Value Management of Construction Projects, 2nd Edition

6Innovation, Implementation and Benefits Realisation

6.1 Introduction

In Chapter 4, the Issues Analysis is described as an opening technique, and Function Analysis as a closing technique. In a similar way, innovation, comprising the techniques of creativity and judgement, is an opening activity, and evaluation and development are closing techniques. Innovation is defined here as the generation of an idea for potential use, and in a value study is the stage following function analysis. It involves answering the question ‘how can this function best be achieved?’ Innovation comprises two integral steps: the generation of the idea (creativity) and a judgement as to whether the idea is of potential use. Innovation seeks technical solutions. In this context, ‘technical solution’ is the operable way of meeting the function and may be a product or a process. The technical solutions that have the highest probability in meeting the function will be evaluated and subsequently developed. In the process of innovation and evaluation an audit function is introduced to ensure that the technical solution satisfies the benefits originally identified for the project as a whole. This latter stage is called the benefits realisation.

The cognitive ability of people engaged in problem-solving by innovation is variable. A discussion of cognitive psychology is well beyond the scope of this book, which accepts that people have different abilities in the gaining of knowledge through thought, experience ...