upon manually-intensive labor
- Distributed and compartmentalized sub-cultures
- Dependent upon strong mid-level leadership
- Biased to view future performance upon past success
- Among high performers, innovation breeds fear of skill obsolescence
- No room for error
The Value of Transformative Possibilities
Dr. Bill O’Brien
Supply Chain Management
& Electronic Collaboration Expert
Dr. Michael Pappas
Associate Director for
Funded Studies & Power, Utilities,
& Infrastructure Sector Committee
The mission of CII is to inspire Owners, Contractors, Suppliers, and Academia to collaborate through R&D to produce best practices and implementation resources, creating innovative solutions that tangibly improve safety and capital efficiency
RT 344 – Linking the Supply Chain Through Visibility Findings:
- 40%-50% of project cost is materials, yet materials control 80% of the project schedule.
- The further from the jobsite, the lower the visibility. This results in uncertainty, risk, and large buffers to avoid wait times.
- Improved supply chain visibility would result in risk mitigation, ability to track and trace, reduced late/early delivery, and field installment productivity improvement – just to name a few benefits.
- The largest barriers are material data not in I.T. system, incompatibility of I.T. systems, lack of awareness of the benefits, and organizational designs/silos.
- How do we increase visibility?
- Self-assessment – Gauge your organization, and compare it to your industry.
- Take action by identifying areas of opportunity, and close the gaps.
- Link to other efforts such as AWP, Lean, Front-End Planning End Automation.
Industry Input Session
As ranked by attendees, the following are the cultural barriers ranked by degree of significance and effort to overcome,
- Communicate plans to manage expectations.
- Involve end users in validation testing.
- Plan for process deviation.
- Highlight case study successes in company communications.
Common Objections to Adoption: What We Hear
Presented by David Wilson, Chief Innovation Officer – BECHTEL
- It’s hard.
- Too many unknowns
- ROI isn’t guaranteed.
- May not work
- Takes time
- It’s not fully developed.
- No easy button
- No one else has done this yet.
- No support
- No one knows how to deploy.
- Team doesn’t have the competency
- It’s a distraction.
- Slower initially
- Added complexity tied to learning something new
- It’s not the way we’ve always done it.
- I don’t know enough about it.
- I’ve worked without it all these years.
- Why do something different now?
- It’s going to eliminate jobs.
- I don’t think it will work.
- Not my ideas
- I wasn’t involved in shaping the solution.
- Let someone else be first.
- I’ll do it when it’s fully proven.
- May cause rework
- Customer doesn’t support new approaches.
- May affect my P/L
- No incentive to participate
- Not included in my performance metrics
- Technology never solved any problem.
- It’s just innovation theatre.
- Won’t see the benefit in my lifetime
- I’ll retire before it’s fully developed.
- Adds no value
- Doesn’t address an actual project problem
- Doesn’t improve the business
- I’d rather just build the project.
- I don’t want to be bothered by it.
- I don’t want to do the work to understand it.
- I don’t trust those developing the solutions.
- It’s too risky.
- Risk/reward structure doesn’t encourage it
- I don’t want to conform.
- I don’t like change.
- I’ll change on my terms only.
- Leave me alone.
Common Objections to Adoption: What We Hear
Presented by David Wilson,
Chief Innovation Officer – BECHTEL
Too many unknowns
ROI isn’t guaranteed.
May not work
It’s not fully developed.
No easy button
No one else has done this yet.
No one knows how to deploy.
Team doesn’t have the competency
It’s a distraction.
Added complexity tied to learning something new
It’s not the way we’ve always done it.
I don’t know enough about it.
I’ve worked without it all these years.
Why do something different now?
It’s going to eliminate jobs.
I don’t think it will work.
Not my ideas
I wasn’t involved in shaping the solution.
Let someone else be first.
I’ll do it when it’s fully proven.
May cause rework
Customer doesn’t support new approaches.
May affect my P/L
No incentive to participate
Not included in my performance metrics
Technology never solved any problem.
It’s just innovation theatre.
Won’t see the benefit in my lifetime
I’ll retire before it’s fully developed.
Adds no value
Doesn’t address an actual project problem
Doesn’t improve the business
I’d rather just build the project.
I don’t want to be bothered by it.
I don’t want to do the work to understand it.
I don’t trust those developing the solutions.
It’s too risky.
Risk/reward structure doesn’t encourage it
I don’t want to conform.
I don’t like change.
I’ll change on my terms only.
Leave me alone.
This event is owned by Atlas RFID Solutions and sponsored by our partners. Both Atlas RFID Solutions and the partners will have access to your personal information, and either Atlas RFID Solutions or our partners may provide you with sales or product promotion information. Each party will be responsible for managing their own use of your personal information. We recommend you review the privacy policies of these partners to address any questions you have regarding their handling of your personal information.