HistoryMaker Homes, a 77-year-old builder, is undergoing a significant transformation, shifting its focus from a low-cost provider to a customer-centric model. This strategic pivot involves overhauling its technology infrastructure and processes to enhance business resiliency and customer experience, with AI adoption planned for a later stage.
HistoryMaker Homes' strategic shift from a low-cost provider to a customer-centric model, supported by technology and AI readiness, offers a blueprint for other regional builders facing intense competition and evolving market demands. The company's approach highlights the importance of foundational business strategy before technology adoption, particularly AI, and demonstrates how partnerships can
HistoryMaker Homes, a 77-year-old homebuilder, is undergoing a significant strategic transformation, shifting its focus from being a low-cost provider to prioritizing customer centricity and business resiliency. The company's leadership recognized that its historical success factors would not be sufficient to ensure its relevance for the next 25 years.
This pivot, initiated around mid-2023, involved a fundamental change in the company's core strategy. Instead of competing on cost against larger public builders, HistoryMaker is now focused on differentiating its product and enhancing the customer experience. This shift has led to a reevaluation of its product offerings, organizational processes, and technology systems.
Historically, HistoryMaker relied on cost management and operational efficiency. However, the changing competitive landscape, particularly in Texas where scale advantages favor larger companies, prompted the leadership to reconsider their approach. The company's existing technology, largely centered around an ERP system for back-office functions, was deemed insufficient for a customer-focused business that requires seamless information flow.
To address this, HistoryMaker has been implementing a new ERP environment, connected customer and operating systems, and a data warehouse. Chief Digital Officer Ty Brewer described the objective as creating "shared truth" across the organization, enabling functions to access common information and fostering an adaptable operating environment. AI adoption is seen as a future capability that will be integrated once this foundational technology stack is in place.
One tangible outcome of this transformation is the redesign of its product offerings. HistoryMaker partnered with Higharc to develop approximately 60 new floor plans over 18 months, moving away from designs dating back to the late 1990s. This initiative also involved integrating these new designs across purchasing, construction documentation, sales, and marketing.
President Zac Thompson described HistoryMaker's approach to AI as "crawl-walk-run," indicating a cautious and deliberate adoption strategy. The company is deliberately partnering with technology firms that are making significant investments in AI, rather than developing proprietary tools itself. This strategy allows a regional builder to leverage the advancements made by larger technology companies.
The transformation began just before market conditions became more challenging, with Thompson acknowledging the difficulty of undertaking such a significant shift during a housing recession. Despite these headwinds, the company is committed to adapting alongside technological advancements, even while managing ongoing sales, construction, and closing operations.
Ultimately, HistoryMaker views technology as a tool to reduce uncertainty for buyers, thereby increasing conversion rates. The company aims to improve the customer journey through better-connected product information, reduced friction in digital systems, and enhanced data confidence for employees.