Tag Archives: business model generation

BIM’s Blue Ocean

After I give one of my talks on building information modeling the question I’m most often asked is:

What’s the best BIM business model?

What is the best way to make a profit utilizing building information modeling on projects in their organization?

In other words, how can we leverage the technology to reap the greatest financial reward?

It goes without saying that they have invested a great deal of money in soft- and hardware – and time in getting comfortable with each – and now want to know what the return is on their investment.

Is it the Free business model?

The Long Tail business model?

Or something altogether different?

It’s actually a lot simpler than any of these.

It’s called “coupling.”

But we’re getting ahead of ourselves.

First, let’s take a quick look at two books that use the sea metaphor to help explain how businesses can best address our industry’s ongoing sea changes.

Then we’ll turn this metaphor on to design and construction professional’s situation to see how they can best benefit from the emerging technologies in their organizations.

C-Scape

A book every design and construction professional ought to read is

C-Scape: Conquer the Forces Changing Business Today, a book that shows how businesses can survive and thrive in the digital media revolution.

Don’t be turned-off by the book’s emphasis on media – especially digital and social media.

It’s the metaphor that’s applicable here.

The book’s storyline goes something like this:

Not so long ago, the business landscape was easier to chart.

That landscape has been upended, and in its place a “C-Scape” has emerged—a world where

  • Consumers, not producers and marketers, make the choices; where
  • Content, not distribution, is king; where
  • Curation becomes a primary currency of value; and where
  • Convergence continues to revolutionize every part of every business.

Taking a more in-depth look at each of these 4 Cs:

Consumers choose what, how, and when they consume information. This has given consumers more power than ever in the relationship with content creators and information sources. Those who don’t respect this new relationship will perish.

Content becomes king. With the Internet able to directly bring the buyer to the seller, the need to have a better product, not just one that is distributed better, will become paramount. Those who had distribution advantages will struggle so long as they are averse to focusing on competing with direct distribution.

Curation cures information overload. Businesses will need to monitor and curate conversations about their brands in order to prevent major blunders.

Convergence revolutionizes every form of communication. New forms of storytelling will emerge as all forms of communication converge on a single platform for the first time. Companies need to learn these new ways of telling stories about their products and brands.

You’ve probably experienced some of these forces yourself, on your teams and in your organizations.

There are some obvious overlaps with the construction industry.

But that’s not where we’re going with this.

While these concepts are astute, they represent the digital media’s C-landscape.

Not our own (unless you consider the idea that every organization is now in the media business.)

Design and Construction’s Seven Seas

Design and construction has its own seascape or C-Scape.

But its seven C’s don’t stand for consumers, content, curation and convergence.

Our seven C’s stand for:

  • Communication
  • Collaboration
  • Cooperation
  • Community
  • Complexity
  • Co-location
  • Co-creation

C-words, make note, all beginning with “co” – for “together.”

While Construction is another one (Coupling is as well) these 7 C’s represent our seascape or blue ocean.

Why?

Because in our profession and industry collaboration and the other six concepts are virtually uncharted waters.

Blue Ocean Strategy

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant,

You might recall is a book where the blue ocean metaphor represents a vision of the kind of expanding, competitor-free markets that innovative companies can navigate.

Unlike “red oceans,” which are well-explored and crowded with competitors, “blue oceans” stand for “untapped market space” and growth.

A few of the book’s basic concepts – implying where we are today and where we are headed – can be summarized as follows:

  • Compete in existing market space >>> Create uncontested market space
  • Beat the competition >>> Make the competition irrelevant
  • Exploit existing demand >>> Create and capture new demand
  • Make the value/cost trade-off >>> Break the value/cost trade-off
  • Align the whole system of a company’s activities with its choice of differentiation or low cost >>> Align the whole system

BIM isn’t our blue ocean.

Collaboration is.

Why?

Because BIM has become – or is fast becoming – ubiquitous.

And collaboration is still largely uncharted territory.

For BIM to live up to its promise, we must make it our goal to use emerging technology to address analysis such as building performance and energy use.

As Phil Bernstein FAIA predicts, “as these platforms get more robust and analytical algorithms get more sophisticated the whole analysis problem moves from things we understand right now – things like airflow and the modulus of elasticity – to building codes and air quality.”

To accomplish this we’ll have to share what we know with one another.

There’s no other way for our industry – and for us – to move forward.

In order for us to achieve our goals and in order for BIM to realize its promise, we will have to first accept, then relearn, how to communicate and share information.

The best way for design and construction professionals to accomplish this is by working together.

By leveraging each other’s experience and expertise.

By keeping an open line of communication and exercising it constantly.

By looking to one another for insights and solutions.

If we are to survive and overcome the forces that are remaking the design and construction landscape, we will do whatever is in our power to learn to work compatibly and effectively.

Together.

Coupling Design and Construction

Design professionals, especially, like to go it alone.

They find the idea of sharing design input, and more so, responsibility threatening.

“Let me take it back to the office and study it” is their onsite mantra.

Concerning our desire to peel away and sequester ourselves, I love this quote from the new head of the IMF, Christine Lagarde.

Four small words that were barely noticed when she said them at the Jackson Hole Symposium:

“Decoupling is a myth.”

Making the case for the key issue for the world economy:

Everything is coupled to everything else.

As futurist and iconoclast Stowe Boyd notes, “the steps taken to date have not decomplexified the economic tarball. No real steps have been taken to make the world economic system less connected, and that is the only path to a safer world.”

Like the rest of the world and economy, we are all in this together.

Connected.

There’s no extracting any one entity from the collective.

For design and construction professionals, it’s all “co” from here on out.

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Filed under analysis, BIM, BIM organizations, business model, collaboration, construction industry, design professionals, modeling

What’s Your BIM (BusIness Model) Done 4 U Lately?

It’s time for you and your organization to rethink your business strategy.

This post will introduce a fascinating, far-reaching and beautifully designed book that will challenge the way that you create value for your clients and think about how you approach Building Information Modeling (BIM) and Integrated Design.

Changing times and the harsh new realities of doing business in the AEC industry requires all of us to get innovative.

BIM especially requires design professionals to be as creative in their business strategy as they are in the design of buildings.

Do you know for certain how you can get the most value for the work you are undertaking?

A refresher on the BIM Business Model

Obsolete AEC business models are being replaced by those driven by BIM and the collaborative work process enabled by the technology.

For a quick refresher on the current (old) AEC Business Model, turn here, the Introduction to the BIM Handbook.

There are of course several BIM business models – determined by what phases you work in and the chosen delivery method.

As Joseph Joseph presented at AU in 2009, “Companies often make the mistake of embracing Building Information Modeling (BIM) as yet another technology and tool. BIM is a complete process solution that integrates within an organization structure. BIM is a business decision that pushes the envelope and moves companies in the AEC industry out of their comfort zone to explore new ways of writing proposals, budgeting, staffing, and billing jobs in a revamped approach.”

Here’s a free 19 page handout from his presentation.

Another author with the initials JJ offers a number of BIM business strategies noting that “BIM can be used at different levels to suit a firm’s business model and client needs. No matter how far you go with the technology, you can recognize benefits by addressing its capabilities and risks in both business strategy and organizational culture.”

You can find James Jonassen’s excellent article here at DesignIntelligence covering the following BIM business strategies:

• BIM through design only
• BIM through construction only
• BIM in design-build
• BIM in integrated project delivery
• BIM in enterprise/project integration

You might recall Jonassen is the author of AIA’s seminal Changing Business Models in BIM-Driven Integrated Practice, here included in the Report on Integrated Practice series.

Unprecedented BIM Business Models for Unprecedented Times

The thing is, we’re living in unprecedented times. We all need to be creative in how we go about serving our clients – and getting paid for the considerable work that we’re doing.

Doing the same thing, taking the same approach, over and over, irrespective of the client or situation – whether stylistic sense or business sense – no longer works for the design profession and construction industry.

Coming-up with a creative BIM business model is a great start to assuring that the client is satisfied and you walk away with a profit.

To be creative in your BIM business strategy it helps to know what your options are.

It also helps to know how others have approached similar business situations so that we can learn from them.

That is where this magnificent new book comes in.

BIM, meet BMI.

Building Information Modeling, meet Business Model Innovation, that is.

A self-described handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow’s enterprises, Business Model Generation is a model book for those who communicate design ideas for a living.

In short, BMG is a very practical and accessible tool to analyze and improve you and your business.

“Business model innovation,” say the book’s authors, “is about creating value, for companies, customers and society. It is about replacing outdated models.”

What is your organization’s business plan?

What is yours?

Whether you have one that is outmoded or don’t have one, you need this book.

How do you plan on leveraging BIM?

How do you plan on leveraging IPD?

Making the work process work for you financially is what this book will help you accomplish.

Are you getting paid for all the extra work that goes into your BIM models?

What’s your value proposition?

If not top of mind – if your answer isn’t on the tip of your tongue – then this book’s for you.

Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

This book will help you launch, re-launch or advance your career and business from a value creation standpoint.

BMG is an indispensible manual on how to map, analyze, and strip-down your organization’s business model and reassemble it into something that creates real value. 

The starting point is the Business Model Template which allows you to break your business down into:

  • Key Activities – What you do every day to make the model work
  • Key Partners – Your suppliers and partners that help you make the model work
  • Key Resources – The most important assets you used to create value
  • Cost Structure – All the costs involved in running the business
  • Customer Relationships – The types of relationships you have with your customer segments
  • Customer Segments  – The different groups of people you’re trying to reach and serve
  • Channels – How you reach your customer segments
  • Revenue Streams – Where you make cash from your customer segments
  • Value Proposition – The key ideas that create value for your customer segments

For me, there are three undeniable benefits brought about by this book that compel me to recommend it here in a BIM and IPD blog.

1. Like IPD, the book follows its own advice and was written collaboratively – by a team of 470 practitioners (co-contributing co-creators) in 45 countries.

2. Business models, like building models, come in many shapes and sizes. You will recognize many of the books and cases mentioned in this book – and learn things about them that you didn’t know. This book will re-familiarize you with the most popular models – and encourage and inspire you to come up with your own – one  that will work best for you or your organization.

3. The book is stunningly beautiful to look at – both rough and polished, well-designed – it will inspire; has the look and feel of Francis Ching’s books from the 70’s. It would be a sin to read this book on a Kindle or iPad. This one you have to feel in your own hands. The book is no stranger to visual and architectural design: one section of the book is entitled Patterns, and opens with an architect Christopher Alexander quote. The book was designed by The Movement http://www.thmvmnt.com/ a Global Change Agency that creates with people.

In the interest of brevity, I won’t review the book here. Life is short – read it.

Still not convinced? For a summary see the following links and “About the Book” below.

Considering going back for your MBA?

This book will provide you with all you need to know for an MBA in BIM.

Order this paperback book here.

Get a taste (a 72 page PDF preview) of it here for free.

Visit the website.

Read co-author Alexander Osterwalder’s blog.

About The Book

Synopsis

Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries. Business Model Generation offers you powerful, simple, tested tools for understanding, designing, reworking, and implementing business models.

Business Model Generation is a practical, inspiring handbook for anyone striving to improve a business model — or craft a new one.

Change the way you think about business models

Business Model Generation will teach you powerful and practical innovation techniques used today by leading companies worldwide. You will learn how to systematically understand, design, and implement a new business model — or analyze and renovate an old one.

Co-created by 470 strategy practitioners

Business Model Generation practices what it preaches. Co-authored by 470 Business Model Canvas practitioners from 45 countries, the book was financed and produced independently of the traditional publishing industry. It features a tightly-integrated, visual, lie-flat design that enables immediate hands-on use.

Designed for doers

Business Model Generation is for those ready to abandon outmoded thinking and embrace new, innovative models of value creation: executives, consultants, entrepreneurs — and leaders of all organizations.

Added Value

One reviewer offered this comparison with other popular books on business models:

* The Ultimate Competitive Advantage: Secrets of Continually Developing a More Profitable Business Model by Mitchel, Coles, Golisano and Knutson, has a heavier focus on marketing with some ideas and questions relating to one-sided business models, so if you are looking to “sell more” perhaps you like this book.

* The Profit Zone: How Strategic Business Design Will Lead You to Tomorrow’s Profits by Slywotzky, Morrison and Andelman, has a heavier focus on profitability and the changing areas in which high profit is possible to keep, it is a quick read and perhaps complementary to The Business Model Generation that focus less on profitability.

* Open Business Models: How to Thrive in the New Innovation Landscape by Henry Chesbrough has a heavier focus on technological innovation in the context of business models and also covers the important area of Intellectual Property in relation to open business models.

* Getting to Plan B: Breaking Through to a Better Business Model by John Mullins and Randy Komisar, focus more on entrepreneurship and start-ups and on learning from experimentation and adjusting the business model, also with more focus on financials.

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Filed under BIM organizations, collaboration, craft, craftsmanship, design professionals, Integrated Design, Integrated Project Delivery, IPD, modeling, process