Builders Are Split on Which Is the Best Purchase Strategy.

Streamlining operational efficiency has always been a priority. But as IT solutions evolve, builders must decide between purchasing a turnkey IT system and selecting one software solution at a time.

According to the just-completed IT Solutions Survey by EH Research and TecHome Builder, builders are evenly divided on which option is the best course of action. The study reveals that 47 percent of responding builders prefer to purchase individual software modules for their computer applications. However, 45 percent of respondents prefer an all-in-one integrated software solution. The opinions are virtually evenly split.

Which is best for you? There are advantages and disadvantages to both options, according to providers of solution software for builders.

"Most builders would rather have an all-in-one solution, but it doesn't exist," says Eric Salerno, sales engineer at Argos Systems, a software provider based in Bedford, Mass. "Instead they select one software system at a time because they believe they are picking 'the best' in each category [such as accounting, sales administration, inventory management or job costing]."

Larry Hooker, vice president of national sales for FAST, a Redmond, Wash., supplier of integrated software, believes the needs of production builders and custom builders are very different, even though both groups of builders are motivated by the same reason—cost reduction—to seek out IT solutions in the first place.

"Bigger builders are more willing to customize," says Hooker. "They want it all in one, but the challenge is that often the integrated software doesn't offer all the features they think it should have. That's why many are drawn to integrated software that can be purchased on a modular basis. For custom builders, lack of features is not an issue, but price is important. Many of them know that their current generic business software is not cutting it, but they don't want to spend the money on a builder-specific system."

Meanwhile, some builders are afraid that an all-in-one integrated system will force them to abandon a current piece of software—like accounting or sales—that is working well. That was one of the major issues that plagued BuildNet, the now-bankrupt software provider that ate through $30 million in investment from various sources, including builders. BuildNet attempted to offer builders a complete solution for accounting, bid administration, inventory management, estimating, and customer option selection.

"BuildNet is still a lingering issue. The staying power of the software vendors is still a major issue among builders," says Salerno. "I tell builders that the market for software is different today than it was five years ago. Every software company runs differently. They can't compare BuildNet to the companies that are around today."

Hooker says that when a builder is forced to abandon a perfectly fine software system to accommodate an integrated package, "in a good world it's a borderline nightmare. The builder should instead buy an integrated system that will permit them to gradually migrate over to a new module while continuing to use their current system."

Some basic advice for helping you decide which software solution, whether integrated or modular, is right for you.

1. Have an Implementation Strategy: Creating a team in your homebuilding company will help you decide what software you need, and whether you need to use internal staff or outsourced software development. The strategy should also include timeline and training needs.

2. Investigate the Vendor: Your software vendor should have the ability to travel to your facility if necessary and offer hands-on training. It should also have a support staff available via phone. Ask the vendor how long their average "trouble ticket" takes to be resolved. Also look for a vendor that specializes in working with other types of builders like you. If you're a custom builder, it may not be wise to use a software provider that specializes in working with production builders.

3. Look for Expandability: Like every other builder, you hope to grow. Any software solution needs to be able to grow with you to handle increased workflow.