RedSky software right for business
Choosing and implementing the right software is a difficult task faced by the construction sector, given the myriad of functions that must be covered. Andy Bullen* of RedSky IT, details how to go about selecting construction-specific software.
01 October 2009
THE construction industry is diverse with unique methods of working and a complex supply chain to manage. It is also a highly-competitive industry with tight margins, where managing business processes and costs is so important for business survival. It is, therefore, surprising that many companies rely on out-of-date management information to run their businesses.
Those companies that have invested in financial and operational software have the tools to manage their businesses effectively as they have access to immediate information allowing them to identify cost advantages or overruns and track revenue streams, thus enabling them to work within the budget. Given the specific way that the construction industry works with many variations to project specification and budgets, reliance on subcontractors, plant management and labour, it is imperative to have access to up-to-the minute and reliable management information.
The solution is a fully-integrated or ERP (enterprise resource planning) software, which links all the functions of a construction company within one system. Including all construction stages from estimating, planning and budgeting, through procurement and subcontract management, plant management and valuations, all linked to a core financial suite, an ERP system provides a central framework essential for the smooth running and profitability of any company.
Many construction companies recognise that it is not only in a tight financial environment that financial and operation controls are required to maximise performance and revenue and they have decided that now is the best time to install specialist software to take full advantage of an improvement in trading conditions. The challenge that construction companies face is where to source a suitable system and identifying what the potential pitfalls are when making such a choice.
Evaluating software
Evaluating software can seem a daunting task but that should not put a company off considering implementing software. If approached within a defined evaluation plan, the process can be made easier and the risk of choosing the wrong system be greatly reduced and even avoided altogether.
The first choice a company has to make is whether to choose a specialist developer of construction software or a general supplier of financial software. A standard financial software package written for a trading company may be efficient within limits but it will not accommodate the management of plant or subcontract labour and will struggle to handle the contract management, procurement and quantity surveying (QS) functions in the construction industry.
Having a software supplier who understands and has experience of the construction industry is vital. Having to explain to a supplier how construction works, its terminology, working practices and procedures, can be costly in terms of time, and money, adding unnecessary strain to any software implementation. This choice can have a major long-term effect on the total cost of ownership of any system and how it impacts a business.
Once the decision has been made that software that has been written and developed for construction is the way forward, then it is important to look at how a system can improve overall efficiencies across the whole company rather than be impressed by individual features. Preparing a wish list of what the system should do with reference to companies who have already installed software, to listen to their experiences, can be invaluable.
When evaluating construction accounting software, companies should look for the best real-time, integrated, job-costing capabilities available – a basic requirement of any efficient system but even more vital in a period of cost fluctuations such as we are now experiencing. Trading conditions are changing so rapidly that managers cannot afford to rely on financial statements that may be one, two or even three months old. When finance is tight, monitoring cash flows for each project individually enables project managers to accurately assess the status of any job.
Delivery & support
The delivery and support of any system is a key to its success. Any supplier should explain the methodology adopted to deliver a system and discuss a timetable of implementation, ensuring the system is delivered on time and in budget. Unstructured or ad hoc training can lead to delays and frustration and often hides inadequacies within the supplier’s system. Assigning training to a third-party organisation should also be avoided.
At this point, questions should be asked about the financial stability of any supplier and their resources to ensure long-term support and product development is available. The supplier support desk needs to be easily accessible and consistently able to handle any inevitable questions, which will occur now and in the future.
Implementation
Once the choice of system has been made, implementation of the system has to be considered. It is vital that the whole organisation is committed to any new system so the appointment of a system manager to oversee any implementation is crucial. This person should have the full support of management, ideally have experience in software implementation, needs to be committed to the system and change, have knowledge of company systems and have the respect of the company’s staff so that they can drive the implementation forward.
The construction industry employs a vast range of skill sets and abilities and it is easy to forget that some staff may not be comfortable or experienced in using computers, so software has to be accessible to the whole organisation from receipt of goods on site, to senior management. The capabilities and appearance (interface) of the software package has to be accessible to every user. Each user or user group will feel comfortable and therefore more willing to embrace the new system if it can be tailored and configured for their requirements. The accessibility of any software to all users defines it overall success.
Security of data and access rights is often a concern when choosing a system and whereas most systems have basic security measures via login protocols, being able to audit individual actions and trace changes is a reassuring feature of any system.
Reports
How good any system is can be decided by the information it produces and in what format it is presented. Clear, accurate, and flexible reports are vital to allow management to make informed decisions. A range of reporting capabilities is favourable as standard reports may not provide the required information in the desired format.
The last thing any company wants is to be constrained by the capabilities or flexibility of their software so it is as well to understand whether the system has expansion limitations and can accommodate multi-currency, multi-company and dual language. With the prospect of VAT being introduced in the near future, choosing a financial system that will not apply it could potentially make the whole system redundant.
RedSky
One company that has been delivering successful solutions for contractors is RedSky IT, whose software is in daily use by more than 2,000 construction organisations worldwide. The Dubai-based company not only makes the decision-making process easier for companies as its software has been developed over 30 years in conjunction with the industry, but its experience also allows it to understand the needs of a company when employing new software and therefore it can ensure a smooth implementation.
A large number of construction companies in the Middle East and the UK have chosen RedSky IT as they recognise that its understanding of the industry and how it continues to develop its software as the industry changes provides security for them now and in the future.
RedSky IT has dedicated solutions for the whole construction supply chain including contracting companies, facility and service management, architects, engineers, consultants and document management software.
The company recently introduced a packaged version of its ERP software, Summit Enterprise, for small and medium-sized contractors so that the whole industry can benefit from technology to control costs and manage their contracts.
Summit Enterprise, is now recognised as the only system on the market able to manage the complete construction process from estimating to payroll, incorporating management of all interim construction processes such as subcontract management, plant and service management.
The advantages of having one software package are far reaching. From on-site activities such as stock requisitioning, through project management and finance, and ultimately to the company executive, one system captures complete and accurate project data, allowing management to make decisions with confidence and based on factual information. As all functions in the construction process are linked in one system, staff are working in real time and with real data. No financial information is hidden in any external systems, ready to appear at a later date, potentially upsetting any financial or project planning.
Summit Enterprise has been specifically developed for the Middle East construction sector and meets local accounting requirements whilst retaining all the functionality required by construction companies.
*Andy Bullen is sales and marketing director, Middle East and Africa of RedSky IT.
