ASSESSMENT 1A: NAVIGATING DIGITAL TRANSFORMATION AND CHANGE

MANAGEMENT IN CONSTRUCTION PROJECT MANAGEMENT FOR NEW GRADUATES

PPMP20019: RESEARCH PROJECT 1

I. Introduction
The construction industry is grappling with challenges in embracing digital transformation, thereby
hindering efficient project management. Despite a history of integrating new technologies to enhance
offerings, the sector faces a disruptive inflection point due to the rapid advancement of digital
technology. This research examines the preparedness of the architecture, engineering, and
SUBMITTED BY
construction (AEC) sector for this impending change, drawing from exploratory research conducted
across Australian AEC organizations. Australia's construction industry stands as the largest non-
ASHITH SHAJAN & KRUPAL
services sector of the country's economy, contributing 8.1% of GDP and employing over 1.1 million

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Australians—more than five times the number employed in mining. Over the five years leading up to
2022, the industry is anticipated to gain an additional 100,000 jobs, with employment growth
predicted to reach 10.9%.
At the core of this research are six provocations that highlight key issues confronting the AEC sector
across various levels of analysis in response to the growing influence of digital technology. To
facilitate digital transformation preparation, experiences from other industries are leveraged, and a
framework comprising four leadership thinking schemas is proposed: capacity thinking, future
thinking, strategic thinking, and experimental thinking. Procedures and programs for each schema are
offered to aid AEC companies in better adapting to or proactively designing and constructing a
sustainable future.
Despite contractual duties forming the foundation of formal coordination in the industry, they can be
challenging to uphold in practice, particularly during the course of work. The model presented in this
paper highlights potential pitfalls when managing for greater change in the exploitation of core and
newer competencies, along with innovation. However, it also identifies opportunities for building
potential solutions.
In conclusion, the construction industry's readiness to embrace digital transformation is crucial for its
future sustainability and competitiveness. By adopting a proactive approach and leveraging innovative
thinking, AEC companies can navigate the challenges posed by digital disruption and pave the way
for a more efficient and resilient industry landscape.

II. Literature Review

Global estimates suggest that full-scale digitization of non-residential construction could yield
substantial yearly cost reductions, potentially reaching US$0.3–0.5 trillion in the operations phase and
US$0.7–1.2 trillion in the engineering and building phases. Extrapolating from these figures, the
Australian construction industry could witness a potential annual added value gain of $25 billion
within the next decade. Administrators and business practitioners can address structural, contextual,
and temporal inefficiencies unique to higher education's ability to manage ambidextrous change by
examining emerging models in digital transformation and higher education. Higher education
institutions must evolve beyond institutionalized tradition alone in the face of digital disruption,
potentially leading to a significant de-institutionalization of the field or the need for reformulation.
One of the primary features distinguishing the building and construction sector is its short-term,
market-based interactions. Driven by factors such as the lowest price tender policy, action-oriented
thinking, and the pursuit of short-term operational gains, participants tend to optimize individual
processes rather than the construction process as a whole. This fragmented approach is exacerbated by
the distribution of power within the sector, which influences how organizations optimize their
processes and contribute to project outcomes.

III. Methodology
Research Design
Thoroughly examining case studies of construction firms or projects that are undergoing digital
transformation can yield valuable insights into the obstacles, approaches, and results related to digital
adoption.
There are various advantages to investigating digital transformation in the construction sector through
the use of a case study research design. Case studies offer rich qualitative data and insights from
stakeholders while facilitating in-depth examinations into businesses or projects going through digital
transformations. Through an emphasis on practical scenarios, scholars can investigate the application
of digital technologies and their effects on project management methodologies. The intricacy and
dynamics of the industry are captured by this method, which advances theory development and
produces useful suggestions for interested parties. All things considered, case studies provide
comprehensive, historically informed viewpoints on digital transformation in the construction
industry, enabling a deeper comprehension of the obstacles, approaches, and results connected to
digital adoption.
Detail any required ethical approvals.

IV. Expected Results and Implications

Examining the ways in which important industry actors—consultants, contractors, architects, and
clients—interact with one another to determine industry features and opportunities for digital
transformation through technology adoption is the goal of this study. Results should support the
industry's focus on taking immediate action and demonstrating how innovations may produce
noticeable effects. Through case studies, key success elements for digital transformation will be
identified, including change management techniques and leadership support. Researchers will also
find issues with implementation, such as a lack of expertise and aversion to change. There will be an
understanding of how digital technologies affect project management, including cooperation and
scheduling. Future projects will be guided by best practices and lessons gained, and the consequences
for industry rules and regulations will be determined. Along with expected social benefits like job
creation, there will also be economic benefits like cost reductions and productivity gains. Gaining
insight into the forces behind and effects of the digital revolution will boost industry competitiveness,
spur innovation, and make it easier to adjust to changing consumer needs. In general, the research
findings will guide industry practices, policy formulation, and strategic decision-making, promoting
long-term, sustainable growth in the construction sector.

V. Timeline and Resources

The study project will move through significant milestones over the course of six weeks, beginning
with a thorough literature analysis to lay the groundwork for understanding the fundamentals of
digital transformation in the construction sector. After that, goals and methods will be clarified during
the research design and planning phase, which will then lead to the selection of case study locations
and data collecting. The purpose of the fourth and fifth weeks will be to collect qualitative data on
industry actors' interactions and digital transformation projects through focus groups, site visits, and
interviews. Data analysis will finally start in week six, combining findings and formulating
conclusions. In order to prepare for the final analysis and reporting, which will include suggestions for
industry stakeholders, the preliminary insights will be used. Within the given timeframe, this timeline
guarantees a methodical and thorough investigation of the effects of digital transformation on the
construction industry.

VI. Reference list

Criado-Perez, C, Shinkle, GA, Höllerer, MA, Sharma, A, Collins, C, Gardner, N, Hank Haeusler, M
& Pan, S 2022, ‘Digital Transformation in the Australian AEC Industry: Prevailing Issues and
Prospective Leadership Thinking’, Journal of Construction Engineering and Management, vol. 148,
no. 1.

Jackson, NC 2019, ‘Managing for competency with innovation change in higher education:
Examining the pitfalls and pivots of digital transformation’, Business Horizons, vol. 62, no. 6, pp.
761–772.

Kraatz, J, Sanchez, A & Hampson, K 2014, ‘Digital Modeling, Integrated Project Delivery and
Industry Transformation: An Australian Case Study’, Buildings, vol. 4, no. 3, pp. 453–466.

Langston, C & Zhang, W 2021, ‘DfMA: Towards an Integrated Strategy for a More Productive and
Sustainable Construction Industry in Australia’, Sustainability, vol. 13, no. 16, p. 9219.

Linderoth, H, Jacobsson, M & Elbanna, A n.d., Barriers for Digital Transformation: The Role of
Industry.

Prebanić, KR & Vukomanović, M 2021, ‘Realizing the Need for Digital Transformation of
Stakeholder Management: A Systematic Review in the Construction Industry’, Sustainability, vol. 13,
no. 22, p. 12690.