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TecHome Builder: The Builder's Guide To Technology


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Software Switch is On

From Page #32-35

See how Ennis Homes jumped on the integrated software bandwagon early and saved valuable time later.

As a builder, you know that using a hammer to drive in a screw may work -- but it's not the best tool for the job. The same principal holds true when it comes to technology, especially as it pertains to the software builders may be using to manage back-office operations.

Frequently, builders rely on off-the-shelf software. Many of these programs do a good job for specific tasks. One product does a good job keeping the books. Another is great for managing schedules. But a third product might be needed to track supply chain. Separate programs are often unable to "talk" to each other, so data needs to be entered multiple times and then extracted from each to create comprehensive reports.

Brian Ennis, president of Ennis Homes in Porterville, Calif., starts approximately 600 homes a year. He says that a few years back he was so frustrated with his old software and back-office needs not being met that he considered buying a software company. He didn't. Instead, he got together with a few other builders who shared his frustration, and they formed the Technology Enhancement Project group.

"We all had big ideas on what software could do for our businesses if it were available," says Ennis. "We were all about ready to dump a lot of money individually to get our software to do what we needed it to."

This is somthing that he says a group of builders had never done before. Joining forces, Ennis says the group was able to come up with software specifications unique to the building industry.

Most builders are not strangers to technology. Ideally, most are integrating technology into the homes they build every day. Structured wiring for phone, cable and Internet -- so homeowners can plug-and-play -- is becoming standard. Homebuyer demand for security systems, smart appliances and smart home technology is nationwide.

Ennis says technology used to be for the small percentage of computer geeks out there, but not anymore. "Now it is mainstream and has become expected. Consumers are really starting to demand technology as a standard feature to be competitive when they consider a homebuilder," he says.

The questions for Ennis and his group became if builders are so savvy with technology products for the homes they build, why are they not as choosy with back-office software? Technology is a way for builders to become more efficient and profitable. So why is it that the homebuilding industry is slow to incorporate the technology available today?

Finding the Screw That Fits

Homebuilding has distinct processes and best practices not shared by other industries. Off-the-shelf software is not designed for the homebuilding industry, so expecting a good fit with these products is sure to lead to disappointment. Customizing software for individual builders also can become a nightmare.

Some say the solution is software designed specifically for the homebuilding industry. In the same way that an operating system in a computer keeps the hardware in sync with the word processing, spreadsheet and email programs that are loaded onto the computer, builder-specific software can become the operating system that keeps a homebuilder's entire business functioning smoothly.

Today, Ennis Homes uses a back-office software program -- HomeSphere's Builder 360 -- that integrates accounting, construction management, centralized scheduling, warranty, sales, purchasing and estimating, options management, land development and more. "We are able to tie the Builder 360 system in with other areas of the business such as financial feasibility, banking, payroll, training, CAD and human resources," says Ennis.

The right software is a tangible enhancement, according to Ennis. He says he has seen more than just his profitability go up by having more usable information at his disposal. "It also has allowed us to become more efficient in getting things done and has incorporated many 'best practices' concepts," he says.

The most significant factor for Ennis has been getting all of the tools to talk to one another -- and never having to re-key the same information multiple times. Some software systems, like Ennis', automatically incorporate all data that is entered and acts as a single repository that plans, tracks and communicates critical information for better review of all building activities.

The Builder 360 program that Ennis uses illustrates the benefits of Web-based systems. One computer screen's worth of links gives his team access to all business operations, but when any new entry of information is made the entire system is updated because the operations are all interdependently connected. This means salespeople, field personnel and vendors can see the information they need in real time, without phone calls, faxes or mail.

Shopping Around

Ennis advises builders to kick the tires before investing in an integrated system. Determining what operations are being hampered by the software they are currently using is a good way to start. That way, he says, they'll know what issues will be important for the new system to address.

"I made the mistake of underestimating my software needs a few times," says Ennis. "It is costly and disruptive to have to make a conversion." He adds that the learning curve starts over each time you switch software products.

Conversion is a factor that can't be overlooked, according to Ennis. Builders need to assess how all the data they have on their current system will be converted over to the new system -- and what training the staff will need.

The ideal system is one that makes conversion easy, keeps training time to a minimum, and minimizes office disruption.

Finally, Ennis advises builders to do their homework. Ask about initial and ongoing costs of new software programs. Get a timeline for installation and staff training. Check the track record of the software company. And get references.

The bottomline, according to Ennis, is to keep up. Using builder-specific, back-office software systems is a way that builders can work smarter, not harder. "If you are not incorporating technology into your business and its processes, you will become a dinosaur," he says.

And we all know what happened to the dinosaurs.

Jim Waldrop is the founder and CEO of HomeSphere, Inc., which develops and markets BuildSoft, BRI and AllTrack, as well as Builder 360, an integrated back-office program for builders.