Limited Use of IT Tools
The success of a builder’s IT implementation is often attributed to the builder’s preparation and attitude prior to that implementation. The Newport survey found that 60 percent of homebuilders consider themselves to be gradual technology adopters or traditionalists, while only 7 percent consider themselves to have an innovative IT philosophy. If 60 percent of builders are gradual adopters of technology, it should probably come as little surprise that of those surveyed, the majority reported not using all of the features available in the products they buy. Most often, builders reported being able to use the basic features of their software within less than 1 month. Only 17 percent, however, used 76 percent or more of the software’s features and only 49 percent of builders used more than 50 percent of the features.

Although builders are learning the basic functions of the software fairly quickly, it seems there remains a large percent of the product features not being used at all. The question remains, the Newport surveyors say, whether builders are not using these features because they are unnecessary or because they do not have the time or resources to take advantage of the features.

Products and Roll-Outs
Certain roll-out plan elements, implementation steps or actions taken by from specific stakeholders did have correlations with success and failure in IT roll-outs, according to the Newport survey. Conversely, taking no steps — not having a roll-out plan or not having any standard software integration approach — consistently correlated with failed roll-outs of IT products. It remains unclear, the Newport surveyors analyze, whether there is a “silver bullet” step or planning stage that will facilitate success. It is also unclear whether that preparation would yield the same results across product board. Nevertheless, Newport argues, it seems clear that planning is necessary.

The survey identified several factors that tend to be related to the successfulness of an IT roll-out. Management interest, commitment and staff buy-in were attributes found to be positively correlated with successful IT roll-outs. Also, builders who had not adopted a standard approach toward software integration with business processes were 10.1 percent more likely to experience an unsuccessful IT roll-out.

Although the majority of survey respondents identified that they do not have a specific budget line item for IT (65 percent) and also reported spending less than $5,000 per year on IT (57 percent), the majority of builders have tried at least four different types of IT products.

The most popular products reported included accounting and financial software, job costing software, scheduling programs, payroll management systems and computer-aided design programs. Accounting and financial software products were the IT products most often tried. They were also the most enduring software type, as builders have continued to use these products more than any other software type.

IT Frontiers and Feedback
Respondents to the IT survey claimed, by 72 percent, that accounting and finance were the top priorities in terms of needing or benefiting from process automation. Most often, surveyed builders felt the largest gains to be made through the adoption of technology would be made in getting a better grasp of the actual costs of various projects.

Estimating software was identified as the software type that needs the most work (35 percent). Enterprise resource planning (21 percent), accounting (18 percent) and product management tools also ranked near the top of the product types needing improvement.

Throughout, the survey showed that both builder personnel issues and product quality were important factors in an IT roll-out.

Overall, the survey suggests America’s homebuilders are generally satisfied with the current spread of IT products available. In fact, a wide majority of builders, 74 percent, reported feeling that the IT products they use are satisfactory for their business needs, and six percent called the products “excellent.” Only 20 percent of builders said their IT products are unsatisfactory. THB

Steve Schrader, vice president with Hundegger USA, a Charleston, Utah-based distributor.