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Know Your Technology Needs Before You Invest

The first in a series of tech talks for builders.

Many home builders and remodelers research new technology options by “seeing what’s out there,” and then determining if it makes sense for their companies. Others hear about the software package that XYZ building company uses and figure it will work for them, too. Do either of these approaches sound familiar to you?

Neither strategy works because they both take a “back end first” approach to technology. Such strategies look at ultimate results and assume all the contingent steps to make those results work will ultimately fall into place. That’s about as logical as Boeing making a new airplane and, without testing it, holding a raffle for the first load of passengers to try it out.

Software operations are nothing more than manual procedures made more efficient and put into repeated, seamless practice. If those procedures are inefficient, the software will be, too — no matter what package you run. For example, if a sales office processes contracts inconsistently, it’s pretty difficult to implement an automated sales office system.

What the Series Will Explore

I’ve developed this Tech Talk series of articles to give you a road map for plotting your short- and long-term information system needs. I’ll discuss eight functions of a home building business where technology can play an important role. You’ll need to consider the lost opportunities from not applying technology to each of these areas. You’ll also need to consider whether or not to use in-house or contracted systems and expertise to implement a given solution.

Expect and Plan for Change

It doesn’t stop there. Before you can apply a technological solution, you need to map out the process controls achieved with the solution. From there, you need to figure out how to train your staff to work with the new technology, and to determine the culture change involved. Change, however gradual in nature, will cause a reaction. Anticipating that reaction and dealing with it openly and positively is the starting point of implementing technology change.

This type of breakdown may seem exhaustive for a small-volume builder. After all, what culture change is involved if you employ only three or four people? Whether or not you use a computerized solution to better control one of the processes we’ll examine in this series, what will you do to better control that aspect of the business? Focus and change can be organizational — even if the “organization” is one person.

Regardless of your company’s size or volume, technology represents the biggest revolution in the last 50 years and it shows no signs of letting up. It puts a lot of power in a builder’s hands; without it, you can’t effectively compete. Incorporating technology into your business is not a matter of “if,” but “when.”

Next week: strategic planning

Note: Various software products are mentioned throughout the Tech Talk series. The intent is not to recommend these products as being right for you, but to identify some fairly well-known players and to note a few new ones. My apologies to vendors who are not mentioned — the omission was not intentional.

Bill Allen is president of W.A. Allen Consulting and a member of NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, WA, provides information technology consulting services and process management assistance to the home building industry. Allen can be reached at 425-885-4489 or via e-mail. Visit the W.A. Allen Consulting Web site at http://waallenconsulting.com.

Want more information about using technology in your business? Check out the online resources available from NAHB’s Business Management Department: Tools for Running Your Business. There are also articles about human resources, financial management, sales, production, customer service, and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.

BuilderBooks.com also offers a variety of publications about computer technology. To view or purchase these publications online, click here.

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