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Architecture and Engineering: Managing New Risks in a Rapidly Changing Industry

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The explosion in computing power and communications, however, has been accompanied by new problems. Just as it transformed the way that architectural and engineering firms design projects, technology has altered the risk landscape for business. Before the advent of computers, a thief would have to break into an office to steal files; now, such theft can be accomplished using a laptop 10,000 miles away. Criminals in Eastern Europe can shake down a U.S. business by threatening to shut down its Web site. Viruses, which began to spread in the 1980s via infected disks, now rampage around the world in hours via e-mail, causing billions of dollars in lost productivity and repair costs.

There are many more risks than just computer viruses. The same technology that allows instant global communications and modeling abilities undreamt of in the days of paper plans also brings risks such as copyright infringement, software piracy, and the loss of valuable data and confidential information.

For instance, firms that use computer-aided design programs face the risk of software-piracy lawsuits and fines that can often run into the tens of thousands of dollars if they fail to secure an adequate number of licenses for employees using those programs. On the other hand, they risk not being compensated for their work because digital plans can be copied more easily and reused by clients without compensating the designers.

Digital technology also enables the theft of detailed trade secrets. Such theft isn’t limited to music and software but also includes theft of competitive information such as industrial research data of product development plans. Those who design infrastructure projects have to worry not only about rivals stealing their designs but also about keeping documents secure from terrorists who may be seeking to target power plants, water treatment facilities, or even schools.

In communications, the use of e-mail as a business tool can lead to lawsuits over offensive messages and to disputes over project changes communicated electronically. While engineers using mechanical computer-assisted design software can collaborate remotely on designs with colleagues and clients, at the same time, they have to be aware of protecting their proprietary data and controlling access to sensitive documents.

One of the most significant developments in the design world — and one of the biggest new risks — is sophisticated design software that enables architects and engineers to work with virtual three-dimensional models of their designs on computer screens, rather than having to picture the finished design in their minds.

The Computer-Aided Design Revolution
Until the 1970s, the process of designing buildings, equipment, and structures was done on paper. Designs were laid out by draftsmen and copied onto blueprints. Then computer-aided design software came into the picture, offering a faster way to lay out, refine, and copy designs. In the 1980s, programs to produce simulated three-dimensional renderings of mechanical drawings began to emerge. Those tools were put to use first in manufacturing smaller items and then in producing larger products such as automobiles. Until recently, computer-assisted design programs were not powerful enough to handle the huge amount of information needed to produce a three-dimensional rendering of a large building. A 100,000 square-foot building can have a half a million parts.(6)

Now, programs that can create virtual models of skyscrapers are commonplace. As in a computer game, architects can now look at their designs from any angle. They can make changes to the overall exterior dimensions of the buildings, and the software will make the changes to the interior dimensions without the designer having to enter every change floor-by-floor. These new high-powered computer design programs have made possible such designs as the ethereal Millau Viaduct in southern France, the
world’s tallest bridge, and the Shanghai Financial Center, where the design features a unique circular cutout in the top floors to account for wind stress in what is planned to be the world’s '73econd-tallest building.

Mechanical computer-assisted design programs also allow engineers to view virtual three-dimensional versions of complex machine parts such as jetengines or assembly lines with varying levels of data complexity, including three-dimensional visualizations that can be viewed with everyday word processing software.

Software Copyright Risks
Developments in design technology have been accompanied by new laws to protect intellectual property, such as architectural designs and sophisticated software, from piracy and theft. Among the most common liabilities for architectural and engineering firms is the failure to secure adequate licenses for the number of employees using the software. While architects, in particular, may not always take this issue seriously, software companies view it as a significant threat. More than a third of all software installed on computers worldwide in 2003 was pirated, representing a loss of about $29 billion, according to the Business Software Alliance (BSA).(7) Publishers of computer-aided design software are among the most vigilant when it comes to copyright protection of products that can cost thousands of dollars to purchase and hundreds of dollars in annual fees for updates. To avoid those costs, many firms may allow more employees to use the software than their licenses allow, thereby risking substantial fines.

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