(Islam & El-Diraby, 2013) BUSINESS MODEL FOR BIM BASED SERVICES
(Islam & El-Diraby, 2013) BUSINESS MODEL FOR BIM BASED SERVICES
ABSTRACT:
Building information modeling (BIM) has emerged as a new construction technology that has a positive impact
on improving the construction industry. The adoption of BIM in the construction industry is still slow within the
construction firms. Some companies have successfully implemented BIM; however, they believe they can get
more value if the process is well coordinated among the stakeholders. Other companies fail to start the process
because of the high amount of required investments, training and organizational barriers. This gap between the
need for BIM services and the ability of companies to implement them in their business processes created a
business opportunity for selling BIM services to the clients. This paper proposes a business model for selling BIM
design services to different customer segments that requires assistance in BIM implementation. The business
model acts as a roadmap for companies to sell BIM design services.
Keywords: business models, building information modeling, cloud BIM, BIM services, BIM implementation,
BIM barriers
1. INTRODUCTION
Building information modeling (BIM) has emerged, lately, into the world of construction as a new design tool that
goes beyond the graphical presentation of the building to enhance the general design and construction processes.
BIM is a process-based system, and a culture, to exploit the use of virtualization to model all aspects of facilities
during the design phases; it allows users to fully and truly construct a building virtually, and in detail, before it is
built. BIM models cover physical aspects of the building as well as softer issues (such as costs, schedules, energy
consumption, constructability, and supply chain coordination). A survey by Autodesk (2010) software company
showed that the application of BIM tools has more than a 60% return on investment (ROI); moreover, many
architectural firms reported an ROI of more than 100% .
The implementation of BIM in the construction industry has not matured enough. Although BIM technology
has been around for several years, the adaptation by different stakeholders in the construction industry is still slow.
This slow adaptation is due to the challenging steps required by construction companies to adopt BIM into their
design and construction activities. Construction companies needs to substantially change their traditional methods
through applying new processes and investing more money in their technological and organizational structure.
Many companies lack the capability of using BIM in their projects and seek help from external consultants to
assist them in exploiting BIM added value (Becerik and Rice, 2010). Some other companies already started using
BIM in their projects; however, they believe that they are not getting the most value out of BIM, as they mainly
use it for its visualization capabilities. These companies believe that there is more value that could be exploited
from their building information models (Young Jr. et al., 2009).
The market need for BIM consultancy created a business opportunity for selling BIM services to clients. This
rendered a chance of creating a business model (BM) that is based on offering BIM services to the client which
fills the gap between BIM implementation challenges and its market demand. A business model is defined as a
map of how a company does its business; it identifies the main aspects composing any business such as financial
Proceedings of the 30th CIB W78 International Conference - October 9-12, 2013, Beijing, China 545
streams, customer segments, logistics and added value to the customers. Osterwalder and Pignuer (2010)
developed a user friendly canvas containing the 9 main building blocks of the business model that acts like a
roadmap for conducting businesses. In this paper, we propose a BM for BIMing the clients’ traditional designs
and providing them with the added values from BIM without those companies worrying about the required
infrastructure, organizational change or additional costs. This BM is presented in the framework developed by
Osterwalder and Pignuer (2010). The proposed BM will recommend a business approach and framework to sell
BIM services to the client through developing the 9 building blocks of the business model.
2. LITERATURE REVIEW
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BIM as a new tool to their design activities due to many reasons including extra costs, trainings and internal
resistance to change (Becerik and Pollalis, 2006) .
The implementation of BIM as a new technology is costly. Firms have to invest more money in the
technology (software and hardware); moreover, more money needs to be spent on training, developing expertise
and developing the required standards and tools for BIM implementation (Dell, BD+C, 2011). BIM, like any
other new technology, follows a learning curve; this means that the applying company will not be able to get the
whole benefit out of BIM until the designers and engineers master the tools and are able to fully exploit its value
(Words and Images, 2009). Companies sometimes resist this long term change and prefer to stick to traditional
methods of design like CAD. This resistance is considered to be a big obstacle to implementing BIM. A survey
showed that 62% of the respondents believe that their current design tools have more value than BIM (Young Jr.
et al., 2009).
Contactors and owners get the most benefits out of the added value of BIM. A survey showed that
contractors get around 72% ROI for their BIM investments compared to owners whom earn around 70% ROI for
their BIM investments (Young Jr. et al., 2009). Contractors and owners get the most benefits from BIM; however,
it is not fully adopted by many contractors and owners. On the other hand architectural firms were the highest to
implement BIM in their projects (Dell, BD+C, 2011). This shows that contractors and owners need assistance
when it comes to implementing BIM into their projects (Becerik and Rice, 2010).
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Osterwalder and Pignuer business model and its composition, please refer to Osterwalder and Pignuer, 2010. In
the next figure, the business model canvas is presented in addition to the definition for each of the nine elements.
3. RESEARCH OBJECTIVES:
The literature survey on the emergence of BIM in the construction market showed a gap between construction
stakeholders’ demand for BIM services and their ability to supply efficient BIM services. This created a new
business opportunity for selling BIM services to clients’. The business model approach proved to be an effective
business methodology to design or implement a new business or service. In this research, a business model for
offering BIM services to the client will be developed. This business model depends on converting traditional
designs to BIM based designs where the added value of BIM could be exploited without the customer having to
worry about additional costs, organizational changes or trainings. The aim of this research paper is to create a
business model for offering BIM services to the clients that could assist them to improve their designs and
generate more business opportunities.
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Figure 2: BIM Services Business Model Canvas
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4.2 Customer Relationships:
Customer relationships are the channel through which the firm offers its BMs to the clients. The success of any
project is highly dependent on the success of the interaction between the service provider and the client.
The first customer relationship scheme is case by case analysis. The BM provider has to assess the client and the
project situation and, accordingly, form a relationship scheme and a contractual agreement that fulfills the client’s
and the project’s requirements. This scheme is important due to the dynamic nature of the client and customer
segments which require the BM providers to tailor their relationship schemes according to the customer and job
requirements.
The second customer relationship scheme depends on maintaining a long-term strong relationship with the
clients to ensure the generation of future business opportunities. The proposed BMs depend on offering
continuous services to the client which requires a long term agreement between the client and the service provider.
Trust and credibility between the BM provider and client are key factors in maintaining good relationships. The
BM providers should ensure that they will be on the client’s list for the next project.
Additional relationship schemes are required to ensure satisfactory services to the client and an interactive
customer experience. The main purpose of the proposed BM is to sell BIM added value design services to the
client. It is essential to keep the client engaged throughout the project’s entire life cycle. The interaction could be
online using electronic platforms and a collaborative environment or through traditional face-to-face means. The
client’s involvement at different stages of the BM guarantees the model’s success. The online customer
relationship involves offering the customer online self-service tools that enable the client to manage the offered
services through accessing an online platform. The self-service tools provided to the client will be fulfilling their
needs of checking or modifying the design whenever they need.
4.3 Channels:
BM channels constitute the tools that the BM provider uses in order to reach the customer segments. Knowledge
is the main asset delivered to the customer in the proposed BMs, and its efficient and convenient delivery to the
clients is the key to the models’ success. These channels may include the traditional face-to-face mode or even the
e-business mode. Information and relationships generated from such traditional channels may support or integrate
with cloud generated delivery channels. Additional online channels, including web 2.0 tools and social networks,
are important to enhance collaboration and communication between different parties.
Cloud BIM is an important channel for BIM based services. The connection between different stakeholders of
a project is a success factor for any project. Cloud BIM offers an interactive platform over the cloud which is
accessible by different project stakeholders. It offers on demand services to the project’s stakeholders independent
of their IT capabilities or infrastructure. Cloud BIM enhances the collaboration and interoperability between a
project’s parties. It also ensures that different project stakeholders can communicate and deliver their comments,
changes and modifications to the other parties in an easy and convenient way thereby reducing rework and
conflicts.
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Advanced design systems: This BM offers its customers added value through proposing advanced design
systems that improve the whole design efficiency and cost. The model applies innovative design tools
and methods to improve and enhance the proposed designs.
The main values generated above are a result of secondary values delivered to the customer that are more tangible.
BIM added value services: The business model will offer the client BIM tools that will enhance the
whole project management process. BIM enables good collaboration between different project stake-
holders which will lead to reduced time and costs for projects. BIM offers the client many enhancements
to the project’s design and project management. It is a parametric design tool that adds scheduling and
cost dimensions to the 3D model of the building which makes monitoring and controlling the project eas-
ier and more efficient. BIM enables early clash detection between different aspects of the design, includ-
ing structural, electrical and mechanical, therefore reducing the possibility of design errors and conflicts.
Knowledge based design: This BM depends on knowledge as its main asset. The model provides the cli-
ent with improved designs dependent on the engineering knowledge and design analytics which provide
the client with added value information and wisdom about their designs. Knowledge-based design en-
hances the design efficiency and reduces costs.
Optimization: Value engineering and design optimization have a great impact on construction projects.
This BM will offer optimization services to different construction designs in order to ensure that the de-
signs are designed with the required quality and could be constructed in the least amount of time and
with the least cost. This will offer the clients more value from their projects by guaranteeing cost and
time savings without sacrificing the quality.
Trust and reliability: This BM will guarantee the constructability and efficiency of the design through
implementing design code checks and best practices. This will offer the client trust as a value where they
will be assured that the designs are efficient and good enough to be executed. The certification process
will also release the client from carrying full responsibility for his construction designs as the certifier
will carry shared responsibility as a reviewer of the designs.
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such as 3D graphical modeling, information management, parametric modeling, time and cost simula-
tions, and project monitoring. The technical activities also include the design certification and optimiza-
tion process which involves cross-referencing the designs with building codes and best practices to opti-
mize and certify the proposed designs.
Customer relationship management. This BM deals with customizing and improving the designs accord-
ing to the customer’s need which requires interaction between the customer and the provider. The service
provider must understand the customer’s situation and requirements in order to tailor the design to their
needs. The client’s sophistication as well as the project’s complexity differ from one case to another; thus,
the service provider must be aware of these changes and manage the relationships with the client accord-
ingly.
Technology and interoperability management: The construction design process involves different stake-
holders with a huge amount of exchanged information. The technological structure of parties contributing
to the design varies and will require effort from the service provider to manage the technological struc-
ture of the whole project to ensure that information within different parties and with different formats is
well shared and leveraged among all of the project’s stakeholders.
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the service provider has up-to-date information about the regulations and codes and, accordingly, ensure the
success of design optimization and certification services.
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