kykloud targets asset management with SaaS and apps

kykloud is a very polished new SaaS platform with mobile apps, targetted at asset owners and managers

I first heard of North Shields, UK-based kykloud via Twitter last year and had been waiting for it to launch for some months, intrigued by its mention of Software-as-a-Service based life-cycle cost management and by the combination of its co-founders. I finally got to meet CEO Ed Bartlett and CTO Nick Graham earlier this week and they told me more about the business, and showed me the applications they are developing.

kykloud formation

Ed was previously whole life cost director at Balfour Beatty Capital (other experience includes time at Cyril Sweett and Atkins subsidiary Faithful & Gould), managing an investment portfolio worth nearly £700m, and was frustrated by having to rely on spreadsheets or expensive bespoke systems to get an accurate view of the PFI/PPP assets for which he was responsible. He met Nick – formerly CTO at Sunderland-based construction collaboration technology vendor 4Projects – and they began to explore how SaaS-based database tools could enable web-based collection management, exchange and updating of asset data.

Together, they established kykloud (pronounced “k-eye-kloud” apparently) in early 2011 and – with venture capital funding from Northstar Ventures - set about designing a secure cloud-based platform and toolset for anyone managing the life time costs of major infrastructure programmes or large property portfolios. Its intended users will extend from the boardroom level where directors may monitor the performance of 100s of sites, down to the operational teams responsible for managing individual facilities, and the first customers (including asset-owning enterprise users, project managers and contractors) began using the system in late 2011 – just as kycloud finally unveiled its website and started recruiting a sales team.

The product

The kykloud platform is beautifully designed and delivers a rich level of functionality in both its browser-based and (forthcoming) iPad and iPhone versions (I was shown Beta versions of the latter; and, yes, Android versions will follow). Upon logging-in to the service, users are presented with a workspace that includes a map of assets and an overview of the properties and sites for which the user is responsible.

Either interface allows the end-user to start interrogating the system for information, and there is also a simple page-top menu (portfolios, sites, plans, reports, directory) to open up different areas of functionality. Within seconds, Ed was showing me how an asset manager could start using the system to review different time-spans and get at-a-glance views of actual, budget and forecast life-cycle performance data quickly – across entire portfolios, across sub-portfolios (regions, sectors) or for individual sites. Bespoke reports could be created quickly, based on various criteria and assumptions, and Ed demonstrated how new reports could be created to deal with different “what if” scenarios, drilling-down into site-specific details to show how information about fixtures, furnishings and equipment, their costs, replacement intervals and other data could be manipulated.

Ed then switched to the iPad to show how the system could be used as a mobile platform to both provide data ‘in the field’ or to capture data entered by the user for later re-use, reporting, etc. Constant connectivity is not vital – the iOS applications will still capture data (including photos), which can be synchronised later, as necessary.

Integration

Nick talked about the potential for kykloud to import data from a wide range of existing asset management systems; inevitably, we also discussed the ability to import as-built data from construction collaboration systems for re-use in operation and maintenance, and Nick was relaxed about that opportunity. kykloud is purely focused on the asset life-cycle management market, he said, and he hoped that kykloud would be integrated with any of the existing project delivery or computer-aided FM platforms where owners wanted to import relevant data as a starting point for life-cycle-based work; at the same time, the platform could also be used to import a wide range of data such as building energy use and other environmental metrics (kykloud has worked with Sustain on a whole-life carbon project looking at the payback from a change of light fittings for a retail client).

Here we also discussed building information modelling (BIM) and data standards; kykloud is being developed with industry foundation classes (IFCs) in mind, but it will – in Nick’s view – be some years before we see routine export/import from BIM into asset management toolsets, particularly as most of the ‘geometry’-related data will be largely superfluous as far as asset managers are concerned. Nonetheless, kykloud’s north-east location has also enabled some useful discussions with academics and practitioners involved with Northumbria University’s BIM Academy.

Marketing

kykloud is initially targetting three markets: housing management, PFI/PPP and retail – the latter a market where BIW has already provided some asset management capability to retailers such as Sainsbury’s. We briefly discussed BIW’s latest business intelligence module – post - and the capabilities of BIW’s German sister company conject, whose offering is focused on infrastructure life-cycle management, ILM, a similar-sounding sphere to that of kykloud.

Ed and Nick are SaaS fans who genuinely believe in the power of cloud-based solutions to collate and deliver rich information to business decision-makers and their operational colleagues. Like several of the construction collaboration systems, the platform is not licensed per-seat (the guys were coy about the exact pricing - free trials available too), so helping encourage access, sharing and collaboration.

kykloud is already a polished product offering a lot of functionality, and its initial users are apparently already feeding back ideas about how it could be developed and improved still further. It targets a potential clientele not currently well-served by SaaS solutions, and by being developed from the outset as a web-native platform can be quickly deployed and made accessible to authorised staff across a geographically-dispersed portfolio using a range of common devices, from standard web browsers to smartphones and tablet devices. In theory, it also suggests how business owners can really exploit the power of the data captured during design, delivery – including use of BIM – and operation of their assets, and reuse that data to manage both costs of their portfolio and – as will become increasingly important – its carbon performance.

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Cadac Organice sounding bullish

Preliminary results released by Cadac Organice suggest the Netherlands-based vendor of Microsoft SharePoint-based solutions for engineering document management had a successful 2011.

It highlights its introduction of a cloud-based solution – discussed in October 2011 with Gert-Jan de Kieviet, right, following his recruitment from Sword-CTSpace – and also mentions that David Parry, former CTO and co-founder of McLaren Software, has joined Cadac’s US organisation (McLaren and CTSpace are, of course, set to merge following the latter’s November 2011 acquisition by IDOX; post).

Jan Baggen, CEO Cadac Group Holding BV says:

“We are proud that 2011 has become our best year ever in our 25-year anniversary, despite a turbulent year in global terms. With revenue of 29M Euros (5% growth) and net profit of 3M Euros (25% growth), Cadac Group is one of the best performing companies in the industry.”

Final 2011 results will be released in the second quarter of 2012, after the company’s annual meeting.

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BIW launch business intelligence module

According to its latest news release, Woking, Surrey, UK-based SaaS construction collaboration technology vendor, BIW Technologies has launched a new business intelligence (BI) module that it says provides advanced business analysis and reporting capabilities from data across processes, documents, cost and budgets and compliance data/transactions. A second module provides quality, health and safety and environmental (QHSE) compliance data.

The BI module enables the design and delivery of bespoke project and programme dashboards, transaction reports and performance summaries. These can be produced in text or graphical form, and can be emailed to recipients. According to director Steve Cooper, monthly reports need no longer rely on data exported to expensive third party reporting systems, but can be completed within BIW’s online project control applications. Moreover, these reports can be viewed on all mobile devices, meaning the latest information is always available and never ‘out-of-date’.

BIW’s QSHE Compliance helps organisations roll out their QSHE plans, and then monitor and manage performance to ensure contracts remain compliant, through sets of questionnaire and survey functions, augmented by real-time performance management reports. The module has apparently been developed in conjunction with one of the UK’s leading supermarket retailers and a leading construction contractor, and collates all incident, accident, trend, inspection and scorecard data.

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TrackerPlus – managing BREEAM online

Thanks to Building4Change and the BRE Group e-newsletter, I see that TrackerPlus, “a fully integrated online BREEAM project management system,” has been recognised by BRE Global for its ability to streamline the BREEAM assessment process for members of the design team and allowing assessors to submit their assessments directly from the system to BREEAM for quality assurance (QA) and certification. As a result BRE Global has awarded London-based environmental consultancy Southfacing, the creator of TrackerPlus, the first BREEAM badge of recognition for software.

The BREEAM assessment process has two formal key stages: during the design stage, where assessment is based on design and procurement information such as drawings, calculations and specifications; and a post-construction assessment, based on ’as built’ information such as record drawings, delivery notes, site photos, etc, that results in the final certificate. (An informal pre-assessment may often be undertaken at the project outset to demonstrate the building’s potential to achieve BREEAM ratings required by the local planning authority, funding body or client.)

Given that a lot of the information used in assessments on many projects is already routinely collected through a SaaS-based construction collaboration technology platform, I wonder if Southfacing has considered offering TrackerPlus as a solution that could be licensed and integrated into systems such as 4Projects, Asite or BIW (to name a few – and mention of QA also reminds me of Unit4 Collaboration‘s compliance system BC Assurepost), for use by qualified BREEAM/CSH assessors on those projects? As with other types of project workflow (eg: compilation of health and safety files, defects resolution), environmental assessment data could be collated in one place, reducing the amount of importing and exporting between parallel systems, and adding the most up-to-date reports and information to the dashboard views generated for authorised users by these platforms (I have contacted Southfacing about this idea).

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ICON considering QR codes for asset management

My interest in QR (quick response) codes started a couple of years ago following a June 2010 talk at the Chartered Institute of Public Relations (post) and a week later I had my new business cards complete with scan-able QR codes on the back.

Humphreys Skitt QR code useI’ve been watching the gradual growth in use of QR codes for marketing purposes, and have also been looking for practical examples of their use in architecture, engineering, construction, property, etc. For example, I have seen a local Greenwich estate agent using QR codes to take passers-by who scan the image to a mobile version of their website so that they can view properties for sale or to let.

A chance tweet on a related topic led to a conversation this week with Chris Lovelock of Leicestershire, UK-based SaaS vendor ICON, who told me they were exploring the use of QR codes for asset management for their retail clients (which include firms such as Boots and Waitrose - post). The ICON system provides specification information about furniture, fixtures and equipment deployed in stores, and Chris felt label-mounted QR codes could be used to provide rapid navigation from the shopfloor to the relevant online information about the item carrying the label (label durability is, of course, a key issue).

Chairs, light fittings, air-handling units and dozens of other items could be labelled, allowing an on-site user to quickly access information on a smartphone or tablet device about the item’s manufacture, installation advice, maintenance procedures, etc, as well as the latest information about the relevant corporate standards for the item (is it ‘current’ or ‘obsolete’?). We also discussed how particular objects such as escalators, lifts, air-conditioning units, etc could be given unique codes linking the user to that item’s service history, certifications and other information.

In a construction context, QR codes could also be used for logistics purposes, helping track consignments of materials and building components and record their arrival on site, their installation, commissioning and maintenance. They might also be cheaper than RFID tags.

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EADOC growing

It’s not just Aconex that is seeing signs of recovery in the SaaS construction collaboration market (previous post). California-based EADOC Software says it grew its revenues 25% in 2011, and its customer base grew by more than 40%. Founder and CEO Eric Law said: “We had a good year, and 2012 is looking even better, as the commercial construction market begins a recovery.

EADOC targets larger commercial and industrial development projects (post), and is currently recruiting software developers and sales representatives, planning a 40% headcount increase.

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Aconex revenues flat and losses deepen

Aconex reports flat revenues and a pre-tax loss for year to June 2011, but recent performance has been strong and longer-term prospects are promising.

The latest annual report and accounts from Melbourne, Australia-based Software-as-a-Service construction collaboration technology vendor Aconex show the business grew its revenues by 0.7% in the year to 30 June 2011, to Au$39.7m (c. £26.8m), while incurring a loss of Au$5.6m (c. £3.8m) compared to 2010′s $2.6m loss (post).*

This performance is similar to that of other SaaS vendors in this sector (eg: 4Projectspost; BIWpost; Unit4Collaborationpost), who in recent years have struggled to maintain previous turnover growth, and have seen profits hit due to the continued impacts of the global financial crisis. With clients cancelling or postponing construction projects, there are fewer schemes to support; and there is pressure on vendors to price their services competitively to get adopted on those customers’ schemes that do proceed.

Aconex has also had specific issues in certain regions, notably Libya – where the civil war prompted the company to shut down its operation with a resulting $0.9m write-off and $1.2m in order book cancellations. Overall:

“Bookings increased during the year despite being negatively affected by civil war in Libya and adverse economic conditions in Europe, North Africa and the Middle East. A small proportion of the increased deal flow was recognised into this year’s revenue but the vast majority will flow into future years’ revenue.”

Aconex’s wide spread of operations has certainly helped it withstand localised downturns. Elsewhere, Australia/New Zealand saw strong bookings growth (over 50%), as did Asia (up 60%) and the Americas (bookings up 95%).

At 30 June 2011, the Aconex order book stood at Au$57.1m, growing 22% from 2010 (Au$46.8m), with approximately 88% of this to be billed over the next three years.

The report also mentions Aconex’s new – and currently Australia-focused – tendering network business, BidContender (post), which it says is gaining “significant traction, with thousands of users now on the system,” though it is still far too early for this start-up to make an impact on the group’s overall performance.

Accounting policies impacting financial performance

In a teleconference on Monday, I spoke to COO Paul Perrett and CFO Matthew Walsh about the numbers. They started by stressing that the underlying operational performance was much stronger than indicated in the P&L due to, first, how the company accounts for the Francisco Partners equity injection (post), and, second, how revenues are treated.

The equity injection is treated as a liability, and its impact is seen through the inclusion of ‘compound financial instrument’ income and interest in the accounts.

Aconex regards its revenue recognition approach as even more conservative than other vendors. It used to include 65% of the value of new orders or bookings up-front, with the remainder flowing through as it was invoiced over the duration of a project. Today, only 25-30% of the value of a new order might be recognised up-front (though this might still seem to front-load the flow of revenues, Aconex – unlike rival vendors – does not charge separately for consultancy services, so project income flow will be similar to those of other vendors). However, the short-t0-medium term impact of this policy change has been to delay some revenues appearing in the P&L. Matthew said this conservative approach mirrors the revenue recognition policies adopted by other SaaS businesses (eg: Salesforce) with which Aconex compares itself in the US market [see 20 January comment from Frank Carron].

Growth markets

Looking at the regional performance, Paul highlighted Aconex’s domestic successes, particularly in the Australian mining market, some significant wins in mainland China and at Hong Kong airport, and the near doubling of revenues in the Americas, albeit “from a low base” [again, see 20 January comment from Frank Carron]. Europe remained “soft”, with continued economic uncertainty affecting customers project plans. Overall, he said the business was now growing again and was looking to recapture its past growth trajectory.

This growth was partly stimulated by Aconex’s investment in sales and marketing – I have written recently about its recruitment of US-based sales people and its reseller partner programme (post) - which resulted in higher-than-expected cash burn in late 2010 (Au$5.8m), though the cost base was reduced, with marketing expenditure one area hit, in the second half of the year (to Au$2.5m). However, Paul and Matthew stressed that since the year end, the business has been cash-generative (the report says the cash balance increased to Au$16.5m at 30 September 2011), with “business picking up quite substantially” and “December our strongest invoicing month ever” to offset earlier cash losses and make calendar year 2011 cash-neutral.

The company’s investment in sales and marketing in the Americas has been part of a strategic shift away from relying upon individual business development managers to grow regional adoption of the Aconex platform. “A more sustainable sales and marketing machine is being created,” Paul said. Recruiting high-calibre executives like Lori Beedle and growing a strong partner network were seen as vital if Aconex was to have the desired impact in the US, and the approach would also help Aconex in other large target markets such as India and China.

New products

Aconex’s new BidContender business was now being used by around 70 contractors and a substantial proportion of their subcontractor base, Paul said, with around 15,000 active ANZ users of its tendering platform. It is a different proposition to Aconex’s core collaboration platform – having to be easier to use and low-cost – but the company had been encouraged by customer enthusiasm for BidContender. Paul said some free functionality was recently switched off, and some customers were quick to apply for the paid-for alternatives.

In terms of product development, Frank Carron said Aconex was seeing strong interest in using the platform to manage building information models, with around 70,000 BIMs on the Aconex platform and “people collaborating more on BIMs than on 2D”. Field management of data – eg: for defect or health and safety management – was another area where Aconex was investing in its product (its iPhone app was launched in May 2011).

Clarification

* Aconex’s 2010 results (post) reported a pre-tax profit of Au$2.8m but is now reported as a loss. I asked about the discrepancy, and CFO Matthew Walsh told me:

The directors’ report in 2011 just looked at the numbers slightly differently and excluded compound financial instrument income from the loss and this is the difference in your two figures.  You should use the summary in the 2011 directors’ report as it is felt this more appropriately represents the underlying performance.

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Simple AEC collaboration, plus administration?

Two emails arrived overnight: one from a generic collaboration provider and one from a small construction micro-business looking for a low-cost SaaS-based project delivery solution that could be used to manage numerous small domestic projects and support all the back-office, contact management, time-sheet and project accounting needs of the business.

As I read this second email (from a writer in the southern hemisphere), various packages initially sprang to mind only to be discounted as I read further requirements. I have looked at various simple low-cost SaaS collaboration solutions (eg: Collabor8onlinepostWoobiuspost), but, apart from the US-oriented MyOnlineToolbox.com (post), few that I have seen also offer the in-house administration functions. In the end, I suggested the writer have a look at intranet-type applications such as Union Square’s Workspace, as the company also offers a Workspace Mini version aimed at SMEs (in September 2010, Union Square acquired Archetype, which focused on providing email, drawing, job costing and fee management solutions to SME firms of professionals; post). However, this is not a hosted, SaaS system – the SME would need to deploy it on an appropriately resourced server, etc; and Union Square suggests the package would cost from around £10,000 to implement a 10-user set-up (more than half this figure is consultancy support).

Another alternative might be to use Microsoft SharePoint, and there are various packages that support the needs of architecture, engineering and construction project team members (Cadac Organice, for example – offered by AEC Docuflow in Australia; post).

HyperOffice

Which brings me to HyperOffice (“Collaboration Made Simple”). It makes no pretence to be a construction industry solution, but it offers SaaS-based document management, intranet/extranet workspaces, shared calendars and project management. Sadly, no integrated financial management tools, and I suspect its ability to manage collaboration on construction drawings will be limited, but it is relatively low-cost: enterprise collaboration packages start from $15/user/month.

Have I missed a SaaS product that combines good levels of construction collaboration functionality for dispersed SME teams with back-office administration functionality – and is low-cost? If you know one, please let me know or comment below.

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Docia Deficiency List on Droid

During 2011, I enjoyed occasional contacts with Mads Bording, CEO of Denmark-based SaaS construction collaboration technology vendor Docia (aka ‘Byggeweb’ in the Nordic region), and we finally got to meet, very briefly, at November’s Construction Computing Awards dinner in London (post).

The company has been following up with its promised mobile functionality (see May 2011 Docia interview), and is using YouTube to help explain its latest module, Docia Deficiency List, which is aimed at construction site personnel responsible for “snagging”, or identifying and rectifying defects (a quality assurance process also known as ‘punchlists’ in north America). As with previous Docia mobile tools, it has been delivered first on the Android smartphone or tablet platform.

Mads says:

“Docia Deficiency List is a powerful tool for snagging, defects registration, deficiencies, checking, control, supervision and more. Docia Deficiency List is cloud-based with both web and mobile interfaces. The web interface enables you to customize and configure your lists, make reports, and take multiple actions such as follow-up, etc. The mobile interface is the fastest and most efficient way to make registrations on-site using a simple GUI and the smartphone’s camera.”

This latest Docia module adds to the competition in this space. UK-based rivals BIW and BuildOnline (now CTSpace) started the mobile defects management bandwagon rolling a few years ago, and there are now several competing solutions, both integrated and stand-alone (for example, I blogged about SmartBuilder1 and SnagR last year). The Docia video mentions that users can note the cost implications of defects, and this may add value where projects are using the platform to manage contract budgets – Docia is partnering with MPS in the UK to deliver collaboration to support the latter’s NEC contract management system.

Update (11 January 2012) – I see MPS is sending out promotional offer emails: “FREE Samsung Galaxy Tab when you order Docia Deficiency List.” Coincidentally (possibly), this is the same device that rival NEC3 contract administration vendor Sypro offered in a prize draw at the NEC3 User Conference last April.

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ExtranetEvolution.com: the 2011 numbers

In April 2011, I migrated the ExtranetEvolution blog from TypePad to a hosted version of WordPress (post), and I have just been reviewing annual statistics for the site for the first time in two years (in fact, since my 2009 review).

The year to 31 December 2011 was by some measures the best yet, delivering 59,416 page impressions (in 2009, I recorded over 45,000), and 23,746 unique visitors (down from a peak of 32,000 – though this may reflect my switch from TypePad stats to Google Analytics).

In terms of unique visits and most visited pages during 2011, my peak days all appear to be stimulated by events in Australia; they were:

On less controversial territory, other popular 2011 posts included:

Being focused on a few related niche subjects (AEC collaboration, SaaS, BIM, etc), this blog will never become a high-traffic site, but it has many hundreds of loyal readers (38% of traffic is from returning visitors) spread all around the world. Top countries were UK, US and Australia, and top cities London, Melbourne, Sydney and, er, Sunderland (hello, 4Projects!), and a growing number of visits (10%) were via mobile devices. Social media is also an increasingly effective source of traffic with 4% of referrals from RSS and another 4% from Twitter. As ever, I am grateful for the many encouraging comments and emails I receive.

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