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Transcript of E-Business and the Changing Face of the Construction Industry Steve Jones Primavera Systems, Inc....
e-Business and the Changing e-Business and the Changing Face of the Construction Face of the Construction
IndustryIndustry
Steve JonesSteve JonesPrimavera Systems, Inc.Primavera Systems, Inc.
Case StudyCase Study
2000 CII Annual Conference2000 CII Annual ConferenceNashville, TennesseeNashville, Tennessee
Overview of e-Business
- What’s Happening Now?
- Construction Industry
- Construction Projects
Preview of Implementation Session
- Developing an e-Business Strategy for Your Company
- Evaluating e-Business Suppliers and Services
Plenary SessionPlenary Session
What Is
Happening
Now?
What Is
Happening
Now?
BACKGROUND: e-Business BACKGROUND: e-Business
BACKGROUND: e-Business BACKGROUND: e-Business
““The future is The future is already here;already here;
it’s just not evenly it’s just not evenly distributed.”distributed.”
William Gibson
“ “B2C”B2C” (Business-to-Consumer) (Business-to-Consumer)
Where it started Where it started
“ “B2C”B2C” (Business-to-Consumer) (Business-to-Consumer)
Where it started Where it started
BACKGROUND: e-Business BACKGROUND: e-Business
“ “B2B”B2B” (Business-to-Business) (Business-to-Business)
Fastest growing Fastest growing
More competitive:More competitive:
“ “B2B”B2B” (Business-to-Business) (Business-to-Business)
Fastest growing Fastest growing
More competitive:More competitive:
BACKGROUND: e-Business BACKGROUND: e-Business
- Cutting operating costs - Improving service - Expanding globally- Being faster at everything
Net technology:Net technology: Net technology:Net technology:
BACKGROUND: e-Business BACKGROUND: e-Business
Faster
Better
Cheaper
NO
EVERY ONE
ACTION
“EARLY ADOPTERS”
NO
EVERY ONE
ACTION
“EARLY ADOPTERS”
BACKGROUND: e-Business BACKGROUND: e-Business
FORTUNE 100 FORTUNE 100 companiescompanies
ALLALL purchasing purchasing
ALLALL suppliers suppliers
ALLALL the way down the way down
FORTUNE 100 FORTUNE 100 companiescompanies
ALLALL purchasing purchasing
ALLALL suppliers suppliers
ALLALL the way down the way down
BACKGROUND: e-Business BACKGROUND: e-Business
VisibilityVisibility
ControlControl
SpeedSpeed
CostCost
VisibilityVisibility
ControlControl
SpeedSpeed
CostCost
BACKGROUND: e-Business BACKGROUND: e-Business
General Motors:General Motors:$100 PER TRANSACTION$100 PER TRANSACTION
General Motors:General Motors:$100 PER TRANSACTION$100 PER TRANSACTION
BACKGROUND: e-Business BACKGROUND: e-Business
UNDER$10
BACKGROUND: e-Business BACKGROUND: e-Business
e-GM
Estimated Estimated
annual volume annual volume
of US B2B e-of US B2B e-
commerce:commerce:
Estimated Estimated
annual volume annual volume
of US B2B e-of US B2B e-
commerce:commerce:
BACKGROUND: e-Business BACKGROUND: e-Business
- $490 B in 1999- $490 B in 1999
- $2.7 T in - $2.7 T in 200420040
0.5
1
1.5
2
2.5
3
1999 2001 2003
$ Trillions
New motto for the Millennium:New motto for the Millennium:
“TO e OR NOT TO BE”
BACKGROUND: e-Business BACKGROUND: e-Business
What Does it Meanto the
ConstructionIndustry?
What Does it Meanto the
ConstructionIndustry?
Road Kill on the
Information Superhighway
ContractorContractor
OwnerOwner
DesignerDesigner
SubcontractorSubcontractor
VendorVendor
ManufacturerManufacturer
The Construction Industry as we know it today...
TOP
DOWN
ContractorContractor
OwnerOwner
DesignerDesigner
SubcontractorSubcontractor
VendorVendor
ManufacturerManufacturer
Inefficient Communications and Information Control
The Construction Industry as we know it today...
TOP
DOWN
ContractorContractor
OwnerOwner
DesignerDesigner
SubcontractorSubcontractor
VendorVendor
ManufacturerManufacturer
The Construction Industry as we know it today...
TOP
DOWN
EVOLVEEVOLVEContractorContractor
OwnerOwner
DesignerDesigner
SubcontractorSubcontractor
VendorVendor
ManufacturerManufacturer
Owners andOwners andConstruction MgrsConstruction Mgrs
ManufacturersManufacturersand Suppliersand Suppliers
SubcontractorsSubcontractorsand Tradesand Trades
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
DesignDesignProfessionalsProfessionals
DATADATADATADATA DATADATADATADATA
Enter once…Enter once…Enter once…Enter once…
……use many timesuse many times……use many timesuse many times
Owners andOwners andConstruction MgrsConstruction Mgrs
ManufacturersManufacturersand Suppliersand Suppliers
SubcontractorsSubcontractorsand Tradesand Trades
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
DesignDesignProfessionalsProfessionals
Owners andOwners andConstruction MgrsConstruction Mgrs
ManufacturersManufacturersand Suppliersand Suppliers
SubcontractorsSubcontractorsand Tradesand Trades
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
DesignDesignProfessionalsProfessionals
AccessAccessInformationInformation
AccessAccessInformationInformation
ConductConductCommerceCommerceConductConduct
CommerceCommerce
ManageManageActivitiesActivitiesManageManage
ActivitiesActivitiesWorkWork
TogetherTogetherWorkWork
TogetherTogether
DesignDesignProfessionalsProfessionals
Owners andOwners andConstruction MgrsConstruction Mgrs
ManufacturersManufacturersand Suppliersand Suppliers
SubcontractorsSubcontractorsand Tradesand Trades
More EfficientlyMore EfficientlyMore EfficientlyMore Efficiently
AnytimeAnytimeAnytimeAnytime AnywherAnywheree
AnywherAnywheree
At Internet SpeedAt Internet SpeedAt Internet SpeedAt Internet Speed
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
CentralCentralOnlineOnline
InformationInformationManagementManagement
HubHub
Turning data…Turning data…Turning data…Turning data…
Real Estate Real Estate and Planningand Planning
Design and Design and ConstructionConstruction
Facilities Facilities ManagemeManageme
nt and nt and OperationsOperations
……intointo KNOWLEDGE KNOWLEDGE……intointo KNOWLEDGE KNOWLEDGE
Real EstateReal Estateand Planningand Planning
Design and Design and ConstructionConstruction
Facilities Facilities ManagemeManageme
nt and nt and OperationsOperations
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Team Team CommunicationCommunication
andandCollaborationCollaboration
Team Team CommunicationCommunication
andandCollaborationCollaboration
Product andProduct and MaterialsMaterialsResearchResearch
Product andProduct and MaterialsMaterialsResearchResearch
Design and Design and ContractContract
DocumentsDocuments
Design and Design and ContractContract
DocumentsDocuments
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Team Team CommunicationCommunication
andandCollaborationCollaboration
Team Team CommunicationCommunication
andandCollaborationCollaboration
Product andProduct and MaterialsMaterialsResearchResearch
Product andProduct and MaterialsMaterialsResearchResearch
Design and Design and ContractContract
DocumentsDocuments
Design and Design and ContractContract
DocumentsDocuments
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
e-BUSINESS PLATFORMe-BUSINESS PLATFORM
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
An End-to-End Solution for the Entire Life An End-to-End Solution for the Entire Life Cycle:Cycle:
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Team Team CommunicationCommunication
andandCollaborationCollaboration
Team Team CommunicationCommunication
andandCollaborationCollaboration
Product andProduct and MaterialsMaterialsResearchResearch
Product andProduct and MaterialsMaterialsResearchResearch
Design and Design and ContractContract
DocumentsDocuments
Design and Design and ContractContract
DocumentsDocuments
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
e-BUSINESS PLATFORMe-BUSINESS PLATFORM
ApplicationsApplications ContentContentDataData
e-Business
Construction
Project
e-Business
Construction
Project
Real EstateAlternatives
Real EstateAdvisors
Economic Dev.Officials
Database ofProject Costs
FinancingAlternatives
Internal BestPractices e-Business Site
Pre-Project PlanningPre-Project Planning
Owner Research Approval
SpecialtyConsultants
Engineers
ArchitectsProgram
Managers
ConstructionManagers
SpecialtyContractors e-Business Site
Team FormationTeam Formation
Owner Sourcing
e-Business Site
Owner
Team FormationTeam Formation
QualityProgram
PerformanceEvaluations
Private Data Public Data
SupplierProfile
ReferencesRFQ, RFPContracts
Best Practices
Architects, Engineers,Designers,
Consultants
Owner,Program Manager Construction
Manager
Private Project Website
e-Business Site
Team FormationTeam Formation
Passwords,Control Access
ApprovalProcess
AutomaticRouting
Architects, Engineers,Designers,
Consultants
Owner,Program Manager Construction
Manager
Communications, Document Management
e-Business Site
Team FormationTeam Formation
ProjectSchedule
CorrespondenceMeetingMinutes
Architects, Engineers,Designers,
Consultants
e-Business Site
FunctionalSpecifications
CSI Division
PerformanceHistory
Design ProcessDesign Process
Product Search
Cost andAvailabilityLocal
Suppliers
References
BulletinBoard
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site Schedule
ConstructabilityCost
Suppliers andAvailability
Best Materialsand Products
Design ProcessDesign Process
Integrated Team Dialogue
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
CollaborationVersionControl Redlining
Design ProcessDesign Process
Workflow, Document Management
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
SpecificationsMaint. & Warr.
InformationInstallation
Details
Design ProcessDesign Process
Expedited Documentation
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
Design ProcessDesign Process
Bid Sets
ApprovalVirtual Plan
RoomPackages
Owner,Program Manager
e-Business Site
Procurement ProcessProcurement Process
Public Bid
PUBLICPUBLIC
Owner,Program Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
Procurement ProcessProcurement Process
Lump Sum Bids
PRIVATEPRIVATE PUBLICPUBLIC
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
PRIVATEPRIVATE SELF-SELF-PERFORMPERFORM
Procurement ProcessProcurement Process
Construction Management
PUBLICPUBLIC
Procurement ProcessProcurement Process
Automatic Notification to Bidders
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Add Alternates
Terms andConditions
Customized RFQand Bid Form
Bid DrawingsAnd Specs
Procurement ProcessProcurement Process
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
View before Printing Decline or Download
Procurement ProcessProcurement Process
Assemble Bid
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Vendors andSuppliers
Procurement ProcessProcurement Process
RFI’s, Bulletins, Clarifications, Addenda
Specialty orSubcontractor
Supplier orManufacturer
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
Procurement ProcessProcurement Process
Automatic Analysis
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
CostCompliancew/ Bid Docs
Schedule andAvailability
Submit Bid
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
e-Business Site
Procurement ProcessProcurement Process
Informed Decision on Best Value
Construction Manager
Procurement ProcessProcurement Process
Negotiate
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Notify Won/Lost Contracts Insurance, Bonding, etc.
Construction Manager
Procurement ProcessProcurement Process
Purchasing
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Purchase, Bidor Auction
Rental
Catalog Search
Construction Manager
Procurement ProcessProcurement Process
Applications for Payment
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Change OrdersDiscrepancies
Retainage
Owner,Program Manager
Construction Manager
Procurement ProcessProcurement Process
Applications for Payment
e-Business Site
Owner,Program Manager
Procurement ProcessProcurement Process
Applications for Payment
Architects, Engineers,Designers,
Consultants
e-Business Site
Project ManagementProject Management
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Central Communications and Archive
e-Business Site
Field Reportsand Daily Logs
RFI’s and Submittals
MaterialsManagement
OutstandingIssuesShip, Delivery and
Approval
Design orField Changes
PaymentApplications
ProjectSchedule
Project ManagementProject Management
Central Communications and Archive
Off-the-ShelfApplications
ProjectManagement
Project ManagementProject Management
Integration with Legacy Software
e-Business Site
ERP,Accounting
Project Data
Project ManagementProject Management
Management Reports
Owner,Program Manager
Construction Manager
Architects, Engineers,Designers,
Consultants
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Project ManagementProject Management
Close-out
Construction Manager
Architects, Engineers,Designers,
Consultants
Specialty orSubcontractor
Supplier orManufacturer
e-Business Site
Project ManagementProject Management
Close-out
Construction Manager
e-Business Site
Changes andRetainage
DigitalArchive
Auction-offSite Surplus
Project ManagementProject Management
Close-out
Owner,Program Manager
Construction Manager
e-Business Site
Facility ManagementFacility Management
Owner,Program Manager
e-Business Site
Web-based Life Cycle Asset Management
Owner,Program Manager
e-Business Site
ScheduledMaintenance
MonitoringCatalog
PurchasingAuto-bidding forRegular Purchases
WarrantyData
Troubleshooting
FacilityPlanning
Spare PartsInventory
Facility ManagementFacility Management
Web-based Life Cycle Asset Management
e-Business Site
DesignStandards
EvaluationPrograms
Policies andProcedures
Best PracticesBest Practices
Accessible Central Archive and Resource
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Real Estate,Real Estate,Pre-planning Pre-planning
and Team and Team FormationFormation
Team Team CommunicationCommunication
andandCollaborationCollaboration
Team Team CommunicationCommunication
andandCollaborationCollaboration
Product andProduct and MaterialsMaterialsResearchResearch
Product andProduct and MaterialsMaterialsResearchResearch
Design and Design and ContractContract
DocumentsDocuments
Design and Design and ContractContract
DocumentsDocuments
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Estimating,Estimating,Scheduling andScheduling and
BudgetingBudgeting
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Bidding,Bidding,Contracting,Contracting,
Purchasing andPurchasing andProcurementProcurement
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Project Mgt,Project Mgt,Close-out andClose-out and
Archiving Archiving
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
Facility Mgt,Facility Mgt,Modifications Modifications
and MROand MRO
e-BUSINESS PLATFORMe-BUSINESS PLATFORM
ApplicationsApplications ContentContentDataData
e-Business for Construction e-Business for Construction
VISION… How Do We Get There?
Lots of companies want to help you get thereLots of companies want to help you get there
e-Business for Construction e-Business for Construction
219 AEC Dot Com’sMay 8, 2000 AEC Dot Com Intelligence Report
Lots of companies want to help you get thereLots of companies want to help you get there
e-Business for Construction e-Business for Construction
e-Business for Construction e-Business for Construction
Preview of the Implementation Session
““e-Business e-Business and theand the
Changing Face Changing Face of theof the
Construction Industry”Construction Industry”
Brave New World of e-Business… what’s really new about it?
Ten Truths: … about e-Business in Construction
Ten Steps: … developing an e-Business Strategy for Your Company
Ten Questions:
… evaluating e-Business Providers
e-Business for Construction e-Business for Construction
AND REMEMBER:
e-Business for Construction e-Business for Construction
"The problem is never how to get new, innovative thoughts into your mind,but how to get the old ones out.”Dee Hock, Founder: Visa Corporation