Building information modeling : exploiting technological innovations within the construction industry to its full potential, by creatively changing one or more dimensions of the business systems & work processes.

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Master Thesis: Building Information Modeling

Exploiting technological innovations within the construction industry to its full potential, by creatively changing one or more dimensions of the business systems & work processes.

Student Nico Bijl

Student number 10161120

Education / University Master Business Studies / University of Amsterdam

Faculty FEB

Date 27-02-2014

City Amsterdam

Version / status Definitive version 1.0 First thesis supervisor Drs. Ton Gruijters Second thesis supervisor Dr. Tsvi Vinig

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Executive summary

The main problem our research addresses, is trying to help solve an economic problem. Previous research has found that interoperability issues and poor data management within the construction industry, cost $15.8 billion a year in the US, or approximately 3 to 4% of total industry turnover (Gallaher et al. 2004). As a result, another one of the major problems in the construction industry are critical failure costs. Estimations of these critical failure costs are up to 11% of total project revenues (USP Marketing consultancy, 2010). Considering the profit margins of only 2 to 4% of most construction companies and a 7.5 trillion dollar industry globally, it is clear that something has to be done!

One of the key concepts for our research is Building Information Modeling (BIM), which can help solve aforementioned problems. For the scope of this paper, our following simplified definition of BIM is used: BIM is a stream of new computer aided technologies, which enables the construction industry to create more efficient & effective structures, it improves not only the product (building), but also the process of creating buildings for the entire industry by using open standards. BIM is a disrupting innovation within the construction industry. From a Schumpeterian viewpoint, BIM technology combines several components together, offsetting the existing equilibrium of the entire construction industry.

Throughout our research we explore the BIM technology, and more specifically answer 7 research questions related to BIM technology development and exploitation, within the construction industry. The process how we derived our 7 research questions, can be read inside chapter 2, alongside our general research methodology. An overview of preliminary answers to these 7 research questions can be found, at the end of chapters, 3, 4, 5 and 6.

Overall, we conducted our research in 4 separate stages. First, a literature analysis (Chapter 3). Second, analysis of secondary survey data (Chapter 4). Third, analysis of BIM case studies (Chapter 5). Finally, we used primary data from interviews with BIM experts, to triangulate our findings (Chapter 6).

The answers of individual chapters, are preliminary answers. Full answers are synthesized inside chapter 7, based on all available information. Note, that most of the answers to our questions are not easily summarized into a few paragraphs, due to the complex nature of the research subject and more qualitative explanations. Therefore, for more in-depth explanations we refer to reading full sections inside our research. Next we will provide the briefly summarized answers to our 7 research questions.

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The summarized answers to our most important research questions are:

RQ1: What causes several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs? Summarized briefly, interoperability issues are caused by incompatible software, and a lack of industry standards of how to store and exchange digital building information. The cause of poor data management inside the construction industry, can be traced backed to several components. In sum, bad CAD programming, file storage protocols, and chosen email/postal exchange formats, are main causes of poor data management . In sum, the main causes of critical failure costs are: interoperability issues, poor data management and information interdependencies between stakeholders who design & construct buildings.

RQ2: How is the new Building Information Modeling (BIM) technology trying to solve, several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs? In sum, the solutions to reducing critical failure costs are: open standards development, increasing information density of these standards & data exchange formats, automating information validation with smart BIM objects, and automating information exchange with centralized IFC BIM model servers. These are facilitating technical solutions. Another crucial piece of the puzzle, that is often overlooked, are the human behavioural aspects. The technology is only as good as to the extent it is exploited by humans. The building owner can, and should, realign financial incentives with proper Design Build (DB) contracts.

RQ3: What are the various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, often referred to in BIM literature? The type of information that is shared on BIM servers, can be subdivided into several categories, or so called BIM dimensions. These dimensions are: (3D) geometric information, (4D) time, (5D) costs, (6D) facility management information, and (nD) all other information types.

RQ4: To what extent are various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, currently exploited? Expressed in percentage of total companies, that use BIM on projects: (3D) 60%, (4D) 6%, (5D) 21%, (6D) 5%, (nD) to broad to state specific percentages, and (IFC BIM model servers) 18%.

RQ5: To what extent will various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, be exploited within the next 5 years? Expressed in percentage of total companies, that use BIM on projects: (3D) 80%, (4D) 16%, (5D) 43%, (6D) 15%, (nD) to broad to state specific percentages, and (IFC BIM model servers) 30%.

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RQ6: To what extent does the new BIM technology change work processes among major stakeholders inside the construction industry, who are confronted with the new BIM technology? The extent to which BIM technology changes work process in the construction industry is formidable. We consider BIM technology to be a truly disruptive innovation, which will reshape the entire construction industry. Even more disruptive than the previous shift from paper drawings to Computer Animated Drafting (CAD) in the 1960s. Dumbing down technical features, BIM technology can be simply seen as: Computer Aided Drafting + All other information needed to design, and maintain a (building) structure + Eliminating data redundancy + Automating information sharing between stakeholders & other software, through BIM servers + Automating information validation + Usage of open data standards. As we have demonstrated by taking a Schumpeterian viewpoint of what individual elements BIM technology combines. It combines more complex elements together, than the previous disruptive innovation, CAD technology. Thus, the extent to which BIM technology will impact work processes among major stakeholders inside the construction industry, is larger than ever before in the history of the construction industry!

RQ7: How can various stakeholders inside the construction industry be influenced, to increase BIM technology acceptance (behavioural intentions) and BIM technology usage? In order for use to give advice on how to increase BIM technology acceptance (behavioural intentions) and BIM technology usage, we must re-use many of our previous findings and insights. We start with identifying sound theoretical constructs of various critical Information System (IS) success factors. The most important theoretical constructs of IS success factors, for our specific research, are: (1) Facilitating Conditions (2) Gap between: Performance Expectancy & Effort Expectancy (3) Behavioural Intention (4) Usage of IS system, (5) Information Quality, (6) User Satisfaction, and (7) Net Benefits. We recommend focussing on individual End User Satisfaction (EUS), the gap between Performance Expectancy (PE) & Effort Expectancy (EE), and on Facilitating Conditions (FC). Ultimately, the goal is to reduce the current 11% critical failure costs, which we consider the predominant Net Benefits in the context of our research. If we go back to our theoretical constructs of IS success factors. Ideally, we want to set a causal feedback loop in motion. A causal feedback loop, on an individual employee level, between: (1) Usage of IS system, (2) Net Benefits and (3) User Satisfaction. Usage of IS systems leads to Net Benefits. Net Benefits leads to more Usage of IS systems & EUS. EUS leads to more Usage of IS systems. We recommend managing EUS carefully, once the causal feedback loop is in motion.

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Foreword & Reading guide

Before you lies my master thesis on the subject Building Information Modeling (BIM). This thesis is part of my MSc business studies education. The reason I have chosen to research this subject is partly because it fits my background as an electrical engineer, and partly because it fits my chosen master specialization of entrepreneurship & innovation. The thought processes through which I discovered this subject was, by answering some personal questions. (A) What knowledge will help me advance my career as a professional? It seemed obvious, to me at least, to find a subject with currently very few experts, and highly valuable information. Thus making my knowledge valuable to aspiring companies that are willing to hire me. This in turn, will give me a better position to negotiate salaries, and provide freedom to choose interesting projects and work, that will satisfy my intellectual needs as well.

(B) What is considered most valuable knowledge? Again it seemed obvious, to me at least, to find a radical innovation that is so significant, it will upset the equilibrium of an industry within 10 years, but currently is at its infant stages of implementation.

(C) What leverages my current knowledge as an electrical engineer? Electrical engineering, is a broad technology field, with many specializations I could specialize in. It includes electronics, computers, power utilities engineering, telecommunications, micro switches, control systems, RF engineering, signal processing etc.

Combining the 3 questions together (A, B & C) I found many subject matters to choose from. Eventually the BIM subject fit all my criteria best, so I chose to research it for my master thesis.

In regards to reading order, I advise to read the 7 chapters of my research in the original order as they are represented. Mainly because I tried to write a story, the story of BIM technology. Seen from my own perspective. By looking at the history, current state, and the potential scenarios of future states of the BIM technology. How this technology has been, and will be, developed over time. And ultimately, what the main implications of BIM technology adaption are for the construction industry. Understanding this story, has given me unique expertise on the subject matter, that I can use in my career as an academic professional. To me, it is important to make a distinction, between becoming an academic researcher, or an academic professional working for a company. As such, being able to translate academic terminology & research to practise, seems important to me.

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Of course my academic institution, the University of Amsterdam (UvA), also has its own official reasons & assessment criteria’s for this master thesis. One of which, is to determine if I have achieved an analytical line of reasoning & though that deserves a master degree. It is not up to me to asses if this has been achieved, nor question these official master thesis assessment criteria’s.

However, I do have my own viewpoint in regards to what level of thought & reasoning should be displayed that deserves a master degree. First and foremost, the static academic knowledge that I acquired throughout my years of education are not my most valuable developed skills. On the most abstract level, my most valuable developed skills are my dynamic capabilities. Among others, such as: information discovery (searching individually), information assessment (assessing accuracy, value & contextual conditions of the information) and knowledge creation (combine information to create new insights). In addition to this thesis, many course results, already have proven that I possess sufficient academic research skills, as well as possess general business theories (Marketing, Strategy, Finance etc.).

Therefore, showing off my knowledge of general statistics or math, seems pointless to me personally, as these are just the basic building blocks for information assessment & knowledge creation. I already have proven over and over again, during course work, that I know how a linear regression works, or how to use advanced applied mathematics in solving engineering problems. It seems to me that searching, sifting through and filtering information, to combine & communicate a clear data driven story, is way more important!

So instead of presenting a single model with some constructs, that have mediating & moderation variables, influencing an outcome, I chose a different approach. A more qualitative approach. Although manipulating numbers comes much easier to me (being an engineer), I chose to work on & develop my (written) communication skills. Resulting in writing a compelling story, backed up with empirical research, and an extensive literature analysis on BIM, Business Process Re-engineering (BPR) and organizational change management (OCM).

I hope readers of my master thesis will enjoy my story & follow the journey, on how the construction industry will be reshaped, by the disruptive innovations of BIM technology.

Nico Bijl,

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Introduction

One of the key concepts for our research is Building Information Modeling (BIM). For the scope of this paper, our following simplified definition of BIM is used: BIM is a stream of new computer aided technologies, which enables the construction industry to create more efficient & effective structures, it improves not only the product (building), but also the process of creating buildings for the entire industry by using open standards. BIM is a technological innovation within the construction industry.

On the most fundamental level BIM is all about Information Management (IM). BIM organizes all relevant information about a building structure, in a 3D, nD, computer aided virtual Marquette. In lament terms, this means a building structure is first built in 3D inside the computer, before it is built in real life. This ensures any mistake made during the design stage e.g. components not fitting together, will be found by running various simulations inside the computer. So called, automated collision detection is just a very basic function of what BIM technology can do.

In the BIM literature the 7 most common information categories are called dimensions. Some of the terms might sound a bit counterintuitive, but we want to be consistent with the BIM literature so we will use the terms throughout our research. For instance, calling the fourth dimension time, is perfectly accepted. However, calling costs the fifth dimension can be counterintuitive. None the less, the 7 dimensions we will use, are for our research defined as: •3D: The metric geometry of building/structural objects in mathematical x, y, and z axis. •4D: Time needed to design, construct or maintain (building) structures/components. •5D: Monetary costs to design, construct or maintain (building) structures/components. •6D: Facility management information.

•nD: All other information to design, construct or maintain (building) structures/components All these dimensions need some further explanation to understand how the different dimensions (we see them as different information categories), relate to BIM technology workflows. Throughout our research we will give more specific explanations of BIM dimensions and associated workflows. We consider BIM technology to be a radical innovation, that will offset the existing equilibrium of several decades inside the construction industry. We will explain why & how we come to the conclusion BIM technology will reshape the entire construction industry as we know it today!

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1 Organization and execution strategy of the Thesis

In this chapter we will discuss the way the in which the Master Thesis is organized globally. The goals of this chapter are to provide an overview of the main problem definitions of our research, and introduce our research questions.

1.1 Student and Supervisor(s)

Student: Nico Bijl, Master student Business Studies UvA

Studentnr: 10161120

Email: nico.bijl@student.uva.nl

Supervisor(s): Drs. Ton Gruijters UvA

1.2 Problem definition, Goal and main research questions

The main problem our research addresses, is trying to help solve an economic problem. Previous research has found that interoperability issues and poor data management within the construction industry, cost $15.8 billion a year in the US, or approximately 3 to 4% of total industry turnover (Gallaher et al. 2004). As a result, another one of the major problems in the construction industry are critical failure costs. A critical failure can be described as miscommunication, design flaws that cause rework, planning setbacks etc. Estimations of these critical failure costs are up to 11% of total project revenues (USP Marketing consultancy, 2010). Considering the profit margins of only 2 to 4% of most construction companies and a 7.5 trillion dollar industry globally, it is clear that something has to be done! Global construction output will grow 70% from its current level of $7.5 trillion to $12.7 trillion by 2020, according to a new report by Global Construction Perspectives and Oxford Economics. Large parts of the construction output are financed by the public sector.

Therefore, solving these economic issues is becoming more important every day. The new BIM technologies have an estimated potential to solve 3% up to the total 11% of critical failure cost. This means BIM technologies have a potential annual saving value of 11% x 7.5 trillion construction volume = 8.3 billion, globally. Research from 2010 shows only 15% of building projects in Europe use the new BIM technology and work processes to some extent. One of our “best in class” BIM case studies, inside chapter 4, already reported about 4,5% cost savings, by utilizing many aspects of currently available BIM technology.

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Solving critical failure costs is just one way cost savings can be achieved, as the BIM technology will mature, many other additional cost savings can occur. The best analogy we can use is considering what the industrial revolution did for manufacturing, automation of manual work processes. BIM technology has the potential to automate many aspects of manual work processes, inside the construction industry. Ranging from design, construction, and operate & maintain stages throughout (building) structures life cycles.

Furthermore, 58% of BIM experts using the technology measure Return On Investment (ROI), and 80% report positive ROI, with 25% citing greater than 100% ROI (Bernstein et al., 2010). Another major problem is the construction industry is very conservative, and not much innovation is taking place in this industry compared to other industries. (Miles, 2008). This lack of innovation, and wasted economic potential might explain the urgent need for a cultural shift within the construction industry, according to many external stakeholders and in particular the industry’s biggest client the central government.

Take UK as an example, some quotes from the Government construction strategy rapport: “The construction sector is a major part of the UK economy. It represents some 7% of GDP or £110bn per annum of expenditure - some 40% of this being in the public sector, with central Government being the industry’s biggest customer…but construction has generally lagged behind other industries in the adoption of the full potential offered by digital technology… The Cabinet Office will co-ordinate Government’s drive to the development of standards enabling all members of the supply chain to work collaboratively through Building Information Modeling (BIM)” (UK Cabinet Office, 2011). In sum, it is (economically) important that companies, and building owners, operating within the construction industry, adopt BIM technology to its full potential.

The goal of our research is to provide insight into the development and exploitation of the new BIM technology over time. Using information form 4 different research stages, we will synthesize our findings to answer our 7 research questions. Since the thesis is written for a MSc in Business studies, emphasis lies on the organizational processes part of the synthesis, not the technological. Although at its core, BIM is technological innovation, the technology only facilitates restructuring of business processes in the entire construction industry. Ultimately, changing the business processes throughout the entire construction industry’s supply chain is what yields all the (economic) benefits. Therefore, when necessary we will explain the technology, but our main research focus lies on the changing business processes.

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Our most important research questions are:

RQ1: What causes several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs?

RQ2: How is the new Building Information Modeling (BIM) technology trying to solve, several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs?

RQ3: What are the various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, often referred to in BIM literature?

RQ4: To what extent are various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, currently exploited?

RQ5: To what extent will various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, be exploited within the next 5 years?

RQ6: To what extent does the new BIM technology change work processes among major stakeholders inside the construction industry, who are confronted with the new BIM technology?

RQ7: How can various stakeholders inside the construction industry be influenced, to increase BIM technology acceptance (behavioural intentions) and BIM technology usage?

Because our research contains 4 interconnected stages, making it an iterative process containing several feedback loops, rather than a straightforward linear process, some answers to our questions are spread throughout our research. However, we do provide some in guidance as to where, which question is mainly answered:

- Research questions 1, 2 and 3 are answered inside chapter 3.2, conclusion chapter 3. - Research question 4 and 5 are answered inside chapter 4.3, conclusion chapter 4. - Research question 6 and 7 are answered inside chapter 6.2, conclusion chapter 6. Furthermore, we synthesize & summarize all our main findings inside chapter 7.

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2 General research methodology and methods

Inside Chapter 1 we have described what our research will cover, and why it is necessary. Now we will describe how we have conducted our research, inside chapter 2, general research methodology and methods. More specific research methodology is addressed inside corresponding chapters e.g. how we collected and analysed survey data samples.

2.1 How we derived our 7 research questions

Following our research progress throughout time, will provided insight into how we derived our seven research questions, and how our research is executed/written down. For a quick visual overview of our research process, we created an illustrative figure (figure 1, page 18).

2.1.1 Research stage 1: Analysis of BIM & Academic literature

The main problem our research addresses, is trying to help solve an economic problem. Therefore, our problem definition was the starting point for our research. More specific, interoperability issues and poor data management inside the construction industry (Gallaher et al. 2004), leading to critical failure costs (USP Marketing consultancy, 2010). We wondered what the cause of these problems were, and if there are any suggested solutions. This derived our first two research question:

RQ1: What causes several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs?

RQ2: How is the new Building Information Modeling (BIM) technology trying to solve, several of the biggest problems within the construction industry, interoperability issues, poor data management, and resulting critical failure costs?

In order to provide answers, and increase our understanding on the subject, we first turned to academic literature on the subject. There was no single source that provide adequate answers, so we had to synthesize knowledge from several sources to fill this gap inside the literature. Among others, empirical research on information management issues inside engineering firms (Hicks, Culley & McMahon p. 1, 2006), how engineers manage personal electronic files (Hicks, Dong, Palmer & Mcalpine, 2008). Exponential growth of electronic files/data (Gantz et al., 2007). Cognitive limitations of human information processing

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(Miller, 1956). How knowledge workers deal with information overload and excessive emails (Hemp, 2009). Furthermore, at this stage, specific BIM literature was also used (Eastman, 1975; Eatman, et. al., 2011; Gallaher et al. 2004; Khemlani, 2004; UK Cabinet Office, 2011; USP Marketing consultancy, 2010).

Many recurring constructs inside the BIM literature were several, so called, BIM dimensions. We found the notion of dimensions 5D, 6D, nD strange. Therefore, we felt it necessary to clarify what these dimensions were for our research. This led to our third research question:

RQ3: What are the various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, often referred to in BIM literature?

As we kept reading the BIM literature more carefully, it became clear to us, the these BIM dimensions described different functionality, or represented different information types of the BIM technology e.g. 3D (geometry), 4D( time), 5D (costs), 6D (facility management), nD (Various). Another way to look at this, was with exploiting more dimensions, more benefits & information maturity of BIM models arose. Visually represented inside figure 28 (page 88), BIM maturity levels. While reading this broad literature, we found several suggested theoretical solutions for interoperability issues, poor data management, and resulting critical failure costs. At this point we were interested in, what aspects of the BIM technology were currently exploited, and what will be exploited within the next 5 years. From the BIM literature we had found that currently 15% of European construction projects use BIM to some extent (Bernstein et al., 2010). However, we had stretched the limits of what a further literature analysis could provide us with. Therefore, we had to find a secondary, or primary data source that could provide answers. Hence, our need for a second research stage which contains data collection and analysis.

2.1.2 Research stage 2: Analysis of BIM QuickScan® data

Because, at this stage, we were interested in, what aspects of the BIM technology were currently exploited, and what will be exploited within the next 5 years, we derived our fourth and fifth research questions:

RQ4: To what extent are various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, currently exploited?

RQ5: To what extent will various dimensions (3D, 4D, 5D, 6D & nD) of Building Information Modeling (BIM) technology, be exploited within the next 5 years?

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In our search for a viable data set, we weighed our options of using a primary vs a secondary data set. Since we had restricted resources, and our questions would be best answered through measuring a large group of companies, we first opted for finding a secondary data set. After limiting our search for specific empirical research on BIM exploitation rates, inside the Dutch construction industry, we identified a paper that could provide a useful data set (Berlo et al., 2012). This empirical research used a questionnaire with 50 multiple choice answers, answered by over 700 Dutch construction companies.

We obtained permission from TNO to use their raw BIM QuickScan® data set, to conduct our own analysis. Inside chapter 4 we critically describe the research methodology & data collection methods (4.1) , summarize their main findings (4.2), and answer our fourth and fifth research questions (4.3). Note that, TNO already provided an answer to our fourth research question inside their report, we critically assed their methodology, and found their answer accurate enough to use for our research without modifications. However, for answering the fifth research question, we recoded their raw BIM QuickScan® data set, to provide our own unique answer to our fifth research question. Read chapter 4 for details.

Up until this point we have found many theoretical solutions, to problems such as, interoperability issues and poor data management inside the construction industry (Gallaher et al. 2004), leading to critical failure costs (USP Marketing consultancy, 2010). Theory predicts BIM can solve these issues, and provide even more benefits with 3D, 4D, 5D, nD BIM models. Furthermore, we also measured current, and predicted BIM technology exploitation rates. However, this does not adequately answer to what extent BIM technology is/will be exploited in practise. More importantly, we want to know if the proposed theoretical solutions to problems, are actually being solved by utilizing BIM on real life construction projects. Hence, our need for a third research stage which describes ten “best in class” case studies.

2.1.3 Research stage 3: Analysis of best in class BIM 4D, 5D nD case studies

In this stage we have analysed several “best in class” BIM case studies. By using these case studies we gain practical insights of BIM usage within the construction industry. This provides some contrast between BIM theory & BIM practise. So far we have discussed, in length, what BIM is supposed to be in theory. By analysing real live case studies, the theoretical BIM constructs we have spoken about, become more tangible. Overall, this increases the readers ability to grasp the complex nature of BIM technology, and its development over time.

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Thus, these case studies do not introduce new research questions, but enrich the theoretical answers we have found, to our research questions 2, 3, 4 and 5.

In total we have selected 10 case studies, which we will describe in separate sections. In 2005, GSA received an “Honorable Mention” award for its 2 year (started in 2003) BIM pilot program. This GSA BIM pilot program contains our first 9 BIM case studies. Our 10th selected case study has won the 2013 AIA TAP BIM Awards for BIM delivery process innovation (AIA, 2005). An example of how these case studies contribute to our research questions 2, 3, 4 and 5, can be found in our tenth case study. Compared to conventional work processes, this advanced BIM work methodology has realised an overall of 4,5% cost savings for the owner, the GSA. With a $200 million construction budget, a total of $9 million in costs were saved. In contrast, theory predicts these critical failure costs are up to 11% of total project revenues (USP Marketing consultancy, 2010). Thus, the “best” BIM case study today, does not even come close to utilizing the full potential of BIM technology. Previous research has shown, there is an slightly lineair correlation between technolological exploitation and organizational change (Miles, 2008). i.e. organizational change is neccecary to exploit technology to its full potential. This has lead to our sixth research question:

RQ6: To what extent does the new BIM technology change work processes among major stakeholders inside the construction industry, who are confronted with the new BIM technology?

Besides organizational change (how), we also found out, from our case studies, BIM work methodology and technology (what) could actually solve problems such as, interoperability issues and poor data management inside the construction industry (Gallaher et al. 2004), leading to critical failure costs (USP Marketing consultancy, 2010). Therefore, at this stage, we wanted to increase BIM technology acceptance and usage. Because, today CAD software is still by far the dominant technology used, only 15% of building projects in Europe used the new BIM technology and work processes to some extent in 2010 (Bernstein et al., 2010). Hence, our need for a final and seventh research question:

RQ7: How can various stakeholders inside the construction industry be influenced, to increase BIM technology acceptance (behavioural intentions) and BIM technology usage?

In order to answer these additional questions, and triangulate our previous findings, we needed more in-depth qualitative data, so we started with interviewing BIM experts in our next research stage.

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2.1.4 Research stage 4: Analysis primary data from interviews with BIM consultants

Research stage 4 explores primary data from interviews with BIM consultants, BIM engineers and analyses these interviews. During the semi structured interviews a topic list was used to discuss the potential of BIM technology. More specifically, the interviews will be designed to obtain in-depth insights that other previous mentioned survey data collection methods, from research stage 3, could not accomplish.

Probing questions were asked about how to change the business systems, process roles and knowledge of employees to exploit BIM technology to its full potential. There are no specific questions written down beforehand. However, in order to compare findings from several interviews a fixed topic list was followed to structure the interviews.

2.2 Research stages

We have introduced 4 main research stages throughout the entire research process. These individual stages are interconnected making it an iterative process containing several feedback loops, rather than a straightforward linear process. To get an overview of the research processes, we created an illustrative figure (figure 1).

One example of how the research was an iterative process containing several feedback loops, is by looking at the point in time when we arrived at our seventh research question. At this point in time, we were adequately convinced BIM technology would provide a contribution to solving issues, stated in our problem definition. Therefore, to achieve our main goal of, trying to help solve an economic problem, we wanted to increase acceptance (behavioural intentions) and BIM technology usage. This in turn led to another cycle of academic literature analysis. How Information Systems (IS) success factors are measured (Petter, Delone & McLean, 2008). Individual demographic/physiological variables, as well as external social influences and facilitating conditions for influencing IS success (Venkatesh et. al., 2003). Antecedents, before actual usage of a system takes place (Davis, 1989). End-user satisfaction of IS systems (Au et al., 2008). Besides revisiting theory, we also needed to look again at findings from previous research stages. What is the gap between current exploitation, desired exploitation within five years? What BIM aspects yielded the most benefits inside our case studies? What did our interviewed BIM experts say about this? This iterative process makes it hard, to give concise answers to all our research questions. However, we do try to synthesise our main findings, and answer our research questions inside our final chapter 7.

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3 Research stage 1: Analysis of BIM & OCM literature.

Research stage 1 explores relevant literature about organizational change management, and analyses useful academic literature that helps in providing a good structure for the other 3 research stages. Furthermore, we will give definitions of the key concepts used in our research, to clarify/explain our interpretations of these concepts, and how they link to Building Information Modeling (BIM). The order of subjects may not flow seamlessly, due to the breaking down of a complex subject (BIM) into several parts. Section 3.2.1 summarizes chapter 3, we advise reading this for grasping the overall interconnected story.

3.1 Building Information Modeling

One of the key concepts for our research is BIM. For the scope of this paper, our following simplified definition of BIM is used: BIM is a stream of new computer aided technologies, which enables the construction industry to create more efficient & effective structures, it improves not only the product (building), but also the process of creating buildings for the entire industry by using open standards. BIM is a technological innovation within the construction industry. Exploiting the technology to its full potential, has huge economic benefits to the construction industry and external stakeholders. In order to be able to exploit the BIM technology, organizations need to creatively change one or more dimensions of their business system(s) and processes.

One of the main focal points of our research, will be BIM innovation i.e. creatively changing one or more dimensions of the business system(s) and processes of organizations within the construction industry. Many definitions have been used to describe Business Process Re-engineering (BPR) and organizational change management (OCM). We explore those definitions, models and theories about Innovation, BIM, BPR & OCM in the next sections, as they will guide and structure our research in the next 3 stages.

3.1.1 BIM & Schumpeter’s theory of Economic development

In Schumpeter’s theory of economic development, he describes, as many other scholars in the field of economics do, the economy as an equilibrium model. However, Schumpeter believes this equilibrium can be offset in a moment of disequilibrium by creating new combinations. These new combinations can occur at the economy, industry or company level (Schumpeter & Backhaus, 2003). A new combination powerful enough to offset the equilibrium can be

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considered a radical innovation. The new BIM technology combines several components together, offsetting the equilibrium of the entire construction industry. Much like the construction industry’s work processes have been reshaped before, by combining handmade drawings of buildings + computers. Ushering in the decades of Computer Aided Drafting (CAD), from the 1960s until today. Dumbing down technical features, BIM technology can be simply seen as: Computer Aided Drafting + All other information needed to design, and maintain a (building) structure + Eliminating data redundancy & automating information sharing between stakeholders. The viewpoint can be seen as Schumpeter’s idea in Theory of Economic Development, stating that the economy can be conceptualized as a combination and innovations as new combinations. (Knudsen & Swedberg, 2009).

It is a rather abstract idea, so let us clarify this with an example. At an industry level, books around the 1980s were sold primarily through brick & mortar bookstores, and post order mail catalogues. Along comes a new breakthrough technology, which you might have heard of, called the internet. In 1995 Amazon.com radically reshaped the book industry, by creating a new combination of the conventional bookstores business model and the internet. Fast forward to 2010, Apple introduces the Ipad. Now books printed on paper become partly obsolete, because a new digital e-book can be downloaded to the Ipad, and read in a more convenient matter than an original printed book. Yet again, the book industry is radically reshaped by a new combination. In response to declining book sales Amazon.com launches their own tablet in 2012, the Kindle fire. This is pure Schumpeter theory in real life action. A visual way to describe this cyclical process can be found in figure 2. Knudsen & Swedberg describe this process as

followed: “we suggest that an innovation can be conceptualized as the breaking up of an old order, with rising profit as a result. High profits attract imitators, who eventually create a new order for how things are done in order to make a profit.”

We use Schumpeter’s theory to break down a complex subject (BIM) into several parts, as is often done in analytic reasoning, to grasp difficult subjects and recognize information patterns.

Figure 2. Schumpeter theory

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Innovation has to be more valuable than its predecessor, before a new order arises. As we have seen, innovation is not narrow i.e. not restricted to technological change, it creates value by forming new combinations, and it evolves our society and economy. Therefore, conducting exploratory & explanatory research that creates new insights for valuable innovation is very useful. In later stages we will use Schumpeter’s theory of economic development to answer our sixth research question. Furthermore, Schumpeter’s theory overarches our entire research, as it form the basis of technology life cycles.

We focus on a particular industry that is known for its lack of innovation, the construction industry. The construction industry is well known for its conservative business methods and practices. (Miles, 2008). In order to come closer to reaching our objective of exploiting technological innovations to its full potential, we need to understand the history of BIM, and what BIM is on the most fundamental level. Furthermore, we need to explore how we can shift the cultural mind-set of stakeholders within the conservative construction industry, to become more innovative and creative. This is the only way to ensure the conservative business methods and practices of the construction industry can be reshaped. Among other ways, by convincing stakeholders trough showing them how they can profit from using the new BIM technology.

3.1.2 BIM on the most fundamental level

On the most fundamental level BIM is all about Information Management (IM), and knowledge management (KM). “One flaw in knowledge management is that it often neglects to ask what knowledge to manage and toward what end…Knowledge management activities are all over the map: building databases, measuring intellectual capital, establishing corporate libraries, building intranets, sharing best practices, installing groupware, leading training programs, leading cultural change, fostering collaboration, creating virtual organizations - all of these are knowledge management, and every functional and staff leader can lay claim to it. But no one claims the big question: why? Despite diverse propositions about "getting the right information to the right person at the right time," almost everyone neglects to ask what knowledge to manage and toward what end.” (Malhotra, 2005). In order for us to explore our topic of BIM through an IM & KM viewpoint, we feel it is necessary to address the big why? question. How does usage of BIM technology lead to better business performance, and solve problems inside the construction industry? Furthermore, we need a

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better understanding of what different types of BIM knowledge/information we can, and should, manage more effective.

BIM organizes all relevant information about a building structure, in a 3D, nD computer aided virtual Marquette. In lament terms, this means a building structure is first built in 3D inside the computer, before it is built in real life. This ensures any mistake made during the design stage e.g. components not fitting together, will be found by running various simulations inside the computer. So called, automated collision detection is just a very basic function of what BIM technology can do. Different types of stored information are subdivided into distinct categories, called dimensions e.g. 3D, 4D (time), 5D (costs) BIM models.

After the industrial revolution in the early 19th century, we quickly moved to the information age, or as some call it: the digital revolution. As such, Information Management is an essential part of the business operations of most organizations today. Large organizations even have created important job functions as Chief Information Officer (CIO), in addition to the better known CEO and CFO functions. Research on IM at engineering firms, especially deserves attention. “The use of information and consequently the development of more effective strategies for its management are widely accepted as being important issues for any organization. This is particularly the case for engineering SMEs in the Advanced Engineering sector where systematic knowledge resources are critical for achieving and sustaining competitive advantage.” (Hicks, Culley & McMahon p. 1, 2006).

The amount of data that is produced, also grows astronomically, consider the amount of digital data produced every year. In 2006, the amount of digital information created, captured, and replicated was 1288 x 1018_{bits (8bit=1byte). In computer parlance, that's 161}

exabytes or 161 billion gigabytes. About 3 million times the information in all the books ever written. Between 2006 and 2010, the information added annually to the digital universe will increase more than six fold from 161 exabytes to 988 exabytes (Gantz et al., p.1, 2007). The relevance of this data growth for our research is clear, in essence BIM is about efficiently & effectively managing, communicating, unlocking, saving information of a building structure. Manually managing increasing (digital) building information get harder every year.

3.1.3 Theoretical foundations of BIM technology

The first theories about Building Information Modeling can be traced back to a paper written by prof. dr. Eastman in the mid-1970s. At first glance there is enough research in this particular academic field, one well cited article is: “The Use of Computers Instead of

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Drawings in Building Design.” (Eastman, 1975). Essentially, this paper includes a description of how a 3D model, made up of consistent data of a building, can be created by using object oriented parametric modeling. Similar research was conducted in the early 1980s by other researchers in Europe. Prof. dr. Eastman has written many publications on the subject after his first in 1975, and has become one of the leading academic scholars in this field ever since. A more recent practical publication is a book on the subject with several co-authors: “BIM Handbook, A Guide to Building Information Modeling for Owners, Managers, Designers, Engineers and Contractors” (Eastman et al., 2011). The term BIM was created from a merger of the two streams of research from the USA, and from Europe. In the USA, the technology was known, in early 1980s, as Building Product Models, and in Europe as Product Information Models. The term BIM was created, by filtering out the common word "product". This resulted in the term Building Information Modeling, better known as BIM.

The key distinctions of the ideas proposed in this early work in 1975, opposed to the current standard Computer Aided Drafting (CAD), were foundational of BIM development. The first notable distinction, at first glance, is the notion of replacing 2D drawings in building design, for 3D computer models. Something that was not (yet) practical during that time, because construction workers need paper drawings to know what to build on a construction site. Today, using tablets containing 3D computer models on a construction site sounds much more plausible. Although BIM technology also allows to extrapolate regular 2D drawings if needed, from a 3D computer model.

The second notable distinction is, consistent data of a building. The CAD technology works with layers, there are some conventional naming methods of layers in CAD drawings. However it is fully possible to draw a door, and then name the layer itself door1, bedroom door, or even window. In sum, the data is not stored consistent, due to a lack of industry standards concerning naming of building objects, components and parameters.

The third notable distinction is, object oriented parametric modeling. This requires a rather technical explanation. Simply put, CAD were visual representations of “stupid” primitive shapes, together forming several 2D construction drawings. With object oriented parametric modeling, like any other object oriented programming language, you create “smart” objects. To explain this further, let us take a simple example like a door. In CAD technology these would be 4 “stupid” lines, forming a rectangle, representing a door. In BIM technology this would be a “smart” rectangular object

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What is the difference, you would think? Well, inside object oriented programming languages you can perform computations with “smart” objects. If you have defined “smart” object inside your program with parameters e.g. X=50, Y=200, You can ask: What is Y divided by X? The program would return (200/50=) 4. In figure 3a we see how a space (toilet) is checked if it complies with building regulations. It turns out the turning circle of the door is too small for wheelchair users. Smart BIM objects, and its parameters, are computable. Of course the physics involved of advanced BIM features are more complicated, but we start to get a grasp of the possibilities of object oriented parametric modelling vs old CAD.

Another good analogy, and practical application of object oriented parametric modeling, is envisioning NASA building a rocket inside a computer. The rocket and all it’s complicated physics parameters are modelled inside a computer. Before building an actual real life prototype, several simulations are run in order to test the design. It is cheaper and much safer to reconstruct something in the digital world first. Now building design can follow the same approach with BIM technology, creating a digital building first, and run simulations before actually constructing a building.

Figure 3b. CAD vs BIM technology Figure 3a. CAD vs BIM technology

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Because we want to understand the shift between CAD and BIM technology, we provided a visual representation of the different workflows. Inside the upper part of figure 3b, CAD starts with “stupid” primitive shapes, together forming several 2D construction drawings. Note, that this process results in several files for each individual drawing. In the lower part of figure 3b, BIM starts with a single database, containing consistent IFC data, forming a 3D model. Note, that this process results in one single file with high information density.

3.1.4 CAD/BIM software development

In order for use to understand the development stage over time, and given one of our research questions addresses future BIM software development, we need to understand the CAD & BIM software history more clearly. There are 3 major corporations inside the software industry for building (structures), Autodesk, Bently and Graphisoft. Next, we will outline the development of their CAD and BIM software suites. Timeline, which represents the major software development (Lintault & Ewards, 2011):

Autodesk Timeline:

•1982 - Autodesk was founded

•1983 - Autodesk releases version 1.2 of AutoCAD

•1989 - Parametric Technology Corporation releases the first version of Pro/ENGINEER •1992 - Autodesk releases AutoCAD 12 for DOS and becomes synonymous with the term CAD

•1997 - Charles River Software founded. Foundation development team came from Parametric Technology Corporation

•2000 - Charles River Software renamed Revit Technology Corporation

•2002 - Autodesk acquires Revit Technology Corporation for $133 million dollars (US). Revit becomes the foundation of the future of Autodesk building products and marks a break from the 20-year old DWG file based AutoCAD platform.

•2004 – First Revit software is released.

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Bentley Timeline:

•1985 - Keith Bentley founds Bentley Systems, Inc.

•1986 - Bricsnet's initial architectural modeling software product was developed for IBM UNIX by architect Erik De Keyser.

•1986 - The first CAD software created by Bentley Systems is called PseudoStation and it allowed users to view Intergraph IGDS drawings files without Intergraph software or hardware.

•1987 MicroStation is released with the ability to edit IGDS files. •50% of Bentley is purchased by Intergraph.

•1987 - Bentley creates the first version of the DGN file format.

•1995 - Bentley develops advanced solid modeling for MicroStation and releases MicroStation 95 for the Windows platform.

•1996 - MicroStation/J V7 is released.

•1997 - After obtaining Bricsnet's architectural modeling software which becomes the core technology for MicroStation TriForma, Bentley releases its first BIM application to run on MicroStation.

•2002 - MicroStation V8 is released and the DGN file format changes for the one and only time since it's conception.

•2007 - Generative Components is released enabling programmable modeling.

•2008 - MicroStation V8i BIM applications are released enabling real time views of plans, sections, elevations and clipping planes.

Graphisoft Timeline:

•1982 - Development for ArchiCAD started in Budapest behind the Iron Curtain.

•1987- ArchiCAD is released. ArchiCAD is recognized as the first CAD product on a personal computer able to create both 2D and 3D drawings and considered the first BIM product. •2007 - Nemetschek AG purchases Graphisoft.

Current Major BIM Applications: • Autodesk Revit Architecture 2013 • Autodesk Revit Structure 2013 • Autodesk Revit MEP 2013 • Autodesk Navisworks 2013

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• Bentley Architecture V9i • Bentley Structural V9i • Bentley Mechanical V9i

• Bentley Building Electrical Systems V9i • Graphisoft Archicad V16

As we can deduce from the timeline, the first commercially available CAD software was version 1.2 of AutoCAD, released by Autodesk in 1983. Bentley followed with their own CAD software, PseudoStation, in 1986. The next year Bently released MicroStation, after discontinuing PseudoStation. Autocad and Microstation remain, until today, the dominant CAD software applications. Graphisoft released ArchiCAD in 1987, which is considered the first BIM product, due to its 3D modelling capabilities and object oriented nature. Only the program, as the name might suspect, is designed for Architects only. Due to the aesthetic nature of an Architects work, 3D virtual Marquette’s are valuable enough to end users, to justify Graphisoft’s early software development funds into the BIM technology. Bently acquires Bricsnet's architectural modeling software in 1997, and releases its first BIM application running on an adapted version of Microstation. Autodesk follows a different strategy and acquires its Revit BIM technology in 2002, and releases the first Revit BIM software in 2004.

Today, CAD software is still by far the dominant technology used, only 15% of building projects in Europe used the new BIM technology and work processes to some extent in 2010 (Bernstein et al., 2010). Development of the BIM technology continues, although in development over a decade, it is far from reached its full potential. To some, BIM is simply new software, to others it is the biggest revolution inside the construction industry yet. It can be viewed not merely as technological features, but changing work processes, industry standards, and collaboration between construction industry stakeholders. For the scope of this paper, we deliberately define BIM much broader as technology alone: BIM is a stream of new computer aided technologies, which enables the construction industry to create more efficient & effective structures, it improves not only the product (building), but also the process of creating buildings for the entire industry, by using open standards.

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3.1.5 Interoperability issues and open standards

Interoperability issues are caused by incompatible software, and a lack of industry standards of how to store digital building information. For the scope of this paper we define interoperability issues as: The lack of software data & construction object naming convention standards, making direct import or export of data between software applications impossible.

As prof. dr. Eastman, among other scholars, pointed out in the mid-1970s, there is a need for consistent data of a (building) structure. If all the information is not stored consistent i.e. a “window” is named “window” in all software databases. Furthermore, it has to have the same data extensions or format e.g. .doc, .html, just like a word document or webpage has a standard data extension. With the distinction of .doc being an application specific data extension, controlled by Microsoft, and .html an open standard not controlled by a single software company. If interoperability issues are ever to be solved, open standards need to exist, who are not controlled by any one software vendor. Naturally, software companies have commercial interests to make sure their data extension becomes the industry standard, and is not compatible with competitors software.

We have touched on the subject of open standards briefly, and how they relate to interoperability issues inside the construction industry. Now we like to explain the importance of open standards further, by taking a look at a at an easy to relate to example, the internet development. Who owns the internet? No one. No company, nor individual or nation can lay a claim on it. The world wide web is a vast network of interlinked computers and servers, controlled by various people and organizations alike. Essentially, you could say: “it is created for the people, by the people”. Many individuals own a little place on it in the form of a website, or personal blog. In the early days of the internet there were a hand full of individual contributors creating content, through the Hyper Text Mark-up Language (HTML) created by Tim Berners-Lee and his scientific colleagues at CERN. Tim Berners-Lee founded the World Wide Web Consortium (W3C), in 1994. W3C is the governing body that releases open standards for web technology. "Open Standards" facilitate interoperability and data exchange among different products or services and are intended for widespread adoption, by publicly being made available. HTML is a mark-up language, designed to structure the layout of a webpage with tags. A tag is nothing more than a set of brackets to mark-up web page content, for example: <p> This is a paragraph </p>. Would indicate every word of text between p tags (<p> </p>) is counted as a belonging to the same paragraph. Or a <h1> Main Header </h1> to indicate the first headline of a text. In short, HTML provides common structure to webpages.