The software buyer’s guide

Buying business software — a guide for architects and engineers

Thanks for your interest in the software buyer’s guide for architects, engineers and construction design professionals. Scroll down to read the guide in full or download a free PDF.


Intro

There is a dizzying number of guides out there about how to buy business and project management software. This one is written specifically for owners and directors of architectural, engineering, or construction design businesses (AEC). This is especially for built environment design practices — large, small, medium, or solo. You’re our people.

We hope this helps you navigate the often-choppy waters of software buying. We’ve done the reading and research and consulted experts. We’ve condensed everything down and wrapped it in our decades of AEC business software experience.

Because we want to give you #moretimefordesign.

The problem

The problem is sophisticated — because, architects, engineers, and construction designers are sophisticated.

That’s how we like to see it anyway.

The implications of the management software you choose for your business probably can’t be overstated. At this point, almost every operation that takes place as part of a built environment firm’s work is digital.

So, choose some software already and get on with making good places and spaces? It’d be nice if it were that simple. It isn’t.

Our industry is defined by very complex, incredibly detailed projects that necessarily involve the work of a relatively large number of people, from a variety of different disciplines. It follows that the software solution that manages our projects and businesses is complex, and that the process of selection goes beyond picking a colour that matches our curtains.

We’re going to walk you through answers to your most salient, AEC software-buying questions:

Let’s throw ourselves headlong into some solutions.

1. Cost

In its user report on project management software, Capterra says “functionality continues to be the most important factor in purchase decisions”. No surprises there. “However,” the report continues, “price has become users’ second biggest concern (surpassing ease of use)”.

Given this none-too-ground-breaking info, when you’re in the market for an AEC business and project management solution, how do you sort out what it’s actually going to cost you? There is the subscription, or cost-of-purchase fee, but then you need to weigh that cost over time, functionality against price, and both against the cost of opportunity lost on the expense. It can be a real pain in the head, so let’s break it down.

1. Knowing the cost

First of all, the issue of functionality (covered in the next section of this guide, in terms of industry-specificity and the needs of your team) needs to be addressed in terms of price. What does that mean? It means you have to make sure you’re evaluating like for like when you’re looking at cost. You can’t compare a business-wide, enterprise grade, feature-rich, all-in-one solution with disconnected, individual apps that just do one thing (like timesheets, or chats, or invoices). The latter will be cheaper, because it does substantially less. For that reason, you need to consider the cumulative price involved in a series of different apps for each part of your business/project processes, and then the cost in person-hours of making the different apps work together.

It might be tempting at this point to just look for the most feature-rich software you can find for the cheapest price and have done with it. Tempting, but unwise. Take the purchase of a coffee machine, for example. If you’re looking at two options — one model that offers five functions for $100, and another model that offers seven functions for $110. If you approached the assessment from a strict numbers perspective, then the $110 is a better deal. However, if you examine the second model more closely and realize that you’re never going to opt for either ‘mega insta frappa laté’ OR ‘mini loco chilla spresso’ then choosing the latter means you’ll only be paying for features that you’re never going to use. And no matter how much you love your coffee, that’s potentially a total waste. It’s the same with your software.

We’ll look more closely at this whole issue in the next section, but it’s a good time to highlight our use of the word ‘potentially’ before ‘total waste’. Because when examining cost against features, there’s a little thing to consider called future-proofing.

We don’t want to say definitively you won’t come to love ‘weird lattes’ in the future. You might. In fact, if you’re buying your coffee machine for your staff kitchen, as you gain more employees the need for specialty brews may become greater and more varied. Likewise, while some software you buy might have features you don’t use now, having those features may encourage their use and thus reap their rewards, you may grow to need them, and you and your team can train to take advantage of them for future benefits. So, not all features are equal, as it were.

We’re making solid progress with understanding cost considerations at this point. The last part of this is something called ‘opportunity cost’. Total Synergy founder and CEO Scott Osborne makes it simple to understand here. For now, all we really need to grasp (and a light grasp is sufficient) is that opportunity cost is a factor to be considered, and in broad terms, what it is: “the opportunity cost is the ‘cost’ incurred by not enjoying the benefit associated with the alternative choice”.

What that means for us in our AEC business software search is, you need to factor in the lost value of not using that money elsewhere. As Scott says, “the cost of the capital you pay out is — if you don’t have it in the bank, you have to borrow it, if you do have it in the bank you’re taking that cash away from other things you can use it for, such as increased headcount, go-to-market campaigns, updating your website, updating your CAD software, training your team”. Over time, that layout cost increases exponentially.

You need to review how complete your software’s features are as a solution, how much of it will be used in addressing your business and project needs now and in the future, and what the cost over time means in terms of the opportunity that the upfront investment will cost your practice.

Once you’ve worked out this cost, it’s a matter of comparing that to the benefits you estimate, to establish whether your ROI will wash out positively or negatively.

2. Refunds and free trials

We’ve all heard the software hype — “if you’re not happy in the first 30 days, we’ll simply give you a refund, guaranteed, no questions asked!”. Except, if we’re agreeing to a locked-in contract, we need to ask some questions.

Refunds are rarely, if ever, ‘simple’. Usually they’re only available to yearly contracts and they take out set up, administration, service, installation and training fees. When it comes to refunds, look at the fine print and ask:

In terms of trials or demo versions, these really are a must in order to be able to assess the value of any specific AEC business software. Sincerely. You wouldn’t buy a car without driving it, and this software is going to drive your whole organization. How can you possibly know if it’s right for you and your business without trying it, in situ, for a period of time before you commit?

A trial is the only way to know which business processes it streamlines, how much time it saves, and thus what return you can expect from investing in it. In this case, ‘demo’ means ‘demonstrated value’.

3. Weigh up cost vs time saved

Once we’ve worked out our functionality and risk costs above, we need to look at the cost of the person-hours required for implementation. This has three component elements — firstly, the expense of someone to install it, secondly, how many hours will be needed in down-time while the system is set up and/or migrated, and thirdly, how many hours each employee needs to be trained to use it.

Next, we take that cost in person-hours and add it to the subscription or purchase cost. Take that total and subtract the cost per-hour of time that will be saved once it’s in place (time saved on administration, tightened work processes, etc.). That is to say, you take the time saved in hours and compare it to the cost of that time in expenses like wages and overheads.

4. Future(-needs) proofing

Tech changes every day, and with it our AEC design industry’s business and project practices change. This means we need to consider whether our software can adapt to meet the changing needs of our business in the future. This is another reason to consider the importance of industry-specific solutions (discussed next) but it’s also a flag to assess the commitment inherent in the software you’re considering in light of the trajectory of your business plan.

In short, if you (like most of us) don’t have a 10-year plan for your business, should you really be investing in 10 years of software? How can you know there won’t be a completely new technology out there in that time? How do you know that the platform will still be relevant?

Scott Osborne explained that in the traditional software pricing structure “the software you’re investing in today is still going to be the same software 10 years from now”. In other words, it will have depreciated. Probably a lot. However, with the software as a service (SaaS) subscription model it “absolutely won’t be the same software in 10 years, because we’re bringing out a release every single month. And the exponential value of that, alone, in ten years will be astronomically different than buying a product today that will be a dinosaur in ten years.”

Think about it in terms of the iPhone being released 10 years ago for $500. What’s it worth now? Had you purchased it on the SaaS model, for your $500 you would have received every upgrade, for free, and always be using the latest cutting-edge technology.

5. The tally

All told, your calculations when working out the actual cost of any business software should include weighing the cost against the following:

Fear not, we’re going to dive into some of this in more detail in the pages that follow. Onward and upward.

2. Specificity

Built environment design has certain features that define both the industry and the specific way projects within it need to be managed. Firstly, we’re an industry with incredibly complex projects — the number of people involved, the dependencies, the variations of scope and length, the impact of an ever-fluctuating market, and on and on. Intricacy is built into what we do (pun intended).

Secondly, we’re a project-centred sector. We rarely do exactly the same thing twice — even if we’re designing the exact same structures in different places, the location itself will provide new necessities for each project. Each transaction or parcel of work centres around a design to be built — projects are not an extension of our normal operations; they are our normal operations.

These reasons make it extremely difficult for us AEC designers to use a generalised business and project management software solution. Larissa Leone, co-founder and director of Two Birds Consulting (a consulting practice that focuses on business management for AEC firms) suggests industry-specificity in your software is key.

“It really is so important to try and get an industry specific system,” Larissa says. “Having worked with a variety of systems over the years, I know that if you obtain a ‘generalised’ system there is a heavy amount of customisation that needs to be done to sometimes just get the basics of what a project-based organisation requires.”

Joel Gregory, co-founder and CEO of 12d Synergy says, “in the AEC market it’s not just thousands of documents and emails, there’s also gigabytes of geospatial data, CAD drawings, lots of things that are fairly unique to our industry — most generic systems just don’t look after that.”

Given the agreement on the necessity for AEC-specific software, how do you work out what you need from it? What functionality is critical? Which features will lay dormant? According to one Capterra user report, “functionality (or rather, the lack of the right functionality) is the main reason why users have switched tools in the past”. It’s clearly important to answer these questions.

1. Working out what functionality you need — the software audit

Larissa says working out your functionality needs generally starts with the client articulating how they personally want to function in the business and if there is the correct structure in place to support that.

“From there, we discuss outcomes and what the client wants to know about their business at either a click of a button or in a meeting environment,” she says.

“This starts to generate and give life to the outcomes, be they visual, graphical representation, numbers that need to be articulated by someone else in the company, or an outsourced professional.

“The most important element of a management system for project focused businesses is to know how a job is tracking at any point in time and then make informed choices about the business from there.”

So, to begin, ask ‘what are the most critical business challenges you need to solve?’— as an organisation and for your role. Then examine the management (both business and project) software systems you have in place to see how well they support the resolution of those challenges.

Assessing required functionality can continue into an audit of your team’s software usage, if you have one. Look at:

2. APIs and integrations

One of the benefits of cloud-based software (and let’s face it, there are many) is the ease with which one software can integrate with another. The complexity of our built environment design projects demands a reasonably complex set of software requirements. This integration can be an incredible advantage in meeting our associated software functionality needs. APIs (application programming interfaces) are how that integration happens.

Total Synergy product manager Paul Hemmings says an API is a way for one software developer to get their product into another software developer’s product.

“Every user is a little bit different, which means, if you’re in a specialized industry like AEC design, the way you want to work will probably be slightly different to the way somebody else wants to do it,” Paul says.

“If you’re doing site reports, then geographic coordinates are very useful. Unless the site you’re working on is a space station, in which case … It doesn’t work that way. So additionally, you might have a project that is different to everybody else’s project.”

Paul explains that one way to go would be to try and build a software that caters to every possible working methodology — the result being a cost-negative, and time-consuming undertaking where you ended up with a product so niche, you’d only have one customer. Alternately, you can connect to niche apps.

“If you look at Synergy and all the functionality it’s got, our software would cover 80 percent of what any AEC design business does. Then for that other 20 percent of your workflow — where you need something specific and niche — it’s only that little bit that you need to find third party apps for. We cover most of the core functionality you’ll need for your business.

“The advantage here is that, because they aren’t really part of the core management system (Synergy), if there are any problems with the add-on apps you’re using, you can change them and it’s not going to kill the business because it’s not a mission critical element.

“The mission critical stuff should all come from the same vendor. However, using connected apps also means that if you don’t like that one, get another one — If you’re looking at something like defect management, which is a common process, you could find 1000 different defecting apps on the app store. And from our point of view, so long as the API works, we don’t care which one you use. You could use any one of the 1000 of them, or even different apps on different projects.”

The result? The potential for integrations with your business and project software is another part of assessing the solution’s features. This represents another layer of specificity that could suit your needs in a more tailored way.

Ask yourself, if this software does 80 percent of what I need (and most of that is central to my business), what other apps are out there that can connect to it and cover the remaining functionality I, or my staff, need?

3. Thinking about who needs access and where

Another complicating factor in our AEC business and project management is location. Our work and projects necessarily take place across a number of sites. Project files and documents need to be accessed by a lot of people, from a number of places.

This means that one of the biggest questions to be answered when considering an AEC business and project software system is: to be (in the cloud), or not to be (in the cloud)? In a reassuring plot reveal, the answer to that question is simple. Your business software solution needs to be in the cloud — if it’s going to be flexible and accessible enough to meet your needs, it’s not going to be stored on an on-premises server, only useable where it stands.

LogicMonitor’s The Future of the Cloud Study from 2018 says, “83 percent of enterprise workloads will be in the cloud by 2020’. That’s 83 percent. And that’s now.

The Capterra study mentioned earlier asked users about deployment methods of their current project management tool and found that the majority use a cloud-based solution (60 percent compared to 40 percent that use on-premises/desktop solutions).

“This finding mirrors the larger consumer shift toward cloud-based tools that provide access to information and updates in real-time, across all devices. In fact, the market for cloud-based project management tools alone is expected to reach US$6.68 billion by 2026, according to a market growth report by Transparency Market Research.”

If any of those number are even the vaguest indication of the future, then in order for your software to have even the slightest longevity, it best be cloud.

In summary, you want your management software to be as customized to your particular work practices as possible, in order to enable as much success as possible. That’s the point.
Two Birds’ Larissa Leone recalls a client of hers in the construction industry who used a non-specific project and practice management software that Two Birds had to heavily customize for them.

“It worked well for some of the general functions they needed but it failed dismally on most of the features they needed,” Larissa says.

“They had no visibility on their fixed fee projects as there was no capacity to forecast their cashflows on their jobs, there was no allowance for letting subcontracts. These were the two main things that were letting not only the system down but more importantly the business.

“We moved to an AEC-specific software last year [editor’s note: ahem — that’ll be Synergy!] and it fundamentally turned the business around. It enabled the project managers to do their jobs more effectively and more comprehensively, it provided the correct numbers against jobs, but most importantly, it allowed the business to know what was going to happen in the future. This enabled the company to grow and evolve making the right decisions along the way.”

3. Time

Running a small-to-medium architecture, engineering, or construction design business is an effort that goes beyond full-time. Hours spent on business development may seem hard to justify when they’re unbillable, and harder to prioritize in your packed work schedule. It’s understandable. You love built environment design, that’s why you started your business. You want to spend your time on perfecting your designs and wowing your clients with incredible capacity to meet their every structural and aesthetic desire. But what about the business behind the business? Who’s got your back in that all-important operational arena?

Architect and business consultant Lucy Mori says, “I think what’s really important for architects, and for any built environment designers, whether they’re sole practitioners, a small practice, or even a larger firm, is to allocate decent chunks of time in their diary to their business. And to allocate this time before it becomes absolutely urgent”.

Additionally, the business and project management software user report we’ve mentioned repeatedly says, “69 percent of users spent less than six months choosing their software, and 54 percent spent less than six months implementing the software”. That’s not a lot of time in the scheme of things. Especially if you’ve worked out (using the first section of this guide, no doubt) that the ROI of the software will be doubled in the first 12 months of use.
So, how to make sure we minimize the amount of time we need to take as software buyers, and capitalize on the time we do take?

1. Training and support

When assessing your software options, look for something that offers training services or the option of support — while it may be tempting to employ the have-a-stab-yourself method, it will only cost you valuable implementation time and affect staff adoption adversely (more on this in the next section). Make sure your vendor offers services for things like set up and implementation, data migration, and training. And use them.

The truth is, if your software is functionality-rich enough to be a real solution, you need to be guided through the process of getting it set up. Your guide needs to be someone who understands your business — architecture, engineering and construction design practices work in specific ways with specific terminology — and knows the software you’re deploying in order to get it done efficiently, complete with a full understanding of the features most advantageous to your particular operation. Check for online assistance and documentation, forums, training videos, webinars, consultation options and events at a minimum. A lot of software companies will have their help files and videos publicly available so you can have a look at how current they are, how clear they are, and how easy they are to use as a start.

2. Comparing time lost to time saved

Taking into consideration our expected software costs (which we did in section one of this guide — didn’t we?! nudge) it’s important to compare the cost of time lost in implementation to the value of time saved after it. You need to know the time numbers to know the dollar (or pound, or euro) numbers that make up the real cost. Part of being able to work out the value is assessing downtime, or lost time, while the business sets up, versus the amount of time saved once it’s in place. This will put the time it takes for implementation into perspective as you can see the exponential savings spanning into your business’s future.

Lucy Mori says technology can help in terms of time-tracking apps that integrate with your accounting, and accounting systems that integrate with your invoicing.

“These things definitely save time. A lot of it,” she says. “Also, if you’ve spent the time thinking through the business processes, you can delegate these tasks to non-design staff.”

That’s senior staff time (often your own) that has a financial value over and above the time of the person you delegate to. And all of this time can be redirected towards billable project work or growing your business and managing relationships.

3. Length of subscriptions

Lastly, the concern of time reins over your software purchase considerations in terms of contract-length. We looked at this in reference to cost earlier in this guide, in terms of opportunity cost and depreciation, so there’s no need to go into too much detail on the sums here.

What’s important to mention is that any period you’re ‘locked-in’ to a contract term for your software, you need to consider the cost of the time it will take to overhaul the system if it proves not to meet your needs. If you need a re-do on this entire software-buying process in the future, that’s a liability. It’s also a liability that gets greater the longer you stick with, or are contractually obliged to stick with, the wrong software

It helps to start with the fact that there are generally two ways software prices are structured these days. In the traditional way, you pay a larger lump sum up front and then an annual maintenance fee locked-in to a contract over time. Alternately, there’s the subscription model which “essentially means you pay incrementally, flexibly, and with no locked-in terms”.

There’s a temptation here to use the traditional method of software purchase and “pay it now so it’s done”. However, it’s actually not that simple.

Scott Osborne says the cost over a period of time is not just the actual software fees paid to the vendor.

“It’s also the hardware costs, like the server itself which might cost $10,000, and then a backup server at added expense, and the cost of IT managed services companies which might be $500-$1000 a month, and the cost of upgrades,” he says.

“With a subscription-based purchase, if you’re unhappy after two or three months, you can stop paying; you can switch vendors, switch software. It’s a much smaller risk. […] With a month-to-month contract — the software grows when you grow and constricts when you constrict — you can increase and decrease your licence count as required. And if [you’re not being] served as a customer, you can get out. It keeps things honest.”

Of course, if you’re a larger company with a lot of employees, there are almost always longer-term contracts available that offer discounts. In which case, the investment in time to assess and select your software adequately is more important than ever, as is the investment in a proper implementation and training programme. But now we’re being strategic. About software. This is good, because it really is that important.

4. Change

The 2018 Prosci report, ‘Best Practices in Change Management’, found that workers are six times more likely to meet or exceed the business objectives sought in any change process, when effective change management is in place. Those workers are the users of your software solution. We’ve all seen it before, new software unable to deliver its business goals because implementation ended at installation.

“Researchers and managers are beginning to realize that the full advantages of information technologies are not likely to be realized unless both the information technology and the organizational context are adapted during implementation. This highlights the importance of understanding and managing the relationship between information technology and organizational change.”

If successful adoption of software needs your people, then we need to look at how we can help them manage the change that surrounds its implementation.

There is a seemingly endless ocean of theory published on this topic, and twice that many methodologies. As Microsoft solution specialist Cory Banks puts it, “there are a number of models, frameworks, methods, processes and principles out there… All these models have consistent patterns and slightly different perspectives.”

We’ve done the reading for you and we’re going to outline common steps for successful change management below.

1. Vision, purpose, buy-in, and belief

No matter what the framework, it’s commonly agreed that you need to paint an appealing picture of your team’s life once the change has occurred. You need a clear vision, one that gives the discomfort inherent in change a sense of purpose, a why. You need to communicate it, on repeat, and you need to get your staff to believe in it.

In terms of your new AEC business software this means being crystal clear with all your stakeholders and staff about what this solution will do for them, for your customers, for the firm as a whole (and for society at large? Hey, you’re designing our built environment, after all!). The vision of their professional future with this software has to be enticing, exciting and explicit.

The last piece to this is getting the team’s buy-in or belief. McKinsey Quarterly’s Four building blocks of change articulates why this is imperative to the process:

“We know from research that human beings strive for congruence between their beliefs and their actions and experience dissonance when these are misaligned. Believing in the “why” behind a change can therefore inspire people to change their behavior.”

2. Reinforcement mechanisms and justice

Change management methodologies all highlight the importance of making sure that incentives, changes in structures, processes and systems, and target setting are all used to reinforce and embed desired changes. That means that in order to make it stick, you need to reward and celebrate it. You need to have mechanisms in place that show your team the value of the changes they’re taking on and ‘high-five’ them in some way for their effort to keep change momentum up and really sink in the good software stuff. Likewise, the proper establishment of ‘the stick’ method of reinforcement (as opposed to ‘the carrot’ method) can provide motivation, as we’re often more driven to avoid something we don’t want to happen than to drive for something we do.

We do need to be careful, though, that these reward mechanisms are aligned with the overall value system of our company or practice and with those of our team members. In The Irrational Side of Change Management Carolyn Dewar and Scott Keller write, “the process and the outcome have got to be fair. Employees will go against their own self-interest if the situation violates other notions they have about fairness and justice”.

If you say you’re all about customer service and you’ve convinced your team that that’s what your AEC business is all about, then, if they see it as costing the customer somehow, you’re unlikely to get the consistent uptake you’re after, even if you offer rewards for engagement with your new software.

3. Training, systems, and skills

We’ve already looked at this in terms of assessment of software options, but integration of existing software systems can ease the transition for yourself and your staff considerably. Add-ons for apps that your team, contractors, and clients do most of their work on will make it a lot easier for your staff to fold the new software into their already existing workflow. Systems will be adopted far more easily.

Beyond that though, it’s important to ensure that your staff are properly trained in how to use the software and all of its features relevant to their role. Look for an AEC business and project management software solution that offers training, webinars, and/or support, and use it. Having accessible help files or knowledge bases that support training and help staff troubleshoot independently is also a must.

Capterra’s user report found that ease of use is tied directly to user satisfaction. As we’ve established above, satisfaction means adoption. The report found that, “for those who aren’t satisfied, the number one cited reason is that the software is hard to use.” The solution to making your software easy to use is not to compromise on features, but to teach them how to use it properly.

Software as complex as a complete business and project management solution isn’t necessarily going to be easy to pick up and run with. If you want successful and enthusiastic adoption, invest in the training. It will pay you back in spades.

Demos or trials are a great way to test ease of use before you decide on your software solution — they’re an opportunity to explain to vendors how you need to use it in your business and workflows, then have them walk you and your team through how you’d do that.

4. Role models, change leaders, and team influencers

The granddaddy of corporate change management, John Kotter, referred to this stage, in his eight-step plan, as “enlisting a voluntary army”. You need captains of change in the adoption of your software. A supporting faction of role models, change leaders, and influencers who champion its use.

To build this cheer squad we need to gather an alliance of the most compelling members of your team from each level of seniority, each discipline, each type of stakeholder to provide visible support and active leadership. If you have anyone in the team who’s already a specialist in the use of the software use them, but either way make sure role models are well trained to use its features and spread the word about its benefits.

5. Monitoring, iterating, and improving

The last part of managing the change involved in new business and project management software is self-explanatory but crucial. You need to keep tabs on the progress and successes (or hurdles) of the adoption initiative. See what’s working for each member of the team at intervals and assess what needs addressing or further training. Rinse, as it were, and repeat.

Change management for businesses, and business software change in particular, is a big topic. We’ll explore that in full in a future guide (don’t change that dial, kids).

Conclusion

With the world changing at an increasing rate, the opportunities for us to make a real and tangible difference through the built environment are rising every day. The chances for us to do what we love, for the reasons we love it, are multiplying.

What this expanding opportunity requires of our AEC practices though, is the ability to seize and grow with it. So that it’s not a matter of ‘keeping up’. It’s a matter of ‘advancing alongside’.

We need business software solutions that are flexible and specific enough to support our practice, now and into the future. While working out time and financial costs may be complicated, the real value of any AEC business and project management software solution likely lies, for the most part, within its capacity to be and do just that.

At any rate, the right software can either elevate your business to take best advantage of opportunities, or it can hinder it to the point of dysfunction.

Asking the right questions and testing the answers is the only way to ensure that the software you’re purchasing is right for your business. Team Total Synergy really hopes we’ve helped on that front.

Thank you, sincerely, for spending time with us in these pages. Hopefully we’ve proven how much we value it, and you.

If you’re interested in hearing more about how Total Synergy is built specifically to answer AEC business and project queries, get in touch.


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