Barriers to innovation: Development systems
•The development process & systems used.
• Established development systems.
• Up and coming development systems.
• Barriers to innovation from old to new.
The Development Process
The Development stage. What's Involved Systems Used
• Search potential sites • Geographical information systems.
• Advice from • Innovative communication such as
solicitors, architects, surveyors, town planner conference calling (video).
and estate agent .
• Come up with a proposal stating • Use of RDBMS's in the local
use, size, restrictions etc. council and land registry web sites
for file sharing.
• Assess planning policies , site evaluation
• Valuation software such as circle
• Buy the land at a price allowing profit.
• Architect draws up plans to fit development • Design systems such as CAD.
Town Planning / Development
Approval proposal and planning regs.
• Innovative communication such as
• Communication with town planners and conference calling (video).
• Approval can take up to 8 months.
• Submit working drawing to get a building • CAD
Working Drawings &
Documentation permit (called a Construction Certificate (CC)
interstate.) This stage takes 2 - 3 months.
• Obtain quotes from contractors.
• Obtain approval for finance from bank.
• Start building. • Data storage / spreadsheets for
monitoring works and financial
• Constant communication. accounts / flows.
• Pay contractors. • Fax, e-mail, telephone.
• Collaborative project management
systems such as Autodesk.
• Development marketed, leased or sold. • Web site marketing.
Established Development Systems
Computer Aided Design - CAD
• CAD is the use of computers when designing, drafting and drawing of
products, including whole buildings.
• This can be done in both 2D and 3D
• Was made readily available from 1980's and could allow 1 person to do a
job that used to take 5 people to do the same.
• This is the original version of a BIM - Building Information Management
• CAD programs come from 2D versions to very sophisticated 3D versions
that will let you look at every aspect of the building that has been designed,
including from inside out.
• Widely used in most design industry's
• CAD has already developed further to programs such as Computer Aided
Design and Drafting - CADD
• This program is capable of dynamic mathematical modelling, and so is
suited to the drafting process of design.
• Drafting in this context is described as the communication of technical or
• ECAD has also developed, this is Electronic Computer Aided Design.
• Circle investor is currently the industry standard in the valuation of property.
• This software handles all types of valuation and cash flow, and covers
capital costs, recoverable and non-recoverable costs, reimbursements,
taxes, inflation, leases and future leases, mixed tenures and much more.
• This is used by many professional to appraise, valuate and process
properties in their portfolio .
• This, like CAD, vastly reduces the man hours needed to manage any size of
• Circle can quickly and accurately value projects with a very high level on
sensitivity to show you if schemes can be viable or not.
• Easily edited it can keep up with shifting market forces on a day to day
• After editing the details correctly, the system will give detailed analysis on
Inefficient project communication and collaboration between all involved in
the development process, costing both time and money, due to a lack of
system that everybody can access and understand
• A system that allows the participants in the development process to view the
information in an appropriate form
• Needs to distribute and communicate design information to anyone needing
to view, review, print or access it for any purpose, without losing critical data
and without needing to understand or own the original software that drew
• This can be done via the use of a project collaboration tool that everyone on
the team can access, anywhere, anytime.
Building Information Management
• Building Information Modeling is a new CAD standard that allows for intelligent, 3D and
parametric object-based design. In this way
• Unlike CAD, BIM such as AutodeskRevit provides full bi-directional associativity. (A
change anywhere is a change everywhere)
• A BIM model creates the building's full life cycle, from concept to construction to
• Revit checks with the central file whenever a user starts working on an object in the
database to see if another user is editing the object. This procedure prevents two people
from making the same change simultaneously and prevents conflicts.
• Revit Architecture, for architects and building designers (formerly Revit Building)
• Revit Structure, for structural engineers
• Revit MEP, for mechanical, electrical and plumbing engineers (formerly Revit Systems)
Design Web Format (DWF)
• Studies suggest that the ratio of people needing to use design information, versus those who
create it, is about 10 to 1 . Autodesk created DWF in 1996 for those information consumers.
• DWF is a tool that extends the BIM design process and facilitates the sharing of consistent,
coordinated information that comes from a BIM such as AutoDesk Revit.
• DWFs are not the original design model and they can't be edited -- they can only be marked up.
Sometimes referred to as light geometry, DWF files can carry very large data sets in a very
compressed format, much smaller than the original design files. A gigabyte-sized design file can
be compressed to a DWF file that's small enough to e-mail, making the Internet a viable
replacement for overnight mail or couriers.
• The ability to publish to DWF is embedded in almost all Autodesk design applications, including
Collaborative Project Management (CPM)
• CPM (collaborative project management) solutions seek to improve communication by enabling
the distribution of the co-ordinated, reliable information that comes from BIM (building
• One successful solution is by incorporating Autodesk Revit ( a BIM system) and Autodesks'
Collaborative Project Management
• A central online system available to anyone on the project on demand , containing the following
• Change orders
• Concept Designs
Autodesks' Collaborative Project Management
• Design Management - Architects and engineers can view, highlight, and comment
on designs. Uses DWF.
• Construction Management - Standardised construction processes reducing
confusion, controls which personnel do what throughout the project
• Bid Management - Invite subcontractors to bid, prepare and distribute bid packages,
manage requests for information, evaluate submissions and track changes
• Operations Management - Ensures right team members and vendors have
appropriate access to confidential files e.g. designs, legals, schedules. Once project
is complete, automatically stores most recent documents for future reference
• Document Management - Access to many files e.g. PDF/EXCEL/CAD/DWF to view
or mark online without need for software. Powerful tagging and search function to find
correct documents quickly
• Cost Management - Cost related documents can be processed faster and with
fewer errors. Peers will be able to identify a £100 and a £100,000 problem straight
away via advanced risk management tools. Customisable routing wizard to ensure
every cost document is reviewed and approved by the right people.
• Automated emails and reminders notifying the correct personnel of
changes or updates in order to ensure deadlines are met
• File locking if only certain team members are required to access
• Graphical summaries for all elements of the process
• 24/7 security on a central server monitoring physical security along
with continuous data backup and encrypted connections
• Automatic population of data to ensure consistency and reduce
• Video conferencing or videoteleconference (VTC) is digital compression of audio and video streams in real time.
• They allow two or more locations to interact via two-way video and audio transmissions simultaneously.
• Simple analogue videoconferences could be established as early as the invention of the T.V.
Why video conference:
• When a live conversation is needed.
• When visual information and document sharing is an important component of the conversation.
• When the parties of the conversation can't physically come to the same location.
• When the expense or time of travel is a consideration.
Problems with video conferencing
• Early systems failed mostly due to their high costs, poor picture quality and the lack of efficient video compression techniques.
• They give an incorrect impression of avoiding eye contact.
• Consciousness of being on camera.
• Complexity of systems. Most users are not technical .
• Lack of ability for systems to work together.
• Some countries have not got the technology. Bandwidth , speed and quality of service.
• Expense of commercial systems: A well designed system requires a specially designed room and can cost hundreds of thousands of pounds to fit out with codec's,
integration equipment and furniture.
How problems may be overcome.:
• Advancing technology
• The issue of appearance consciousness may fade as people become accustomed to
• Decreasing costs.
• An alternative is for companies to hire out video conferencing rooms in cities around the
world. The rooms can be booked and support is available.
Why it may be used in development:
• Time is money, especially in development.
• Can easily share information.
• Can involve communication with multiple people at one time for discussion.
• It is likely to be highly popular for future commercial communication. Not having this
resource may limit business opportunities.
Integration is not innovation!
An innovation is a new idea.
• For example - most software products are not software innovations by themselves,
since most products are simply re-implementations of another idea.
• WordStar was the first microprocessor word processor.
While the IBM PC and Apple’s appearances were important to the
computing world, they didn’t represent an innovation in software
•Standards are extremely important in computing (just as they are in many
•The notion of having computing standards was not something that
immediately came to mind in the computing industry - so the notion of
having computer-related standards is now classed as an innovation.
•Even today, people fail to understand the need for standards and thus fall
victim to vendor lock-in.
The first IBM PC The first Lap Top
Innovation - 1964 The mouse
• Although this could be viewed as a hardware innovation - It isn’t much of a
• The true innovations were in the user interface approaches that use the
mouse, which is entirely a software innovation.
• Les Earnest of Stanford developed
the first spelling checker circa 1966.
• He later improved it around 1971
and this version quickly spread (via
the ARPAnet) throughout the world.
Distributed Network Email
• Ray Tomlinson of Bolt, Beranek and Newman (BBN) implemented the first
email program to send messages across a distributed network, derived from an
intra-machine email program and a file-transfer program.
• This quickly became the ARPANET’s most popular and influential servic
• Dan Bricklin and Bob Frankston invented the spreadsheet
application (as implemented in their product, VisiCalc).
1982 Computer Virus
• While not a positive development, this was certainly an innovation.
• The program “Elk Cloner” is typically identified as the first “in the wild”
• It attached to the Apple DOS 3.3 operating system, and spread through
floppy disks that were inserted afterwards.
• In 2004 Google's Jeffrey Dean and Sanjay Ghemawat revealed
• In simplicity MapReduce is a framework that allows the developers to write
functions that process data.
• A very simple example of MapReduce that is commonly used is a process
that counts the occurrence of a particular word in a document
•It’s difficult to identify the “most important” innovations within the last few
•Software technology for example, like many other areas, is subject to
•Most “exciting new technologies” are simply fashions that will turn out to
be impractical (or only useful in a narrow niche), or are simply rehashes
of old ideas with new names
Innovative ideas and products are becoming
• More than ever before, research and innovation are high on the agenda for
most real estate firms, as business owners recognise their essential role in
the continuing success of the business the economy and society.
• Today the race - to more knowledge, to master technology and its best use,
and to developing innovative high value products and services - is global.
• It is therefore essential to be able to master and incorporate technologies
and to exploit them
•The amount of data being generated and retained by the typical enterprise is
•In the property sector, progress in data storage and ICT is providing
•Through co-operation and coordination critical mass can be created,
leadership can be developed and that new developing technology can
become the standard.
The real estate sector is a huge victim of failing to capitalise on the use of radical
innovation to technology…..
•Real estate is the second or third largest contributor to overheads for most
•More than half of the organisations who undertook a study revealed that they had
property assets of 30% or more of their total asset value.
(quot;Urban real estate information systems: the suppression of radical innovationquot;)
Why is the real estate sector so slow at incorporating the opportunities provided
by the information revolution when you would think that it would be crucial for a
sector of this size to take advantages of such opportunities?
Even incremental technologies can take a while to cement themselves fully into
• e-mail has been adopted by real estate professionals…
Innovation disrupts existing processes…
leads to either conscious or unconscious resistance by people or companies
who feel threatened
People's ignorance can lead to impeding innovative technologies
Bear in mind that feeling threatened by innovation or ignorance towards it comes
from the assumption that most of us are spectators to innovation…
Common Phrase - quot;If it ain't broke don't fix it!quot;
Broad explanation for the barriers outlined especially in the real estate sector
because up until recently it has been very successful for a lot of companies,
people, consortiums etc in terms of making a lot of money!
What is stopping property development systems moving forward?
• High start up costs
• Training & Awareness
• Relevance to the industry
• Adverse attitude to change
• Macroeconomic disadvantages
• Takes time to become mainstream
• Political change
Awareness/ marketing of current systems and opportunities
• Digital photography - initial quality
• Allows for image manipulation - Misrepresentation Act 1967
• Property Development Systems - current quality
From the evidence outlined it is easy to see that there are definitely barriers
to innovation within the real estate sector whether people's ignorance or
feeling threatened or the time it takes for new systems to establish
Reiterating on the quot;if it ain't broke don't fix itquot; phrase and the thought that
when something is doing well why change it, just think about the current
state of the economy and market.
Now more than ever might be the best time to truly encourage innovation
and open peoples mind to the possibilities in order to re-inflate the market,
get money injected and renew confidence in the sector.