4 hidden costs of disconnected systems in the home building industry
The home building industry has historically been slow to embrace technology and change. Many home builders are wary of trying something new, preferring to stick to existing processes. Add deteriorating profit margins to the mix and it’s a recipe for no change at all. Here are the top 4 hidden costs of working with disconnected systems.
- Lack of control and business overview
With multiple systems for sales, accounting, inventory etc. the executive team has inconsistent or incomplete information. This limits their ability to make informed decisions and see a clear view of the business at any point in time.
- Manual handling of company data
Many systems that the home building industry continues to use require staff to manually enter data and work with important data, such as accounting, offline in spreadsheets. This requires double handling and triple checking data to account for possible human errors and manual handling of critical data. One finance team estimated that they needed 45 man days to complete one process in their accounting, which could be brought down to 1-2 minutes with an integrated system like Microsoft Dynamics 365.
- More systems, more money
Each system that a business uses – accounting, supply chain, CRM, finance, operations has ongoing costs associated with them. Licensing, maintenance, training, support, customer service – all these add up. Reducing the number of systems businesses use reduces the dollars spent on maintaining services from different providers.
- Staff productivity
Most roles in today’s work environment are servicing another department – whether it is internal or external. People want to be able to service their customer quickly and efficiently. With multiple systems, information is typically stored in various places, making it difficult for staff to sift through it and locate the data they are looking for. This also impacts the talent that the industry attracts. Millennials entering the workforce have grown up with instant access to information and integrated cloud based apps and they expect their workplace to provide them with the latest technology to perform their duties.
The solution for the home building industry is a single, integrated system that pulls all these elements together. An integrated system that connects sales, operations, scheduling, contracting and reporting, home builders can eliminate inefficiencies and streamline operations. The less time staff spend chasing information, the more time they can spend on higher priority tasks such as delivering customer value and generating revenue.