Strategic Management of IT in Construction

The issue of technology exploitation, particularly in the field of information technology, is of significant importance in construction industry. Information technology (IT) has created fundamental impact on the way business processes are carried out. IT can no longer be viewed as an enhancement to traditional business procedures but rather as an innovation agent that enables new and different alternatives in operation of business organization. This new trend will color investment attitudes of business communities in the world towards utilization of IT in the coming years. IT is already widely used in construction organizations and much more dramatic effects are anticipated for the years to come. [Betts, (1999)] reported that the construction industry in many countries is starting to consider seriously the strategic use of IT. The use of IT in construction is extending beyond the stage of piecemeal application for improving the efficiency of discrete operations by individual organizations to an advanced stage where IT is applied strategically in commercial enterprise, government agencies and professional institution. From strategic point of view, IT has the potential to change the landscape of the construction industry.
Survey shows that Indonesian construction industry was having investment for acquiring the latest in hardware and software, but does not have adequate and trained personnel to utilize the same. It can be surmised that IT is used mostly in administration and other supporting area, but not in strategic core and business enhancement processes. The construction organizations in Indonesia use IT mostly in processes related to information management, occupation and maintenance management, and business planning. IT has made little difference in business human resources and marketing process.
If above areas of IT applications are strengthened the Indonesian construction industry will reap greater benefits.
Since the level of IT use is prevalent at lower level, top management of construction organizations should have strong commitment to develop strategic management of IT in their business processes. The hardware, software and their applications should be utilized to enhance both core and supporting activities to gain competitive advantage in today highly global business environment. Secondly, the firm's management should give greater attention to IT support and training, by making sure that there is sufficient trained staff for the implementation of IT, and making greater effort in training staff on the correct and efficient use of IT in the organization. Thirdly, Government and public agencies should consider policies that encourage the use of IT in the construction industry thus making this industry sector more competitive, and encourage industry to make greater use of information system. (M.S.Pamulu, et al., 2005)