All companies have pressures on their profit margins these days, forcing them to look at new ways to improve overhead numbers while becoming more effective and efficient in process deliveries. Technology can be a great way to save money and improve processes.

However, builders can be hesitant to take the steps toward new product implementation due to the costs associated with selecting, implementing, and training on a new technology package. So the main crux of technology implementation today becomes finding how to do more with less and finding the right tools to supplement the current strategy in place.

Kathi Cruz, estimating manager, David Weekley Homes, www.davidweekleyhomes.com, Houston, Texas, says the biggest factor driving technology initiatives forward today is the ability to do more with less people and with less cash flow.

“Everything we implement now needs to have a cost benefit in either time or money,” says Cruz. “We know we have to do more with less and that we aren’t going to grow back as rapidly as we had done before when the housing market was booming.”

So how do builders position themselves in a down economy? The first step becomes looking at processes and identifying how they can be improved. Next is identifying the technology that can play an enabling role; and those applications being used by builders these days aren’t your conventional systems and solutions.

The Importance of Process
While new technologies can promise to save time by reducing the amount of administrative work in the back office or save money by providing more visibility into overhead numbers, one of the most important steps when implementing new technologies is supporting the process. Cruz of David Weekley Homes has been looking at BIM (building information modeling) in the past year with plans to truly evaluate these systems throughout the course of the next 12 months.

At its core, BIM is a change in process where project members can gather detailed data from intelligent models. While there are a number of enabling software packages that can help builders get a big-picture view of the project, as well as answer the detailed questions of design, documentation, and construction, builders need to recognize that a change in process needs to occur.

Cruz says what the company is doing now is looking at internal program changes to prepare for the growth that the company expects after the market turns around. For builders, now is the time to look at these process changes that will simplify procedures, as well as identify the technologies that will play an enabling role.

While BIM can be one method used for updating internal processes and flushing out waste, there are a number of other areas, from estimating to accounting that can also be addressed. Solutions that can improve target processes, as well as address secondary areas are ideal. But according to Sistilli of Arista Homes, this is not always easy. One challenge he cites is when a technology solution addresses a primary area, but causes changes to a secondary area without much improvements occurring. This can often occur with “integrated” technology.

We face challenges in this regard, as there are many single solution providers in the marketplace providing excellent products,” he says. “However, they do not ‘integrate’ well into other more comprehensive solutions. This will sometimes create hesitancy in implementing the standalone solutions.

However, we do keep our eyes open to other opportunities that will improve other areas such as improving our builder/client information flow as well as technology that improves workflow.”

While technologies that drive efficiencies are of the utmost important to builders these days, another primary area of focus is selling more homes. There has been a great focus in recent months on improving builder/client relationships through the use of technology, and there are a number of enabling technologies that can help drive these relationships.

For example, a comprehensive sales and marketing solution can help builders become more competitive, as it helps create targeted plans for selling homes and options, not mention better servicing the customer. While generic sales and marketing solutions could be appealing, many builders have found greater success with using technology built for a homebuilding environment. This helps focus in on the items most important to the process including, automated management of leads, sales orders, and customer emails; analysis tools for customer feedback and marketing campaigns; and the ability to create custom reports.

It is important to ensure the solution is cost efficient. Many builders have found such solutions in those delivered via SaaS (software-as-a-service), which helps lower the cost of operation and maintenance. Also essential is to ensure such products are integrated to other mission-critical parts of your company, such as production, scheduling, service, and accounting.

The Next Big Technology
What new or emerging technology will have the greatest impact on the construction industry in the next five years? According to a survey of Constructech readers, wireless and mobile solutions top the list, with document imaging and building information modeling following closely behind.

One of the biggest trends in the industry today is going mobile. Software providers in the construction space are recognizing this trend and are creating mobile versions of their applications for builders in the field. Taking it a step further, providers are additionally creating apps that can run on Apple’s iPad and iPhone devices.

A number of technology providers have jumped on board, offering apps for iPhone and iPad products. However, some builders and technology providers alike question the durability and usability of devices such as these in the field.

When it comes to durability, companies are beginning to make cases and covers that will help make the devices more durable for construction companies. Magellan GPS, www.magellangps.com, Santa Clara, Calif., released the ToughCase, a rugged device giving the iPhone and iPod waterproof capabilities and protects against dust, rain, mud, water, and snow, while still allowing access to Apple’s interface.

Beyond using mobile applications in the field to manage business processes, homebuilders are finding this technology can appeal to homebuyers. Certain iPhone apps aim at improving customer service by providing them with targeted access to community information. Shea Homes, www.sheahomes.com, Walnut, Calif., as an example, developed an app for Apple’s iPhone and iPod to improve customer service by providing detailed property information.

Other Builders are finding they can create a mobile version of their Website for buyers on the go. In July, Signature Properties, www.sigprop.com, Pleasanton, Calif., announced the launch of its mobile Website for buyers, which is designed for small screens such as the iPhone, Android, BlackBerry, and other smartphone devices. Through a mobile browser, buyers can look at new homes, find a lender, calculate payments, and see new incentives. Lennar Homes, www.lennar.com, Miami, Fla., is another example of a builder that has created a mobile version of its Website for buyers.

Also high on the list of hot/emerging technology from the Constructech survey are social-networking technologies, which have garnered a lot of attention in the residential industry during in the past year. These technologies might be just the solution to help builders improve process efficiencies and sell more homes.

Social networking technologies can be good promotional tools for a company, that do not come at too a high of a cost. While the effort to manage the platforms does cost a bit of money, the investment is oftentimes nominal. Overall, companies are finding the tools and strategies surrounding social media can help promote a company.

Other ways to drive brand recognition
While Facebook and Twitter are among the social media tools that immediately spring to mind, builders are also finding success with using executive-level blogs to drive brand recognition.

For example, Boone Homes, www.boonehomes.net, Manakin-Sabot, Va., launched a company blog earlier this year that contains information on events and industry trends. The company is using the blog as a way to connect with buyers and real estate agents. In addition, the builder has a presence on popular social networking Websites like Twitter, Facebook, LinkedIn, and YouTube.

Another area that builders can look to when trying to sell more homes is technology that has that ‘green appeal.’ Green homes have been the center of much of the news in the past year, with many builders working to make their homes more energy efficient.

According to NAHB (National Assn. of Home Builders), www.nahb.org, Washington, D.C., builders and remodeling professionals are going green by including more energy-efficient features in the homes, as well as reducing waste on the jobsite.

One consultant even says green building has reached a tipping point, moving out of the custom home market and into high-production homes.

According to Modular Homes Network, www.modularhomesnetwork.com, Reno, Nev., going green is a very hot topic in every industry, and modular homebuilders have taken notice of this trend. In an effort to build low-impact housing, builders have begun incorporating green technologies into modular home construction.

However, there are some concerns that green home technologies can drive up the price of homes and are only marketable to a niche audience of eco-conscious buyers. Some homebuilders, such as Meritage Homes Corp., www.meritagehomes.com, Scottsdale, Ariz., are challenging this notion, estimating green home technologies such as home-management systems, weather-sensing irrigation, and water-management systems will save homeowners up to 80% on utility bills in the long run. The key to green, says the NAHB, is to make sure the customer understands the value of green upgrades and how cost-effective a sustainable home can be for them in the long run.

In some cases, state governments are even getting involved in driving the green movement in homebuilding with cash incentives. According to the NAHB, a program has been created in the state of Delaware to offer cash incentives for building homes certified by the NAHB Research Center to the National Green Building Standard.

Bob Jones, chairman, NAHB, and president, Robert R. Jones Homes, www.robertrjoneshomes.com, Bloomfield Hills, Mich., says these incentives help bring green homes to a more competitive price point for today’s consumers, and is encouraged that other states will look to similar incentive programs.

How do you successfully position yourself in the down economy? While there is no easy answer, there are multiple avenues to explore. Without a doubt, technology continues to make a difference for builders in a numbers of areas.

The solutions aren’t always the most conventional, i.e., social networking and green technologies. But current economic conditions call for builders to think outside the box.

SOURCE: CONSTRUCTECH Magazine - the construction industry advocate focused on the technology needs of the construction professional dedicated to driving technology initiatives forward. http://www.constructech.com/news/articles