Technology and the Construction Industry:

Impacts on Efficiency, Communication and Processes

Arol Wolford, President, CMD Group

Principles Addressed in the Construction Information

Industry

Principles Addressed in the Construction Information

Industry$400 Billion

10%, or $40 Billion is spent on Estimating and Plan Dissemination

10%, or $40 Billion is spent on educating architects regarding product selection and educating trade contractors to promote sales opportunities

$80 Billion Industry Potential

Tra

de C

ontr

acto

rsB

uilding Product M

anufacturers

Internet as a MagazineInternet as a MagazineInternet is moving away from the

magazine metaphor . . . - Articles/Editorial content - Photos- Not live- Not interactive

Internet as TelevisionInternet as Television. . . Moving towards the television

metaphor

- Dynamic visuals- Streaming content- Interactive

Our FutureOur FutureWhy Project Specific Websites don’t work currently: Real collaboration is not taking place

Why it will work in the future:Project Specific Websites + Broadband + Internet

Visualization Interactivity Virtual job site 3-D Exchange of building product materials

Current Market ValuationsCurrent Market Valuations

Ticker Price O/S (mm's) Mkt Cap (mm's) Rev (mm's) MktCap/Rev Net Inc (mm's) MktCap/Net IncPurchase Pro PPRO 5.36 372.7 6 214.9x (72) (17.9)xAriba ARBA 6.43 252.4 1,623 40 823.8x (30) (1,098.4)xCommerce One CMRC 10.58 196.6 2,080 30 259.7x (60) (129.8)x

AOL AOL 48.42 4,419 214,000 4,777 25.5x 396 307.8xMicrosoft MSFT 65.25 5,335 348,100 19,000 20.0x 8,000 47.5xOracle ORCL 18.45 5,614 103,600 9,000 26.0x 1,300 180.0x

Computer Associates CA 37.14 576.3 21,400 5,200 2.9x 1,300 11.5xIBM IBM 107.93 1,876 201,500 87,000 2.5x 7,700 28.3xGE GE 42.37 9,933 470,500 112,000 5.0x 11,000 51.2x

Reed-Elsevier RUK 38.0 315.6 11,990 ENL 26.2 367.9 9,638

Total 21,628

5,100 3.8x 800 24.4x

Thomson TMS 40.25 124.4 5,005 5,700 6.3x 500 71.7xMcGraw-Hill MHP 64.8 194.9 12,630 4,000 2.9x 400 28.9xWashington Post WPO 601.00 9.461 5,686 2,200 2.2x 200 24.1x

Source: MSN InvestorShare Prices as of 4/18/01

FY 1999 (in millions)

69.53

A New Economy FormulaA New Economy Formula

E = m B b

E = E-business: market data exchange including transactionsm = mobility: number of units that have market data and transaction capabilityB = Broadband: 1.5 megabytes/secondb = business efficiency software

BroadbandBroadband

Shift will be enabled by broadband 28k 33k 56k T1 !!!!

Dynamic - Faster download speed of more content

Interactive - Faster two-way transfer of data

3-D Visualization3-D VisualizationBreakthrough in 3-D Visualization

TechnologyBoeing 777 Twinjet

– Virtually designed– Virtually built– Virtually tested

New Design ParadigmNew Design ParadigmNew paradigm for the Design Industry

Virtual Design/Build/TestEnabled by unlimited computing powerBenefits:

– Cost effective– Parametric costing– Architect and owner involved

Sega Dreamcast as featured on Amazon.com

3-D Design Today3-D Design Today

Today, more money is spent in the visual game industry than in

the entire movie industry

Virtual EnvironmentsVirtual Environments

Moving from Service Economy to an Experiential Economy–Virtual environments–Re-creation of ancient Rome, Jerusalem–Importance of experience

New Economy ApplicationsNew Economy ApplicationsVirtual environments will open new

worlds to the masses– Education– Travel– Gaming– Work– Design

New DesignNew Design

By 2005, more than 25% of architectural design dollars will

be spent on virtual buildings