ASP Software Developer Business Plan

KnaelHaed ASPware’s DigitalSuspenders package will offer services to produce construction documents at low cost as well as a medium for its business actors to collaborate on both housing and commercial type of projects. The business will combine aspects of the open source software with a two-tiered site membership. The entry level is free, subsidized by targeted advertisement utilizing Ad Sense by Google and paid members. However, each visitors are required to fill out registration to acquire their user names and passwords to access the site. The purpose of a free access is to “tease” and encourage visitors to eventually pay for the membership.

Paying members will enjoy more benefits in using the services. The concept is lately dubbed as software-on-demands, a chopped version of an open source application for various type of members, thus members do not have to pay for the applications they do not need for their projects. The software will be cheaper and simpler in the deployment, as well as easy support.

The products that KnaelHaed ASPware’s DigitalSuspenders package will deliver include:

• Rough 3D building model.
• Conceptual estimate (builder).
• Actual estimate (subcontractor, builder).
• Schedule (subcontractor, builder).
• Budget (subcontractor, builder).
• Proposal (subcontractor).
• Tablet PC software for accessing building information (subcontractor, builder).
• Detailed 3D building model (builder, owner).
• Facilities maintenance functionality (owner).

3.1 Competitive Comparison

KnaelHaed ASPware will be facing few direct competitors in the industry and since it will be the first to offer the combination of functionality and connectivity, KnaelHaed ASPware’s success will surely be quickly copied by it competitors.

• DreamHouse.com (www.dreamhouse.com)

Their site allows non-registered users to freely browse the portfolios of architects and builders who offer their building plans for sale. It is a more of a classified ad site, where the revenue generated through listings of vendors and commission on plan purchases by home owners. The site is interactive, where future home owners could browse plans made by vendors. In addition to the core referral service, DreamHouse.com provides answers to future home owners such as where to obtain the financing, and so on. The Company also offers 24/7 customer service available through toll-free phone numbers.

• Builder Management Technology (www.buildermt.com/vdsee.html)

Builder Management Technology (BuilderMT) only offers 3D models and walkthroughs to large builders who can afford a $5,000 price tag. There is one feature, called ProDatabase, designed to get builders up and running quickly. The database includes General Ledger, Job Cost Accounting, Purchasing, and Scheduling data that can be easily implemented. BuilderMT also operates a Web-based “Virtual Design Center” (VDSee), so that builders can offer anyone access to the site. VDSee offers fully scaled 3D images of whole-houses, house exteriors, or specific rooms that users can “walk through” and fill with selected appliances from catalogs provided by partner vendors. Similar to DreamHouse.com, BuilderMT is geared strictly to the home builder market. No bid capability, the site acts only as a referral to business partners in the area.

• The BlueBook (www.thebluebook.com)

The site provides easy access to continually updated information for each of The Blue Book’s regional editions (printed). Not yet online, but soon the services will be made available to Internet users, where construction buyers and sellers will also have free access to online bidding and procurement system. Revenue is generated from listings.

3.2 Sales Literature

This business will begin with a general corporate brochure establishing offered services. This brochure will be developed as part of the start-up expenses or sales campaign and distributed to a list of local builders and subcontractors as a direct mailing strategy to “pull” users into the site.

Literature and mailing for the initial market forums will be very important, with the need to establish a high-quality look and feel in order to create a trustworthy sense of professionalism.

3.3 Business Process

The big idea of KnaelHaed ASPware is the next generation construction blueprint that will be implemented in a phased manner:

1. 3D models for builders (residential initially) at lower price point than competitors’ software (average at $5,000 per model). KnaelHaed ASPware offers at $1,000 per model. This will be used mainly as a PR and marketing tool to attract consumers and a service differentiator for the builders.
2. Get builders to realize that the 3D building model alleviates the need to distribute 2D plans to subcontractors from which takeoffs will be done to get dimensions and quantities. The 3D building model already has quantities and dimensions. So, what’s needed is a way for the builder to share building model information. To support this collaboration between builders and their subcontractors, KnaelHaed ASPware will create an online plan room with software tools that allow viewing of the 3D model and extraction of quantities and dimensions so that a sub can then estimate and bid on the job. Access to the plan room will be free, but to use it builders and subs will need to be members, and have 3D models rendered and on-file with KnaelHaed’s database.
3. Get builders and subcontractors to use KnaelHaed ASPware’s estimating services which will offer faster turnaround and cheaper prices. This will be a paid service and offered at a substantial discount to the market rate due to the use of offshore estimators.
4. Offer additional related knowledge services. For example, once KnaelHaed ASPware has an estimate, then the system can create: budgets, schedules and proposals. This will also be a paid service with the work done by offshore knowledge workers.
5. Offer a site management solution to builders that supports building project information in the field. This would entail the use of ruggedized tablet PCs loaded with software that KnaelHaed ASPware will develop to: download building project information from the website to the tablet PC and allow on-site access to 3D models, schedules, and vendor data. Differentiating features:
• 3D views of the building linked to vendor, subcontract and schedule data;
• GPS-enabled so that the building viewers are standing in front of is the building viewers see on your screen. This will be a paid product/service that will be first offered to large builders. KnaelHaed ASPware will also use their input to help improve the product.
6. Offer facilities management software capabilities online. When a builder hands over a commercial building to the owner he also gives him a copy of the 3D building model. We will offer to the property manager the service to update the building model to “as built” so that the version of the model they have exactly matches the actual building. We will then offer, on our website, facilities management functionality tied to the 3D model. We will charge to update 3D models. Use of the site will be restricted to property managers who are site members (we need to know exactly who they are). We will offer our services to property managers who only have an existing building but only have 2D plans. We will create a 3D model and put it up on our site and give them access to the model and to the facilities management application.
7. Offer 3D models of building plans for sale. So, an architect who has plans for sale would post his 2D plan to the site and we would render it in 3D and make it available for consumers/builders to purchase. We would want to have some kind of incentive to:
• have has many plans available as possible;
• encourage architects to submit their plans in 3D;
• encourage builders working from these plans to use our site.
8. Automate back office manual work (e.g. estimating, scheduling, etc.) to the greatest degree possible to reduce costs further, improve turnaround times and allow the business to scale.

KnaelHaed ASPware offers a tiered pricing structure for the website starting at free. Then it will charge for customization and make those customized features only available to those that have paid for them. There will be different memberships and pricing structures for our various users: builders, subcontractors, property managers and consumers.

3.4 Technology

New technology has changed almost everything about the distribution of software today. The ASP (Application Service Provider) model makes it easier for construction software vendors to sell and get customers up and running, lending itself to a more scalable and profitable business model. KnaelHaed ASPware intends to become the leader and the most creative provider of Web-based software applications in the construction market. The Company will do this by developing an innovative and progressive development and management team. KnaelHaed ASPware will also accomplish the goal by using clients’ input to further develop the products and services.