Technology and Innovation--Not Ready for Prime Construction Time

(constructionr.com - 8/28/00)

By Judy Schriener

Technology and innovation are on everyone's lips these days, but they don't necessarily translate into profits for the construction industry--yet.

The biggest problem for the industry, according to an industry guru on both technology and innovation, "Every innovation has benefitted our customers and not us." John Voeller, chief knowledge officer for Black & Veatch in Kansas City, Mo., contends that people focus too much on the tool and not enough on what it can do for them. The industry needs to learn how to increase profits for themselves as they are making life easier and saving money for their customers.

Speaking recently at the International Symposium & Innovative Technology Tradeshow 2000 in Washington, D.C., sponsored by the Civil Engineering Research Foundation, Voeller emphasized that information technology "gives you ability--it isn't the end unto itself." The industry won't make money on technology until they change focus from the tool itself to what it will do. "If you manage knowledge, you are managing your competitive edge," he said.

One reason for the lag is that the construction industry currently invests relatively little on information technology, compared to other industries. The average Fortune 500 company spends $4,000 to $8,000 per person per year on technology, compared to an average of just $800 per person per year in construction companies.

Innovation, Voeller adds, may or may not involve technology. He says, "Innovation is a different perspective, not necessarily a new idea." In fact, innovation rarely involves technology, because technology changes so rapidly, he adds.

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