Transforming Construction Network Plus webinar explores the business of industrial transformation

The second Transforming Construction Network Plus (N+) webinar took place on Wednesday 23 October. Featuring Dr Samuel C MacAulay and Dr Lena E Bygballe and moderated by Prof Andrew Davies, the webinar considered the management and organisational aspect of the business of industrial transformation. Bringing an international perspective on how to respond to some of the challenges faced by the industry, the two academics explored new ways of thinking and alternative models.  

Dr MacAulay first highlighted how Industry 4.0 is changing the way that we create and capture value in the construction sector. Exploring the different dimensions involved in innovation, he differentiated the ways in which radical and incremental innovations impact on a single function or more widely across the value chain.

Dr MacAulay commented: 

‘If you can’t capture the value you create, you don’t have a competitive advantage and you are going to end up with profit margins that are unsustainable, as we have so often seen in the construction industry’ 

After presenting three new ways of creating value, Sam reaffirmed that the competitive advantage for a business also depends on capturing value by inhibiting imitators. He then illustrated how and why the traditional economic, legal and social tools should be adapted to better prevent rivals from imitating a firm’s ‘value-creating moves’. 

Noting that these new ways of creating value required changes to organisational processes, Dr Bygballe offered an overview of the Norwegian construction sector, noting similarities and differences to the UK. She highlighted a research programme on implementing lean construction and explained how it was a great example for understanding the organisational changes that need to take place. Reflecting on what that research has demonstrated over recent years, she then discussed good strategies and practices.

Dr Bygballe observed:

 ‘Change is also a culture for allowing to test out, to try things, and to learn by doing and experimenting.’

Reinforcing that such a change can come from any management level, Lena then illustrated the cycle of organisational change processes. She concluded by affirming that change is enabled through a combination of structural interventions, social learning processes and some key conditions, such as legitimisation, training and skills development.

The webinar concluded with a panel discussion moderated by Prof Andrew Davies. Dr MacAulay and Dr Bygballe pointed out the main knowledge gaps in this upcoming construction industry transformation and discussed how this change will impact the sector.   

This event was the second of four international webinars from the N+, which is part of the Transforming Construction Challenge. The N+ is funded by UK Research and Innovation through the Industrial Strategy Challenge Fund. The N+ is uniting construction’s academic and industrial communities to create a new research and knowledge base, dedicated to addressing the systemic problems holding back the sector.