Exploring the role of industry 4.0 in the building industry: a case study of emerging business models in the Australian construction ecosystem

Abstract

As the building industry is a significant contributor to Australia's economy, understanding the impact of Industry 4.0 on this sector is crucial for its continued growth and competitiveness. This creates a need to explore the interdependencies between the implementation of an industrial and digitally enabled building industry and business model and value chain innovation to shape a digitally mediated platform ecosystem configuration. As the building industry faces challenges in adopting manufacturing techniques and technologies, the paper examines significant yet understudied implications of Industry 4.0 along industrial value chains. This study aims to understand how the building industry in Australia can adapt to the shift towards industrialised-digitalisation by exploring the opportunities for innovation in business models and value chains. The research approach will draw on a literature review, and a series of workshops in four Australian cities to understand perspectives determining business model innovation. Examining integration, servitization, and expertization the paper illuminates the impact of digital connectivity, information exchange, and design value on the industry. The paper's framework focuses on assessing dynamic capabilities (sensing, seizing, and reconfiguring) and the ecosystem lifecycle (birth, expansion, leadership, self-renewal) to comprehend business model innovation in the Australian construction ecosystem. It also uncovers how diverse stakeholders, including developers, contractors, consultants, supply chain actors, and digital platform owners, create value and progress through these phases. Identifying prospects in offsite manufacturing, standardization, technological advances, and value chain integration allows developers, clients, and contractors to enhance efficiency and results. Consultants can utilize their design value and project management know-how to promote cooperation among stakeholders. Additionally, digital platform proprietors can access multi-sided marketplaces for direct communication and efficient procedures. Ultimately, implementing these insights assists industry participants in adapting to changing market dynamics, encouraging innovation, and bolstering the competitiveness of the Australian construction industry.