San Jose, USA / Stuttgart, Germany, 23 March, 2017. 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 the Berlin based CG Gruppe AG, a leading German real estate developer in residential construction. Company’s performance horizon invested within the following five years totals approximately EUR 4.7 billion.
The Silicon Valley based start-up YTWO Formative has developed an integrated IT platform, which can virtually simulate the construction and modernization processes, from design to project completion, and allows the integration with the enterprise-wide planning and controlling (ERP). The developed cloud-based YTWO Platform includes a catalogue of products and prefabricated construction parts, as well as all project management modules that are required for physical construction. YTWO Formative is the world’s first technology that offers a fully digitalized and formative construction process, which 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, 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 the 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 the German visionary for residential construction on board for the application of our technology”.
Mike McNamara, co-founder of YTWO Formative, comments the agreement as following: “Transferring innovative SCM solutions to the construction industry requires a full integration of all steps in the construction process on the enterprise level. From design to completion, end-to-end processes needs to be simulated and implemented with a target deviation of <1% in the 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 the CG 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 to turn our ambition into reality”.
About CG Gruppe AG
The CG Gruppe is a German project developer with its own construction competence. 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 technological 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.
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 web-based 5D BIM enterprise software, USD 120 million First Round starting capital and with the 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 the construction, modernization and maintenance of real estate.
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 DVA (Data Visibility App) in the planning phase in 5D (3D plus costs and times). The second step involves the integrated execution of the real processes with a real-time monitoring and an integration of all data into the project management and the company control.
The business model of YTWO Formative is “Transaction based” and success is tied to the order volume of the registered products and components from YTWO Formative’s product catalog. According to a recent study by the McKinsey Global Institute in February 2017, 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.
RIB Software SE is an innovator in construction business. Since its inception in 1961, RIB Software SE has been the pioneer in construction innovation, exploring and bringing in iTWO³ – new thinking, new work and new technology – to enhance construction productivity, and to transform the global construction industry into the most advanced and digitalized industry in the 21st century. RIB iTWO today is the world’s first Cloud / License based Big Data 5D BIM enterprise solution for construction, real-estate and industrial business.
RIB is headquartered in Stuttgart, Germany, and listed in Prime Standard Frankfurt Stock Exchange since 2011. With about 700 talents located in over 30 offices worldwide, RIB is serving 100,000 clients including construction contractors, sub-contractors, developers, owners, investors and governments, in the field of building construction, infrastructure, EPC sector and more.