1. Michael Sheldon, CEO Demystifying Technology, Enhancing Corporate Value & Increasing the Bottom Line

2. Surviving Hysteria?

3. Facts & Hysteria GOLD – From1833 to 2001 the compound annual growth rate was 1.54% – From 2001 to now, we’ve seen an annual compound annual growth rate of 15.57% – Even with this surge, the lifetime annual growth rate is only 2.4% » www.kitco.com

4. Facts & Hysteria Foreclosures – 50% of US foreclosures in 2008 came from 35 counties in 12 states – 20% of the US population lives in these 35 counties – Eight counties in Arizona, California, Florida and Nevada were the source of 25% of the foreclosures – Existing home sales rose to a seasonally adjusted annual rate of 4.7 millions units in February 2009, and only 860,000 homes were repossessed all of 2008 » USA Today

5. Facts & Hysteria – The Stock Market Investors have made money 100% of the 15- year periods in the stock markets history Since 1974, the value of the S&P 500 has grown 1,250% from 63 to 850 (5/15/09 = 882)

6. Facts & Hysteria The Great Depression and Recent Recessions: – 1938 -40: Unemployment grew to over 17%, the Stock Market dropped 89%, and bread lines were real; executives didn’t fly Gulfstreams to Washington D.C. looking for bailouts (Historical Statistics of the United States, Colonial Times to 1970. US Bureau of the Census 1975) – 1974: The Stock Market dropped 50%, gas lines snaked around the block, and inflation became stagflation, i.e. inflation in a stagnant economy – 1982: Inflation was over 10%, unemployment was over 10%, and the interest rate reached 17% on home mortgages (www.miseryindex.com, Freddie Mac)www.miseryindex.com – 2009: Unemployment is at 8.5%, there is no inflation, and the home mortgage rate is 4 3/8%. The Stock Market dropped 57% but it has recently risen from a low of 6400 to over 8,200 (US Department of Labor, www.usinflationcalculator.com, Yahoo Finance) www.usinflationcalculator.com

7. Did You Know?

8. …we are living in exponential times If you were one in a million in China… ….there are 1,300 people just like you.

9. …we are living in exponential times China will soon become the #1 English speaking country in the world

10. …we are living in exponential times The 25% of India’s population with the highest IQ’s …is greater than the total population of the United States. Translation: India has more honors kids than America has kids

11. …we are living in exponential times The top 10 in-demand jobs in 2010…did not exist in 2004 We are currently preparing students for jobs that don’t yet exist, using technologies that haven’t been invented, in order to solve problems we don’t know are problems yet

12. …we are living in exponential times The U.S. Department of Labor estimates that today's learner will have 10-14 jobs …by the age of 38

13. …we are living in exponential times 1 in 4 workers has been with their current employer less than one year 1 in 2 have been there less than 5 years

14. …we are living in exponential times 1 in 8 couples married in the U.S. last year met online

15. …we are living in exponential times There are over 200 million registered users on MySpace If MySpace were a country, it would be the 5 th largest in the world. (between Indonesia and Brazil)

16. …we are living in exponential times Estimated that a weeks worth of the New York Times contains more information than a person was likely to come across in a lifetime in the 18 th century

17. …we are living in exponential times It is estimated that 4 Exabytes (4.0x10^ 19 )of unique information will be generated this year – that is more than the previous 5000 years

18. …we are living in exponential times # of years to reach market audience of 50 Million Radio38 Years TV13 Years Internet4 Years iPod3 Years Facebook2 Years

19. …we are living in exponential times The First commercial text message was sent in 1992

20. …we are living in exponential times Today the number of text messages sent and received everyday exceeds the total population of the planet

21. …we are living in exponential times There are 31 billion searches on Google every month… …in 2006 the number was 2.7 billion

22. …we are living in exponential times The number of Internet devices in 1984 was 1,000 The number of Internet devices in 1992 was 1,000,000 The number of Internet devices in 2008 was 1,000,000,000

23. …we are living in exponential times The amount of new technical information is doubling every 2 years.

24. …we are living in exponential times That means for students starting a 4 year technical degree, half of what they learn in their first year of study will be outdated by their third year of study

25. …we are living in exponential times NTT of Japan successfully tested a fiber optic cable that pushes 14 trillion bits per second down a single strand of fiber

26. …we are living in exponential times That is 2,660 CD’s or 210 million phone calls every second. It is currently tripling every six months and is expected to do so for the next 20 years.

27. …we are living in exponential times By 2013, a super computer will be built that exceeds the computational capabilities of the human brain. Predictions are that by 2049 a $1,000 computer will exceed the computational capabilities of the entire human species

28. …we are living in exponential times During the course of presenting these tidbits of information 67 babies were born in the U.S. 274 babies were born in China 395 babies were born in India …and 694,000 songs were downloaded illegally

29. …we are living in exponential times US population * (US Census estimates) 2010 estimates 310 million 2030 estimates380 million For Construction: …Estimates that by 2030 more than 50% of all buildings will have been erected post 2007

30. What does it all mean? Change is inevitable Part of your responsibility…like it or not, is change management Technology is part of change…shaping it, enabling it, forcing it Therefore, part of your job requires you to deal with technology

31. Reality Technology is only a tool – not a substitute for intelligence. Intelligent use of technology is an enabler, an competitive edge, a differentiator. Technology use for the sake of technology intoxication is not intelligent

32. Reality Construction Industry trails all other sectors in adoption of new technology, is experiencing declining productivity, is overly fragmented, can afford little risk and has minimal capital. “Construction is the only industry in America that has lost productivity in the last 40 years.”

33. 2 schools on Technology No way, no how, no technology…period Been there, done that, doesn’t work! …if you have bought into technology and it is working for you… …why are you here?

34. No Way, No How! Sometimes AKA: “I’ve got a guy who is doing something for us in EXCEL” Managerial Anemia Not actively looking to improve or evolve the success of the organization through continuous improvement, exploration and adoption of best practices, etc., is irresponsible stewardship Resistance to change Unable to change

35. Been There, Done That… Timing and trap of technology… Inadequate understanding the processes to be automated The application did not fit the process(es) intended to improve The users were unwilling or unable to accept/adopt/use the technology/application Incomplete due diligence What was available at the time may not solve the problems

36. Reality Net Income of top contractors in the US is as much as 25% higher than the rest – major contributor to this difference is their use of technology. If revenue is down and the market mood does not permit price increases, then profitability can only be realized by reducing costs.

37. Reality

38. Reducing costs You have to know your processes, and have a critical eye towards improvement First focus on the before and after…not the technology Be modular – review process and steps which are duplicated elsewhere, are manual, inefficient, administrative and repetitive – Bid Mgmt – RFI Mgmt – Payment Mgmt – Project Mgmt – Accounting Mgmt – Document Mgmt …Then ask and seek what can be automated

39. Reducing costs Typical bill payment A.)Receive and review bill B.)Write and sign check C.)Stuff envelop and affix stamp D.)Take to mail box E.)Wait for check to process F.)Wait for bank statement G.)Reconcile account Steps A-D…5-10 minutes Steps E,F,G…30 days ONLINE bill payment A.)Receive and review bill B.)Log on to bank/payee website C.)Select Payee D.)Type in amount E.)Press “send” F.)Wait for payment to clear G.)Reconcile account Steps A-E…<5 minutes Steps F,G…<2 days

40. Don’t Lose Profits Because of Inefficiency The global economy is out of our control. What we can control is our own business. Inefficiencies can be found in every department of every business. Labor, equipment, materials, time are all resources which are wasted through inefficiency To increase success and profitability it is necessary to find the inefficiencies and eliminate them – and the sooner the better.

41. Don’t Lose Profits Because of Inefficiency Harvard Design School Study Collaborative Project Management Solutions Can: Reduce RFI turnaround to as little as 5.4 days Generate annual savings of $500,000 through electronic bidding Lead to cost savings of $50,000 per year via electronic document transfer

42. Don’t Lose Profits Because of Inefficiency Collaborative Project Management Solutions Can: Inputting information twice – why? Help reduce time related costs – especially when reducing and eliminating duplicate efforts Real time, anytime information Decrease cost of communications Systems and tools designed to automate how your staff works Drive improvement in staff efficiencies

43. Empower the team with technological collaboration Once participants have determined how the program or project will proceed there is a strong need for a mechanism to centralize data and collaboration of information. Eliminate information silos. View and update data stored in one central location giving executives the ability to see, report and respond to progress in real time.

44. Mitigate Risk Labor or equipment hours > hours planned by bid Accomplish less than planned with same labor & resources in the same time Lost productivity, Disruption, Inefficiencies = all the same Technology can help reduce productivity loss Technology allows for transparency Transparency helps in execution of established goals – teams work together from top to bottom Transparency helps executives know if a project is in trouble before it is too late – don’t manage in the rear view mirror INTERNAL project execution transparency is key to meeting external reporting requirements.

45. Business Challenges Being able to see and react to change with agility Optimize resources Manage complexity All Related to Reducing Costs

46. Focus on Efficiency Due Diligence for the use of technology – What do I want to improve? – What can I automate? – Can technology and automation replicate my current process or do I have to change the way I do things? – Is the change going to have positive or negative impact on employees and productivity?

47. Business Challenge: Seeing and Responding to Change with Agility We need a single point of control to monitor how resources are being utilized, analyze resource use and events, take action to fix problems We require a solution that enables us to manage and report on business performance We seek to reduce our lost productivity by 20% We must respond quickly to changing business needs and conditions

48. Business Challenge: Optimizing Resources We want a solution that helps us increase our productivity and utilization of resources. We need to optimize performance of workload management, information management and in turn reduce inefficiencies and duplicated effort. Our people must have the right tools and resources available.

49. Business Challenge: Reduce Complexity

50. Intelligent Use of Technology Adoption – training, support and tools that automate a familiar process will be adopted faster and more completely. Don’t just reach for the most or least expensive Utilization – If people don’t use the tools you will not see the improvements you seek Pitfalls to avoid…

51. “IT will only [continue] to be a differentiator for construction companies that use it intelligently.” Mark White, Construction Executive