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In Service Companies, There Is No Line Item for R&D

Originally posted on The Combine.

K.P. Reddy: "No line item for R&D in service companies"

Recently, Matt GrayBuiltWorlds founder and co-chairman of Graycor, a 90-year-old, Chicago-area general contractor, interviewed The Combine Co-founder and Partner, K.P. Reddy. We captured the interview on video, which is important, because this interview is one of the very few times you’ll ever see K.P. Reddy in a collared shirt and a coat. Here’s the video.

Notable Quotes from K.P.

The capital requirements to start an architectural firm are nothing. All you need is a customer.

The Combine works with large companies to spin out new tech companies.  Especially in service companies, they are so close to the customer’s problem. They understand the problem. They’ve studied the problem. Then they start trying to solve that problem, by launching a new service unit to focus on that problem. Or, these days, everyone wants to build a new piece of hardware or software.

There is no line item for R&D

But in these companies it’s about billable hours, project revenue, project margin. There is no line item for R&D. So we’re able to go into these companies and mine these really cool innovative ideas and spin them out as tech startups.

Higher ROI outside of their core business

The large companies also retain ownership in the startup. Startup valuations are very different than services firm valuations, and particularly engineering and architectural firms. So we’re able to in many ways generate higher ROI outside of their core business than within their core business.

Civil Engineers Rule The Future!

When you hear the term “civil engineering”, your eyes and ears usually don’t perk up in anticipation like they do when you hear “new iPhone” or “driverless cars” or “Artificial Intelligence.” Instead, you think bridges, roads, dams, airports, traffic patterns…buildings. Civil engineers are boring, right? [Read more..]

Stop, Collaborate, and Listen

head shot image of Brian Skripac

For Brian Skripac, the key to implementing new technology is to try not to get bogged down in the technology.

Counterintuitive, right?

But for him, tech is less about the “what,” and more about the, “how.”

He asks, “How do we plan our work and work the plan?”

In other words, it doesn’t matter so much what a tool can do unless you know how to use it. And knowing how to use it requires a thoughtful approach to teams and processes. It’s about being focused on operational excellence.

Brian Skripac is currently a Vice President and the Director of Virtual Design and Construction at CannonDesign, where he continually drives innovation by merging technology and practice. He has 21 years of industry experience, with the last 11 focusing on the integration of BIM to transform the design and project delivery process.

Brian Skripachas also successfully developed and managed BIM-enabled delivery systems for large efforts in Design-Led Construction. In addition, he focuses on the use of BIM to capture and structure relevant facility data, implementing the value BIM brings to facility owners from an interoperable lifecycle management strategy. A thought-leader in this field, he is an advisory group member and past-chair of the AIA National Technology in Architectural Practice Knowledge Community and serves on the BIMForum committee responsible for authoring the LOD Specification.

How long have you been part of this industry?

Brian Skripac: I’ve been part of AEC industry since 1996, and then I really started with a BIM focus back in 2005. I was working as a post-graduate architect looking to get into a project architect role, and I was teaching a college-level 3D modeling class in the evening and on the weekends. Someone mentioned an opportunity to work with an Autodesk reseller consulting firm, and it was there that I came across Revit for the first time. I thought to myself, “This is a game changer.” In that moment I saw that it wasn’t just about using a new software. It’s about driving a whole new process about how we practice architecture.

What changes have you seen for the positive in the AEC space since then?

Brian Skripac: A better focus on collaboration and integration. The more we work with these new technologies, the more we start to embrace processes where we work more collaboratively. We’re doing a better job of breaking down the silos of architect and builder. We’re able to take advantage of information and knowledge on the construction side to come back to the design side and raise the bar on how we deliver projects.

This BIM wave we’re on is certainly something that’s facilitated that. More owners have adopted this model, which gives you better deliverables, reduced cost, improved schedule. It used to be you could get two out of three: cost, time, and quality. Now we do a better job of planning out our work and sharing knowledge and information.

A tool like BIM can be a catalyst but it’s not the easy button. It gives you the ability to know and plan for what you want to capture, but you need great teams and processes to take advantage of it.

What changes have you seen for the negative?

Brian Skripac: With BIM, the constraints of sharing information is a concern. But that’s also an opportunity. It’s not about risk avoidance, but risk management. In the industry, at a project manager level, there’s still trepidation to share what we’re doing. That’s the difference between the people who are excelling and the people you aren’t: the ones who are sharing, collaborating, are excelling. At CannonDesign, we’re embracing this Virtual Design and Construction idea, and we have a design-led construction team. Part of our delivery model is the larger idea of being a single source environment. When we can do it, we’re much more collaborative and the sharing of information goes further to building repeatable, collaborative engagements.

What draws you to the technology side of things?

Brian Skripac: For me, when I first came out of school, I had to do the same mundane things over and over; repeat the same change ten times across a set of drawings. Initially, I was attracted to the technology, but when I got to really learn the tool, I quickly saw beyond the visualization aspects and realized it’s about a larger project performance idea. As an architect, I’ve always been intrigued by the construction side, and having project opportunities to work with owners on how to set delivery standards as it relates to BIM has been a full circle endeavor.

Why do you think this industry lags behind in tech?

Brian Skripac: I’ve seen this problem from multiple sides. Sometimes in architecture, it lags because a majority of architecture firms are ten people or less. There’s a financial constraint of switching over systems, and a human capital constraint of who’s going to lead that. With large firms, it’s like turning a cruise ship, so pushing standards and process changes have its own unique time constraints to get a full adoption.

Imagine you’re talking to a high school senior. What would you tell her to major in, and why?

Brian Skripac: Whatever they’re interested in. Find something that you like doing and go all in. My kids explore different things and I want them to be savvy and creative at the same time. A lot of their activities in school are very tech-focused and I just want them to keep learning. My son had a class this year where they were using modeling systems and 3D printers and my daughter just attended a summer camp called Camp Invention, which had a STEM focus. There are so many opportunities to innovate.

What advice would you give to someone starting out in the industry?

Brian Skripac: Don’t be bogged down by, “that’s how we’ve always done it.” Find new ways. That’s the biggest killer: “that’s not how we do it”, or “we’ve always done it this way.” No. We’ve got to evolve.

What’s the worst advice you’ve ever gotten?

Brian Skripac: At a previous firm, we were doing testing and vetting new sustainability tools. We were looking at analysis software, trying to figure out how to integrate it into our design process. My CEO at that time was in our presentation. He stood up and told us, “You guys are just wasting your bonus checks spending your time on this. We’re not going to waste money on this and you’re just wasting your time.” Needless to say, I started working on my resume and left that firm shortly after that.

What was your first job ever?

Brian Skripac: I cut grass when I was 10 or 12, around the neighborhood and the front yard of my dad’s office on weekends.

Tech Takes

What is your must-have smartphone app?

Brian Skripac: Cozi. That is our family calendar app. Everything’s color-coded, so you know who’s going where at what time: who’s traveling for work, who’s got baseball after school. It’s a sanity check.

What are your 3 favorite technology tools you use throughout your day?

Brian Skripac: I love Twitter for staying up to date and sharing and gathering information. Trello is a great one, using cards to manage to-do lists, get feedback on ideas, and communicate with our team. We also use join.me for communications. I spend a lot time on the phone with our offices around the globe, so being able to connect with people that way is pretty important.

Windows/MAC/Linux and why?

Brian Skripac: For whatever reason, I’ve never been in a working environment besides Windows.

iOS or Android, and why?

Brian Skripac: I love my iPhone!

Why your construction firm is really in the business of construction technology

The construction industry has a technology problem..
A 2016 survey by strategic advisory firm, KPMG, shows that the industry is ambivalent about technology uptake. While 61% of construction companies are using Building Information Modeling (BIM), the survey also found that firms are not investing in single, fully integrated project management information systems. Instead they are using multiple software platforms that are manually monitored, an inefficient use of software at best. This can lead to a perception that they are not getting full value from BIM because information is lost as it moves from design processes and into construction.

The article Why your construction firm is really in the business of construction technology appeared first on Built Worlds

Source: www.builtworlds.com

 

Bridgit brings digital transformation to construction sites

The construction site is rapidly transforming through the adoption of digital tools. Innovators are developing technology to help stakeholders deal with tasks in an effective and efficient way. Startup Bridgit is right at the heart of that effort.

 

Komatsu, Trimble partner for 3-D construction data sharing

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Heavy equipment manufacturing giant Komatsu and positioning software maker Trimble are teaming up to enable the sharing of 3-D construction job site data.

The Post Komastu, Trimble partner for 3-D construction data sharing appeared first on Construction Dive.

Source: www.constructiondive.com

Exploring the Scale and Scope of the Architecture, Engineering & Construction (AEC) Industry at Spar 3D and AEC-STE

While keynotes from industry stalwarts like Paul Doherty and Aaron T. Becker and plenary presentations by Greg Bentleyand Burkhard Boeckem were considered by many to be the highlights of the SPAR 3D Expo and Conference, the biggest news from the show had actually come a few weeks earlier. In March, SPAR 3D and AEC Science & Technology (AEC-ST) announced that they would co-locate in June of 2018 in Anaheim, California.

The post Exploring the Scale and Scope of the Architecture, Engineering & Construction (AEC) Industry at Spar 3D and AEC-STE appeared first on AEC-ST

Source: AECST

 

Why Construction Sites Aren’t Ready for Automation

It seems inevitable that every industry will eventually start automating. In construction this moment has already arrived, partially due to the release of unmanned aerial systems, many of which include software and payloads designed to help companies create 3D maps of their worksites without any human intervention.

The post Why Construction Sites Aren’t Ready for Automation appeared first on AEC Science and Technology.

Source: AECST

SGA uses virtual design and construction technology to redevelop N.Y. building into modern offices

Spagnolo Group Architecture (SGA), the lead architect for the project, is making use of virtual design and construction (VDC) technology to help design, construct, market, and manage the redevelopment. Through the use of the VDC technology, SGA is able to visualize the building improvements and make design changes in real time.

The post SGA uses virtual design and construction technology to redevelop N.Y. building into modern offices appeared first on Building Design + Construction

Source: BDC Network

5 trends shaping the future of offsite construction

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The construction industry has found itself at a crossroads. While the industry has been resistant to change, the built world around it has not been — and the need for additional housing, offices, schools, hospitals and more in shorter timeframes is only growing. As product manufacturers of all kinds have retooled with replicability and expediency in mind, construction companies are taking note of their success.

The post 5 trends shaping the future of offsite construction appeared first on Construction Dive

Source: www.constructiondive.com