Bentley: High Tech Digital Solutions for Cost Effective Construction

How has Bentley’s two-decade journey in the country shaped its approach and strategy in speeding up the (slow) rate of digitalization in India’s construction sector?

Chakraborty: In terms of modernization in construction, if you look at the surveys conducted (especially by McKinsey) over the last 10 years, construction is one of the most under-digitalized industries globally, followed only by agriculture. In fact, in India, agriculture might be more digitized than construction today.

However, we've made good progress, particularly in the last five years, as the rate of infrastructure spending and the scale of projects have significantly accelerated. When you have twice as much work in the same amount of time, you naturally start thinking of ways to use technology to modernize and find faster, more effective ways of doing things.

A few years ago, Bentley acquired a company called Nadhi Information Technologies, a specialist in construction software. This acquisition aimed to digitize and streamline the construction process, and today we are proud to say that we’ve successfully implemented this technology across various projects, including those with Delhi Metro, Steel Authority of India, LT Transmission and Power, and several real estate companies.

With the increasing scale of projects and skyrocketing expenditure in the country, the whole design-build-operate paradigm is poised to shift. With advancements in cloud computing and easier access to both hardware and more cost-effective solutions, we expect to see a stronger integration of technology in the construction world.

I would like to highlight a recent development: we have very recently announced a merger with Cesium, a company that has successfully implemented projects with Komatsu, the world’s second-largest construction company. Komatsu Japan has worked with Cesium to integrate digital and 3D information into construction management workflows, especially for heavy earthmoving equipment. We can provide access to some of these cases, which could be highly relevant to the Indian user community, particularly in an emerging nation with large construction projects.

How will your recent acquisition of the 3D geospatial company Cesium complement your existing products and benefit developers, contractors, and equipment manufacturers?

Rahden: Cesium complements Bentley’s vision of openness, focusing on open data standards and information-sharing standards. The Cesium platform is open-source, not a product per se, but a platform designed to integrate 3D geospatial information into various industries. Bentley's goal with Cesium is to ensure that every AEC (Architecture, Engineering, and Construction) project has access to accurate, real-time 3D data in the simplest and most efficient way, allowing for informed decision-making based on real-world geo-coordinates where projects are taking place.

Traditionally, much of the AEC industry lacked geo-coordination and wasn't fully geospatially aware. Bentley has been geospatially aware from the very beginning with MicroStation, its foundational CAD product, being designed with geospatial capabilities. With Cesium, Bentley is advancing this geospatial capability into the future, moving towards cloud-based architecture to deliver accurate 3D data for any infrastructure project.

One of the most exciting aspects of Bentley’s journey with Cesium is access to its global developer network, which includes several hundred developers in India using Cesium in their projects. This collaboration allows Bentley’s iTwin platform, its digital twin solution, to offer this developer community even greater capabilities. By doing so, it encourages innovation and the development of more advanced applications in the infrastructure engineering space.

The reality of geospatial data in relation to position is indeed a crucial aspect, and Bentley has been deeply invested in this for years. Few players in the market can effectively align geospatial data in such a precise way. The ability to integrate this information as an additional layer into models is a game-changer, especially when it feeds directly into digital twins, offering a true representation of the real-world environment.

This not only enhances the accuracy of the model but also saves significant time for the accounts utilizing Bentley Systems. By seamlessly incorporating real-world geospatial data, users can streamline their daily operations and make more informed decisions. The integration of this data into Bentley’s platform adds significant value and efficiency to projects, making it a powerful tool for infrastructure planning and execution.

What strategies has Bentley implemented to address common adoption barriers, such as initial investment concerns of the owners and resistance to new workflows from contractors and employees in the Indian construction sector?

Kannan: If you look at the concerns expressed by companies in the construction sector, especially contractors, one key issue is whether to view this as an expense or as an investment. Bentley Systems has been quite flexible in terms of its licensing policy. We offer subscription models and enterprise agreements that are cost-effective, especially in terms of entry costs. As the project grows, we have scalable solutions that can adapt to the needs of, for example, 50 projects at once. These solutions come in small, medium, and large, to help amortize the cost over time.

Another important aspect is awareness of technology. We are working with several companies on proof of concepts. Those who were completely averse to technology are now seeing its value, the RoI, and have begun investing in technology. They are saving money and accelerating project delivery. If a project is finished ahead of schedule, there is often an incentive by the Government, which can be reinvested in technology.

What is Bentley’s strategy to increase awareness of its technology?

Kannan: One important aspect is that we work with the ecosystem in terms of the overall project life cycle, including consulting companies and contractors, and we focus on how the data flows. By following the flow of data, you can identify where it moves and reach out to the relevant people. We organize in-person workshops at their offices, conduct webinars, and invite them to such events. We also bring in experts from both overseas and India to increase awareness.

There are two kinds of mindsets within organizations: the old and the new. The new mindset is that of the fresh graduates entering the workforce. We tap into this by partnering with institutions like AICTE, providing students with access to technology. When these freshers join organizations, they are already familiar with technology and can influence the hierarchy. This is how we engage with these companies to ensure they view technology as an investment, not just an expense.

What kind of investment is Bentley making in raising awareness of its solutions?

Rahden: For Bentley, this is a fairly straightforward approach, and it's highly scalable for the business. The investment required from Bentley’s perspective is actually quite minimal because when we engage with accounts at scale, most of the clients we work with are facing similar challenges. While every business may feel a little different and there is a need for a customized approach, from an investment standpoint on Bentley's part, it’s quite easy for us to get started in this portion of the market.

Another important point to highlight is that, with the light investment we need to make to progress in this area, the return on investment for Bentley is substantial. The sectors that these companies in India are focused on generating significant revenue and returns at a global level due to our involvement. This means continued spending by our clients. As we grow the business, we look forward to Bentley continuing to make progress, which allows us to reinvest in the business and expand further. It’s an exciting time for us.

How does Digital Twin technology work and why it is considered to be a game changer for the infrastructure sector?

Rahden: When you ask different people what a digital twin means, you'll get varying responses because it represents different levels of data for different people. In some cases, it might just be a replication or a scan of an asset. But for us, it’s much more in-depth. It's the maximum output, encompassing full inclusion of data and 3D models that represent the real-world physical asset in space. The idea behind it is to use those insights to make intelligent, automated decisions in the years ahead by utilizing artificial intelligence and the natural input of that data.

The data you put into the model starts to provide perspectives on what needs to be done to improve things (like efficiency), for companies in the design, planning, and construction phases of a project.

To give a real-world example, consider the construction of a road. A digital asset represents a huge potential for cost savings. Mistakes are made every day, and one common issue might be improper pre-planning or lack of visualization, where the dirt pile ends up on the wrong side of the road. Fixing that mistake could cost millions of dollars due to project delays. On the building side, everyone expects that the construction of a plant or a building will go as planned. But in reality, it rarely does. For instance, if one building goes up ahead of another or one phase of a plant gets constructed before another, it might make the positioning of cranes impossible.

The concept of representing real-world conditions digitally allows people to complete projects on time, within budget, and in a more proactive, innovative way. This becomes particularly important from a cost perspective when considering the vast number of infrastructure projects that need to be completed in India and around the world.

Chakraborty: Digital twins are an amalgamation of what you have. We strongly emphasize openness—open architecture, open standards, and open file formats—which has been key to Bentley since its inception. Our file formats have been open-sourced for the last 40 years, and that approach will continue. This commitment is also reflected in our acquisition of Cesium, which is based on the same foundational principles.

For us, creating digital twins means taking all the different file formats used in designing and building projects—regardless of the software, whether from competitors or industry partners—and providing a framework for owners and engineering companies to visualize all of that information in one simple way. This gives them the ability to make informed decisions.

To explain digital twins, I was recently asked by an 11-year-old, what it means. I used this analogy: Imagine you have an ailment and visit a doctor. One doctor, relying on experience, says, "I think you have a tumor." Another doctor asks you to get a CAT scan or MRI, providing a detailed representation of what’s happening inside your body. Which doctor would you trust more in this day and age? While the first doctor may not be wrong, most of us would trust the one using digital information to make a decision.

In the construction industry, especially with younger engineers coming in, they want information to make decisions—they don’t want to rely on gut feelings or paperwork. This is the opportunity we have in India with the current workforce. Much of the workforce today have likely never seen a landline phone and are accustomed to using digital tools like WhatsApp. In fact, WhatsApp is one of the most commonly used tools in the Indian construction industry, with people sending site photos to each other.

What we can do, as we discussed earlier, is integrate all that information into the digital twin. This means you’re not losing anything but rather bringing everything together in one simple representation, allowing for a holistic view of all relevant project data. Essentially, it’s about taking the past and bringing it into the future.

Worldwide, Bentley offers solutions across all project stages. In India, which area has driven the most growth, and what specific products and focus areas have you prioritized?

Chakraborty: Bentley's key focus in India, as well as globally, revolves around industries such as transportation, civil infrastructure, water, power, and electric utilities. Sectors like oil and gas are also important. However, water and transportation are the key growth drivers for Bentley, both in India and globally.

The water sector, particularly with initiatives like the Jal Jeevan Mission and AMRUT 2, has been especially exciting for Bentley. It’s encouraging to see the government consistently invest in these projects, not just over the past year or two, but for the last decade, ensuring that every household has access to 24/7 water supply. This commitment has propelled the industry forward, and Bentley is particularly proud of its contributions.

An example is the implementation of Bentley's water digital twin technology in Orange City Water, Nagpur. This project highlights the use of engineering data, hydrological models, and GIS information, STADA to create a true digital twin of Nagpur’s water network. This digital twin allows for optimizing the network's efficiency and increasing revenue from water by reducing non-revenue water losses.

Water scarcity is a significant challenge, with some regions facing critical shortages while others have an abundance. There is an urgent need to address issues like depleting aquifers and the lack of groundwater recharge. In collaboration with Seequent, a Bentley company, efforts are being made to recharge groundwater and better understand the geological science behind it.

While water is a vital focus, transportation remains Bentley’s biggest industry driver. The company is enthusiastic about its role in India's transmission story, particularly through its acquisition of Power Line Systems (PLS), which is widely used by most states for transmission line design.

How does Bentley’s digitalization technology contribute to reducing project costs, saving man-hours, and minimizing material wastage?

Rahden: Reducing costs occurs at multiple phases of a project. When you have a well-developed plan, it ultimately reduces the time required to implement it. This process starts in the planning and design phases. The ability of different technologies to work together, and the capacity to handle multiple file formats and collaborate across various platforms, becomes a critical aspect of this phase. Consolidating all relevant information into a single location is key to streamlining the design process.

Another important factor is the interoperability of technologies. The simpler this is for designers and engineers, the more efficient and faster their work becomes. Also, introducing advanced technologies, such as artificial intelligence, can significantly assist designers by automating tasks like creation of drawings, resulting in considerable time savings.

Equally important is the analysis phase. Structural analysis, for example, helps prevent future failures, which is a vital aspect of the planning, design, and engineering process. Technologies like PLS (Power Line Systems) and STAAD enable a deeper understanding of a structure’s long-term durability, playing a crucial role in minimizing errors downstream.

As you move into the construction phase, ensuring that mistakes are avoided, and the correct order of operations is followed, becomes paramount. Proper planning and design ensure that everything is executed efficiently, with materials arriving at the right time and place.

In the long term, cost savings extend into asset management. By digitizing assets during the design and construction phases, you eliminate the need to recreate physical objects digitally afterward. This enables companies to leverage the work already done and manage assets more efficiently. In the end, it's not just about improving efficiency; it's about reducing physical costs. This is where the real long-term savings lie.

Please provide a recent example of a major infrastructure project where Bentley solutions were instrumental in ensuring the project was completed on schedule and within budget and what specific benefits or outcomes were realized.

Rahden: One recent example that comes to mind is UCW, which has been a fantastic application of technology. We initiated the project around March 2024 and were able to successfully complete it by July 2024. There are many other projects worth mentioning. My colleague Amit has highlighted several, including the Wines project, the Kalpataru project, metro projects, and various road infrastructure initiatives.

There is a growing realization today—both at the policy level and among consultants and contractors—that technology is significantly impacting project delivery. Saving time is equivalent to saving money. The entire suite of Bentley products has proven to be invaluable in helping professionals save substantial amounts of time, which directly translates into financial savings. This is why we see a rising utilization of such software.

More importantly, we are now moving beyond just time and efficiency savings. The real value of technology lies in its ability to help us manage the vast number of infrastructure projects ahead of us. The real impact of time savings is not only about saving millions of dollars on individual projects but also enabling development of infrastructure that improves quality of life and even saves lives. That's where technology's broader and more significant impact comes into play.

What are Bentley’s plans for expanding its presence in India, including increased local investment, technology transfer, job creation, and other developments in the coming years?

Rahden: From a technical standpoint, we have been making significant investments in India in recent months. Over the past year, we have tripled the size of our team working in solution engineering and services, and we will continue to expand the team. We're excited about the growth India is poised to experience and the global impact this will have, as the work done by our teams in India extends beyond local efforts, influencing regions worldwide. We're eager to continue investing in India from this perspective.

Kannan: In terms of market coverage, particularly with the government and public sector, we are expanding our team by bringing in industry experts who have deep knowledge across multiple industries. This allows us to engage effectively with the right set of audiences.

We're also making significant strides on the marketing front. We're hosting events like Bentley Illuminate and have accelerated our digital engagements with clients through webinars and other platforms. These engagements help us convey the advantages of the "One Bentley" story—integrating both above-surface and below-surface solutions. India is a key market for us, especially given the ongoing infrastructure spending, and we expect this momentum to continue.

How can Bentley’s technology support India’s 'Viksit Bharat by 2047' vision, and what are your plans to contribute to this national goal?

Chakraborty: India represents a significant part of our global research, development, and engineering operations. With development centers in Pune, Kolkata, and other locations across the country, many of Bentley's products have a strong presence in India, especially in research and development, which is set to grow even further. We anticipate more investments in this area as we cater to global demands.

We are also pursuing mergers, acquisitions, and co-investments, constantly seeking out companies and collaborations that align with our vision. One example is the Nadhi milestone, which emerged from IIT Chennai’s Innovation Hub. We're always on the lookout for opportunities like this to help accelerate our vision of democratizing the use of digital twins in the AEC industry. This remains a primary focus, with India being a key growth market.

As Andy mentioned, professionals in India are contributing to building infrastructure globally. This talent pool is not limited to the Indian market; they are playing a vital role in projects around the world. The AEC industry has abundant talent, and governments cannot claim a shortage of it. Our collaborations with universities and educational institutes are aimed at advancing this industry, ensuring that we continue to nurture and develop the talent that will shape the future of infrastructure.

Chakraborty: Our role, as always, is to support our users by providing better, more cost-effective, and efficient technology, enabling them to plan and deliver their projects more effectively and grow their businesses. For us, working with the government is key. There’s a projected $4.5 trillion in infrastructure investment over the next 15 to 20 years. That’s a significant amount of money, and it’s essential to ensure that it's well spent. We want future generations to look back and see that these investments were made wisely.

One of our primary goals is to emphasize the importance of resiliency and sustainability in infrastructure planning. With climate change becoming an increasingly pressing issue, it's critical that what we build and design today remains resilient. Many people don’t realize the consequences of not conducting thorough ground engineering studies, such as examining soil and rock conditions. Take the example of New Delhi Airport, where heavy rains caused issues because the foundation wasn’t designed for those weather conditions 20 years ago. Similarly, bridges are collapsing, not solely because of poor design, but because they didn’t think of the extreme weather changes we’re experiencing today.

Sustainability is just as crucial—particularly when it comes to water. We need to build more sustainable networks to ensure we don't face severe water shortages in the future. Our goal is to collaborate with and assist governments, global sustainability teams, academic institutions, and technology leaders.