The architecture, engineering, and construction (AEC) industry will be disrupted by technology in a significant way. BuildingSP believes that design automation will be the disruptor based on the history of disruption, the first principles that design automation affects, and similarities to other design automation examples.

1. BuildingSP
Algorithms and Automation
for the Construction Industry
Why Design Automation
Will Disrupt AEC

2. BuildingSP
The definition of engineering is important to
disruption.
Engineering is the use of math,
science, and tech to optimize a
problem.

3. BuildingSP
The definition of engineering is important to
disruption.
Engineering is the use of math,
science, and tech to optimize a
problem.
Disruption always involves engineering

4. BuildingSP
Problem
We are at the
limit of our
ability to click,
drag, and scroll
when doing BIM.

5. BuildingSP
We need more
innovation to fix this.

6. BuildingSP
Insight Value
Innovation:
What is Innovation to us?

7. BuildingSP
Insight Value
Innovation:
Innovation is a continuous process where
insights achieve value through change
management

8. BuildingSP
What is disruption?

9. BuildingSP
What is disruption?
Disruption is a business model change
where segments of an industry cannot
adapt.

10. BuildingSP
What is disruption?
https://www.linkedin.com/pulse/disruption-aec-learning-from-uber-kodak-brett-young
Kodak & Uber
Kodak missed the opportunity to
disrupt themselves.
(TLDR: They invented the digital
camera. But went bankrupt.)

11. BuildingSP
What is disruption?
https://www.linkedin.com/pulse/disruption-aec-learning-from-uber-kodak-brett-young
Kodak & Uber
Uber disrupted cabs through better
customer service.
(TLDR: Will Lyft beat them once the VC
money runs out? After all, Lyft has the
same biz model.)

12. BuildingSP
Disruption is not a Sudden,
Rare, Unexpected Event

13. BuildingSP
Disruption is not a Sudden,
Rare, Unexpected Event
We think we had to get
comfortable w/ online
dating before we’d get in an
Uber, for example.

14. BuildingSP
In AEC, it feels like we look
for black swans
But there’s a pile of reasons
why we’re ready for
disruption.

15. BuildingSP
• Flat Productivity in AEC
– McKinsey’s recent studies often cited, accepted
• Gap between Tech and Applied Tech
– Our friends in other industries kick our ass
• Global Population Growth
– The world needs faster, cheaper, better designers and builders
• Venture Capital
– Venture Capital eager to “participate” in AEC disruption
4 Big Reasons Disruption is Coming

16. BuildingSP
• Flat Productivity in AEC
– McKinsey’s recent studies often cited, accepted
• Gap between Tech and Applied Tech
– Our friends in other industries kick our ass
• Global Population Growth
– The world needs faster, cheaper, better designers and builders
• Venture Capital
– Venture Capital eager to “participate” in AEC disruption
4 Big Reasons Disruption is Coming
Let’s look at these two.

17. BuildingSP
We add a bunch of tech in 30 years, but don’t improve.

18. BuildingSP
We add a bunch of tech in 30 years, but don’t improve.
Why?
CAD
Faxes
Digital Printers
PDF
GPS
Internet
Desktops
Digital Cameras
Laptops
iPads
Cell Phones
BIM
LIDAR
Drones
IoT
VR / AR

19. BuildingSP
GC invests money in caffeinated hot dogs.
Google: John Macomber
Case Study: Productivity Hot Dogs
Jobsite productivity soars.
Project savings of 10%.
What happens on the next project?

20. BuildingSP
GC invests money in caffeinated hot dogs.
Google: John Macomber
Case Study: Productivity Hot Dogs
Jobsite productivity soars.
Project savings of 10%.
What happens on the next project?
GC cuts their price to guarantee the next
project.
They “give away” the value of the
Innovation in exchange for top-line growth.

21. BuildingSP
The market in AEC has trouble supporting
sustained innovation.
Industry R&D spending is a rounding error.
Google: John Macomber
Case Study: Productivity Hot Dogs
We have an industry “misalignment of value.”

22. BuildingSP
VC’s in AEC
VC’s are businesses. They propel growth
during turbulent disruption.
Has AEC returned good value for VC
money?

23. BuildingSP
What’s Changing
The “Power Rule” for VC funding is widely held and says that
the top startups drive the overall performance of a VC fund.
That’s why we hear so much about “unicorns” or startups
with valuation of more than $1B.
How many unicorns are there in AEC?

24. BuildingSP
What is disruption?
There’s only one.
Procore.
They were also
founded in 2002,
taking 15 years to
become a
unicorn.

25. BuildingSP
What is disruption?
If we’re not producing unicorns,
are we disrupting?
What industry business models
have changed because of drones?
Credit: http://www.cupcloud.com/drone-applications-building-industry/

26. BuildingSP
Why will design
automation disrupt us?

27. BuildingSP
Elon Musk talks about first principles.
What are the first principles of construction?

28. BuildingSP
Elon Musk talks about first principles.
What are the first principles of construction?
Time. And money.

29. BuildingSP
Elon Musk talks about first principles.
What are the first principles of construction?
Time. And money.
(Design automation deeply affects both.)

30. BuildingSP
Why will design
automation distrupt us?
We try really hard to
find our critical path.
Ever realized that
design is always on
the critical path?

31. BuildingSP
Why will design
automation distrupt us?
We try really hard to
find our critical path.
Ever realized that
design is always on
the critical path?
That’s important.
Gains on the critical
path result in project
gains.

32. BuildingSP
This diagram is
taught in every
construction
management
program.

33. BuildingSP
This diagram is
taught in every
construction
management
program.
Design automation
happens when
costs are still
controllable.

34. BuildingSP
Who else does design
automation?

35. BuildingSP
Two outstanding disruptive design
automation examples:
Semiconductors
Animation

36. BuildingSP
Who else does design automation?
Semiconductors
Animation

37. BuildingSP
This looks like a building!

38. BuildingSP
Also not a
building.

39. BuildingSP
Design automation in semiconductor allowed
Moore’s Law to survive.

40. BuildingSP
Design automation in semiconductor allowed
Moore’s Law to survive.
It also built big companies like Mentor
and Cadence.

41. BuildingSP
Animation. Two monsters. Massive productivity and
technical gains between films.
Credit: Pixar, Inc.

42. BuildingSP
Why will design
automation disrupt us?

43. BuildingSP
In AEC, we look at an iPhone and wonder how
we can write RFI’s, take pictures, and view 3D
models on it.

44. BuildingSP
In AEC, we look at an iPhone and wonder how
we can write RFI’s, take pictures, and view 3D
models on it.
We need to look at how design automation
enables high-quality, emotionally engaging
products using a global supply chain and
precise time frames.Credit: iPhone X by Apple.

45. BuildingSP
Design automation will be
the disruptor in AEC.
Process Automation -> Data -> Machine Learning -> Artificial Intelligence

46. BuildingSP
http://www.buildingsp.com