Specialist
Former VP at Kiewit Corp (Peter Kiewit Sons' Inc)
Agenda
- Construction software sector – data and analytics market operating environment and growth trends
- Competitive dynamics between major players including Dodge Data, ConstructConnect, CMD Group and more
- Industry consolidation, new product launches, in-demand products and major players' market share
- Outlook for H2 2021 and beyond, margin expansion potential and integration risk
Questions
1.
Could you provide an overview of the data and analytics segments within the US construction software sector?
2.
What are some key themes impacting the US construction software sector that you think investors should monitor?
3.
Could you estimate the overall TAM for the data and analytics solutions in the US construction software sector? Could you suggest roughly how quickly this sector is growing?
4.
How penetrative would you say things are in the US? How much room for growth do you think there is as spending increases?
5.
Do you think that as the market expands, opportunities will come from targeting more downmarket and smaller firms in the US, or via an international route?
6.
Could you outline the international dynamics in this segment and how these markets could open up for US firms? Could you go through some of the major players such as Dodge Data and Analytics, CMD Group, as well as companies such as ConstructConnect and Oracle Calibre?
7.
What are the main competitive dynamics at play between Dodge Data and CMD?
8.
Are there any other strengths or weaknesses for Dodge Data and CMD?
9.
Could you estimate the respective market shares of Dodge Data and CMD, or at least how things are trending? Who would you say is more winning vs losing business?
10.
You mentioned 40-50% of the construction software market is fragmented. Are any wildcards entering the sector or should we monitor any disruptors in the long term?
11.
How much overlap is there between the data and analytics and the telematics markets? Is this something we should monitor, given the two might merge?
12.
How important are product integrations and partnerships with other systems? That could be ERP [enterprise resource planning] or supply chain or in telematics and I guess just any interaction between the data and analytics segment within those.
13.
What are some of the main growth areas with regards to product evolutions for the data analytics side? Where are companies investing to get a competitive edge?
14.
What are your thoughts on the uptick in M&A activity across the board and the strategic value of some of these moves? Dodge Data merged with The Blue Book in April 2021 and its CEO announced that there will be more deals. Procore also acquired Indus in May 2021, moving in with an AI component.
15.
Where else could CMD or Dodge pursue add-ons? Do you think there will be more picking up of smaller data management companies or could any other additions to the product portfolio or tech stack improve a competitive edge?
16.
You mentioned vendors such as CMD and Dodge are mainly working with large construction companies and they’ve had a tougher time targeting smaller, more price-sensitive ones. What do you think is the best route to expanding their customer bases and potentially penetrating under-served markets?
17.
Could you outline the sales cycle for the larger construction companies which are more likely to be typical customers for CMD or Dodge? What are the nuances in the process based on customer type or geography?
18.
Are some of the larger customers equally price-sensitive as smaller ones? Are they really interested more in the breadth of offering and the overall database itself, and the service that comes with it?
19.
How important are channel partners in the sales dynamic? Should we be factoring them in as a big driver of new sales?
20.
Do you think it’s more valuable for vendors such as CMD and Dodge to grow their sales by penetrating further into existing customers? This could be done by selling more seats, increasing the package or just targeting net new logos on the whole?
21.
What are retention levels like across the board? You said that customers can churn fairly easily. How high are the switching costs for solutions in this sector?
22.
Could you estimate the retention rate across CMD and Dodge for the larger companies who have it integrated into their CRM and cost management?
23.
What are the typical reasons for larger customer churn? Is it more due more to pricing or to economic situations? Is there anything else at play that might lead one company to roll off from one of these vendors?
24.
How might the US construction software landscape shape out over the next 5-10 years?
25.
Is there anything about the construction software sector that you’d want to clarify?
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