Unlocking productivity with digital and data innovation

Productivity growth in Australia's infrastructure and construction sector has failed to keep pace with comparable sectors in recent decades.83 Over the past 30 years, the sector has become 25% less productive compared to other Australian sectors such as mining, manufacturing, retail and transport.84

The infrastructure sector requires support to meet tomorrow's productivity challenges. This will involve embracing digital innovation and data-based tools or best practice systems and processes.85

Embracing digital innovation and the use of data will enable the sector to deliver higher quality infrastructure for the same cost.

It will also ensure it has the capacity to accelerate Australia's post-pandemic economic recovery and provide a new skillset for export to a growing global market.86

Embracing digital and data-driven opportunities to create a more productive infrastructure sector is a challenge industry can solve. All levels of government have a lead role as policy-makers, investors, clients and regulators and work together to create change that enables an effective industry response. This will drive the successful implementation of digital and data innovation across the sector.

" Embracing digital innovation and the use of data will enable the sector to deliver higher quality infrastructure for the same cost. "

Reforms underpinning a digital by default approach in this chapter align with recommendations in the Telecommunications and digital chapter of the 2021 Plan.

3.3 Recommendation

Increase productivity and embed a culture of innovation in the infrastructure sector by adopting an evidence-based digital by default approach to infrastructure planning, delivery and operations.

Proposed sponsor: Department of Infrastructure, Transport, Regional Development and Communications

When this should impact:

Where this should impact:

3.3.1 Increase the productivity of the infrastructure sector by increasing digital adoption in infrastructure planning, delivery and operations.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Industry representative groups, including Smart Cities Council of Australia and New Zealand, Australasian Procurement and Construction Council and Australia New Zealand Spatial Information Council

Create ownership and vision for digital approaches to infrastructure planning, delivery and operations by establishing a national office for digital by default in infrastructure.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Industry representative groups, including Smart Cities Council of Australia New Zealand and Australian Smart Communities Association

Increase the adoption of, and create greater national consistency for, digital approaches to infrastructure planning, delivery and operations by developing a national digital infrastructure roadmap.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Industry representative groups, including Smart Cities Council of Australia and New Zealand and Australian Smart Communities Association

Kick-start digital by default in infrastructure by verifying all federally funded projects adopt innovative approaches across their lifecycle, including Building Information Modelling, digital engineering, embedded sensors and digital asset management. Strengthen nationally consistent guidance, tools and templates to match these objectives.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Australasian BIM Advisory Board and industry representative groups, including BuildingSMART Australasia, IoT Alliance Australia and Asset Management Council of Australia

Improve knowledge-sharing about digital approaches to infrastructure planning, delivery and operations and promote more consistent approaches between jurisdictions by establishing a national digital infrastructure network.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Industry representative groups, including Smart Cities Council of Australia and New Zealand and Australian Smart Communities Association

3.3.2 Accelerate the adoption of digital approaches to infrastructure planning, delivery and operations by coordinating jurisdictions and achieving national consistency.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

Supported by: Industry representative groups, including Smart Cities Council of Australia and New Zealand and Australian Smart Communities Association

Increase productivity by implementing the national digital infrastructure roadmap to establish an Intelligent Infrastructure Innovation Scheme across all levels of government.

Proposed lead: Department of Infrastructure, Transport, Regional Development and Communications

3.3.3 Embed a digital by default approach to infrastructure delivery and operations by significantly scaling up related capabilities, resources and activities.

Proposed lead: State and territory treasuries

Supported by: State and territory infrastructure delivery agencies and industry representative groups, including Smart Cities Council of Australia and New Zealand and Australasian Procurement and Construction Council

Increase digital adoption in infrastructure and develop jurisdiction-wide digital twins of the built environment by creating or strengthening related capabilities and cross-departmental functions.

Proposed lead: State and territory treasuries

Supported by: State and territory delivery agencies and industry representative groups, including Smart Cities Council of Australia and New Zealand, Australian Smart Communities Association and Australia New Zealand Spatial Information Council

Embed a digital by default approach by creating and implementing a smart infrastructure policy in each jurisdiction that uses technology and data to drive economic success and social inclusion.

Proposed lead: State and territory treasuries

Supported by: State and territory infrastructure delivery agencies and industry representative groups, including Smart Cities Council of Australia and New Zealand, Australian Smart Communities Association and Australia New Zealand Spatial Information Council

Create accountability for quality digital asset management through the asset lifecycle by appointing digital asset champions on all projects, and consider the use of digital estate management contracts. Ensure the owner maintains control of the physical and digital asset.

Proposed lead: State and territory infrastructure delivery agencies

Supported by: Industry representative groups, including BuildingSMART Australasia

Digitise all major projects by applying contemporary digital engineering practices that leverage proven technologies and processes, such as Building Information Modelling.

Proposed lead: State and territory infrastructure delivery agencies

Supported by: Industry representative groups, including BuildingSMART Australasia


Measuring progress

Digital twin

Percentage of Australian Government funded projects incorporate a digital twin, using a harmonised approach

Quality

Target: 100%

Timeframe:

National digital infrastructure roadmap

National digital infrastructure roadmap published, with progress reports

Governance

Target: Published annually

Timeframe:

Digital asset champions

Percentage of projects over $50 million (2021 $) that have digital asset champion roles

Governance

Target: 100%

Timeframe: