Disruption in the construction industry: YTWO Ltd., a 50% subsidiary of RIB Software, and CG Gruppe AG agree on a strategic partnership for the usage of the YTWO platform
YTWO Formative, the world’s first fully integrated supply chain management (SCM) enterprise solution for real estate developers and housing companies, announces its first strategic partnership with Berlin based CG Gruppe AG, a leading German real estate developer in residential construction. The company’s performance horizon invested within the next five years totals approximately EUR 4.7 billion.
Silicon Valley based start-up YTWO Formative has developed an integrated IT platform that can virtually simulate the construction and renovation processes from design to project completion, and that allows the integration with company enterprise-wide planning and controlling (ERP). The cloud-based YTWO Platform includes a catalogue of products and prefabricated construction parts, as well as all project management software modules required for physical construction. YTWO Formative is the first technology in the world to offer a fully digitalized and formative construction process that already integrates the supply chain at the virtual planning stage. Such a solution can generate up to 30% savings and value increases.
YTWO Formative is currently offering strategic partnerships to selected pilot clients in the German, American and Chinese market and is planning a global roll-out.
Thomas Wolf, CEO if RIB Software AG and co-founder of YTWO Formative, comments: “We invested more than 1,000 man-years of development work into the YTWO Formative framework technology. In February 2017, our international team of software developers reached a breakthrough by releasing YTWO 1.0. This achievement represents the first full integration of the design, production and supply chain processes in one cloud-based enterprise platform for the construction industry. With Christoph Groener, we have now succeeded in getting a German visionary for residential construction on board for the application of our technology”.
Mike McNamara, CEO of Flex and co-founder of YTWO Formative, comments on the agreement as follows: “Transferring innovative SCM solutions to the construction industry requires full integration of all steps in the construction process at enterprise level. From design to completion, end-to-end processes need to be simulated and implemented with a target deviation of <1% in physical construction. YTWO Formative has access to worldwide transformation know-how from 12 industries where Flex operates at scale. With Christoph Groener and the CG Gruppe, we have successfully partnered up with a very successful, innovative and dynamic German entrepreneur, who invests in excess of one billion Euro”. Christoph Groener, CEO of CG Gruppe AG, explains: “The quick completion of affordable and energy-efficient residential property in high quality is one of Germany’s biggest political challenges, as well as the vision of the CG Gruppe. With YTWO Formative, we can digitalize our processes in such a way that the logistic and production processes are integrated with suppliers already in the planning stage. In short: YTWO Formative helps us turn our ambition into reality”.
About YTWO Formative
YTWO Formative is a Silicon Valley start-up technology company. Founded in 2016 equally by the technology companies Flex in San Jose, global No.1 in SCM and RIB AG in Stuttgart, global No. 1 in 5D BIM enterprise software, USD 120 million first round starting capital, and with target markets USA, Germany and China, YTWO Formative provides a cloud-based, integrated IT enterprise platform for the planning, controlling and processing of all business processes in real estate construction, renovation and maintenance.
The first step is to simulate all processes in BIM using the YTWO 5D BIM technology and make them visible to the suppliers via the YTWO Data Visibility App in the planning phase in 5D (3D plus costs and times). The second step involves the integrated execution of physical processes with real-time monitoring and the integration of all data into project management and company controlling.
YTWO Formative’s business model is transaction based, and success is tied to the order volume of products and components from YTWO Formative’s product catalog.
According to a Feb 2017 study by McKinsey Global Institute, new thinking, new processes and new technologies have the potential to save EUR 1.5 trillion in construction worldwide. Here, YTWO Formative plans to make a significant contribution.
About CG Gruppe AG
The CG Gruppe is a German project developer with its own construction competences. The company, which operates throughout Germany, has been developing, implementing and marketing residential and commercial properties for over 20 years. The company’s core business is the turnkey production of residential buildings and its placement to institutional investors. In this segment, CG Gruppe AG is the market leader in Germany. The declared goal of the company with its 350 employees is the creation of favorable and sustainable living space in large-scale district developments using process and technology innovations.
The company’s performance horizon has been set at a total volume of around EUR 4.7 billion for the next five years. At present, projects in the amount of EUR 2.7 billion are being prepared for structural implementation. For projects currently under construction, the CG Gruppe processes a volume of EUR 750 million. Further projects totalling EUR 500 million have already been purchased by institutional investors and will be under construction soon.