As Japan increases its investment in engineering and construction software licenses, it’s essential to have the right technology and services to manage and optimize these growing software portfolios. This allows construction firms to use their software assets efficiently, understand their software licensing needs, and fine-tune their IT budgets.
Japan: Not a Big Construction Software Spender… YET
Despite its global stature as a tech titan, Japan’s construction and engineering sectors have often displayed reluctance toward adopting digital innovations. This hesitation is particularly evident in their software spending.
Japan’s construction software market is set to hit $370 million by 2023, showing a modest growth of 1.57% from 2022. In contrast, the US market is on track to surpass $5.3 billion that same year.
Yet, despite these conservative software spending predictions, Japan’s momentum for construction projects remains optimistic. Infrastructure initiatives like the Chuo Shinkansen maglev line and preparations for the Osaka World Expo 2025 are expected to further boost the country’s construction industry.
More Construction Projects = More Software License Investments
The influx of infrastructure projects is nudging construction firms towards a significant augmentation in specialized engineering software investments. However, there’s a hurdle: Japan’s perceived sluggishness in digital transformation.
The 2022 IMD World Digital Competitiveness Ranking positions Japan at no. 29 of 64 countries in terms of technical proficiency and digital transformation capability. This places Japan considerably behind other Asian leaders such as South Korea (8th), Taiwan (11th), and China (17th).
Japan’s construction sector could face challenges due to a lack of advanced tools and expertise for managing software inventory and maximizing license value. This issue is not just in Japan; it is a global concern. About 35.2% of global construction firms see a lack of tech-skilled staff as a barrier to adopting new technology.
Despite these challenges, Japan’s building and engineering firms will bolster its construction software investments. Industry frontrunners in Japan have come to acknowledge the essential nature of digital transformation. Adopting a cohesive digital strategy has emerged as pivotal, not only for driving growth and ensuring success but also for fortifying against potential business disruptions.
Expanding License Portfolios: A Multifaceted Challenge
Construction firms employ vast and diverse portfolios of engineering software to streamline processes, optimize resource allocation, accelerate project timelines, and realize significant ROI. These licenses constitute a substantial chunk of an organization’s IT expenditure. It’s imperative that organizations ensure they are maximizing their construction software assets and derive the greatest value from their spending.
Managing numerous engineering software licenses can be complex. Without a proper software license management solution, IT leaders struggle to understand how these licenses are truly being used. Even if licenses are active, pinpointing the specific users, the duration, and frequency of usage becomes challenging. Furthermore, the task of determining the most suitable license models — be it concurrent, named user, token, or dongle — can be daunting.
This lack of clarity and transparency around license usage weakens negotiation stances, complicating construction software procurement or renewal processes. Given the myriad of engineering licenses to oversee, firms often juggle multiple license managers, many of which offer limited insights. The process of reporting can be laborious, and interpreting the final reports can prove elusive. This scenario can culminate in misinformed decisions, imprecise forecasts, and costly contracts with less-than-optimal terms.
Maximize Construction Software License Value with Open iT
Managing software licenses can be intricate, particularly in sectors like construction, architecture, and engineering. These industries require expansive construction software sets to optimize processes, ensure quality, and stay competitive. However, as portfolios of engineering software licenses grow, so do the challenges of managing them efficiently.
Enter Open iT, a game-changer in the field of software license management.
In-Depth License Utilization Analytics. Open iT gives a clear insight into software license usage. With this transparency, companies can see which tools matter, which licenses are unused, and which ones aren’t worth the cost. This clarity helps construction firms drive smarter software licensing choices.
A Tailored Experience. Open iT delivers a complete client experience. Recognizing unique needs, Open iT offers tailored services such as custom reporting aligned with your firm’s requirements and industry benchmarks.
License Compliance and Risk Mitigation: Open iT provides essential insights to help construction firms strictly follow their software license agreements. These insights help companies mitigate risks from compliance issues and avoid heavy fines.
Simulated Licensing Scenarios: Open iT provides advanced simulation capabilities, allowing firms to envision various licensing scenarios and ascertain the most efficient approach.
Informed Decision-Making: The sheer volume of data can be overwhelming. Open iT excels in filtering out the irrelevant, focusing only on crucial information. By transforming raw data into actionable insights, Open iT ensures that decision-making is always backed by data.
Strengthened Negotiating Power with Vendors. With a clear understanding of software license usage, organizations can negotiate from a vantage point with software providers. This results in contracts that are both cost-effective and aligned with the organization’s requirements, ensuring maximum value for investments.
Chiyoda Philippines: License Visibility Equates to Massive Savings
Open iT collaborates with leading construction and engineering firms around the globe. Chiyoda Philippines, a subsidiary of Chiyoda Corporation, maintains a large construction software license portfolio across various departments. However, they previously did not have the visibility they need to generate precise usage reports, which complicated their budgeting and forecasting efforts.
Open iT’s LicenseAnalyzer gave Chiyoda a clear view of their software licenses. This tool made it easier to manage and optimize licenses, providing crucial data. Chiyoda could then adjust their software licenses as needed, saving money and ensuring consistent access for employees.
“Open iT usage reporting has enabled us to make detailed business decisions, optimize applications with minimal effort, and significantly reduce annual software expenditures.”Director/Senior Vice President, Chiyoda Philippines Corp.
Open iT at Archi Future 2023
Join us in Tokyo on October 26, 2023, from 10 AM to 6:45 PM for Archi Future 2023. Come to the Tokyo Fashion Town (TFT) Hall and engage with industry leaders and top professionals from architecture, engineering, and construction.
Archi Future 2023 goes beyond just presentations. Dive into the future of the built environment. Learn about the innovations reshaping our world, especially as cities and populations grow.
Open iT supports the digital evolution in the engineering, architecture, and construction industries. Through its sophisticated software license management platform, firms are empowered with precise and actionable insights into construction software license usage and more. This not only streamlines management but also fosters significant cost savings and ensures perfect synergy with overarching strategic objectives.
See you in Tokyo!
Get in touch with our software license management specialist for more details.