INNOVATION IN MEGAPROJECTSSystems Integration at London Heathrow

Terminal 5

Innovation perspective on megaproject management

• Research by Innovation & Entrepreneurship Group, Imperial College Business School

• Case of Heathrow Terminal 5 megaproject• Inductive approach - generic model

• How megaproject performance can be improved through learning and innovation

• Aims of research: • How was knowledge of previous project and industrial

practices combined to create the T5 approach to project management?

• How was the approach applied on T5 and prepared for reuse on other megaprojects?

© Imperial College Business School

Six processes of megaproject management

© Imperial College Business School

Systems integration

Project & Programme Management

Single Model Environment

Modular pre-Assemblies

Just-in-Time Logistics

Test, Commission & Handover

Project Processes

Operational Processes

The role of the systems integrator – client or contractor

© Imperial College Business School

Systems integration

Project & Programme Management

Single Model Environment

Modular pre-Assemblies

Just-in-Time Logistics

Test, Commission & Handover

Coordinate system design & integration

• Establish project governance structure to coordinate supply chain

• Manage risks - cost-plus incentivea) Client bears risk (e.g. T5)b) Share risk (e.g. CTRL)

Incentives for innovation

Profits shared among partners in integrated project teams

Collaborative partnership approach

Megaproject – key phases, transitions and challenges

© Imperial College Business School

Project Processes

Operational ProcessesPlanning phase

Design phase

Construction phase

Handover phase

Operational Service

Operate & Maintain

Time