One Brick at a Time: Construction Software Licensing

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2nd October 2018
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One Brick at a Time: Construction Software Licensing

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A healthy and productive construction industry benefits everyone, we all live or work in buildings, go to pubs and restaurants, visit stadiums or stay at nice hotels. But the construction industry is underperforming in terms of quality and productivity. “The methods and processes employed are still traditional. Work is still performed manually and on-site, and mostly outdated with productivity dwindling since the 90s.” (Aproplan 2018).

Worldwide, construction is already one of the largest industry sectors and global investment in construction and infrastructure will be $57 trillion by 2030 according to a study by the McKinsey Global Institute. And yet labour productivity is struggling to keep up with this overall economic success. While many sectors including agriculture and manufacturing have increased productivity ten to 15 times since the 1950s, the productivity in the construction industry remains stuck at the same level as 80 years ago (McKinsey & Co.).

Workers in construction are also ageing out – about 21% of employees in the construction industry are age 55 or older, compared to just 9% that are 24 or younger, (Constructconnect). Tech-savvy millennials aren’t rushing to a career in construction, which when coupled with an increasing demand for workers will only compound the issue.

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However to solve cost and productivity problems and even attract a younger workforce, the solution is quite literally right at our fingertips. Emerging technologies like VR and AR, robots, drones, 3D printing, the Internet of things (IoT), wearables and autonomous vehicles can all be adapted for use in the construction industry. Construction software can track documents and data and organise it, improve communication and even create positive safety outcomes for companies. The construction industry as a whole is notoriously slow at adopting new technologies, but as construction projects are becoming more demanding and complicated in design, BIM and smart buildings will force the hand of the construction industry into a greater adoption of construction software.

This presents an abundance of opportunities for construction software vendors, but only if they too, move with the times. The lack of urgency to move away from traditional processes and adopt updated digital practices means that some construction software vendors are spending over 70% more than their competitors on software licence administration. As a supplier of software licensing solutions to some of the world’s leading construction software providers we’ve seen first-hand the incredible possibilities of how the construction industry can be transformed.

BIM and laser scanning are becoming more commercially affordable, and despite the initial investment, can save money in the long term by streamlining processes for the companies that use them. However, typical profit margins for construction companies range between 2 and 8 per cent and consequently, construction companies find themselves unable to invest in critical new technology that would break the cycle of shrinking profit margins and flat productivity.  A steady decline in financial returns can be completely transformed by technology, meaning that budget allocation to these products can easily be justified by construction companies. But this justification will only be made if the spend on this software can be optimised through adaptive pricing and licensing models. Construction software vendors that can capture lower-end prospects will achieve a significant competitive advantage, but this means having a software licensing solution in place that is also adaptive and can offer unlimited flexibility.  

Today’s modern construction software vendors need to offer their customers the capability to optimise software usage, making licenses available to other users when necessary and eliminating unnecessary purchases. They also need to ensure that they’re not missing out on valuable revenues. All of this requires a system that knows the state of deployment of all of your software licenses at any given point in time; something that’s simply not possible with outdated license key solutions. You need to be able to ensure that your customers’ organisation has the software it needs and that every asset adds value to their business, whilst at the same time ensuring that they are not under-licensed.

Watch the video to find out how Causeway Technologies leveraged the 10Duke Software licensing solution to gain complete visibility over their software licensing.

Read the Trimble case study to discover how they used 10Duke Entitlements to control their software licensing in real-time from a simple web page.

Contact us to find out how 10Duke can help future-proof the way you license your software.

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