Complimentary White Paper

Capitalizing on
productivity:
the power of
integrated enterprise
technology systems

1
Teicholz, Paul. “Labor Productivity Declines in
the Construction Industry: Causes and Remedies.”
AECbytes Viewpoint. Issue 4. April 14, 2004.
viewpointcs.com | 800.333.3197
Capitalizing on productivity:
the power of integrated
enterprise technology systems
E
ven as the pace of technology
continues to grow at a rapid
speed, many construction com-
panies today are still operating on
non-integrated information enterprise
systems that are 10, 15, or even 20
years old. And while the cost and
time implications involved in a major
technological overhaul are significant
adoption barriers, research shows that
productivity problems associated with
aging systems pose even greater risks
for companies.
Studies show that over the past 40
years, the productivity of the construc-
tion industry has gradually declined,
while other industries have achieved
significant improvements.1 In fact,
labor productivity in the construction
industry has trended downward at an
average compound rate of -0.6% (as
measured by constant contract dollars
of new construction work per hourly
work hour) while in all non-farm in-
dustries labor productivity has trended
upward at an average compound rate
of 1.8% per year. Studies point to con-
struction companies’ aging technology
systems as a major factor—citing rami-
fications such as lack of integration,
fragmented and error-prone processes,
and labored collaboration within and
between teams and departments.
This whitepaper will take a closer look
at these growing problems, and the
ways in which integrated systems can
help improve process, communication,
and collaboration. It will illustrate the
productivity gains real-world compa-
nies have experienced by updating to
integrated systems. And finally, how in-
tegrated systems can mitigate risk with
a high return on investment—setting
businesses up for future success.
The problems associated with
non-integrated systems
Let’s examine some of the roadblocks
of non-integrated systems, and the
effect they can have on a company’s
bottom line. We recommend using this
as a guideline to gauge if your compa-
ny is ready for a technology change.
• Inefficient processes
Are your managers continually
frustrated by untimely, inconsis-
tent, or incomplete information?
Are customers waiting on you for
decisions? With non-integrated
systems, information is often hard
to access and share—and can
become printout-intense. Data may
end up being handled multiple
times by multiple departments,
making it tough to track and prone
to redundancies, which can cost
companies in time and profit.
• Poor communication
Is collaboration between depart-
ments difficult and labored? Often-
times with non-integrated systems,
 critical data is stored in separate
silos. This can disrupt the flow of
information and prolong decision-
making processes. Employees may
end up exchanging information
manually—spending more time
importing, exporting, and duplicat-
ing data than using it for business
intelligence.
• Unnecessary expenses
Are your current systems expensive
to maintain? Are you constantly
dealing with break-fix scenarios?
Oftentimes, older systems don’t
work with the latest tools and
applications, and companies have
to invest in expensive peripheral
software or spreadsheet work-
arounds. What’s more, with every
new release on an aging system,
companies have to piece together
broken links, costing needless time
and money.
The case for integration
A system that allows for full integra-
tion with all corners of a company
quickly saves money and optimizes
business performance. It allows ac-
counting, operations, and project
management to work more effectively
and efficiently together. It enables
web collaboration for real-time project
communications with customers and
the field, helping to shorten decision
cycles. And it provides solutions for
document management that streamline
operations and enhance organization—
ensuring instant access to accurate
data: anytime, anywhere.
“When we switched to
an integrated system,
we went from seven
systems to one.”
- Steve Hathaway,
SEMA Construction
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What to expect with an
Integrated system
Let’s dive deeper and explore how an
integrated system can position compa-
nies for success now and in the future.
Experience enhanced process
efficiency
Integrated systems with one point of
entry put all employees on the same
page, making it easy to share infor-
mation across teams, divisions, and
projects. Companies no longer have
to juggle between multiple systems or
sift through redundant data to retrieve
specific information. They can easily
drill down to the granular data they
need through customized, easy-to-
read dashboards. And they can access
this information in real-time—even
remotely. This helps employees make
decisions faster. They can take more
risks because they are able to see
results before they have a negative
impact, and then adapt on the fly. Plus,
integrated systems provide simplified
document management solutions for
every step in a project life cycle. Here
are some examples:
• Project management: capture
billable events and change orders
• Subcontract management: create
contracts, track compliance, and
view committed costs
• Client billings: create automated,
timely billing cycles
Achieve greater profitability
With an integrated system, companies
can accomplish more, with less over-
head and lower system maintenance
costs. They can more accurately track
a project’s progress, enabling them to
confirm completion dates, and make
any necessary changes to get a delayed
project back on track. They can find
out about potential issues sooner, so
they can control cost overruns and

What to look for in an
integrated system
While there’s a lot of industry talk
about integration, companies
often find that many solutions only
vaguely deliver on it. Here’s a quick
checklist to consider when narrow-
ing your choices. Look for:
• A system that integrates all
corners of business from project
management and accounting to
operations
• A flexible technology platform
compatible with the applications
your departments work with-
(e.g. Microsoft SQL / .NET)
• Customizable user interfaces—
forms, grids, and menus—that
work the way users work
• The ability to quickly build re-
ports: job costs, job progress,
billings, and more
• The flexibility to grow as your
business grows
• A roadmap that assesses the
impact of technology changes
and the cost of upgrades for all
areas of business
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make adjustments to labor and other meaningless transactional work, and
resources to compensate. And they more time analyzing business. They
can eliminate excessive paperwork can easily share information within
and processing, enabling employees to and between departments. And they
focus on more important work. can provide the information customers
and investors need, when they need it,
Gain more transparency no matter where they are. Ultimately
Through real-time, easy-to-access data this will help companies achieve more
made available by integrated systems, profitability with less effort, manpower,
managers can see firsthand how their and investment.
actions affect the entire organization,
giving them more incentive to deliver
results. For example, they can quickly
access equipment information, find
out how it’s being used, and transfer
it to other sites where it will have “We were able to
more efficient usage. It’s also easier for
managers to see how jobs are perform- transfer four people
ing. They can access daily diaries,
job progress updates, and job-specific to other areas of our
transactions—or analyze job costs
through profitability evaluations and company.”
reports. They can also set up project-
specific websites that enable access to
- Steve Hathaway,
accurate information on the fly. These SEMA Construction
can be customer- or investor-facing,
helping to improve communication
and build trust.
Easily meet the changing technology
needs of every department
The best of today’s integrated sys-
tems allow for significant flexibility
and personalization. They enable the
customization of menus and forms for
each department—from project man-
agement to accounting and all the way
through to human resources. They also
allow companies to add new features
and functionality as they change and
grow.
Make the switch, reap the
productivity rewards
Retooling internal processes and
software infrastructure takes time and
effort. But with an integrated system,
companies can experience dramatic
productivity gains that reverse the
trends in the industry today and give
them significant competitive advan-
tage. With an integrated system, com-
panies can spend less time performing