Selecting Technology Projects Based on an Information Economics Approach: A Step Towards Integrating Innovation into Business Strategy

The diffusion of technology utilisation in the construction industry has not progressed according to expectations; there are many examples of innovative technology (e.g. construction automation, field robotics, video conferencing, web and multimedia technology etc.) failing to achieve satisfactory levels of adoption, practical application and usage if adopted. Many technology projects commenced in the construction industry fail to meet high expectations due to the lack of prior assessment of risks and returns before funding approval is provided. Senior construction professionals lack the methodology, skills and tools required for selecting a portfolio of technology projects which add the greatest value to the organisation. This paper applies the Information Economics (IE) approach to provide practitioners with the essential tools and methodology for technology project selection. IE goes beyond traditional ?business value? techniques and introduces the concepts of value and risks. The major advantage of adopting an IE approach in the construction industry is that it is virtually impossible to evaluate, if one only asks what the cold hard benefits are. They are unlikely to be perceptible in such an industry.