Technology As A Competitive Weapon

Survey shows technology is an underutilized asset in PEI member companies.

By Steve Epner

In July 2007, PEI members completed a survey conducted in order to establish a baseline of technological practices across companies. What was clear from the survey is that PEI members represent a divergent set of companies, although most are relatively small and local. (See graphs)

This was not a scientific random sample, and there is the potential that self selection (where people who answered the survey are more interested than others in technology) can skew the results. Given this possibility, we cannot ensure that respondents are a representative cross-section of all PEI members, so we must be careful when generalizing the answers we have found. Still, there are some valuable lessons buried in the collected material.

What We Like
Approximately 25 percent of respondents, the highest percentage, indicated simplicity of use as the reason for liking or disliking a specific software package. Comments included: “It is nothing special, but it is easy to use.” “Allows non-accountants to use and understand.” “It's easy.” “We all know how to use it.” “Not overly complicated.” “It provides all of the information we need.”

There was also a high degree of dissatisfaction expressed in the responses. People complained about weaknesses in the processing or the difficulty of accessing data: “The accounting functions leave something to be desired.” “It is older and dated.” “It's very old; we need to upgrade.” “It lacks flexibility.” “This is the worst system and we are dumping it.”

Cost Is King
Cost of the system was mentioned frequently. “Cost is holding up the process of looking for a new system.” “A new system requires costly training.” “Will look at other options as the cost comes down.” There were also descriptions of extreme situations everyone has heard about and that keep some from even considering a switch: “We tried an integrated system and ended up dumping it after a period and writing off $30,000+/-.”

New or Not
Many respondents seemed apprehensive about considering a new system. Some excuses were: “We are finally getting used to it.” “We don't like to change.” And one of my favorites: “What we have works!” A number of companies admitted they did not know if anything better was out there, as they had not researched any alternatives. While there are many good systems available, many PEI members will not even consider a switch. This is good news for their current vendors, but may limit the availability of new functions and features that could improve business processing.

There is the potential of finding best practices within a group of software users. As one member pointed out, “We are a single user and do not benefit from others.” This is one of the great benefits of packaged software that is tuned to a specific vertical market. The combined wisdom of the users directs the continued development of the applications. Over time, everyone wins as the best ideas are integrated into the system for everyone to use.

Automation Underrated
Many PEI members like the service and upgrades they get from their vendors. Most people were satisfied, if not ecstatic, about their systems. One member expressed a view hinted at by others: “When it works, life is wonderful. When it doesn't work, it is a pain. I wonder if the added cost for automation is really worth the expense.” This sentiment is something that is difficult to understand in today's automated world. We have gotten so used to having automation that it is required to be able to keep up with business requirements. Think about all that the government requires, especially as it relates to construction accounting. It would be almost impossible without a computer.

Full Use of Capabilities
From the comments, few members are using all the capabilities of their systems. In previous studies, it was normal to find that most users take advantage of less than 25 percent of the functions and features of their systems. While we did not ask sufficient questions to get an accurate read, so many responses focused on limited accounting that we might speculate that PEI members are using even fewer of the capabilities available to them.

Third-Party Software
The most popular third-party software being used is GPS for tracking vehicles. There is no one provider that has any major penetration into the group. It is also clear that the reaction to the vendors is hot and cold. Some people love their service and others hate it.

Add-on systems for dispatch and service management are the next most popular third-party software. This is closely followed by estimating. It is interesting that the most popular programs for estimating are spreadsheet applications, which suggests that members are building their own custom capability. We can only hope that each implementation provides some competitive advantage for the time and effort used in building them.

As an outsider looking in, I wonder why so many basic packages in the industry are weak in this area. Why are companies forced to find third-party software to be able to manage their businesses well? It should be a wake-up call to the software industry.

There were a handful of members who went outside of their main software vendor for CRM (including contact management), work order management (which may actually be part of a dispatch system), and query or report writers (to access data and make it more usable).

There was no surprise that in the technical area of design and drafting systems, companies looked to third-party providers. Again, there were no clear “winners” selected by PEI members.

Desired Improvements
Accuracy and integration were the most frequently mentioned wishes for better systems. One unique answer was the ability “to print $100 bills.” While this is possible with any color laser, be careful; the downside is not worth it.

Another member asked for “speech recognition and the ability to read my mind so I can get what I want, not what my mouse does.” Software is available that will listen to voice commands and eliminate the mouse. You have to be willing to work with the system to train it and yourself, but it can work very well. I have been implementing voice recognition systems since the early '70s, and today it is much less expensive and more reliable.

The comments showed a great deal of thought on the part of PEI members. Requests for standards to make interoperability (the ability to share information electronically) possible are very future-oriented. The technology is there, but the willingness to conform is not.

There were warnings to be diligent in doing backups and using antivirus software. These seemed to have arisen from some lessons learned the hard way.

Best Practices
At PEI's national meeting in Atlanta, more data from the surveys will be distributed. The responses will be used to help identify best practices and some clear direction on how to gain additional value from your automation investment, even though one member said, “It costs too much, it's too hard to keep up-to-date, and nobody's software ever does everything they claim it can do.” Another pointed out, “Computers have become a necessary evil in our business.”

Just remember, technology is a tool. If you learn to use it well, it can provide competitive advantage. If not, it will be a pain in your side. The choice is yours.

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The PEI Journal • Fourth Quarter 2007 • Volume 1, No. 4 • Contents are Copyright © Data Key Communications, Inc.
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