Instructions and Key Term Definitions
BCG IT COST AND BENCHMARKING STUDY
This IT Cost and Benchmark Study is meant for every type of construction company (e.g., General Contractor, Heavy Highway, Specialty, etc.). Based upon the distribution of the companies within the construction industry, we anticipate more commercial contractors than residential and more small to mid-sized contractors than mid to large. However, we encourage all types of construction firms to respond.
Within the study, guidelines have been provided for applicable questions to provide further clarification with regard to question expectations. A glossary of terms is also listed below for reference.
Each section should only take a few minutes to complete. You can start and come back as you need to. A few notes to help you along are as follows:
Section Considerations General Information Contact information is required as the beginning of the Study in order to acknowledge receipt and distribute follow-up information including a white paper. However, once the survey is closed your contact information will be quickly disassociated from the rest of the data in your record and replaced with a serial number. Demographics In this section you will need to have some information regarding overall head-count, overall revenue, breakdown of type of work and degree of self-perform. This section can be completed quickly and is less subjective. Software Applications This section may require some research depending upon your knowledge of your company’s primary software applications. The primary focus is on larger more expensive applications that are in use such as ERP, Project Management, Estimating, and HR for example. The data we are seeking for each is the same: type of application, method of licensing, method of deployment, number of licenses. Please note that references to product names are not being requested. IT Cost and Expense This section is fairly objective and would benefit from you having a financial statement or departmental budget available when completing. Some of the questions ask for a summary level number OR a detailed breakdown, depending on what you have available. Communication Costs is a good example of that. You are only being asked to respond to the summary (rolled up) number or the detail.
Please round up or down to reach an easily entered value. In other words, accuracy to the penny or dollar is not a requirement.
Please note that the questions regarding the categorizations of hardware and software are fairly specific.
The last question is more subjective regarding management’s perspective on the top five IT priorities for 2015. This should be based on the priority of initiative and not value of investment.
Organization This section is based largely on IT organization including items such as:
· Department structure
· Hiring decisions
· Full-time and contract workers
IT Governance and Leadership The conclusion of the study focuses on policies and governance issues that impact cost, hiring, and IT direction.
Definitions of Key Terms:
Tier 1 ERP (Enterprise Resource Planning) An ERP solution used by larger corporations which need more power and flexibility typically associated with Tier 2 solutions. Solutions like JD Edwards, Oracle and SAP are commonly categorized as Tier 1. Tier 2 ERP (Enterprise Resource Planning) An ERP solution designed specifically for an industry (like Construction) with greater functionality prebuilt for the industry but with less overall flexibility and power than a typical Tier 1. SaaS (Software as a Service) Software as a Service (SaaS) is a licensing method common today for some applications whereby the software is not licensed by the customer. The vendor provides daily use often for a subscription fee and manages both application and underlying computing infrastructure for the fee. Access to SaaS applications is most often via a standard web browser. The application may or may not be provided through true cloud architecture. DRP (Disaster Recovery Plan) Means and Methods for bringing a system or systems up after an unplanned outage due to disaster or other system failure. DRaaS (Disaster Recovery as a Service) Disaster Recover as a Service (DRaaS) is an outsourced service whereby a 3rd party provider manages and guarantees the recovery of an application and associated data in a given period of time in the event the primary systems are lost. The time for recovery is defined by the Recovery Time Objective (RTO) and maximum acceptable loss of data is defined by the Recovery Point Objective (RPO). BCP (Business Continuity Plan) A documented plan for how to bring the business operations up or continue business operations in the event of a disaster or other major event that interrupts operations. It typically includes details on what constitutes a disaster, how employees are notified of a disaster situation and details on how to respond. RTO (Recovery Time Objective) Defined in hours/days as the elapsed time between the points of the interruption up to the point where the system must be functional. The RTO may be by the applications, servers, the processes, or the recovery group (infrastructure, core services, etc.). RPO (Recovery Point Objective) Defined in hours/days, the RPO is determined based on the acceptable data loss in the event of a system(s) failure. The RPO defines the point in time from which it is necessary to recover the data and quantifies and the permissible amount of data loss in the case of disruption. CPM Scheduling Critical Path Management (CPM) is a type of scheduling commonly used in construction and for large projects. It is dependency and duration driven and may include resource planning. P6, Project, Asta and SureTrak are/were common tools for CPM scheduling. BIM (Building Information Modeling) Building Information Modeling, the digitization of a building, facility or other element of construction with attributes that define individual components. VDC (Virtual Design and Construction) Virtual Design and Construction is a contemporary name for the department that manages BIM technology and often times related pre-con functions. Refresh Cycle The frequency with which devices, servers or other components of the infrastructure are changed out to prevent obsolescence and support issues. BYOD (Bring Your Own Device) Bring Your Own Device (BYOD) is an acronym for a practice in many companies whereby they allow personnel to bring their own personal tablets, smart phones or laptops to work and connect to the network. Depending on the corporate policy access is permitted to internal resources or just access to the Internet. LOB (Line of Business) Application These are software applications which are used by departments and personnel involved in various operational and administrative functions of the business. They are not IT related technical solutions.