The Impact of E-Commerce on the Design and Construction Industry

Abstract

Historically, the design and construction industry has been slow to innovate. As a result, productivity in the construction industry has declined substantially compared to other industries. Inefficiencies in this industry are well documented. However, the potential for cost savings and increased efficiency through the use of the Internet and e-commerce may not only increase the efficiency of the design and construction industry, but it may also significantly change the structure and composition of the industry. This is suggested because effective implementations of e-commerce technologies are not limited to one aspect of one industry. E-commerce may be most effective when it is thought of and applied to multi-industry enterprises and in a global context. This paper continues the exploration of a concept that we have been working on for several years, namely that “ information technology is evolving from a tool that incrementally improves ‘backoffice’ productivity to an essential component of strategic positioning that may alter the basic economics, organizational structure and operational practices of facility management organizations and their interactions with service providers (architects, engineers and constructors).” (Johnson and Clayton 1998) This paper will utilize the case study methodology to explore these issues as they are affecting the AEC/FM industry.