What exactly is an integrated system? There are many flavors and many levels of integration between software systems.
At the most basic level, import/export functions can transfer data from one program to the other and avoid double entry. To accomplish this, the exporting program must produce data in a format that the importing program can read and understand. Furthermore, keeping the systems working together long term requires continued collaboration between the two software vendors (e.g. estimating and accounting software vendors). Anytime that either software package gets enhanced, it is imperative that the bridge does not get broken.
For the interface with accounting system, the estimating system should generate the necessary data for a job budget; at the same time, it should produce the data for the schedule of values. The latter requirement is more complex since the estimating system does not calculate the value for mobilization, nor can it guess the level of front loading that the contractor wants for a given project. The only way to solve this problem is to take the original estimating values and manually alter them to suit our needs and then move them to the accounting system.
This is a small example of the many nuances encountered that clearly manifests a need for an additional entity between the two programs in order to achieve the desired results.
At an ideal level, integration would involve a repository of information where everyone in the company can input and share data with everyone else in the company at any time from anywhere. Such a system should foster greater productivity, produce timely information, and provide a consistent process format. Such a system should follow a model of data flow and business rules that the company is comfortable with, and should have various permission levels so as to allow personnel to the desired areas only.
A totally integrated system should encompass all aspects and functions of the contracting business like estimating, change orders, purchasing, scheduling, project management, service management, accounting/job costing, human resources, and client relations.
The model should contain templates for any aspect of the work so as to establish a uniform and consistent way of doing things. Processes like creating schedule of values, issuing purchase orders, submittals, invoices, change orders, creating and tracking schedules, estimating, pre-construction planning, and managing projects, should be very well defined and intuitive to the user.
Finding a model that can accommodate the needs of most contractors, and one that they are familiar and comfortable with is quite a challenge. If such a model could be defined, we would have the option of building all the software components around it, because it would be financially viable. Otherwise, the only choice is to interface the various pieces of software that a given contractor uses, and in some cases, be prepared to replace some of the modules.
Where do we start? What should be the hub of the system?
In my opinion, the hub should be a web-based system so as to afford 24x7 access from just about anywhere. The system could reside in a secure data center where the banking institutions have their systems, and thereby avoid the cost of servers, uninterruptible power, and maintenance. Or, if the owners have concerns about having their data stored outside their premises, it could be stored in-house in those very large installations where the cost may not be prohibitive.
The perfect system hub for this purpose would be a project management system containing a database of clients, employees, subcontractors, general contractors, architects, engineers, suppliers, agents, manufacturers, and other entities necessary or useful in the conduct of business. Such a system would be accessible from the office or anywhere else via a web browser, and would allow the PM team to efficiently and effectively manage projects and have quick access to POs, RFQs, letters of submittal, drawings (including sketches for changes), meeting minutes, and project correspondence, chronologically filed and reachable through the Internet. Timely information must be readily available if the team members are to make the right decisions.
A totally integrated system will work better because it will have the data flow mapped in, and it will not require the import/export action between the various modules. It will clearly define the business model used and the data flow between the various systems, hence causing each team to procure and share that data consistently. It is like having a mechanism with many wheels in motion, where the wheels work in synchronism and play their respective roles effectively.
At present, most established contractors use various pieces of software to better manage their businesses and remain competitive. The estimating system typically helps the contractor to procure a steady flow of work at a potentially profitable price, and provide all the information necessary for effective project management. The project management system should provide an efficient, consistent, and proven model to manage the projects. The accounting systems, beside the basic functions of Accounts Receivable, Accounts Payable, Payroll, and Profit & Loss statements, should also track actual costs and compare them to the projected costs.
Historically, these functions have been taken care by separate systems with independent departments. Often, these departments function with minimal coordination and within somewhat undefined overall processes; as a result, we create a culture of independent departments working with a small focus, in lieu of cohesive teams working on the big picture.
To be successful, a contractor must complete jobs at budget or below budgeted cost. To achieve that, he must have the right materials at the right place at the right time, along with the skilled labor force and effective labor management. This all comes down to clearly defining the project plan to the smallest details and establishing an effective and timely communication system.
Communication can be a real challenge when many people are involved, and in this case, our office people, our field people, the owners, the architect, the engineers, the GC, the manufacturers, and the distributors all need to interact. A central repository of project information accessible in different degrees to anyone in our team has become an impending necessity.
Accubid is currently engaged in the development of a new generation of Enterprise systems that will afford our clients seamless integration amongst all our estimating and project management products, and a great integration platform with accounting systems.
Meanwhile, we are building the bridges with import/export functionality amongst our existing products to provide our clients a more integrated overall system. At the same time, we are surveying our clients to find a common business model that we can adopt with our upcoming Enterprise system.
