INDUSTRY INSIGHTS
5 Corporates Share Their Innovation Strategies

Understanding how and why the people who purchase (and use) the technology in AEC should be basic knowledge for anyone working in innovation across AEC.

The truth is, this information is difficult to find. 

That’s why we created Corporate Innovation (in AEC). 

This podcast explores how cutting-edge technology transforms the Architecture, Engineering, and Construction (AEC) industry. We dive deep into innovation strategies, implementation challenges, real-world technology use cases, and emerging trends. 

Each fortnight, we sit down with innovation leaders from companies who are integrating new software and hardware solutions. 

And in this week’s newsletter, we’ve distilled some of the insights into a bite-sized read for those interested, starting with: 

• Roger’s O’Brien

• McKinsey

• Barton Mallow

• Implenia

• EllisDon

Roger’s O’brien

Rogers O'Brien innovates by focusing on discovering better ways to build.

Their approach starts with defining innovation as finding a better way to achieve desired outcomes. They prioritize understanding problems over falling in love with solutions. Todd Wynne, as Chief Innovation Officer, oversees six departments including IT, VDC, quality, and R&D.

The company fosters a culture of curiosity, courage, and learning, encouraging employees to challenge existing processes.

They use the OPTIMA framework to guide innovation efforts, ensuring clear objectives, the right people, and measurable outcomes. RO also partners with startups and invests in technologies that align with their data strategy and can be seamlessly integrated into their existing processes, always keeping an eye on the impact on their workforce and project delivery.

McKinsey

Based on David Rockhill's insights, corporations typically approach innovation through pilot projects, often led by dedicated innovation departments.

These initiatives usually involve scouting for cutting-edge technologies at conferences and implementing them with mandatory training.

However, this approach often leads to challenges in widespread adoption and scaling. Companies tend to focus more on acquiring new tools than on changing organizational culture. Innovation efforts are frequently disconnected from core business strategies, with limited employee empowerment.

Rockhill suggests a more effective approach: integrating technology adoption into the core business strategy, empowering all employees to innovate, and focusing on adoption and scaling rather than just piloting new technologies.

This holistic approach aims to create a culture of innovation throughout the organization.

Barton Malow

Barton Malow's innovation strategy is multifaceted and provides valuable insights for other corporates.

The company employs an Entrepreneur in Residence to explore commercializing internal innovations and IP, while a dedicated Business Transformation team evaluates new technologies and maps them to company problems. They encourage innovation from all levels through "the pitch" program, allowing any employee to propose ideas.

Barton Malow is developing an e-commerce marketplace for contractors to sell hardware innovations, demonstrating a focus on monetising internal developments.

The company actively pilots and implements various technologies, including AI, robotics, and AR/VR solutions, while continuously rethinking traditional construction processes.

They allocate significant resources to innovation, recognizing its importance for long-term success. This comprehensive approach balances internal idea generation with external technology adoption, fostering a culture of innovation throughout the organisation.

By implementing a structured evaluation process and aligning innovations with core business challenges, Barton Malow ensures that their innovation efforts drive tangible value and keep them competitive in the construction industry.

Implenia

Implenia's innovation strategy is multifaceted and pragmatic, focusing on addressing both internal challenges and broader industry trends. Their approach includes an entrepreneurship program called Kickbox, which follows a three-step process from idea validation to implementation.

The company actively engages in tech scouting and startup collaborations, maintaining a curated database of potential partners. Implenia emphasises aligning innovation efforts with specific business unit needs and pain points, rather than pursuing a broad, unfocused approach.

They balance internal idea generation with external technology adoption, and prioritise innovations that can improve margins, increase profitability, and address sustainability challenges.

The company is also developing integrated digital workflows, such as AI-based generative design for modular construction.

Implenia takes a measured approach to investments, preferring strategic partnerships that demonstrate clear value before considering financial involvement. This strategy allows them to stay agile while driving meaningful innovation in their core business areas.

EllisDon

EllisDon's approach to innovation focuses on experimentation rather than immediate ROI.

Their process involves running new technologies concurrently with traditional methods to establish a baseline and mitigate risk. They emphasise "time to value" over ROI for truly novel innovations. For more established technologies, they do consider ROI when evaluating implementation.

EllisDon has created the ConTech Accelerator program to foster innovation without a traditional corporate venture arm. The program offers startups access to EllisDon's nationwide operations, brand credibility, and feedback from end-users across various projects. This 18-month pilot program helps startups refine their products and achieve product-market fit without requiring equity or cash investment from EllisDon.

The company takes a portfolio approach to innovation, understanding that not all experiments will succeed but valuable learnings can still emerge.

Enjoyed this? We’ll be adding more to this library as we release. Subscribe to Corporate Innovation (in AEC) to keep informed.

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