Sep 04 2007

StoreData results

The latest financial reports from retail fit-out specialist contractor Styles & Wood show that its StoreData division, which competes in the UK construction collaboration technology (aka ‘extranet’) field, did not have a good first six months in 2007.

While overall group revenues and profits were up, StoreData “as expected … had a slower first half than last year, although in revenue terms was ahead of plan at £0.6m (2006: £0.9m) and operating profit of £0.1m (2006: £0.2m).” The operational review continues:

“We extended the Tesco My Property system increasing the number of licensed users as well as the areas of data we manage on behalf of Tesco including a new Design Standards Library and Health and Safety Compliance Records. We are clear that StoreData must secure new clients in 2007 to achieve our full year expectations for this division and towards the end of the period we secured B&Q, The Co-operative and Nationwide all of which should now contribute in the second half.”

StoreData revenues for the six months ending 30 June 2007 were £618k (compared to £880k for the same period in 2006, ie: down 30%), delivering a profit of £74k (£175k in 2006, down 58%). It will have to improve its financial performance significantly in the second half of the year if it is to achieve the kind of turnover (£1.594m) and operating profit (£0.425m) it achieved in 2006 (see 2006: OK for StoreData).

Clients: a couple of notes

B&Q was an existing StoreData client; presumably it signed a new deal or an extension to the previous contract (announced December 2004, deployed in 2005). The mention of Nationwide is notable as this UK financial institution has been a long-term loyal customer of Business Collaborator (see BC case study) – has S&W wrested Nationwide away from BC or is StoreData being used in addition to BC?

Permanent link to this article: https://extranetevolution.com/2007/09/storedata-resul/

Aug 24 2007

Rows over Wikipedia edits

The media is full of reports about abuse of Wikepedia by organisations wanting to promote their own cause or that of their clients. For instance, the BBC reports that the office of the Australian prime minister John Howard has been identified as the source of damaging or potentially misleading edits to Wikepedia (two days running I get to write about Australia!), while this week’s edition of UK public relations magazine PR Week also reports PR Agencies caught editing Wikipedia. Both stories result from findings published by a new website: Wikipedia Scanner (similar articles have appeared in The Guardian, Daily Telegraph, etc).

This is giving greater transparency to the collaborative ‘wisdom of crowds‘ editing of Wikipedia. So long as you are updating Wikipedia articles in line with its factual, neutral point of view (nPOV) guidelines, there will be no arguments, but if – as has been suggested – someone starts trying to influence readers by altering articles to give more flattering perspectives (to themselves or their clients, or more negative perspectives on their opponents or competitors), then the perpetrators deserve every inch of negative publicity they receive.

Permanent link to this article: https://extranetevolution.com/2007/08/rows-over-wikip/

Aug 23 2007

SaaS advice from the experts

Only yesterday I was discussing the pros and cons of Software-as-a-Service (SaaS) with a construction journalist. I referred her to some material I had written in the past, and a couple of recent articles on the topic. Today, I found another good generic piece on ASPnews.com.

SaaS Advice from the Experts stresses that customers cannot abdicate responsibility by offloading their applications, particularly in respect of security. One vendor counsels IT managers to examine five key areas when deciding on a SaaS provider:

  • privacy and security policies
  • transparency into the provider’s organization
  • metrics regarding audits and response to security breaches
  • strong feedback loops, and
  • continuous education for customers.

Other areas mentioned:

  • authorization and access controls
  • access to testing schedules, software development life cycles, and upgrade and patch deployments
  • a backup and exit strategy for data, and
  • accounting methods

Permanent link to this article: https://extranetevolution.com/2007/08/saas-advice-fro/

Aug 22 2007

DWF v. PDF – an Autodesk interview

In my book, I discussed Adobe and Autodesk’s development of different file formats to manage design data (it’s a topic I have since returned to – here for instance).

I have just found an interesting interview on the Novedge blog with Autodesk’s Mary Hope McQuiston regarding the DWF format – a similar interview having previously been undertaken with Adobe’s Doug Halliday (here) regarding PDF.

Permanent link to this article: https://extranetevolution.com/2007/08/dwf-v-pdf-an/

Aug 22 2007

Aconex in Australia shares court row

The tranquil world of online construction collaboration is not normally rocked by claims of political or financial feuds, but Aconex has unfortunately got caught up in an Australian court wrangle which features two well-known state politicians.

Background

Aconex was founded by Leigh Jasper (son of National Party MP Ken Jasper) and Rob Phillpot, with initial financial backing from various wealthy individuals, including John Gandel, Australia’s fourth richest man, plus some government help: an Australian government COMET grant, and support from AusIndustry’s R&D Tax Offset scheme.

Another investor is Ted Baillieu, Liberal leader in the Victoria State Parliament and reputedly Australia’s wealthiest politician (see Wikipedia profile); Ted Baillieu’s interest in Aconex dates back to a loan of in April 2004, given by Baillieu family company, Hawthorn Glen Pty Ltd. His nephew James Baillieu (formerly a colleague of Leigh Jasper at McKinsey) was – until earlier this year – senior vice-president of business development at Aconex (see The Age article). James Baillieu’s father Ian, Ted Baillieu’s older brother (secretary and another part-owner of Hawthorn Glen), also invested in the company.

Court row

This week, an Australian court case has erupted regarding entitlements to buy new shares in Aconex. According to a Melbourne Herald Sun article, Hawthorn Glen lent Aconex $6.5 million in April 2004 at an interest rate of 12 per cent. But in early 2007 when Aconex was offered a better deal by the Commonwealth Bank the companies went into dispute because Hawthorn Glen believed it was entitled to special share purchasing rights over future share sales. Aconex claims Hawthorn Glen was paid $3.5 million compensation as settlement for the loan, and to free the company and its founders from any obligation to the Baillieu family. However, Hawthorn Glen alleges it had first right of refusal on new shares issued by Aconex. In its Federal Court application, the Baillieu company alleged it had until April 30 this year to apply for any shares that had not been bought by other shareholders in a new share issue. But Aconex returned its $6 million cheque and Mr Jasper and Mr Phillpot bought the shares themselves, saying Hawthorn had missed the application deadline, which was April 16.

Given Ted Baillieu’s high profile in Victoria it is quite likely that Aconex will remain in the limelight until the court case is decided.

Permanent link to this article: https://extranetevolution.com/2007/08/aconex-in-austr/

Aug 21 2007

ConstructHub

From the European side of the Atlantic, the US market appears able to sustain numerous companies offering various different flavours of AEC-specific document management and online collaboration. Thanks to AECcafe.com, I have just added another Software-as-a-Service (SaaS) provider to my list: ConstructHub.

Based in Tempe, Arizona and formed, it says, by a group of experienced US construction professionals, ConstructHub has "completed comprehensive beta testing" and is ready to launch "true on-line construction project management with mobile support, single source data entry and secure on-demand business data".

For a change, the focus is not on making documents and drawings available online, but on managing business processes: "ConstructHub’s mission," it says, "is to streamline construction business processes and deliver measurable efficiencies through real-time visibility into the financial, human resources, and project management functions of construction management." Moreover, the aim is to achieve this through full interoperability across multiple operating systems, browsers, etc.

However, while the premise is good, the professional-looking website and glib marketing messages cannot completely shield a start-up business that has yet to really prove itself beyond its founders.

The current client list isn’t long (normal for a newly launched business), but four businesses in and around Arizona are listed, including Palisade Construction (whose Chris Bailey is quoted in the news release) and Signature Homes. These "client" testimonials are hardly surprising:

  1. ConstructHub is based on a web-based document management system written in PHP, codenamed ‘Project Gravity’, created by an Arizona State University computer studies student, Brian Folts, while working for Palisade. ‘Project Gravity’ then evolved into ConstructHub.
  2. The ‘experienced construction professionals’ in ConstructHub are also the senior figures in Palisade: CEO Troy Witherwax is co-founder and Vice-President of Palisade, while director of product development Keith Wilson is co-founder and President of the same company.
  3. Signature Homes appears to be part of Palisade Construction Inc (not, I think, to be confused with California-based Palisade Construction).

In short, the slick marketing website and strong launch PR look good, but existing US AEC SaaS vendors such as Autodesk Constructware, Meridian Systems’ ProjectTalk, e-Builder, etc, should not be unduly worried. In a competitive scenario, ConstructHub will struggle to convince potential customers that it has proved itself outside of companies in which its founders have established interests. It is easy to emulate and integrate with the business processes of firms which you know well, but just about every construction company will have subtly different ways of managing things – ConstructHub will need to show that its software services are configurable to suit a potentially much wider range of industry business processes.

Permanent link to this article: https://extranetevolution.com/2007/08/constructhub/

Aug 16 2007

Data Builder

On holiday last month, I read the excellent Bill Bryson book, The Life and Times of the Thunderbolt Kid, about Bryson’s boyhood years growing up in Des Moines, Iowa. Today, thanks to a comment from American Reader on a recent EE post, I had a look at the website of US document management software vendor Data Builder, and – by pure coincidence – noticed that it too is based in Des Moines.

Any way, enough of the strained connections…. Founded in 2003 and launched two years later, Data Builder (its strapline: Your Document Contractor) has two ASP products, e-PCS and ECC, aimed mainly at the US construction and FM markets:

  • ECC is a ‘snap-shot’ product intended to help project teams give all relevant information (as-built drawings, operation and maintenance manuals, certificates, etc) to a building’s owner/operator following completion of construction.
  • e-PCS is a document management solution for use during design and construction of a project, allowing a team to "manage documents securely, enhance collaboration and workflow between individuals and workgroups, and maintain a powerful, searchable archive".

The website doesn’t give much further detail about either product (apart from a couple of downloadable PDFs) or projects or customers, so I Googled it a bit.

Scan from paper

According to a press release on the AIMM site, Data Builder’s "Scan to Electronic Project Control System (e-PCS)" software allows:

"capture and distribution of paper documents from multiple brands of network attached digital copiers and scanners. Construction and facilities management firms now can use e-PCF document management software to more easily manage paper-based information, an important aspect of improving business processes and reducing risk of claims against projects."

The release quotes Scott Lombard, Data Builder’s VP of Sales and Marketing:

"We have jobsites that are basically paperless. Once a paper document is received, it is immediately scanned and the electronic workflow begins in e-PCS. By nature, project teams in the construction industry are in multiple locations and equipment may vary per jobsite. Supporting multiple copier and scanner manufacturers allows us to expand data capture capabilities for our users while leveraging our clients’ existing equipment."

Interwoven foundation

The foundation of the e-PCS software is Interwoven’s generic WorkSite Document Management solution (see release), upon which Data Builder has developed a solution for the AEC market, and which has been deployed by the Weitz Company (one of Data Builder’s backers, along with Emerging Growth Group), Walsh Group, Austin Commercial, Archer Western, and American Contractors Insurance Group. Data Builder also worked with Iowa State University to produce an analysis (“Economic Analysis of the Cost Impact of Implementing an Electronic Documentation System for Construction Projects”), showing "e-PCS can improve the efficiency of a general contractor’s building process by at least $4 to $5 million, delivering dramatic bottom-line savings in the context of the typical $100-million project".

Such savings are in line with those often quoted for the tangible benefits of construction collaboration (aka ‘project extranet’) software.

Extranet integration

Apart from mentioning collaboration in passing, Data Builder doesn’t position itself as a collaboration vendor, preferring instead to offer integration between its services and those of more established vendors operating in the space. For example, the e-PCS system can be integrated with Meridian’s Prolog (in addition to email integration with Groupwise and Microsoft Outlook) – but there is no mention of any integration with Meridian’s ProTalk online project management system.

Permanent link to this article: https://extranetevolution.com/2007/08/data-builder/

Aug 10 2007

The Road to SaaS

ASPnews.com has an excellent article, The Road to SaaS: 10 tips for a successful transition, by Luis Rivera, which is aimed at the managers of software companies that might be contemplating a move to Software-as-a-Service. It highlights some of the pivotal differences between the on-premise and hosted models, and the changes – from technological through financial to human resources – that will be needed to re-engineer a conventional licensed software business into a SaaS company. It is a daunting checklist, but it indirectly highlights the advantages gained by creating a SaaS business from scratch.

Permanent link to this article: https://extranetevolution.com/2007/08/the-road-to-saa/

Aug 08 2007

People, processes and technology

Attend almost any AEC industry conference or seminar where construction collaboration technologies are discussed and you will usually hear something to the effect that successful collaboration is 80% about people and processes and only 20% about the technologies involved (in my book, I even ventured that the balance could be more like 90/10). This type of guidance helps explain to potential users that they cannot expect an electronic solution to be some kind of ‘magic bullet’ – that they will also need to look at their own attitudes and behaviours and the practices and protocols they employ in communicating within the team. Similar messages are also being conveyed in other market sectors, it seems.

Last week, I read an AEC Cadalyst article, New Technology Drives Corporate Upgrade, which described how implementing Expesite’s web-based project management solution in US restaurant operator VICORP “was simple compared to the internal changes the company required at a deeper level”. Company spokesman Frank Scherer said:

“The rollout was a major paradigm shift for some people. … So many people needed to be involved and get onboard with the changes; yet there were people who refused to change. … Since the process was now transparent, people were being held accountable. That sounds like a bad thing, but it was actually good. There was no hiding the fact if something wasn’t going according to plan. It prevented a lot of problems.”

According to the article, Scherer thinks the challenges in implementing new technology are more common than most people realise, particularly the companies selling the technology (as I’ve said, this is already recognised by most vendors in the UK AEC collaboration space). Scherer recommends that any company looking to incorporate new technology should spend time up-front to evaluate how the process will work: “It sounds so simple to buy software and implement; but for an organization that has done it one way for decades, it’s much more complex than that.”

The AEC Cadalyst article then discussed another Expesite implementation, by US retail developer RetailWorks. Here a key issue was getting some third party development partners to use the system: “like anything it takes work to get people up and running”.

The same type of lesson is also being learnt in the manufacturing sector, according to another interesting Cadalyst article: PLM Strategies — Putting People and Processes before Technology. Discussing 3D Product Lifecycle Management (PLM) technologies, the article quotes David Prawel, a 3D software expert and founder of consulting firm Longview Advisors:

“To implement effective PLM, companies need to think about people, supporting processes, supported by technology. Too much software is acquired before core business processes and workflows are thoroughly understood, synchronized, and standardized.”

Substitute ‘extranets’ or ‘construction collaboration’ for PLM in the above quote and the message is clear. This is an important message for the AEC sector, particularly as it moves towards the embrace of building information modelling (BIM). Yet another AEC Cadalyst article, BIM Dos and Don’ts, even starts with the observation:

“When it comes to moving from 2D design to full-fledged building information modeling (BIM), the necessary technology, process, and workflow changes affect almost every aspect of design.”

Permanent link to this article: https://extranetevolution.com/2007/08/people-processe/

Aug 08 2007

Suster leaves Salesforce.com

Mark Suster, one-time CEO of UK construction collaboration vendor BuildOnline (now CTSpace) has apparently left on-demand CRM business Salesforce.com, only four months after it acquired his Koral business (see post). I’ve seen it rumoured (Twitter) that Mark has joined a venture capital firm in Los Angeles.

Permanent link to this article: https://extranetevolution.com/2007/08/suster-leaves-s/

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