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

2. 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

3. 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.

4. 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.

5. 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

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

7. 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.

8. 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.

9. 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.

10. 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.

11. 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

12. 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

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

14. 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      
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

15. 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.

16. 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

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