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Why Procore's Business Model is so successful?

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Procore’s Company Overview


Procore Technologies, Inc. is a leading provider of cloud-based applications for the construction industry. Founded in 2003 and headquartered in Carpinteria, California, Procore has revolutionized the way construction professionals manage their projects, resources, and financials. The company's comprehensive platform includes solutions for construction project management, quality and safety, and field productivity, all accessible through a unified mobile and web interface. Procore's platform connects every project stakeholder to solutions they've built specifically for the construction industry, enabling a variety of teams to work together seamlessly, from the office to the job site. Business Model: Procore's business model is based on a software-as-a-service (SaaS) model, where it offers its customers access to its cloud-based construction management software on a subscription basis. The company's platform is designed to streamline construction project management by integrating various tasks such as document control, project management, quality & safety, and field productivity. Procore's value proposition lies in its ability to simplify complex processes, facilitate real-time collaboration, and improve the efficiency and productivity of construction projects. The company primarily targets general contractors, specialty contractors, and owners in multiple market segments including commercial construction, residential construction, and industrial construction. Revenue Model: Procore generates its revenue primarily through subscription fees for its software platform. The company offers several pricing tiers based on the size and needs of the customer, with the subscription fee typically including access to the software, customer support, and training. Procore's pricing model is designed to scale with the customer's business, meaning that as a customer's business grows and they handle more projects, the subscription fee increases accordingly. In addition to the subscription fees, Procore also derives revenue from professional services, which include implementation, training, and customer support services.

https://www.procore.com/

Country: California

Foundations date: 2002

Type: Private

Sector: Technology

Categories: Construction


Procore’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: saves time, simplifies, reduces risk, organizes, integrates, connects, reduces effort, reduces cost, informs


Procore’s Related Competitors



Procore’s Business Operations


Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Best in class services:

When a firm brings a product to market, it must first create a compelling product and then field a workforce capable of manufacturing it at a competitive price. Neither task is simple to perform effectively; much managerial effort and scholarly study have been dedicated to these issues. Nevertheless, providing a service involves another aspect: managing clients, who are consumers of the service and may also contribute to its creation.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Corporate innovation:

Innovation is the outcome of collaborative creativity in turning an idea into a feasible concept, accompanied by a collaborative effort to bring that concept to life as a product, service, or process improvement. The digital era has created an environment conducive to business model innovation since technology has transformed how businesses operate and provide services to consumers.

Data as a Service (DaaS):

Data as a Service (DaaS) is a relative of Software as a Service in computing (SaaS). As with other members of the as a service (aaS) family, DaaS is based on the idea that the product (in this instance, data) may be delivered to the user on-demand independent of the provider's geographic or organizational isolation from the customer. Additionally, with the advent[when?] of service-oriented architecture (SOA), the platform on which the data sits has become unimportant. This progression paved the way for the relatively recent new idea of DaaS to arise.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Subscription:

Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

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