Part3’s Digital Transformation Strategy: How They Convinced an Industry to Embrace Cloud Software

Getting an industry to change its fundamental ways of working is never easy. When Part3 launched in May 2020, they faced a construction industry deeply skeptical of cloud technology. In a recent episode of Category Visionaries, founder Jack Sadler revealed how they turned this resistance into opportunity.

Understanding the Resistance

The construction industry’s slow adoption of technology wasn’t simple stubbornness. As Jack explains, “When you’re in construction, people’s lives and safety to worry about. You’ve got hundreds of millions of dollars moving hands. You’ve got huge waterfall style projects that you can’t agile.”

These weren’t just excuses – they were legitimate concerns that needed to be addressed. The challenge wasn’t just technical; it was about understanding and respecting the industry’s constraints while showing a path forward.

The Education Challenge

When Part3 first started speaking with potential customers, they encountered fundamental questions about cloud technology. “When were first speaking to folks who are now our customers, there was still an education on what is cloud? Is cloud safe? We have, all of our data is stored on premise,” Jack recalls.

This education challenge might have taken years to overcome. But then the pandemic changed everything.

The Pandemic Catalyst

COVID-19 accelerated digital transformation across all industries, but its impact on construction was particularly dramatic. “We saw in the construction industry where its notoriously difficult to get people to change what they do, people suddenly adopting things like cloud based software and chat tools like teams and slack and Zoom and conferencing tools,” Jack shares.

This shift was unprecedented. “I can’t imagine where the industry that I care about, the construction world, would be without it,” Jack reflects. “It really did change the game overnight.”

Focused Messaging

Rather than trying to participate in every industry conversation, Part3 maintained strict focus in their communication. “We make sure we only speak about problems we’re passionate about,” Jack explains. Their messaging concentrated specifically on “business model innovation, the use of technology, and the use of things like AI in the industry.”

This focused approach helped them cut through the noise. As Jack notes, “We make sure we speak about stuff that we care about and that we really understand. And I think most people find that quite refreshing.”

The Platform Strategy

Part3’s approach to driving adoption went beyond just education. “What we’re really trying to do here around construction administration is create the de facto platform that connects every one of these professionals that’s involved,” Jack shares.

Their strategy focused on transforming how architects and engineers work. Currently, Jack notes, “90% of what they do is documents, 10% is data. The opportunity is to flip that. The opportunity is to provide this entire industry something that looks 90% data, 10% documents.”

Results and Future Vision

The strategy worked. Part3 secured their first customer in November 2020, and their growth has been impressive since: “In 2022, the first year, having raised up pre seed round, we increased top line revenue by six x. And in 2023 it was a little over 2.5 x.”

Looking ahead, the construction industry’s digital transformation shows no signs of slowing. “Construction tech kind of feels like where fintech was ten years ago, maybe 15 years ago, where you’re starting to see this influx of new innovation,” Jack observes.

For B2B founders driving digital transformation in traditional industries, Part3’s story offers valuable lessons. Success isn’t just about having better technology – it’s about understanding industry constraints, focusing your message, and being ready when catalysts for change emerge.