W4._Norbert Eze_ Perceived Return on Investment (ROI) of BIM by Experience Level

W4._Norbert Eze_ Perceived Return on Investment (ROI) of BIM by Experience Level

By norberteze on November 20, 2012

I.      PROBLEM RECOGNITION, DEFINITION AND EVALUATION

For champions of building information modeling, the value proposition is clear. The vast majority of users report seeing positive returns on their investment in BIM. For the time and expense put into making BIM part of their practice, users gain a range of benefits that could include improved productivity, enhanced quality, increased opportunities for new business and overall better project outcomes. The more benefits a user reap, the higher the perceived value. The benefits gained from BIM are greater than many users believe. Those who formally measure ROI on BIM report higher returns than those who estimate returns based on perception. Let see its perceived ROI of BIM by Experience Level

II.    DEVELOPMENT OF FEASIBILITY ALTERNATIVES

The feasible alternatives:

·         Experience Level of Beginner

·         Experience Level of Moderate

·         Experience Level of Advanced

·         Experience Level of Expert

III.   DEVELOPMENT OF OUTCOMES FOR EACH ALTERNATIVE

By surveying thousands of AEC participants in North America from the full spectrum of perceived ROI of experience levels learnt by SmartMarket is graphically shown below in a snapshot below:

IV.  SELECTION OF A CRITERION (OR CRITERIA)

1.    BIM Reaps Returns

BIM is paying off for a solid majority of users—particularly the most experienced ones. Whether it’s through budget items that can be tracked or less tangible benefits, BIM users largely believe that they are experiencing a positive return on investment. Nearly two-thirds (63%) of BIM users say they see positive ROI on their overall investment in BIM, with 15% reporting an ROI of 50% or more. Another 20 percent believe they are breaking even.

2.    Experience Yields Results

Users report that they realize significantly better ROI as they gain experience with the technology. Eighty-seven percent of expert users see positive ROI with BIM compared to 38% of beginners. The progression is a steady one. Many of today’s beginners can expect to see better results over time as they deepen their knowledge and use of the technology.

3.    ROI Exceeds Estimates

The ROI for BIM is higher than many users think. Users who formally measure their ROI on BIM using project data report higher returns than those who estimate returns based on perceived outcomes. Half of those who do not formally track ROI (53%) perceive that they garner positive

Results and while three-quarters of those who do measure ROI (72%) report positive returns. BIM is shown to provide a broad range of opportunities to realize value, and those who formally measure it may see a more complete picture regarding returns.

4.    Experience Level

With experience, users can see more value. Experts prove that, as users gain proficiency, they will find ways to leverage the technology to their benefit. Given that BIM is still an emerging process, this trend should gain momentum as more users master it and software providers develop additional tools. _ 63% of BIM users say they see positive ROI on their overall investment in BIM. _ 72% of users who formally measure their ROI on BIM report positive returns, compared to 53% of users who estimate returns based on perception. _ 87% of expert users see positive ROI with BIM compared to 38% of beginners. _ 93% of BIM users believe that, there is potential to gain more value from BIM in the future.

V.    ANALYSIS AND COMPARISON OF THE ALTERNATIVES

Based on survey of thousands of AEC participants in North America from the full spectrum of perceived ROI of experience, SmartMarket learnt that the analysis and comparison of the alternatives has shown the level of Beginner, Moderate, Advance and Expert which proved through the survey has shown that Expert’s ROI is positively higher compare to others.

Key Findings

·         Most users see positive ROI in BIM.

·         Returns improve with experience.

·         Nearly all users believe there are greater future opportunities to gain value from BIM.

·         Top rated areas of BIM investment: 1) software, 2) developing internal collaborative BIM procedures, 3) marketing a firm’s BIM capability,4) BIM training, 5) new/upgraded hardware

VI.  SELECTION OF PREFERRED ALTERNATIVE

One in five users who formally measure ROI sees returns above 50%, twice the rate of those who don’t measure it. 9% of users who formally measure ROI see returns above 100%, compared to 6% of those who don’t measure it.

VII. PERFORMANCE MONITORING AND POST-EVALUATION OF RESULT

Through the statistically market survey will enhance the performance monitoring and post-evaluation of result to measure ROI.

References:

1.      McGraw-Hill Construction. (2009). SmartMarket…Report Design & Construction Intelligence. The Business Value of BIM…Getting Building Information Modeling to the Bottom Line, (pg 6-7). Retrieved from http://books.google.com/books/about/BIM_handbook.html?id=IioygN0nYzMC&redir_esc=y

2.      Purdue OWL APA style. (2011). APA formatting and style guide, pg (10). Retrieved from http://owl.english.purdue.edu/owl/resource/560/19

3.      Sullivan, W. G., Wicks, E.M., & Koelling, C.P. (2012). Engineering economy, (15th ed.)  (Chapter 1) (pp. 29)