1. 1 BUSINESS INNOVATION WHAT BUSINESS ARE WE IN? CONSTRUCTION AS AN END IN ITSELF CONSTRUCTION AS SUPPORT FOR BUSINESS ACTIVITY ABILITY TO ADD VALUE

2. 2 TASK OF CII RESEARCH RELATIONSHIP BETWEEN COST OF CAPITAL AND COST OF OPERATIONS ANALYSE TRADITIONAL AND CONTEMPORARY PROCUREMENT MODELS DEVISE NEW DELIVERY METHODS

3. 3 COMMUNITY HOSPITAL FOR 125,000 PEOPLE WHO - 4 BED/1000 = 500 BEDS PWD - 500 BEDS @ $300K = $150M CAPITAL DOH - 500 BEDS @ $700 / BED = $144M DAY OPERATIONAL ARCHITECT - $150M @ 4% = $6M DOCUMENTATION

4. 4 COMMUNITY HOSPITAL FOR 125,000 PEOPLE BUILDER - $150M @ 4% = $6M MARGIN CEO - $350,000 SALARY = HEALTHY SUPERANNUATION SPECIALISTS - $1/4M - $1/2M = ONTO A GOOD THING GRAND TOTAL $3.5BN OVER 25 YEAR LIFE OF FACILITY

5. 5 INNOVATIONS IN BUSINESS ACCOUNTABILITY OPERATING PRACTICE PROCESS

6. 6 INNOVATIONS IN ACCOUNTABILITY NEW TRANSPARENCY TRIPLE BOTTOM LINE ACCOUNTING FINANCIAL PERFORMANCE SOCIAL RESPONSIBILITY ENVIRONMENT

7. 7 EXAMPLES THIESS -SAFETY -COMMUNITY SERVICE W EDWARDS DEMMING -FIGURES ALONE NOT ENOUGH -IMPORTANCE OF UNKNOWNS AND UNKNOWABLES

8. 8 INNOVATIONS IN OPERATING PRACTICE CUSTOMER FOCUS WHAT DO THEY WANT -INCREASED VALUE -INCREASED QUALITY -REDUCED LIFE CYCLE COSTS

9. 9 EXAMPLES US AUTO INDUSTRY ENTRY OF HONDA TO USA

10. 10 AREAS FOR FURTHER RESEARCH INTEGRATION OF DESIGN & CONSTRUCTION QUALITY BASED SELECTION PROCESS M4I IN THE UK PRE ASSEMBLY SIMPLIFICATION

11. 11 AREAS FOR FURTHER RESEARCH 3D MODELLING PARTNERING / ALLIANCING BENCHMARKING VALUE MANAGEMENT CONTINUOUS IMPROVDEMENT

12. 12 INNOVATIONS IN PROCESS COMMITTED LEADERSHIP FOCUS ON CUSTOMER INTERGRATION OF PROCESS AND TEAM QUALITY DRIVEN / CONTINUOUS IMPROVEMENT

13. 13 INNOVATIONS IN PROCESS NEW TECHNOLOGY AND MATERIALS RESPECT FOR ALL PARTICIPANTS COMMITMENT TO PEOPLE RESPECT FOR ENVIRONMENT

14. 14 INDUSTRY CONCERNS CONCERN THAT MEASURE WILL STILL BE COST ALONE WE BUY CARS ON A RAFT OF CRITERIA WE BUY HOSPITALS ON PRICE ONLY

15. 15 THE WAY FORWARD INDUSTRY HAS THE CAPACITY TO ADD VALUE NEEDS PROCUREMENT PROCESSES THAT RECOGNISE VALUE

16. 16 EXISTING MODELS VICTORIAN PRIVATISATIONS UK PPP, PFI PROGRAMME £30 BN BOTH MADE PROGRESS BOTH FALL SHORT

17. 17 CONCLUSIONS CII HAS FURTHER WORK TO DO NEW MODEL TO INCLUDE BEST ELEMENTS OF UK AND VICTORIAN SHARING THE ADDED VALUE