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May 02, 2005
Intergraph Corporation CEO and President SpeaksIntergraph Organizational Structure Realignment Announced
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Susan Smith - Managing Editor

by Susan Smith - Managing Editor
Each AEC Weekly Review delivers to its readers news concerning the latest developments in the AEC industry, AEC product and company news, featured downloads, customer wins, and coming events, along with a selection of other articles that we feel you might find interesting. Brought to you by AECCafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

About this Issue…

A weekly news magazine featuring important industry news profiles, a summary of recently published AEC product and company news, customer wins, and coming events. Brought to you by AECCafe.

Welcome to AECWeekly! A keynote delivered by Halsey Wise, President and CEO of Intergraph Corporation in San Francisco, California offered a valuable overview of the company's vision and direction that encompassed all four divisions of that company: Power, Process and Marine, Mapping and Geospatial, Solutions, and Public Safety. Interestingly, a day later, Intergraph announced a complete organizational structure realignment and the streamlining of its global operations from four divisions to two. Read about it in this week's Industry News.

AECWeekly examines select top news each week, picks out worthwhile reading from around the web, and special interest items you might not find elsewhere. This issue will feature Industry News, Acquisitions/Alliances/Agreements, Announcements, Awards, Appointments, Around the Web, and Upcoming Events.

AECWeekly welcomes letters and feedback from readers, so let us know what you think. Send your comments to me

Best wishes,

Susan Smith, Managing Editor

Industry News

Intergraph Corporation CEO and President Speaks

by Susan Smith

Halsey Wise, President and CEO of Intergraph Corporation, spoke at this year's Intergraph Geospatial World 2005 held in San Francisco, Calif. April 24-28. Although this was a geospatial conference, I'm including coverage of Wise's keynote for AECWeekly because it focuses on all Intergraph's divisions, not just the geospatial division. Those divisions include: Intergraph Mapping and Geospatial, Power, Process and Marine, Intergraph Solutions and Intergraph Public Safety.

Wise stated frankly in his keynote that he felt that Intergraph hadn't always done an optimal job of sharing with users what the full capabilities of the company are. In the past we didn't perform well in speaking with our customers, said Wise. However, he said today "Intergraph has the highest customer service relationship ratings in the industry."

The company's
financials were going to be announced on Thursday so Wise couldn't talk about them yet. He quoted Mark Twain, saying, "You can't rely on your eyes if your imagination is out of focus." Adding: "Some of the things that we imagined will soon be part of Intergraph's future."

Wise is fond of the phrase "Now - next - after next" which was first spoken by the National Geospatial-Intelligence Agency's (NGA) General Clapper to outline Intergraph's movement into the future. Wise sees these three phases describing the way Intergraph will be transformed for the future.

In recounting 2004's progress, Wise said that Intergraph is in 60 companies. Approximately 55 percent of their profits come from outside the U.S. "One of the key messages is that we're truly a global company."

Operating results for the year ending December 31, showed that Intergraph is on the best financial footing in its history, and is at a 12 year record high.

In 2004 Intergraph had a gross profit of $275,764, gross margin 50.0%, and operating income of $34,094. The company also:
  • Increased revenue by 5%
  • Increased gross margins to 50%
  • Increased operating income by over 150%
  • Commitment to research and development is at an "all time high," according to Wise. Intergraph settled all pending patent litigation and continues to have a strong balance sheet to invest in growth opportunities. Their share price continues to outperform the NASDAQ composite and their peer group.

    Intergraph has almost $300 million in revenue with no debt. "We can afford to take risks that smaller competitors can't," said Wise.

    He named off the four divisions of the company, listing what each was worth in annual revenue:

    Intergraph Mapping & Geospatial Solutions - $205 million annual revenue

    Process, Power and Marine - $145M annual revenue

    Public safety - $70 M annual revenue

    Solutions - $135 M annual revenue

    According to Wise, some facts about Intergraph include:
  • World's #1 provider of 3D software for Power, Process, and Marine.
  • In Public Safety the company has the world's largest #1 market share of incidence command, dispatch for all federal, CIA, Washington, DC capitol police, Paris police, Dutch and German border guard. Intergraph has a high security clearance from many governments to deliver public safety.
  • 39 of the 50 Departments of Transportation in the U.S. use Intergraph
  • In the "Now" phase, Intergraph was in a period of significant change and searching to find out what the company was good at and not good at. Last summer the company finished its first strategic plan which is a blueprint for their future. They focused on performance orientation, and rewarding their best people.

    In the "Next" phase Intergraph focused on improvements. The company capitalized on the revenue and cost synergy opportunities among the four divisions.

    These improvements took place in each division:

    Intergraph Mapping & Geospatial Solutions: shift towards vertical SIM applications

    Power, Process and Marine: growth into full lifecycle solutions

    Intergraph Solutions Group: focus on projects in core markets

    Intergraph Public Safety: Build complete public safety solution

    Goals for this phase include:
  • Return to revenue growth
  • Cost structure reductions
  • Benchmark performance
  • Performance based culture
  • Alignment with strategic plan
  • In the "After next" phase are the following strategic initiatives for the company:
  • Potential change in industry landscape
  • Company or market expansion
  • Transformation opportunities
  • Goals for this phase include:
  • Above industry performance
  • Turnaround complete
  • Sustained growth stage
  • What was determined by Intergraph's 2004 strategic plan were primary strategic opportunities characterized by:
  • heightened security concerns and ever present terrorist threats
  • high oil prices and tightening inventory
  • increased development has created a demand for critical infrastructure
  • "The markets we're in are large and growing, targeted software markets represent more than $2.5 billion in annual customer spending," said Wise. The markets have an average blended annual growth rate in the 5-10% range.

    Key corporate strategies:
  • Focus assets and management on software led growth and development to meet the demand of our customers and industries we serve.
  • Consolidate operations to realize revenue synergies between business units and provide the greatest value for our customers.
  • Invest in ways that add value to our customers, internally and through acquisition where market size and opportunity are significant, returns are appropriate and growth and demand are apparent.
  • Note: One day after this keynote address on Wednesday, (from the press release) Intergraph Corporation announced that, consistent with its Strategic Plan, the Company
    is realigning its organizational structure and streamlining its global operations from four to two divisions - Process, Power & Marine (PP&M) and the newly formed Security, Government & Infrastructure (SG&I). Intergraph's SG&I division will consist of core operations that previously existed in Intergraph Mapping and Geospatial Solutions, Intergraph Solutions Group and Intergraph Public Safety. The organizational realignment is intended to: (1) improve the customer focus and responsiveness of the Company; (2) facilitate revenue growth by better leveraging the Company's full
    range of technology and services; (3) enhance the Company's development capabilities and ability to deliver innovative solutions to its target markets; and (4) reduce the overall cost structure of the Company. The Company expects the organizational realignment process to be completed by the end of the second quarter of 2006.


    FIATECH and the Lean Construction Institute (LCI) have formed an alliance to unite advanced production management with advanced enabling technology. The formation of an alliance between FIATECH and LCI creates an unprecedented cooperative and mutually rewarding relationship enabling both organizations, and their members, greater achievement in their objectives. The Alliance will develop solutions that create and validate best practices and continually set new standards for the industry.


    Bentley Systems, Incorporated announced a survey and information program to help users of Intergraph's Plant Design System (PDS) decide whether to take a revolutionary or evolutionary path to a digitally integrated plant environment. The survey's initial results show that 87 percent of the respondents said the transition from PDS is important to them; yet only 28 percent said they had enough information to make decisions about this strategic transition.

    Bentley Systems, Incorporated is expanding to the civil engineering industry its successful "You Deserve Better" upgrade program and Web site (
    www.bentley.com/ydb) for AutoCAD users facing retirement of their software by Autodesk.

    AVEVA Group plc will hold its ISEIT (International Symposium for Engineering IT) conference October 11-12, 2005 at the Dorint Hotel in Frankfurt. ISEIT will bring together keynote presentations of project and business success stories from around the world, as well as provide an exposition of AVEVA's newest technology developments and future vision. The event will be accompanied by a new initiative: the AVEVA Expo series. This extended sequence of industrially and geographically focused events will address AVEVA's contribution to particular industry sectors in specific regions.

    Wind2 Software, project business software and customer support provider, released the final survey report for its 2005 Financial Performance Survey of Professional Services Firms. While many surveys of this nature are limited to generic financial data extracted from annual reports of publicly traded companies, participants in the Wind2 survey shared financial details usually considered proprietary -- making the Wind2 survey results uniquely valuable for comparative purposes within the professional services industry.

    The survey, which has been conducted annually for more than 20 years, generated a record-high response in 2005 -- 20% higher than other Wind2 surveys and easily surpassing the scope of most surveys conducted within the professional services industry. The 2005 report compiles data from actual firms of various sizes throughout North America, including Wind2 customers and members of the Society for Design Administration (SDA).

    New Products

    Autodesk, Inc. announced a major milestone in support for open data exchange mechanisms in Autodesk(R) Revit(R) Building 8, Autodesk's software solution built specifically to meet the needs of customers doing Building Information Modeling. Export of Industry Foundation Classes (IFC) data from Revit Building 8 has achieved stage one certification by the International Alliance for Interoperability (IAI) for meeting the IFC2x2 code checking view for architecture. Meeting the IFC2X2 code checking view specification is a pre-requisite for compliance with Singapore Building and Construction Authority's automatic plan checking system, CORENET e-Plan Check system. The software is currently
    in the review process for final, stage two certification.

    Adobe Systems Incorporated announced the Adobe(R) Video Collection 2.5 Professional edition will now include Adobe Photoshop(R) CS 2 software, a major upgrade to the professional industry standard for digital image editing and creation. Adobe Video Collection 2.5 Professional edition includes Adobe Premiere(R) Pro 1.5, Adobe After Effects(R) 6.5, Adobe Audition(R) 1.5, Adobe Encore(TM) DVD 1.5, and now Adobe Photoshop CS 2 software.

    Avatech Solutions, Inc. announced the first shipment of Vault Access(TM) on Thursday. Vault Access is a new software product from Avatech's Research and Development organization. The product integrates with Autodesk Vault(R) to enable users who do not have Autodesk CAD products installed on their desktop to search, view and print data that resides in their Vault data management system.

    With the release of Imagenation 7.6 and Image a-X 7.6, Spicer Corporation offers enhancements to raster document viewing and wider file format support in its Universal Viewing software suite. The new Imagenation release allows users to load and display extremely large raster documents (up to 4 GB in size) using a relatively small amount of memory (generally under 40 MB). Documents can be displayed progressively, while they are being loaded. If files are not locked, they can be opened and displayed while they are still being written. These features are especially useful with operations such as scan-to-file, GIS map navigation, photo-realistic and graphical art review, or for those
    with limited RAM, such as non-engineering users.

    Matrox Graphics Inc., manufacturer of graphics solutions for professionals, announced the release of its new 64-bit SE drivers for Microsoft Windows XP Professional x64 Edition, for the Matrox Parheliae, Millennium P-Series, QID and Millennium G-Series product families. The Matrox 64-bit SE drivers support both AMD64 processors and 64-bit Intel. Xeonh processors. With this release, Matrox continues its distinguished tradition of delivering high-quality, reliable, and future-proof graphics solutions to professional markets, with real-world benefits such as increased productivity and efficiency.


    Best Software announced that its Timberline Office product suite gained national recognition with three recently announced honors by two major industry trade publishers. Timberline Office is a fully integrated suite of financial and operations software for professionals in construction and real estate.

    Timberline Office was recognized with two honors in the third-annual Most Innovative Products (MIP) Awards, sponsored by Hanley-Wood Magazines. Timberline Office's Model Estimating was named Attendees' Choice Winner in the category for Estimating & Design Software. Timberline Office's Project Management also took the top spot as Attendees' Choice Winner in the category of Project Information Software.

    Upcoming Events

    Date: May 1 - 4, 2005
    Place: Orlando, FL USA
    Modern communications and controls have produced fully automated passenger systems known as automated people movers (APMs). Initial work started in the late1960s, and substantial progress has since been made. Driverless operation of heavy urban rail services is now seen as acceptable and desirable among some public transit officials, especially in Europe and parts of Asia. APMs have transformed airport planning and created new ways for special development districts and urban campuses to organize themselves. The evolution of this industry is uniquely marked in the APM conference series organized by the American Society of Civil Engineers.
    With the inaugural conference having been held in Miami in 1985, this series will celebrate its 10th event in Orlando May 1-4, 2005.
    Date: May 2 - 5, 2005
    Place: Houston, TX USA
    "A Sea of Resources. An Ocean of Knowledge" is the theme for the 2005 Offshore Technology Conference, 2-5 May in Houston. Whether you've never experienced OTC or been attending for years, it is a unique opportunity to:
  • Meet with hundreds of vendors offering everything related to offshore oil and gas
  • Listen to hundreds of technical papers sharing field experience and technical developments
  • Learn about technologies recognized as innovations (through the Spotlight on Technology)
  • Network with individuals and companies who share your offshore challenges
  • Hear expert speakers on important topics at topical luncheons and industry breakfasts
  • and so much more....

    Date: May 3 - 5, 2005
    Place: Cadiz, Spain
    ECOSUD 2005 is the Fifth International Conference in the well-established series on Ecosystems and Sustainable Development. The meetings provide a unique forum for the presentation and discussion of recent work on aspects of ecosystems and sustainable development, including physical aspects and modelling. The aim of the Conference is to encourage and facilitate the interdisciplinary communication between scientists, engineers, economists and professionals working in ecological systems and sustainable development. Emphasis will be given to those areas that will most benefit from the application of scientific methods for sustainable
    development, including the conservation of natural systems around the world.

    The Conference objectives have evolved over the years, seeking to integrate thermodynamics, ecology and economics into "ecodynamics".

    This successful series first started in Peniscola, Spain (1997); and continued in Lemnos, Greece (1999); Alicante, Spain (2001) and Siena, Italy (2003).
    Date: May 8 - 11, 2005
    Place: Charleston, SC USA
    Solutions to Coastal Disasters Conference 2005 is a must-attend conference for coastal planners, managers, scientists, engineers, geologists, economists, oceanographers, meteorologists, property owners, elected officials and others interested in the coasts. Mark your calendar now and plan to join peers and experts worldwide.
    Date: May 8 - 12, 2005
    Place: Baltimore Convention Center

    Baltimore, MD USA
    It's an annual gathering of Bentley software users and their managers who want to sharpen their skills and expand their knowledge. The BE Conference includes hundreds of information-rich sessions of training, updates, and best-practice sharing.
    Date: May 10 - 11, 2005
    Place: 1300 Tuyuna Road

    Santa Ana Pueblo / Albuquerque, NM 87004 USA
    The Labor Symposium will explore issues relating to labor in the construction industry. An LCI White Paper will be available on the subject. In this meeting we will move beyond trying to 'sell" or train away the problem. Rather we intend to explore more deeply how the structure, culture, employee engagement and work practices typical in the industry affect our ability to develop a workforce able to deliver greater value to themselves and other project participants.

    The seminar will be held in at the Hyatt Tuyuna Resory near the Albuquerque, NM. For reservations, phone 505 867 1234 and ask for the Lean Construction Institute rate. The seminar begins at 8 am each day and closes at 4:30 on the 15th and 4:00 on the 16th. Breaks, lunches and workbooks are provided participants. Dress is casual.
    Date: May 10, 2005
    Place: Omni Hotel

    251 S. Olive Street, Los Angeles, CA USA
    The California Strong Motion Instrumentation Program (CSMIP) in the Division of Mines and Geology (now also known as the California Geological Survey) of the California Department of Conservation established a Data Interpretation Project in 1989. Each year the CSMIP funds several data interpretation contracts for the analysis and utilization of strong-motion data. The primary objectives of the Data Interpretation Project are to further the understanding of strong ground shaking and the response of structures, and to increase the utilization of strong-motion data in improving post-earthquake response, seismic code provisions and design
    Date: May 23 - 24, 2005
    Place: Houston Omni Westside

    Houston, TX USA
    The aim of SPAR 2005 is threefold. First the conference will illuminate the business case for using 3D laser scanning and other dimensional control technologies to improve the efficiency and reduce the risk of capital project execution for process manufacturing, civil infrastructure, transportation, fossil and nuclear power generation, offshore construction and architectural projects through improved existing- conditions capture. Second, SPAR 2005 will help practitioners from survey firms, laser scanning service providers, engineering/construction firms as well as asset owners and operators discover and exchange information about best
    practices to deploy these technologies. Third, SPAR 2005 showcases the newest technology from the world's leading suppliers of terrestrial laser scanning hardware, software and services.
    Date: May 25 - 27, 2005
    Place: Eastern Mediterranean University

    Famagusta, Turkey
    Conference Topics
  • Advances in testing techniques of unsaturated soils
  • Implementation of unsaturated soil mechanics to geotechnical engineering practices
  • Swelling/shrinking clays
  • Collapsible soils (Collapse sink-holes, compacted soils)
  • Dispersive soils
  • Cemented/structured soils
  • Liquefiable soils: Influence of particle crushing/cementation on the liquefaction potential
  • Contaminated soils: Hydro-mechanical behaviour of mine tailings, waste rock and landfill soils
  • Chemo-mechanical couplings in soils
  • Remediation techniques of problematic soils
  • Construction methodologies in problematic soils
  • Case histories
  • Other related topics


    You can find the full AECCafe event calendar here.

    To read more news, click here.

    -- Susan Smith, AECCafe.com Managing Editor.