The Web As A Tool For Buyer, Employee And Vendor Communication

Today: Marketing
Tomorrow: Internal Efficiency
Next Decade: Complete Internal and External Synergy.

Where are we now?

At Matt Plaskoff Construction, Inc. (MPC), we like to think that we understand the power of the web. We've probably just scraped the surface but are considerably ahead, from a usage standpoint, than most remodeling firms across the country. All of our Project Managers or Leads have laptop computers in the field and full access to the Internet.

Five years ago, MPC invested in the creation of a website. This was essentially a novelty item. There were not too many remodelers who had seen a reason to do this. We created the site and were seen as "progressive" and "professional" to our client base and those deciding whether to hire us or not. It helped show that we were knowledgeable and forward thinking. In our market, this was just what the doctor ordered.

The site grew in complexity when we added info about our employees: What a great place for prospective clients to not only see photos of our work and to read about our company, but to also see who was working for us, who they would come in contact with and what our people were all about. It was a great tool to introduce our team to our clients.

In addition, we suggested to prospective clients that they go to our site and check us out. If we looked like the type of company that they wanted to work with, we suggested that they call us back - in effect, a qualification tool. It certainly was more efficient and cost effective than sending a brochure to someone who, after one glance at our site, might have decided we weren't for them.

Shortly thereafter, we added an "employment section" that allowed us to send prospective employees to the site to read job descriptions, mission statements and to find out more about who they might be working for. What a great way to have a first interview. Some decided we weren't for them and they weren't for us, even before a meeting - which was more efficient than having someone come down for a meeting and finding this out after wasting an hour of valuable time.

In 1998, we topped the site off with our "MPC Intranet and Knowledge Sharing Database". Employees were able to share experiences, triumphs, failures and questions on a message board, download updated or new company forms or have important vendor and employee phone lists at their finger tips.

The most amazing feature was the knowledge database that allowed employees to input experiences and key them to specific trades for future reference or review by others. A project manager or lead could access the database by searching for a specific category of construction and read all of the challenges, notes, triumphs or failures that others experienced with a particular trade. There was no reason why nine project managers needed to learn the same lesson over and over and over again. Each entry was rewarded with a gift and the entries began pouring in. We currently have over 500 entries in the database in 100 categories of construction.

This was the first step toward "internal efficiency" creation. The ultimate goal is to be able to have online virtual communities within organizations that support and train on the web. Quick, easy access to information creates internal efficiency.

Where are we in one year?

Our next project was a look into the future. We began the process of training our project managers in the use of Prolog Manager, a high powered project management software package. This package, when upgraded, would allow our entire team, including president, project manager, controller, client, architect, designer and subcontractor, to access data about various projects based on security clearances. A password would allow a client to look at a photo or updated schedule of their project, a sub to look at a pick-up list or a controller to look at job costing. It would allow RFI posting for clients and budget posting for Project Managers.

This was the first link to internal and external synergy. Imagine the power of posting your pick-up list on a particular job and letting all of your vendors download it off the web at their leisure. As the information is updated on a daily basis, it is immediately available to those who are afforded access. Again, quick, easy access to information creates internal and external efficiency.

Where are we in three years?

I believe that the novelty of marketing and buying services or products on line will fade. Not to say that it will not occur but that the real power of the web is in the business to business (B2B) component. The goal of any successful business is stability and profitability. Profitability comes from efficiency. While some consumers may hesitate to purchase on line, business owners will not hesitate if it will increase efficiency and the bottom line.

Vendors will have alliances with purchasers who will have their own link to an order entry page on the vendor's site. Inventory will become virtual and items will ship direct. Vendors will be able to track usage from their particular clients and provide better service and fulfill need much more quickly because they will be tracking what is used, real time. Payments will be made electronically, minimizing invoicing, checks and paperwork handling.

It's already a fact that you can search for the best price and the fastest delivery for many products.

One of the key areas that will be affected by the growth of this aspect of the Web is the structure of materials distribution. Distribution will take on a completely different complexity. Manufacturers will realize that they will have to sell to contractors directly. Middlemen will vanish, price will drop, and profits will soar. The days, for example, of plumbing fixture distributors are numbered. Sooner or later, manufacturers will have to realize that it is infinitely more efficient and cost effective for remodelers to log on, place an order, pay electronically and wait for the delivery.

How will all of this impact the people that work in our industry? Unfortunately, the web will have an impact on the need for people. Generally, many of the required positions will vanish only to make room for programmers and web maintenance techs. How will we deal with that? We shall see sooner than later.

Luckily, skilled trades people are safe. Computers can't lay tile, or install a door or paint a wallààyet.

For more information, contact:
Matt Plaskoff
President
Matt Plaskoff Construction, Inc.
Sherman Oaks, CA
Phone 818-981-5784
www.plaskoff.com

Also See:

Plaskoff Discussion