Megaprojects:Learning from the Dongtan Ecocity Project                  Andrew Davies           Imperial College Business ...
Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual fram...
Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual fram...
My research on megaprojects – infrastructure over $1bn•  London Heathrow Terminal 5   •  BAA and Laing O’Rourke•  Dongtan ...
Rapid Chinese urbanisation•  China’s “urban” population is expected to reach over 1bn people   by 2050•  600m people are e...
Challenge: Climate change and Chinese cities•    “China is searching for novel ways to expand urban areas while conserving...
Response to these challenges: ecocity experiments•  Ecocity - radically new design of carbon neutral city  •    Carbon emi...
Masdar – Abu Dhabi, United Arab EmiratesDesigned by Fosters & Partners
Dongtan – near Shanghai, ChinaDesigned by Arup
Arup•  Global professional services:  •  consulting engineers, designers, planners, and project managers  •  HQ: London•  ...
Dongtan – a vision of the urban low carbon futureNew city with half million people ‘one of the biggest and most ambitious ...
Connected to Shanghai by bridge, tunnel & subwaysystem
Dongtan ecocity – key objectives and features•    Project stakeholders•    Client: Shanghai Industrial     Investment Corp...
A strategic project for China and the UK•    November 2005 – Arup sign     MoU with President Hu Jin Tao     & PM Tony Bla...
Key milestones of the Dongtan project•  Arup hired by McKinsey   •  January-August – Arup    •  August – SIIC approves    ...
Dontang masterplan deliverables•  Masterplan documents delivered in January 2007  •  1. Implementation plan  •  2. Design ...
Outcome of Arup’s design project•  Project delivered 3 months early•  Design meets request for “close” to 100% zero carbon...
Dongtan site – October 2007 – still a wetland
Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual fram...
Research motivation: managing innovation in projects•    New performance requirements for     cities: zero-carbon and sust...
Capability developed through innovative projects•  A capability is knowledge, skills and experience to perform a set of   ...
Research design and methods•  Research based on a case study – theory building   •  World’s first ecocity design – rare ca...
Our conceptual model of capability development:renewal, reuse & reinforcement                           Reinforce         ...
Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual fram...
Renewal: Dongtan as a vanguard project Arup’s experience in experimenting, creating and participating in game-changing pro...
Renewal: Innovation in urban design projects•  ‘Renew capabilities’ – develop capabilities in new categories of   projects...
Renewal: creating the Dongtan project team•  Dongtan project  •  Team selection: two people knew each other from LSE conne...
Arup’s challenge: How to integrate multiple specialistwith component-knowledge to achieve sustainableperformance?•  Human ...
Arup’s solution to integration challenge: matrix projectstructure•  ‘There is key temporal dimension to the work as well a...
Traditional approach to masterplanning                          Traditional linear process    Client           BC         ...
Arup created a new process: non-linear design                          Business                         Consultant      BC...
Tools for integrated urban design
Reuse: organisational change & routines•  ‘Reuse capabiliities’ – knowledge, tools and processes transferred to   next pro...
Arup’s new approach: ‘Integrated Urbanism’         Source: ‘Making Places in the Ecological Age’, Arup Urban Design
Reinforcement: market position & internal positioning•  ‘Reinforce position in the market’•  Strategic role of senior Arup...
Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual fram...
Discussion•  Arup’s story is about entrepreneurial effort to build a   business in sustainable urban design•  Are the less...
Climate change and urbanisation:the need for innovation!•  Innovation...is critical for the long-term conservation of reso...
Conclusions: from practice to theory to practice
Model of capability development supports Arup’sgrowth in integrated urbanismMay be applicable to other firms working in ur...
Thank you for listeningQuestions and comments are welcome
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Andrew Davies

  1. 1. Megaprojects:Learning from the Dongtan Ecocity Project Andrew Davies Imperial College Business School Nordic Forum on Leadership of Major Projects Chalmers University 23-24 November 2011
  2. 2. Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual framework3.  Case study: renew, reuse and reinforce4.  Discussion and conclusion
  3. 3. Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual framework3.  Case study: renew, reuse and reinforce4.  Discussion and conclusion
  4. 4. My research on megaprojects – infrastructure over $1bn•  London Heathrow Terminal 5 •  BAA and Laing O’Rourke•  Dongtan ecocity project •  Arup and Shanghai Industrial Investment Corporation•  London Olympics 2012 project •  Olympic Delivery Authority and CLM (delivery partner)•  Crossrail project •  Crossrail Limited (CRL), wholly owned subsidiary of Transport for London
  5. 5. Rapid Chinese urbanisation•  China’s “urban” population is expected to reach over 1bn people by 2050•  600m people are expected move from rural to urban areas between now and 2050•  Chinese Government plans to build 50m new cities by 2020
  6. 6. Challenge: Climate change and Chinese cities•  “China is searching for novel ways to expand urban areas while conserving natural resources”, Science, 2008•  “China’s current development is ecologically unsustainable, and the damage will not be reversible once higher GDP has been achieved”, Zhenhua Xie, Minister of State Environmental Protection Agency
  7. 7. Response to these challenges: ecocity experiments•  Ecocity - radically new design of carbon neutral city •  Carbon emissions offset by carbon absorption •  Promote sustainable and low carbon living •  Less use of fossil fuels (coal, oil and gas) •  Adapt to climate change •  Renewable resources – sun, wind, biomass, recycling, etc •  Changing behaviour •  New build and retrofit projects •  Design, build, integrate and operate complex mix of systems•  Pioneering new build projects •  Masdar in Abu Dhabi •  Dongtan in China
  8. 8. Masdar – Abu Dhabi, United Arab EmiratesDesigned by Fosters & Partners
  9. 9. Dongtan – near Shanghai, ChinaDesigned by Arup
  10. 10. Arup•  Global professional services: •  consulting engineers, designers, planners, and project managers •  HQ: London•  Project-based: •  over 10,000 staff working on 10,000 projects globally •  Global reputation for projects in the built environment: buildings, infrastructure, sport, utilities, urban development, etc.•  Examples of major projects: •  Sydney Opera House (engineering) •  Oresund Bridge •  Beijing National Stadium (Birds Nest) •  Dongtan Ecocity (Arup Integrated Urbanism – master planning)
  11. 11. Dongtan – a vision of the urban low carbon futureNew city with half million people ‘one of the biggest and most ambitious businessprojects ever undertaken’, Observer 8 January 2006"Dongtan was a rare chance to demonstrate that growth could happen a different way.”Lead planner Alejandro Gutierrez, Arup, Wired 2007“This city will become a showpiece for the rest of the world. With London set to grow somuch, the methods we use in Dongtan will become extremely relevant to London.” PeterHead, Dongtan Project Director, Arup 2007
  12. 12. Connected to Shanghai by bridge, tunnel & subwaysystem
  13. 13. Dongtan ecocity – key objectives and features•  Project stakeholders•  Client: Shanghai Industrial Investment Corporation (SIIC)•  Consultant masterplanner: Arup (UK design consultancy) •  Project goals: •  Sustainable ‘demonstrator city’ – cutting carbon emissions shapes urban design •  45 min travel time to central Shanghai •  Population 500,000 in 2050 •  Site: 84 square km •  3 distinct villages amid parkland and canals •  Population density similar to London
  14. 14. A strategic project for China and the UK•  November 2005 – Arup sign MoU with President Hu Jin Tao & PM Tony Blair•  April 2007 – Deputy PM John Prescott visits Dongtan site•  September 2007 – Arup, HSBC present to PM Gordon Brown and China Task Force•  SIIC, Arup, HSBC, Tongji University sign MoU – PM Gordon Brown & Shanghai Mayor Han Zheng
  15. 15. Key milestones of the Dongtan project•  Arup hired by McKinsey •  January-August – Arup •  August – SIIC approves •  January – Arup deliverto work on the bird team prepare clear & Arup’s masterplan final documentssanctuary detailed scope of work (project delivered in 13 delivered to SIIC. Project for Dongtan design months) ready to move to•  At the time, SIIC was ‘construction’ phaseasking 3 global •  August – SIIC appoints •  September – Arupmasterplanning firms for Arup to develop the issues ‘Control Plan for •  April – Arup’s co-ideas: Dongtan Masterplan Start-Up Area’. Final located project in SIIC masterplan & main premises is closed and•  Philip Johnson (US) •  October – Arup planning application team members move•  Atkins (UK) presents Dongtan design document back to Arup Shanghai•  Architecture Studio and client requests 100% office(France) local renewable energy •  December – Arup sources from start issues ‘Sustainability•  3 ideas shortlisted in Guidelines’ – objectives,2004 •  November - Arup signs indicators and contract with SIIC work requirements for•  but 4 years after the on 3 other ecocity buildings, infrastructure &original Dongtan idea, projects in China public spaceSIIC decided none of theideas were feasible •  December – Arup issues 1st ‘Design Report for the Start-Up Area’ 2004 2005 2006 2007
  16. 16. Dontang masterplan deliverables•  Masterplan documents delivered in January 2007 •  1. Implementation plan •  2. Design & sustainability guidelines•  Documents address •  Procurement, delivery and financing model •  Performance specification for design, construction and operation of ecocity over 30 years•  Design phase completed and the project is ready for construction phase
  17. 17. Outcome of Arup’s design project•  Project delivered 3 months early•  Design meets request for “close” to 100% zero carbon solution •  Large wind farm generates green electricity •  Power utility burning rice husks (locally produced food) •  Solar power •  Walking biking city with zero emission vehicles – hydrogen & electric •  Buildings 4-8 stories tall to improve density and minimise sprawl •  Only 10% waste ends up in landfill•  Uses proven technology to reduce risks •  Innovation lies in the integration of technology and environment, cultural and social components•  ‘Dongtan is not a rigid blueprint for a city for the future’…other projects must be guided by unique local environment (Peter Head, Arup)
  18. 18. Dongtan site – October 2007 – still a wetland
  19. 19. Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual framework3.  Case study: renew, reuse and reinforce4.  Discussion and conclusion
  20. 20. Research motivation: managing innovation in projects•  New performance requirements for cities: zero-carbon and sustainability objectives – ecocity experiments•  Initiated by ‘vanguard projects’ (Brady new New & Davies, 2004) projects TechnologyResearch questions: base•  How is knowledge created and combined in a vanguard project •  Business as usual existing shaping a new market? •  Traditional project New projects capabilities•  How is knowledge transferred from a vanguard project to the next project? existing new Market base Davies & Hobday, The Business of Projects, Cambridge University Press, (2005)
  21. 21. Capability developed through innovative projects•  A capability is knowledge, skills and experience to perform a set of specialised industrial activities •  “…the discovery and estimation of future wants, to research, development and design, to the execution and co-ordination of processes of physical transformation, the marketing of goods and so on. (Richardson 1972)”•  Capabilities are developed through integration and transfer of knowledge (Grant 1996)•  Yet, we know relatively little about how this happens as a process in terms of: •  The role of key individuals in vanguard and future projects •  Mechanisms for creating knowledge creation and transfer •  The wider role of leadership and championing project ideas in the market
  22. 22. Research design and methods•  Research based on a case study – theory building •  World’s first ecocity design – rare case (Siggelkow, 2007)•  Process study – January 2007 to June 2010 •  Over 60 interviews: people involved in Dongtan: Arup, SIIC, Chongming Island local authorities, SDCL (Sustainable Capital investor), HSBC bank •  3 visits to Dongtan site •  Visited and experienced the Shanghai project office and client office •  Primary source documents (internal presentations, reports, diagrams and material for project bid and external public documents) •  2 workshops in China and UK •  Non-participant observation in Arup office - London and Shanghai; Dongtan Project office in Shanghai
  23. 23. Our conceptual model of capability development:renewal, reuse & reinforcement Reinforce Internal/external to organization Renew Incremental/radical Reuse innovation Tacit/Explicit knowledge
  24. 24. Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual framework3.  Case study: renew, reuse and reinforce4.  Discussion and conclusion
  25. 25. Renewal: Dongtan as a vanguard project Arup’s experience in experimenting, creating and participating in game-changing projects‘Dongtan is the next ‘Normally we would never do a projectSidney Opera house like Dongtan – it is too risky and too big.for Arup in terms of However, this was a rare opportunity forimportance’ us to show leadership and learn…. Taking on large projects is the way weB. Morera, Urban learn in this business of projects’designer, Arup, 2008 John Miles, Arup Board, 2009
  26. 26. Renewal: Innovation in urban design projects•  ‘Renew capabilities’ – develop capabilities in new categories of projects (Brady & Davies, 2004; Shamsie et al, 2009)•  Challenge: create innovative approach to deliver Dongtan project •  Learning from Arup’s previous projects (e.g. BedZed low carbon development)•  New concept of multi-functional project team called ‘total serial innovation’ (Peter Head, Arup) •  Vision: ‘Integrated Urbanism’ project team led by architects •  30 specialists each with a team of 3-4 members in matrix structure •  New position: “Cultural Planner” •  Developed new technical and conceptual tools on the project to support integrated urban design
  27. 27. Renewal: creating the Dongtan project team•  Dongtan project •  Team selection: two people knew each other from LSE connection •  Encouraged to experiment with new approach to meet strong client needs •  Core team of 5 builds (six months) up to 150 specialists in less than one year (mainly in-house) •  New approach supported by Peter Head, Director Planning and Integrated Urbanism •  Arup lead the project and work with local design institutes and consultancies to deliver work-packages•  The project was risky for Arup •  Foreign architects can lose control of their Chinese projects when clients seek to cut costs and redesign using cheaper options •  Was the client really committed? •  Arup carried out internal audit of the project
  28. 28. Arup’s challenge: How to integrate multiple specialistwith component-knowledge to achieve sustainableperformance?•  Human andEnvironmental Health•  Economic Vitality andIndividual Prosperity•  Energy Systemically interconnected•  Housing components•  Nutrition and Urban- Change one and oneRural Linkages or more other•  Mobility and Access components must change•  Communications Targets: sustainable•  Education and Culture performance during ‘operational’ phase•  Governance and CivicEngagement•  Water
  29. 29. Arup’s solution to integration challenge: matrix projectstructure•  ‘There is key temporal dimension to the work as well as interdisciplinary complexity. Sometimes the work in any cell of the matrix was led by the cross-cutting team and sometimes by the physical component team’ •  Peter Head, 2007 Hugh Ford Lecture•  Matrix structure for integrating multiple technology and organisational components of the design •  Teams develop their own model (e.g. transport, waste, environmental impact) •  Project members assigned to 12 offices within Arup •  Design and integration led by architects •  Focus meeting performance objectives – guidelines of sustainability
  30. 30. Traditional approach to masterplanning Traditional linear process Client BC REC MP ENG Real Estate Master Planner Engineer Business Consultant Consultant ‘We couldn’t do it in a simple linear way. It would take four years to achieve an outcome. We had to develop a new approach’ (Guiterrez, Interview, 2008)
  31. 31. Arup created a new process: non-linear design Business Consultant BC Real Estate REC Consultant Master MP Planner Arup Engineer ENG ‘We did what normally takes four years in one year’ (Guiterrez, Interview, 2008)
  32. 32. Tools for integrated urban design
  33. 33. Reuse: organisational change & routines•  ‘Reuse capabiliities’ – knowledge, tools and processes transferred to next projects•  From outset Arup aims to transfer knowledge and develop replicable capabilities on subsequent (ecocity) projects •  Wanghuang, Changxiing, Tangye •  Partnership with SIIC and others on additional ecocity projects in China – client wants to take one systems integrator role •  Partnership with HSBC•  New unit in Arup: Integrated Urbanism (Spring 2009, 75 employees) •  Group ‘born out of Dongtan’ (Guiterrez, 2008, interview) •  Transfer of core Dongtan project members •  Mentoring on new projects •  Refinement of project tools – IRM and SPEAR •  Create new tool: Integrated Methodology – sequence of design processes
  34. 34. Arup’s new approach: ‘Integrated Urbanism’ Source: ‘Making Places in the Ecological Age’, Arup Urban Design
  35. 35. Reinforcement: market position & internal positioning•  ‘Reinforce position in the market’•  Strategic role of senior Arup people in promoting the project internally and externally•  Creating and shaping a new market •  Role of charismatic project members: Peter Head, Alejandro Guiterrez and Malcolm Smith •  Advance the concept of ecocity at international conferences: e.g. Clinton C40 •  Articles in major world publications: e.g. Wired, Newsweek, Financial Times •  Collaboration with universities – e.g. EPSRC - Ecocit networks www.ecocit.org •  Creation of Institutes for Sustainability – China and UK•  Develop internal support for the Dongtan project and the strategic potential in sustainable integrated urban development
  36. 36. Overview of presentation1.  Background and introduction to Dongtan ecocity project2.  Research methods and conceptual framework3.  Case study: renew, reuse and reinforce4.  Discussion and conclusion
  37. 37. Discussion•  Arup’s story is about entrepreneurial effort to build a business in sustainable urban design•  Are the lessons learned from designing a green field ecocity transferable to retrofit – platform, principles - why and how?•  Are businesses the key agents of change towards sustainability?•  Are efforts to gain competitive advantage in sustainable markets different from business-as-usual activities?
  38. 38. Climate change and urbanisation:the need for innovation!•  Innovation...is critical for the long-term conservation of resources and improvement of the environment (C. Freeman, 1982:4)•  Climate change becomes a major “inducement” and “focusing device” for innovative efforts (N. Rosenberg, 2009)•  Climate change is the management challenge of our time. It’s a disruptive innovation greater than much of what has been seen before. We need research that finds a “change setting” that addresses this kind of challenge and identifies underlying mechanisms of change involved in this discontinuity (R. Henderson, distinguished keynote, Technology and innovation management division, Academy of Management, 2009)•  Making the change to sustainable business is inherently risky – like innovation processes. The early movers go through a learning process for all of us (Mohrman & Worley, 2010:289)
  39. 39. Conclusions: from practice to theory to practice
  40. 40. Model of capability development supports Arup’sgrowth in integrated urbanismMay be applicable to other firms working in urbansustainability Reinforce Internal/external Renew Incremental/radical Reuse innovation Knowledge and routines
  41. 41. Thank you for listeningQuestions and comments are welcome
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