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e-Business and the Changing Face of the Construction Industry

e-Business and the Changing Face of the Construction Industry. Steve Jones Primavera Systems, Inc. Case Study. 2000 CII Annual Conference Nashville, Tennessee. Plenary Session. Overview of e-Business What’s Happening Now? Construction Industry Construction Projects

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e-Business and the Changing Face of the Construction Industry

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  1. e-Business and the Changing Face of the Construction Industry Steve Jones Primavera Systems, Inc. Case Study 2000 CII Annual Conference Nashville, Tennessee

  2. Plenary Session • 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

  3. BACKGROUND: e-Business What Is Happening Now?

  4. BACKGROUND: e-Business “The future is already here; it’s just not evenly distributed.” William Gibson

  5. BACKGROUND: e-Business • “B2C” (Business-to-Consumer) • Where it started

  6. BACKGROUND: e-Business • “B2B” (Business-to-Business) • Fastest growing • More competitive: - Cutting operating costs - Improving service - Expanding globally - Being faster at everything

  7. BACKGROUND: e-Business • Net technology: Faster Better Cheaper

  8. BACKGROUND: e-Business • NO • EVERY ONE • ACTION • “EARLY ADOPTERS”

  9. BACKGROUND: e-Business • FORTUNE 100 companies • ALL purchasing • ALL suppliers • ALL the way down

  10. BACKGROUND: e-Business • Visibility • Control • Speed • Cost

  11. BACKGROUND: e-Business • General Motors: $100 PER TRANSACTION UNDER $10

  12. BACKGROUND: e-Business e-GM

  13. BACKGROUND: e-Business • Estimated annual volume of US B2B e-commerce: - $490 B in 1999 - $2.7 T in 2004

  14. BACKGROUND: e-Business • New motto for the Millennium: “TO e OR NOT TO BE”

  15. What Does it Mean to the Construction Industry?

  16. Road Kill on the Information Superhighway

  17. Owner Designer Contractor Subcontractor Vendor Manufacturer T O P D O W N The Construction Industry as we know it today...

  18. Owner Designer Contractor Subcontractor Vendor Manufacturer T O P D O W N The Construction Industry as we know it today... Inefficient Communications and Information Control

  19. Owner Designer Contractor Subcontractor Vendor Manufacturer T O P D O W N The Construction Industry as we know it today...

  20. Owner Designer Contractor Subcontractor Vendor Manufacturer EVOLVE

  21. Design Professionals Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades Central Online Information Management Hub

  22. Design Professionals Owners and Construction Mgrs DATA DATA Manufacturers and Suppliers Subcontractors and Trades Enter once… Central Online Information Management Hub …use many times

  23. Design Professionals Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades Access Information Central Online Information Management Hub Manage Activities Work Together Conduct Commerce

  24. More Efficiently Owners and Construction Mgrs Design Professionals Central Online Information Management Hub Anytime Anywhere Manufacturers and Suppliers Subcontractors and Trades At Internet Speed

  25. Design and Construction Facilities Management and Operations Real Estate and Planning Turning data…

  26. Design and Construction Facilities Management and Operations Real Estate and Planning …into KNOWLEDGE

  27. An End-to-End Solution for the Entire Life Cycle: Team Communication and Collaboration Product and Materials Research Design and Contract Documents Bidding, Contracting, Purchasing and Procurement Real Estate, Pre-planning and Team Formation Estimating, Scheduling and Budgeting Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO

  28. e-BUSINESS PLATFORM An End-to-End Solution for the Entire Life Cycle: Team Communication and Collaboration Product and Materials Research Design and Contract Documents Bidding, Contracting, Purchasing and Procurement Real Estate, Pre-planning and Team Formation Estimating, Scheduling and Budgeting Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO

  29. An End-to-End Solution for the Entire Life Cycle: Team Communication and Collaboration Product and Materials Research Design and Contract Documents Bidding, Contracting, Purchasing and Procurement Real Estate, Pre-planning and Team Formation Estimating, Scheduling and Budgeting Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO e-BUSINESS PLATFORM Data Content Applications

  30. e-Business Construction Project

  31. Pre-Project Planning Owner Database of Project Costs Economic Dev. Officials Financing Alternatives Real Estate Advisors Internal Best Practices Real Estate Alternatives e-Business Site • Research • Approval

  32. Team Formation Owner Program Managers Architects Construction Managers Engineers Specialty Contractors Specialty Consultants e-Business Site • Sourcing

  33. Team Formation Owner Performance Evaluations Supplier Profile e-Business Site References Quality Program • Private Data • Public Data • Best Practices RFQ, RFP Contracts

  34. Team Formation Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Passwords, Control Access Approval Process Automatic Routing • Private Project Website

  35. Team Formation Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Project Schedule Correspondence Meeting Minutes • Communications, Document Management

  36. Design Process Architects, Engineers, Designers, Consultants CSI Division Functional Specifications Bulletin Board Performance History e-Business Site References Cost and Availability Local Suppliers • Product Search

  37. Design Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Best Materials and Products Schedule Suppliers and Availability Constructability Cost • Integrated Team Dialogue

  38. Design Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Version Control Collaboration Redlining • Workflow, Document Management

  39. Design Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Specifications Maint. & Warr. Information Installation Details • Expedited Documentation

  40. Design Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Approval Virtual Plan Room Packages • Bid Sets

  41. Procurement Process Owner, Program Manager e-Business Site • Public Bid PUBLIC

  42. Procurement Process Owner, Program Manager Architects, Engineers, Designers, Consultants e-Business Site • Lump Sum Bids PRIVATE PUBLIC

  43. Procurement Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site • Construction Management PRIVATE SELF- PERFORM PUBLIC

  44. Procurement Process e-Business Site Specialty or Subcontractor Supplier or Manufacturer • Automatic Notification to Bidders

  45. Procurement Process Customized RFQ and Bid Form Terms and Conditions Bid Drawings And Specs Add Alternates e-Business Site Specialty or Subcontractor Supplier or Manufacturer • View before Printing • Decline or Download

  46. Procurement Process e-Business Site Specialty or Subcontractor Supplier or Manufacturer • Assemble Bid Vendors and Suppliers

  47. Procurement Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site Specialty or Subcontractor Supplier or Manufacturer • RFI’s, Bulletins, Clarifications, Addenda

  48. Procurement Process e-Business Site Specialty or Subcontractor Supplier or Manufacturer Schedule and Availability Cost Compliance w/ Bid Docs • Submit Bid • Automatic Analysis

  49. Procurement Process Owner, Program Manager Architects, Engineers, Designers, Consultants Construction Manager e-Business Site • Informed Decision onBest Value

  50. Procurement Process Construction Manager e-Business Site Specialty or Subcontractor Supplier or Manufacturer • Negotiate • Notify Won/Lost • Contracts • Insurance, Bonding, etc.

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