Storedata revenues down again

Interim results from Styles and Wood include half-year performance figures for its retail-oriented construction collaboration solution provider StoreData. Reporting for the six months to 30 June 2009, these show that the business’s revenues have shrunk again. The business generated revenues of £0.589m, down 11% from £0.663m for the same period in 2008; the £0.103m profit was almost unchanged from the £0.107m achieved last year (see StoreData results).

This result continues a slide (see May 2009 post) that has been evident in StoreData’s revenues since its 2006 result, when the full-year total peaked at £1.594m, generating an operating profit of £0.425m (see 2006: OK for StoreData), though the overall recession may also have had an impact with StoreData’s core market of retailers and bankers investing at lower volumes in their property portfolios.

Regarding StoreData, the operational review says:

“StoreData extended its five year relationship with Tesco helping the market leading food retailer develop its property information system. The solution now helps the Tesco property team capture, store and manage property related information accelerating the property development process. The business was also engaged by Nationwide Building Society and the Co-Operative to develop property solutions to help manage their portfolio and their development programmes.”

Indications of a SaaS downturn

StoreData is one of the smaller UK-based vendors of online construction collaboration technology services, and now one of the only companies which is still publishing financial performance figures. I expect most, if not all, of its UK competitors will have seen similar pressure on revenues over the past year; certainly, there has been industry gossip about some SaaS vendors making staff redundancies to limit losses (see June 2009 post).

I recently met with one of Aconex‘s directors, operations director Paul Perrett, and we talked about how the collaboration vendors have been responding to the recession. He admitted that Australia-based Aconex had taken a hit in the Middle East (releasing some staff in Dubai, though Abu Dhabi remained more resilient); its operations in other areas of its operations (north Africa, south-east Asia) were more buoyant, he said. (I understand Aconex’s UK operation involves about eight staff, and it has continued to grow at modest rates.)

 

Permanent link to this article: https://extranetevolution.com/2009/08/storedata-revenues-down-again/

Another AEC document sharing solution

I just came across MyConstructionDocuments.com, a relatively recent arrival on the AEC scene. Created by a Charlotte, North Carolina, USA-based company called Intermarket Solutions LLC, MyConstructionDocuments is yet another web-based file-sharing service.

No details of the monthly costs are available on the site (prospective customers need to call or email the vendor), but the service can be purchased based on various user tiers (25, 50, 75, enterprise, or per user), with invoices sent out according to the “the amount of uses used that month”, making the solution “flexible and easy to maintain in times of little activity or a project boom”.

On the face of it, this is a simple product that acts as little more than an electronic filing cabinet – no sophisticated mark-up or commenting tools, no support for construction processes. For those businesses that just want some online storage for drawings and documents, this will probably suffice (but the online planroom space is a very competitive market – I’ve mentioned Procore, Corecon, Coreworx and EADOC, among others, in the past). But if you want to collaborate on details, manage workflows or need good search or reporting tools, there are several more advanced solutions, from both US and international vendors, on the market.

Permanent link to this article: https://extranetevolution.com/2009/08/another-aec-document-sharing-solution/

Newforma targets the UK

On the same day last week that I swapped emails with Knowledge Architecture’s Chris Parsons (see post), I read in AECcafe.com that New Hampshire, USA-based AEC software vendor Newforma was forming a user community in the UK (see Newforma Users Form Community in United Kingdom). Newforma hired former Excitech executive Tim Bates as a new director of EMEA operations earlier this year and it appears to be planning a major push into the UK market with its UK reseller partner, Océ (UK).

I was somewhat critical of Newforma’s philosophy when I first wrote about the company soon after its commercial launch more than three years ago (see post). As I said at the time, it appeared to be attempting to justify an on-premise network-based approach by making some alarmist and inaccurate statements about web-based construction collaboration platforms.

The core product, Newforma Project Center, remains an on-premise Project Information Management (PIM) system. Developed on the Microsoft .NET platform, and running on either Vista or XP operating systems, it is compatible with both MS Office 2003 and 2007, while its email management tools are designed for Outlook 2003 or 2007. Each user needs a client application loaded on his or her PC, while two server applications support multiple corporate sites connected by a wide area network.

It therefore differs from Software-as-a-Service, SaaS-based construction collaboration platforms designed to enable access from any internet-connected computer, and I think many of my comments from 2006 remain just as valid today.

In a UK context, Newforma Project Center perhaps has more in common with Union Square Software‘s Workspace solution, another AEC-specific product that has been designed for on-premise hosting and has powerful email management capabilities. I expect Union Square will be looking closely at how they can differentiate their offering from what Newforma brings to the UK table.

Looking at the customer listing on Newforma’s website, it is dominated by US firms and only HOK and SOM stood out to me as international design practices with substantial UK profiles (the news release also mentions Steffian Bradley Architects, another US-based firm, which opened a London office in 2002). These are certainly good companies to have as reference clients, but the extent to which the solution has been deployed on UK projects is unclear, and I suspect potential customers might be looking for a track record of use in the UK by UK-based clients and contractors as well as by designers. A 15-strong UK user community is a start, but this is dwarfed by some of the user communities developed by long-established UK vendors such as BIW, 4Projects and Asite (among others).

Update (29 October 2009): A news release published on AECcafe.com says that Newforma Project Center PIM solution is now being used by Marshall Construction in the United Kingdom.

Permanent link to this article: https://extranetevolution.com/2009/08/newforma-targets-the-uk/

I HATE LOSING!

UK construction collaboration technology vendors with long(ish) memories will recall the surge in interest by the major UK water utility companies in using web-based systems to support their Asset Management Programmes (AMPs) during the early 2000s. Former BuildOnline boss Mark Suster, now a venture capitalist in California, tells the story of a defeat clutched from the hands of victory by a smaller competitor (I believe, Business Collaborator – see its case study). The post very effectively conveys the tensions and frustrations of selling software in a competitive environment, and I know his irritation was shared by other players in the market at the time.

Update (11 September 2009): Mark has written further about this episode here.

Permanent link to this article: https://extranetevolution.com/2009/08/i-hate-losing/

This is the Knowledge Architecture Blog of the week!

I received an email this morning from Chris Parsons, founder of San Francisco-based IT consultancy Knowledge Architecture, telling me that ExtranetEvolution.com was KA’s Blog of Week – read his kind words about my blog here.

The first KA Blog of the Week was another favourite of mine, often cited: Lachmi Khemlani’s AECbytes.

Knowledge Architecture leverages technology to transform business processes and create strategic insights for architects and engineers, drawing on expertise gained from integrating systems such as Deltek Vision and Newforma Project Center.

Permanent link to this article: https://extranetevolution.com/2009/08/this-is-the-knowledge-architecture-blog-of-the-week/

Construction Computing Awards 2009

Nominations for the Construction Computing Awards 2009 are now open (close 3 September). Sponsors include Causeway and MPS. Pretty much the same format as previous years, with online voting for two months from September to November with a ceremony on 19 November, this year at the Tower Hotel, London.

A couple of thoughts:

First, looking at the categories, there are none that are about use of social media –  pretty much confirming, perhaps, that Web 2.0 has yet to penetrate the psyche of many construction industry IT professionals.

Second, as organiser BTC has continued to rely on voting rather than judges, I think making the online voting public would be a powerful demonstration of the ‘wisdom of crowds’, but I doubt BTC will go down that route. For a start, I expect they will want to maintain the suspense on the night, perhaps ensure a good spread of awards among the companies attending the dinner, and maybe guard against people voting more than once (I had a heated online debate with BTC’s Stuart Leigh about this and related issues in 2007). Also knowing that their names might be listed could deter some people from voting (but equally it could encourage some, proud to be associated with the company/application/product they’ve just endorsed).

Displaying the polling figures up to, say, the last week, might get round some of the counter-arguments. The organisers could then reveal the figures during or immediately after the awards ceremony so that we all know how much the winners won by, or how narrowly a runner-up missed out. Publishing the numbers might also increase the credibility of the awards (and the winners) – highlighting that over X,000 votes were cast in Y category, or that the whole event garnered ZZ,000 votes.

What do you think? Comments please….

Permanent link to this article: https://extranetevolution.com/2009/08/construction-computing-awards-2009/

From PLM and social media, to AEC design

I have been monitoring conversations about social media among some manufacturing and product lifecycle management (PLM) commentators, and a post by Desktop Engineering‘s Kenneth WongWhat PLM Can Learn from Social Media – has lingered in a browser tab for most of the past two days as I’ve re-read it and pondered it.

Kenneth makes some excellent points about the potential impact of social media (“relationship lifecycle management”) to PLM software developers and users – points that I think could equally be applied to their counterparts working in design for the architecture, engineering, construction (AEC) and property sectors. He points out that it is now increasingly difficult to ignore the growth of social media, with the number of “inactives” (people untouched by social technologies) dwindling while “spectators” (those who read, watch, or consume social content) have ballooned. He says:

“You might choose to sit by the sideline, but you can’t ignore the way social media has irreversibly transformed the way people live, work, learn, play, and collaborate.”

He then discusses a few areas where he feels PLM should imitate social media and become more ‘people-ready’, and I think these can all also be applied to the AEC design and project delivery environment:

1. Put people before processes. Kenneth thinks PLM has become too focused on the information, at the expense of people, resulting in systems that force people to conform to rigid IT infrastructures.

The same could also be said of most construction collaboration technologies, from CAD down to the tools often used to manage project team interaction. The latter have the potential to allow individuals to, in Kenneth’s words “put a face on collaboration”, but this opportunity has generally been overlooked. The tools, as a result, are little more than glorified document management systems, rendering project participants faceless processors of information, applying business systems that are outside their direct control.

2. Encourage transparency, not secrecy. “The design culture of the past is defined by protectiveness,” says Kenneth, identifying that the new generation of designers have a culture of file-sharing rather than file-locking.

AEC projects are every bit as bad. Having spent much of the past ten years marketing collaboration technologies, I know that the key concerns for many teams were security and confidentiality. Designers didn’t want to share data, and while SaaS vendors often highlighted the potential transparency that could be delivered by using centralised repositories with ‘a single version of the truth’, many contractors and other project team members were also alarmed at such openness. It challenged their contractual ‘knowledge is power’ mindsets, their ability to manage changes, make claims and increase profits.

Not surprisingly, this is one of Kenneth’s arguments that prompts some comments on his blog – see Debankan Chattopadhyay’s opener, for example: “I think we are being naive and rather presumptious to think that design of the future would be posted, reviewed and commented online. Let’s not discount IP related issues here.”

However, I would argue there are a growing number of examples of crowd-sourced product innovations and efficiencies (read chapter 8: The Global Plant Floor of Don Tapscott and Anthony Williams’ Wikinomics, for example) that have arisen precisely because companies have been both prepared to share their design ideas online and ready to listen to and incorporate the feedback. There are also numerous ways in which companies can crowd-source other aspects of product design, marketing and promotion – see this econsultancy article for some great examples.

3. Email is no longer good enough. Email chains can quickly resolve into “an incomprehensible mess, while social networks show how discussions can be presented in a digestible, threaded form.

I have long held that email is one of major hindrances to effective collaboration. In the early 2000s, for example, vendor BIW [a former employer] positively discouraged its users from using email (and I continued to bang on about the email argument – see my 11 March post, for instance), but BIW was eventually persuaded to deliver an email-like functionality, often limiting, as a result, the capacity to involve other interested parties in discussions. I was gratified to see UK vendor Asite introduce some discussion forum functionality into its new-look collaboration platform launched in June, but I haven’t heard, yet, if it is has changed the nature of project team collaboration.

4. Move off the desktop, move into the cloud. Kenneth says: “I don’t see why markups, annotations, approvals, and other change orders can’t be done from a browser.”

Well, in construction at least, many of these tasks have been undertaken in the browser for a decade or more, with full audit trails detailing who did what and when. But why stop there? Why not look further and think about managing the whole modelling process ‘in the cloud’? It might seem far-fetched today (looking at those heavy processing requirements and bandwidth constraints), but it is not impossible. With others, I have been debating the possibility that CAD and even building information modelling, BIM, might one day be deliverable on a Software-as-a-Service basis – see some of my BIMaaS musings.

5. Enable single-click publishing. “If I see a link, a blog post, or a photo I like on Facebook, I can republish it elsewhere with a single click. I think PLM should work the same way.”

It seems that PLM shares many of the poor data-sharing capabilities of other industry-standard business applications. In one of his comment responses, Kenneth talks approvingly of Google Wave, believing that this new technology may change the nature of collaboration in CAD and PLM (see my post here).

6. Allow personalization. Kenneth argues for greater flexibility in how individuals can manage information about themselves, rather than locking everyone down with the same same security features.

Some of my most rewarding industry contacts have resulted from being able to share information about myself on social media platforms (increasing my “discoverability” – to use Mark Burhop’s term in his comments on Kenneth’s blog), and yet – when it comes to using almost all industry-standard collaboration platforms – my personalisation and those of my contacts is almost completely eradicated, erased by systems that focus bureaucratically on the project, the companies, the files, the processes – forgetting that it’s the people that actually do the work!

7. Leave room for interpersonal (nonprofessional) interactions. I love Kenneth’s opening: “Creativity, or innovation, usually doesn’t happen in a boardroom (that’s where good ideas go to die).” In his view, work-focused PLM systems don’t foster creativity and coll
aboration.

The same could be said of most construction-oriented platforms, and email. Mark Burhop and commenter Stan Przybylinski both wonder about how designers might cope with the additional ‘noise’ that comes with social media, but I think this is part of the evolution businesses will have to go through to integrate social media into their enterprise processes.

Some filtering may be necessary, but it is worth remembering that some “rich” collaboration via social media may well replace inefficient or non-creative communications that were previously undertaken by, say, time-consuming email exchanges (I’ve found that my use of email has dropped dramatically through increased use of various social media platforms – by using discussion forums or wikis to develop documents, or by sharing interesting links through Delicious or Twitter, for example).

Related posts:

Permanent link to this article: https://extranetevolution.com/2009/08/from-plm-and-social-media-to-aec-design/

Contract Communicator

Today I discovered Johannesburg, South Africa-based Contract Communicator, a technology company providing web-based solutions aimed at managing contract issues involving any of five forms of the FIDIC contract or the NEC3 Engineering and Construction contract.

Founded by technologist Leon Cilliers and lawyer Mark Ilbury in 2008, the company‘s core product (see PDF too) is a Software-as-a-Service, SaaS-based change management system focused on identifying, managing and communicating the causes and effects of events causing delay or additional expense on construction and engineering projects. Its features include a Site Diary, Risk Register, Claims Manager, Requirements Manager, Document Manager, and a reporting toolset.

From my largely UK-based AEC collaboration technology perspective, this field, particularly in relation to the NEC, was once the preserve of contract change management specialist MPS (once part of Needleman’s which is today part of Mott MacDonald – see post) and of [my former employer] BIW Technologies – which integrated contract administration into its SaaS project control platform some five or six years ago. In recent times, though, other well-known UK-based construction collaboration vendors (eg: Asite) have also expanded their system functionality to include contract change management.

It is unclear what level of sophistication in document management is offered by Contract Communicator. One of the advantages of BIW’s system, for example, was that contract administration could be seamlessly integrated with the whole project design, delivery and handover process, alongside some powerful drawing and document control, mark-up and commenting tools. This has strong appeal to clients/owners/operators (and/or their representatives) who want a full archive of all project-related communications. But I am sure there will be contractors or project managers who are mainly contract-focused for whom a solution like Contract Communicator could be ideal.

Permanent link to this article: https://extranetevolution.com/2009/08/contract-communicator/

AECcollaborators Twitter League

Following my post about how some providers of construction collaboration technologies are beginning to incorporate social media tools and techniques into their communications, I have set up a Twitter League to monitor how many companies and people in those businesses use Twitter, how active they are, how many followers they have, etc (I’ve added a link to the AECcollaborators League to the right-hand column, and you can also follow @AECcollaborator on Twitter).

Permanent link to this article: https://extranetevolution.com/2009/07/aeccollaborators-twitter-league/

AECcollaborators League

This Twitter League was launched in July 2009, after I wrote about the differing levels of social media adoption among the leading construction collaboration technology vendors. Twitter was one channel I looked at – I started by looking for companies active in the sector and then for individuals who work (or, in my case, once worked) for one of those businesses.

This league is mainly intended to help you find, follow and maybe strike up conversations with people involved in the construction collaboration technology industry. Maybe you use one of the systems and want to keep up-to-date with that provider or want to talk to one of the team? You can also view the League here.

If you think you or your company should be in this league, please let me know (you can also follow @AECcollaborator on Twitter). Please also let me know if you or your company don’t want to be listed here.

As well as followers, the League can show other metrics. The one below shows people and companies in the order they signed up to use Twitter, for instance.

Permanent link to this article: https://extranetevolution.com/2009/07/aeccollaborators-league/

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