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. 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 Session

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

4. “The future is already here; it’s just not evenly distributed.” William Gibson

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

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

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

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

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

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

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

12. BACKGROUND: e-Business e-GM

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

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

15. What Does it Mean to the Construction Industry? What Does it Mean to the Construction Industry?

16. Road Kill on the Information Superhighway

17. Contractor Owner Designer Subcontractor Vendor Manufacturer The Construction Industry as we know it today... TOPDOWNTOPDOWN

18. Contractor Owner Designer Subcontractor Vendor Manufacturer Inefficient Communications and Information Control The Construction Industry as we know it today... TOPDOWNTOPDOWN

19. Contractor Owner Designer Subcontractor Vendor Manufacturer The Construction Industry as we know it today... TOPDOWNTOPDOWN

20. EVOLVE Contractor Owner Designer Subcontractor Vendor Manufacturer

21. Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades CentralOnlineInformationManagementHub CentralOnlineInformationManagementHub DesignProfessionals

22. DATADATADATADATA Enter once… …use many times Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades CentralOnlineInformationManagementHub CentralOnlineInformationManagementHub DesignProfessionals

23. Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades CentralOnlineInformationManagementHub CentralOnlineInformationManagementHub DesignProfessionals AccessInformationAccessInformation ConductCommerceConductCommerce ManageActivitiesManageActivitiesWorkTogetherWorkTogether

24. DesignProfessionals Owners and Construction Mgrs Manufacturers and Suppliers Subcontractors and Trades More Efficiently AnytimeAnytimeAnywhere Anywhere At Internet Speed At Internet Speed CentralOnlineInformationManagementHub CentralOnlineInformationManagementHub

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

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

27. An End-to-End Solution for the Entire Life Cycle: Real Estate, Pre-planning and Team Formation Real Estate, Pre-planning and Team FormationTeamCommunicationandCollaborationTeamCommunicationandCollaboration Product and Materials MaterialsResearch Product and Materials MaterialsResearch Design and ContractDocuments ContractDocumentsEstimating, Scheduling and BudgetingEstimating, BudgetingBidding,Contracting, Purchasing and ProcurementBidding,Contracting, Procurement Project Mgt, Close-out and Archiving Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO Facility Mgt, Modifications and MRO

28. An End-to-End Solution for the Entire Life Cycle: Real Estate, Pre-planning and Team Formation Real Estate, Pre-planning and Team FormationTeamCommunicationandCollaborationTeamCommunicationandCollaboration Product and Materials MaterialsResearch Product and Materials MaterialsResearch Design and ContractDocuments ContractDocumentsEstimating, Scheduling and BudgetingEstimating, BudgetingBidding,Contracting, Purchasing and ProcurementBidding,Contracting, Procurement Project Mgt, Close-out and Archiving Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO Facility Mgt, Modifications and MRO e-BUSINESS PLATFORM

29. An End-to-End Solution for the Entire Life Cycle: Real Estate, Pre-planning and Team Formation Real Estate, Pre-planning and Team FormationTeamCommunicationandCollaborationTeamCommunicationandCollaboration Product and Materials MaterialsResearch Product and Materials MaterialsResearch Design and ContractDocuments ContractDocumentsEstimating, Scheduling and BudgetingEstimating, BudgetingBidding,Contracting, Purchasing and ProcurementBidding,Contracting, Procurement Project Mgt, Close-out and Archiving Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO Facility Mgt, Modifications and MRO e-BUSINESS PLATFORM Applications ContentData

30. e-Business Construction Project e-Business Construction Project

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

51. Construction Manager Procurement Process Purchasing Specialty or Subcontractor Supplier or Manufacturer e-Business Site Purchase, Bid or Auction Rental Catalog Search

52. Construction Manager Procurement Process Applications for Payment Specialty or Subcontractor Supplier or Manufacturer e-Business Site Change Orders Discrepancies Retainage

53. Owner, Program Manager Construction Manager Procurement Process Applications for Payment e-Business Site

54. Owner, Program Manager Procurement Process Applications for Payment Architects, Engineers, Designers, Consultants e-Business Site

55. Project Management Owner, Program Manager Construction Manager Architects, Engineers, Designers, Consultants Specialty or Subcontractor Supplier or Manufacturer e-Business Site Central Communications and Archive

56. e-Business Site Field Reports and Daily Logs RFI’s and Submittals Materials Management Outstanding Issues Ship, Delivery and Approval Design or Field Changes Payment Applications Project Schedule Project Management Central Communications and Archive

57. Off-the-Shelf Applications Project Management Project Management Integration with Legacy Software e-Business Site ERP, Accounting Project Data

58. Project Management Management Reports Owner, Program Manager Construction Manager Architects, Engineers, Designers, Consultants Specialty or Subcontractor Supplier or Manufacturer e-Business Site

59. Project Management Close-out Construction Manager Architects, Engineers, Designers, Consultants Specialty or Subcontractor Supplier or Manufacturer e-Business Site

60. Project Management Close-out Construction Manager e-Business Site Changes and Retainage Digital Archive Auction-off Site Surplus

61. Project Management Close-out Owner, Program Manager Construction Manager e-Business Site

62. Facility Management Owner, Program Manager e-Business Site Web-based Life Cycle Asset Management

63. Owner, Program Manager e-Business Site Scheduled Maintenance Monitoring Catalog Purchasing Auto-bidding for Regular Purchases Warranty Data Troubleshooting Facility Planning Spare Parts Inventory Facility Management Web-based Life Cycle Asset Management

64. e-Business Site Design Standards Evaluation Programs Policies and Procedures Best Practices Accessible Central Archive and Resource

65. Real Estate, Pre-planning and Team Formation Real Estate, Pre-planning and Team FormationTeamCommunicationandCollaborationTeamCommunicationandCollaboration Product and Materials MaterialsResearch Product and Materials MaterialsResearch Design and ContractDocuments ContractDocumentsEstimating, Scheduling and BudgetingEstimating, BudgetingBidding,Contracting, Purchasing and ProcurementBidding,Contracting, Procurement Project Mgt, Close-out and Archiving Project Mgt, Close-out and Archiving Facility Mgt, Modifications and MRO Facility Mgt, Modifications and MRO e-BUSINESS PLATFORM Applications ContentData e-Business for Construction VISION… How Do We Get There?

66. Lots of companies want to help you get there e-Business for Construction

67. 219 AEC Dot Com’s May 8, 2000 AEC Dot Com Intelligence Report Lots of companies want to help you get there e-Business for Construction

68. Preview of the Implementation Session “ e-Business and the Changing Face of the Construction Industry”

69. 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

70. AND REMEMBER: 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