e-Commerce Applications e-Lessons for All e-Commerce Applications in Construction Project Team John Voeller, Chair

E-Commerce Applications in Construction Project Team Patrick Bailey Kvaerner Rosemary Bell Watkins Joe Brennan Butler Clay Briscoe Zachry Ron Clark NAVFA Li Doyle IES Winfried Ender Hilti Rick Hendricks GSA Joe Hilgar Air Products Bob Kehoe NASA Joel Koppelman Primavera Judy Mason Intel Bill McCauley Shell Chemical Jean McGinn Corp of Engineers Mark Palmer NIST Tom Pistorius Bibb Mark Plyler PSEG Jonathan Robertson WGI Jeff Russell University of Wisconsin Raj Veeramani University of Wisconsin John Voeller Black & Veatch, Chair Ruth Wepfer Dick Corp

Specific Objectives Identify state-of-the-art applications in construction. Study best practices and business models from related industries and find opportunities. Identify barriers and challenges. Make recommendations on how companies can apply e-commerce successfully to become competitive.

Project Scope Synthesize available information on e-commerce relevant to the construction industry. Conduct a multi-page written survey of members. Perform several dozen structured, onsite interviews with owners, designers, contractors and suppliers from different regions in the U.S. Perform four to six case studies on e-commerce efforts in the construction industry.

Project Deliverables Two CII Research Reports Analysis of potential impact of e-commerce applications in construction: Guidelines Industry “best practices” Recommendations for successful adoption Case Study Case studies from research CII Summary Report 180-1 Knowledge dissemination through the CII Web site

What Are Companies Doing? The models being used with the most frequency are: e-mail communication Basic, supplier-focused e- procurement for catalog items Buyer/supplier integration using common e-procurement package Marketplaces hosted by third party

What Are Companies Doing? Many don’t know where to start, not sure of issues to consider. Owners leading implementation of e-procurement models; greatest success occurring with MRO, commodity-type items. Some companies have made equity investments in private, third-party e-business exchanges.

Participant Challenges Contractors Lack of e-business tools that meet needs. Culture that has not embraced IT. Difficulties justifying investment in e-commerce tools. Owners Internal resistance to change. Connectivity Using e-procurement tools with existing back-end financial/tracking systems. Newness makes accurate planning difficult for all requirements and to “beta test” a potential solution.

Participant Challenges (continued) Design/Engineers Cultural resistance. Don’t see added value. Believe e-collaboration initiatives are better investments. Suppliers Differing demands of clients: each with different type of connection, marketplace, or tool, or who may not be interested in Internet-enabled transactions at all.

Functional Challenges Organizational – Leadership Cultural change, top management commitment. Supply and Demand Organizations showing differing willingness and ability to participate. IT – Systems Integration Dealing with legacy systems. Choosing stable e-business platform supplier. Integration with back-end systems. Metrics Difficulty justifying return on investment. Unsure which metrics accurately indicate if an e-business tool is working.

Current Web site personalization capabilities Dynamic demo capability In both activities now In construction now In engineering next 12 mo. Web site personalization capabilities Dynamic demo capability Web-based real-time collaborative design, etc. Establishing workflow for collaboration Online project planning, mgmt and control Web-based design doc storage, version control, change management Online review of docs collectively Sharing docs with partners via 3rd party Web site Sharing docs with partners via company extranet Sharing docs within company via intranet 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Percent Adopting

Aug. 2003 Web site personalization capabilities In both activities now In construction now In engineering next 12 mo. Web site personalization capabilities Dynamic demo capability Web-based real-time collaborative design, etc. Establishing workflow for collaboration Online project planning, mgmt and control Web-based design doc storage, version control, change management Online review of docs collectively Sharing docs with partners via 3rd party Web site Sharing docs with partners via company extranet Sharing docs within company via intranet 0.05 0.1 0.15 0.2 0.25 0.3 0.35 Percent Adopting

Case Studies Deployment Strategy and Metrics e-Procurement of Catalog-Type Items Reverse Auctions Private Third-Party Exchanges

e-Procurement Continuum Matrix Own/ Op Own/ Op Own/ Op Own/ Op Own/ Op Own/ Op Own/ Op Own/ Op Sub- Contr Sub- Contr Sub- Contr Classification EPC EPC Supply    e-mail    Basic Supplier-Focused Procurement     Supplier-Focused Through an Extranet  Advanced Supplier-Focused Procurement  Basic Buyer-Focused Procurement O Integration Through a Common e-Procurement Package   O O ERP Integration    Third-party Web Site/Exchange  O Private Exchanges  = doing a lot = doing a little O = in the works

e-Commerce Implementation Session Learn how to leverage this power without penalty. Meet the people who implemented the e-commerce systems of Shell and Air Products.

e-Commerce Implementation Session Winfried Ender Hilti Corporation, Moderator Dolores Englett Shell Global Solutions Joseph L. Hilgar Air Products and Chemicals William McCauley Shell Oil Company Jeffrey S. Russell University of Wisconsin-Madison Raj Veeramani University of Wisconsin-Madison John G. Voeller Black & Veatch

e-Commerce Implementation Session Grays Peak II 2:45 - 3:45 4:00 - 5:00