Tag Archives: value proposition

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

The Way Out is the Way Through

Happy architects are all alike; every unhappy architect is unhappy in his own way.

–          with apologies to Leo Tolstoy and Anna Karenina

Architects complain that contractors and owners are positioned to benefit from utilizing Building Information Modeling (BIM) and Integrated Project Delivery (IPD) but that architects are not.

It is clear that owners and contractors benefit from BIM and IPD. That there are fewer RFIs because the technology detects clashes before they occur in the field alone should be reason enough to convince owners and contractors that it is to their benefit to work collaboratively in BIM. But there is more – cost estimating done in advance, value engineering on the fly – the list of benefits seems to get longer every day. So who wins?

The owner wins. And to a lesser extent the contractor wins as well.

What about the architect?

No so much.

Architects complain that they have to do a lot more work up front, often hourly at-cost – and do work that they normally would do later in the process, and get generously compensated for.

So what are architects in it for? What do architects hope to gain by going down the BIM and IPD path?

Who benefits?

We were warned at the outset that none of us would get rich (nor become Frank Lloyd Wright.)

We went into architecture originally to be professionals – and somewhere along the way we were wooed by the prospect of making money. Yes, we need to survive and not be victimized, take-on needless responsibility and risk without opportunity for reward or recompense.

But the truth is if we work hard and do a good job it will be recognized – perhaps not on this project but the next.

We are motivated to do a good job – not by extrinsic rewards but rather by the promise of rewards more intrinsic.

But then the money’s doled out and we cry foul: the contractor and owner see all the benefit.

First we must realize that this is not true. We always did more work than we were compensated for. Today, with BIM, LEED and IPD, is no exception.

To empower ourselves – right now, at this moment in time – we need to do the work, earlier in the process, upfront, and yes maybe more of it than we’d like.

What’s the value proposition? We ask, despite the fact that if we were honest with ourselves we’d have to admit that the words – “value proposition” – weren’t even in our vocabulary a few years ago.

The value – and benefit – will come. It will come when

1. We first value ourselves and our own contribution and our own people. If you don’t value yourself and your people how can you expect others to?

2. Do the hard necessary work. Communicate with the contractor – what is needed for their model to be worthy, useful? Talk to your attorney and insurer – identify where they are willing to give a bit – and take it.

3. Be the ultimate professional you are capable of being. Be fun to work with – yes, fun. Be someone others want to work with. They will come to you again as much for the experience as for the sheer joy you create in others.

4. Identify the things you can leverage – your permitting ability, your political connections or clout, your experience and insights.

So for now, you may not get rich like the contractor or like the owner, but…do it anyway.

“80 percent of success is just showing up” — Woody Allen

Do it anyway? That’s right.

But what’s in it for us architects?

1. You’ll stay in the game.

2. You’ll be the first others think of when things pick up.

3. You’ll gain valuable experience working with BIM and related technologies and the collaborative work processes enabled by them.

4. Perhaps most of all, you’ll be perceived as being easy to work with.

So in the meantime – no matter the answer – do it anyway.

While the answer is being worked out – you’ll be at the game, at the show. It will go a long way to prove yourself a team player. And that in itself, in this economy, in these crazy times, is something, not nothing.

That you’re in it for more than obvious financial gain will become apparent to all and appreciated by a few.

For now, for the time being, do it anyway.

Balky Architects

But they won’t praise us.

Do it anyway

The extra effort won’t be appreciated.

Do it anyway

It’ll just give us additional exposure we don’t need.

Do it anyway

It’s not our responsibility.

Do it anyway

They say they’ll just use another firm if we balk.

Do it anyway

They say we won’t get any more money because we should have been doing this all along.

Do it anyway

The Way Out for Architects is the Way Through

As much as you might like to, you just can’t avoid it. You can’t resist it. No, you can’t sit this dance out. You have to go through with it. You have to play to win. And if you play nicely, with a good attitude and a positive mindset from the outset – all the better.

The way out is the way through. There is no other way.

Not around. Not under. Not by standing still until 9you hope) it goes away.

There are no workarounds for architects in the Game of BIM, LEED and IPD.

You have to show to play. And you have to play to win.

Being obstinate won’t work. Blocking, playing hard to get, holding back, balking, withdrawing, thwarting, resisting or retreating – none of this behavior will work. There is only one thing that will work right now, today.

Give Unconditional Architecture

Author Kent M. Keith was a Harvard student in the 60s when he first wrote “The Paradoxical Commandments,” a manifesto about doing good in a crazy, ungrateful world. These commandments have been quoted by the Boy Scouts of America and discovered in Mother Teresa’s children’s home in Calcutta. They’ve taken on a life of their own and are the basis of his repackaged and expanded book Anyway: The Paradoxical Commandments: Finding Personal Meaning in a Crazy World available for a penny, .01 cent, here.

What architects need most to do is to do the right thing.

Architects need to do good, right now, in a crazy, ungrateful world.

The Architect’s Paradoxical Commandments

1. People you work with and for are illogical, unreasonable and self-centered.

Serve them anyway.

2. If you do good, contractors will accuse you of selfish ulterior motives.

Do good anyway.

3. If you are successful, you will win false friends and true enemies.

Succeed anyway.

4. The good you did yesterday will be resented today and forgotten tomorrow.

Do good anyway.

5. Honesty and frankness make you appear weak and vulnerable.

Be honest and frank anyway.

6. The biggest architects with the biggest ideas can be shot down by the smallest clients with the smallest minds.

Think big anyway.

7. People favor underdogs but follow only top dogs.

Fight for a few underdogs anyway.

8. What you spend years building may be shelved or even destroyed overnight.

Design and build anyway.

9. The public and users really need help but may attack you if you try to help them.

Help them anyway.

10. Give the world the best you have and you’ll get kicked in the teeth.

Give the world the best you have anyway.

– with apologies to Kent M. Keith

Until there is a clear advantage for architects – Do It Anyway

I was talking with a colleague the other day – she has been looking for work for some time and said that the basic attitude out there in the job-hunt warzone is:

“No BIM, no LEED, no interview”

Imagine a sign on the office door that reads:

No BIM

No LEED

No interview

You may not have a shirt on your back – and your shoes may be in ill-repair – but you can have these. BIM , LEED and IPD – or BIM and Integrated Design, for short.

You know the sign that reads: No Shirt, No Shoes, No Service?”

BIM is the shirt on our backs.

LEED and IPD each of our shoes.

We’re not too far off from being turned away from RFQs and RFPs and, yes, from interviews:

No BIM

No LEED

No interview

There are a lot of reasons to learn BIM. And a lot of reasons to study and take the LEED exam.

Not fall behind, to remain competitive, to stay sharp, to help our clients achieve their goals,to help make the world a better place for all (need I continue?)

I have in my time been accused of being an architect. And, by association, idealistic.

I suggested the other day to a colleague in my network that there was a dollar amount above which was unnecessary for me to make to be satisfied, fulfilled and happy. And that person called me an idealistic architect.

And in doing so he was being redundant. Idealistic defined here as foolhardy, unrealistic and lacking any business sense.

And architect?

Doesn’t pay what I’m worth? I don’t care – I do it anyway.

There are lots of reasons NOT to do these things

No time

No money

No motivation

Helpless

Pointless

Too many people out there competing for the same positions

There are no jobs…

All excuses

No time?

Do it anyway

No money?

Do it anyway

No motivation?

Do it anyway (the most important writing advice I have ever been given? 3 words: Butt in seat)

Feel helpless? You are not your feelings. The feeling will pass.

Do it anyway

What’s the point?

Do it anyway

Too many people out there competing for the same positions.

Do it anyway

There are no jobs!

Do it anyway

You get the point…Do it anyway

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Filed under BIM, BIM employment, BIM jobs, collaboration, design professionals, Integrated Project Delivery, IPD, people, Uncategorized