The other day, gifted with a rare bit of free time, I decided to visit one of my favorite websites, ESPN.com, and catch up on spring training baseball news. I was met with a brand new site design that was far different to the ESPN I had been used to. My first, natural instinct was annoyance, as the routine navigation paths I formerly relied on were now all different. I had to take a few more moments of my time and re-learn this new site. Quickly though, I found this new design was not just better-looking, it was more functional as well. In the end, I realized significantly more content and enjoyment out of the new site.
This experience also reminded me that when it comes to processes and technology, most of us are at least mildly resistant to change. What’s more, even when change is inevitable or we seek out new technology, oftentimes, we’re unprepared for how to best adapt to it.
A recent survey conducted by Software Advice hammered that point home. Software Advice, a leading-edge company that connects prospective construction software buyers to software vendors, polled a number of the people it had interactions with regarding construction software in the last year. The survey covered a variety of topics, including prospective buyers’ pain points with their current processes, what areas of their organization they most wanted to approve and the software functionality they most desired.
In the snapshot of results, provided here by Software Advice, there were some intriguing findings. Here are some key takeaways:
Fifty two percent of respondents noted they were still using paper and pen for processes like bid management, estimating, takeoff and other construction communications in the field, while 32 percent utilized spreadsheets. Just 21 percent of prospective buyers were utilizing some sort of construction-specific software. Though technology surrounds us in our daily lives, the construction industry is still struggling to modernize, with many organizations still utilizing antiquated, burdensome methods for processing data.
In the findings, Software Advice notes, “The perceived learning curve for specialized construction software can also be a barrier for many prospective buyers, especially those who are less tech-savvy. While the learning curve for most [construction related] software is generally not much higher than that for standard office productivity software, it still forces new users to fundamentally change their day-to-day processes. However, it’s important for prospective buyers to recognize that adopting specialized construction software is quickly becoming a necessity, rather than a choice.”
Of the top functionality sought from new software, consistently updated materials lists and accurate job costing topped the list, with 47 percent and 40 percent of respondents listing this as their key need respectively. However, the budgets that many companies are willing to dedicate to new software are falling well short, with an average of $7,766 across the board (including the smallest companies to the biggest enterprise organizations). What’s more, the Software Advice report notes, the larger a company is, the less willing on average it is to allocate spending—in terms of total percentage of revenue—toward software purchases.
Software Advice notes that one reason for the weakened software budgets may be because profit margins in the industry have been slim in recent years. Yet, the return on investment with good construction software systems is easy to ascertain. “Because so much of the cost-savings results from a reduction in data entry or other tasks performed manually, it’s simply a matter of calculating the man-hours saved,” the report notes. “For example, if the software reduces the time a contractor spends on creating bids by even just five hours a week, this could result in cost-savings of as much as $5,200 a year, based on a conservative salary estimate of $20 an hour. The time saved can then be used to pursue more bids, and thus, expand the firm’s revenue growth potential.”
Many equipment rental companies are rebounding in the wake of the recession and have bright growth prospects ahead, but those that are unprepared to efficiently process data and streamline operations will struggle with their bottom lines and not be able to grow their business the way that other organizations with dedicated construction software can. The result could be a significant loss of market share moving forward.
What are your biggest pain points in your organization and what are you doing to address them?
source: dexterchaney.com
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