Enhanced Technology: Choose the Right Solution for Your Construction Business

In today’s competitive construction market, every company is looking for ways to stay ahead of the competition.

Enhanced technology can provide businesses with the necessary edge to outperform the rest. Choosing to invest in the right type of technology can help businesses increase efficiency, improve cost savings and provide tremendous return on investment (ROI).

How can a construction company ensure they choose the right type of technology? To start, seek out an integrated business management solution that brings together the particular features and functionality that you need to run your business. By taking the time to research, test and implement the technology that can automate the specific workflow processes most important to their business, owners can ensure that they will achieve significant time and costs savings in the long-run.

Getting Started

Identifying the proper software requirements for your company isn’t a one-person job. It requires strategic insight and detailed planning, ideally by the individuals who recognize and oversee the direction of the business. To begin, assemble a well-rounded team that includes the CFO, controller, estimator and project manager to list and define current business processes.  By doing this up front, you’ll more quickly recognize your needs and be able to find and implement a comprehensive solution to match them.

Evaluate Current Software

Take a look at your existing software and determine how it measures up with your business needs. Most businesses typically have had some type of process management technology in place for several years, such as spreadsheets or basic accounting software, but these aren’t the most optimal solutions for businesses anymore. A legacy application that fit your business ten years ago may now be outdated and incapable of handling your more mature company and its business processes.

To update your solution, identify the capabilities and benefits of the current solution, make a list of the most important attributes to maintain and any areas in which the solution is lacking. Are there any features it doesn’t provide? Limitations on data entry or business analysis tools?  List these shortcomings separately and keep them handy when researching new software options.

Identify Ways to Improve Workflow

Look at current workflow processes, and determine if any tasks currently completed manually can be automated. Automation provides businesses with streamlined processes and improved productivity, but also frees up personnel to handle other tasks, such as analyzing project information or managing project resources.

It’s also important to consider an automated solution that allows complete visibility into all processes. By eliminating manual management of multiple spreadsheets, you can also eliminate the possibility of repeat, or incorrect, data entry that can interrupt or slow workflow processes.

Look Forward

Once you’ve established the abilities, limitations and usage of your current software, take a close look at where your business is going.  Identify the key drivers for business growth.  Do you plan to geographically expand your business? Are you thinking about increasing your staff?

Also try to ascertain how the business might change over the next few years.  Are management or structural changes possible?  Any plans to expand into different segments of the industry? Would you consider acquiring smaller companies?

All of these factors need to be considered to accurately identify software requirements, and to save the company time and money in the long-run.

Selecting The Right Solution

Finding a Vendor

Selecting the proper software vendor is a critical decision for a business owner. An Internet search has become a convenient way to research vendors, and can offer an entire list of solution providers within seconds. But critical scrutiny of these vendors will mean the difference between choosing the right and wrong solution for your business.

Once you have obtained this comprehensive list, the most important step is to narrow down the field of vendors to those who understand the industry, are experienced in working with firms of your size and specialty, have a proven track record of successfully deploying and supporting the software and have a broad portfolio of success stories under their belt.

Here’s how to arrive at a short list of software vendor partners:

• Industry savvy. Make sure the software addresses the needs for your segment of the market. You can investigate the qualifications of a software provider beyond their sales pitch by checking if the vendor is a member of accredited industry associations. In addition, verify that the vendor can provide at least three references from current customers who operate in your same segment and are about the same size as your company.
• A proven cost benefit. This one appears obvious, but it cuts deeper than whether the price tag fits within your budget. The more effective the software package, the greater your ROI. Be certain to factor ROI into your cost analysis-after all, inexpensive software that delivers no benefits and increases workload is overall a more costly investment than software that appears more expensive at first glance, but outperforms the competition in the end.
• Experience and commitment. Find out the basics about the provider, including how long they have been in the construction accounting and estimating software business, and how many customers they currently serve. Does their software run on the latest computer hardware and software? When was the last update, and what were the changes made?
• Service personnel availability. Ask how the vendor helps customers during the lifespan of the relationship, and learn how support is provided-online, over the phone or in-person. Does the vendor provide adequate assistance to new clients for installation and training? Further, are they helpful, knowledgeable and pleasant to work with?

Making the Decision

After you’ve chosen the winner, it’s time to sign on the dotted line. But before you enter a contract, be certain you know what to expect in terms of ramp-up time, infrastructure and estimated time-to-results.

The answer will vary depending on your construction company’s desired results and the extent of business re-engineering that is required to accommodate the solution. Many companies have strong manual processes in place that can easily transition to automation. This expedites implementation and could result in benefits being realized in as little as thirty to sixty days after installation.  For companies whose processes are not as organized, time-to-benefit could be longer.

While this process may seem daunting during the initial phases of research, in the long run, a meticulous evaluation of current software will only help your business increase profitability. By detailing precisely what your company has now, and preparing for long-term growth, you are enabling future stability, cost savings and giving your company the added advantage to remain competitive in the industry.

Construction Business Owner, May 2008