Homebuilders can hold out a long time waffling on whether or not they need technology to help boost their efficiency. Then when they do decide to implement it, they may spend very little time actually choosing what software solutions to purchase.
A builder's decision on which impact software to select could provide the backbone to one or more processes of their business. To use a football analogy, pick a strong return-on-investment like Peyton Manning (who has met and exceeded expectations since being drafted) and avoid a money-pit trap like Ryan Leaf (who hasn't played up to potential).
Selecting the wrong software can be extremely costly because of finances needed to switch solutions when you're already deep in implementation.
Just as NFL teams evaluate potential draft picks based upon game film, tests, interviews and combine workouts, builders can create formulas and tabulations to 'draft' the best possible software vendor.
STEP 1: Define and Document All Requirements
Involve your whole team in brainstorming all necessary and complementary requirements. Designate each requirement in technical, business or functional categories, and prioritize them with a level of importance. That level should not be too complex, so weighing each requirement on a scale of 1 to 5 (with 5 being most important and 1 least important) is a helpful method. See the chart, for example.
At this stage, you should perform a 'rock drill' with your team to: flush out the best practice; streamline possible business processes; evaluate the effectiveness of your internal communication; and document those requirements for the software under consideration. Also, take this time to secure executive sponsorship and input from all necessary parties.
Subsequent actions from this step include creating an official Request for Proposal (RFP), Request for Information (RFI) and/or a requirements document that can be sent to vendors for a response. You should also produce a scorecard for evaluation.
STEP 2: Identify Possible Solutions
It's time to consider industry vendors, vertical vendors, custom software and your internal IT department. Take a look at the pros and cons of each, and perhaps start leaning in a certain direction.
After you've identified solution providers, solicit information from them through your RFP/RFI mailings. Make sure that their responses match up to your requirements document format for ease of evaluation, and watch out for vendors who 'stretch' their capabilities during the RFP stage because they know they can "customize, configure or provide alternative solutions" to meet specific requirements.
The goal in this step is to narrow the list of possible companies to two or three, therefore saving valuable time and expenses on evaluating more options.
STEP 3: In-Depth Evaluation and Selection
Once you've created your short list of vendors, you should arrange for an in-depth demonstration of each software. Along with determining the strengths and weaknesses of specific applications, you need to understand, line by line, how each program solves your particular requirements.
Take out your scorecard again during this step and weigh each solution, documenting which are included in the base application, which are configurable, which can be customized and which are not possible.
At this point there won't need to be any Monday-morning quarterbacking. Your box score -- if you've been diligent with your requirements, weights and evaluation -- will analytically show which solution is best for your company in your current situation and what the limitations will be for the future. After you've found the right solution, you can start evaluating and negotiating cost -- and hope that your pick won't hold out.
Mitch Levinson, founder and principal of Mitch Levinson Consulting, has focused on technology, sales and marketing in the real estate and construction industries for the past 15 years.