RedSky IT view a key driver in changing systems should be that you can see real business benefits in extending the areas of functionality from those which your current systems provide
In the past, too often a company had a core accounts system, which would run the ledgers and payroll, capture contract costs and maybe handle purchase order processing. Around this were other separate systems providing Estimating and Valuations, maybe a plant system and certainly a lot of spreadsheets. In some cases, some of parts of these systems were even interfaced to each other, but were still actually separate systems.
What we are seeing is more and more companies realising that using several systems nailed together is not the way forward. Construction companies are turning to systems like Summit 5000 which is truly all one integrated system and which covers the complete construction management process: estimating, sub contract tendering, ordering the sub contract packages, requisitions and ordering of plant and materials, managing the plant, valuations and CVRs, as well as the traditional financials and payroll.
A single application
If your vision of the future is to be using a single application that has well built process flows, complemented by web deployment and integration of all financial activities and the capture of all data at source for the different functional activities (e.g. Buyers, Surveyors, Contract managers and Finance) onto one system, and if your current solution focuses on one or two functional areas only or even if it relies on using a number of different systems interfaced together, it is unlikely to fulfil your requirements now or in the future. Under these circumstances you should be considering other IT partners that can work with you to develop and deliver your vision with their existing solutions.
Another driving factor may be that you need to move to a system that gives you increased flexibility of deployment. This means you are able to deploy the system with a browser or Windows interface with the full functionality of the solution available in either user interface. The ability to choose to deploy on either Windows or Linux and SQL Server or Oracle for true scalability and robustness and complete future proofing, may be a reason for change.
Another area where the technology requirements may mean considering a change to your core systems is the use of PDAs. Whilst often third party PDA solutions can be bolted onto existing applications, it is likely that you will achieve a lower cost and more integrated and robust solution if the PDA/handheld solution is part of the core product your solution provider provides.
Your existing Financial Management IT partner should offer a flexible solution allowing you scope to develop and deliver ongoing improvements to the way you operate. This flexibility should be derived from their approach to developing their solutions, listening to your requirements and employing their technologies to solve real business challenges.
Choosing a supplier
When looking to change supplier consider their long term future. How long has the company been in the market, are they a long term player or are their business goals just short term, to make a fast profit for their external backers, who can then exit? With the current uncertainties in the economy does your current supplier have resilient enough revenue streams and cost base to survive a downturn in trading conditions?
If you are changing system it is important to consider how easy it is to migrate data from your existing system. How seamless will this process be and how long will you need to be “down” for while this process takes place?
You may also wish to consider what level of influence you can have on product development. Does your supplier specialise in construction or is this one of several sectors that the product is being used in. It's also worth considering whether you can gain direct access to the developers of the product or are they employed by a different company or are they working offshore?
So in summary change should be made to give you the benefits of a complete end to end business solution, joining up the traditional islands of data that exist in the separate departments. But when you do change ensure your chosen supplier is financially stable and interested in the long term.
It’s a bit of a cliché but not wanting to be left behind by aging technologies seems to be the order of the day when EasyBuild survey the recent additions to their growing customer base
EasyBuild spend a lot of time ‘knitting systems together’ by working with their extensive number of partners. With an Oracle database, the gateways are readily available to enable interfaces to third party emerging technologies.
Recent examples of projects include the development of link to allow site based data capture timesheet information that needs flow through into the EasyBuild job costing, payroll and HR systems and another project will see an existing customer managing the entire contract admin process electronically by using EasyBuild in conjunction with a leading construction e-trading solution.
“In essence, the hub of any system needs to be of an open architecture which should provide the ideal platform for the core systems to reach out to other areas” says EasyBuild's Brian Walker.
Payback gained by managing the complete operation!
EasyBuild have also delivered systems to a number of clients who have many disciplines or business units within their operation. “These businesses will set-out to streamline the many systems that are in place and often working in a standalone fashion to one single system” says Walker. “This approach has clear benefits, not only with efficiencies that can be gained with such a strategy, but also a clear payback can be seen in the reduction of overheads and support fees,” adds Walker.
EasyBuild’s biggest client, £200m turnover Durkan Group use EasyBuild throughout their entire operation with Homes, Special Projects and Construction divisions all using a single suite covering financials, job control, payroll & HR, CIS management and plant hire, with land management and house sales modules providing software functions that are specific to the Homes division.
Why should I use a software system to manage the financial aspects of my business?
Success brings its own challenges. As you become established and your order book grows you need to know that you don’t have to worry about managing your accounts and that you can still maintain control and access to your key business information.
With tougher rules on financial compliance the connection between technology and business has never been stronger or more important, both in terms of how it is reshaping the way business is conducted and how financial software systems are bringing greater levels of control, automation and audit ability to financial processes.
Most of all, they can help you to set the right financial objectives and then ensure that operational performance is optimised to deliver the required financial performance - better decisions are made, costs are minimised and compliance requirements are met.
As a business you could be faced with further financial compliance demands in the future, such as the latest CIS regulations which came into force last year, that could have a significant impact on your business. All decent software suppliers work hard to ensure that their systems help their customers to comply with a wide range of legislation and regulations. The cost of upgrading to meet any compliance changes is usually covered by the annual maintenance agreement and it is far easier to run an update which will automatically implement all the legislative and regulation changes than trying to implement and keep up to date with all the changes yourself.
For companies that have made an initial investment in a software system but chosen to remain on the same version or not considered upgrading their system, this choice may become increasingly less sensible. As modern financial management software is flexible, adaptable and easy to upgrade, future changes will be accommodated in your business software, therefore future proofing your investment.
Standard accounting systems have never been good at monitoring the leading operational indicators that drive profit which is why an industry-specific solution that is aligned to these indicators should be considered to get the maximum benefit from your investment. Accurate financial information is critical to the decision making process and without the aid of a software system this is difficult to achieve.
A good financial system should cover the following keys areas:
Contract Management
Nominal Ledger
Sales Ledger
Purchase Ledger
Payroll
Subcontractor Applications
Sales Applications
Sales Invoicing
Purchase Orders
Price Book
Works Orders Management
Works Order Scheduling
Fixed Assets
Plant and Stock Control
Costs for a new system will vary dependent on the needs of your business, the number of licences you require and any hardware requirements you may have. Your initial investment should cover all aspects of system implementation and on-site training. However, I strongly advise any company considering investing in a business critical software application to take into account any ongoing maintenance and support programme charges when budgeting for a system to safeguard their investment.
Technology is here to stay and businesses large and small should use it to their advantage. If you are a company working in the public sector or with large corporate organisations as customers, the need to change is even more significant as you could potentially be excluded from their supplier lists not because of the standard of your work but because you don’t have the capability to do business electronically.
In conclusion - it’s not a case of should I buy a system but which one should I choose!
