Strategic management of information technology in construction industry: the Indonesian perspectives

Abstract

This paper presents findings of a research project which explores the current use of information technology (IT) in the Indonesian construction Industry. The findings are based on a survey taken between December 2002 and April 2003 among 250 construction companies registered in the National Construction Industry Development Board (CIDB). The CIDB listed and classified these companies as B group or large company. A total of 48 valid replies were received, representing a response rate of 38%. The survey includes: IT environment and management, use of software, hardware, internet application and staff competency, Investment in IT, benefits gained and problems associated with IT implementation. An assessment of the exploitation of IT for business strategic purposes was also explored. Survey reveals that (1) Level of IT applications among contractors in the industry is relatively low in their core activity; (2) There is a growing gap in managing IT, where high investment and expenditure in hardware and software on one hand with poor human resources development on other hand; (3) From strategic point of view, Indonesian construction industry is still in reactive mode in managing IT indicating that the industry has a limited understanding of the value and potential of IT. The paper suggests a need to aggressively promote relevant government initiatives which would increase strategic use and adoption of IT. Government and public agencies should consider policies that encourage the use of IT in the construction industry thus making this industry sector more competitive.