6 Ways to Make Proptech Deliver For Your Business
There is no doubt that investment in real estate technology is one of the key priorities right now. 89% of real estate businesses know they need to engage with proptech companies to adapt to the changing global environment. However, only a third have a digital strategy in place according to KPMG’s Global PropTech Survey.
It might feel like a minefield but it doesn’t have to be. There are proven solutions delivering value and solving problems for real estate, the key is how to navigate the options and create a technology strategy that drives value. Here is our guide to doing that…….
#1: Don’t disrupt your business for the sake of disruption
Are you waiting for tech companies to come to you or do you have internal innovation procedures to find what you want, what your customers want and most importantly need?
You’re probably being approached on a daily basis by an ever growing number of small, agile startups with smart, sexy tech. But do they really make the right solutions for key real estate challenges? Ask yourself, “do we need this or are we just creating a perception that we’re proptech savvy”?
Innovation should be driven by need. Platforms and improvements should be useful, compatible and relevant to your business tools and software, and with your business partners.
#2: Consider the value carefully
61% of property companies believe a tech investment today will positively impact their revenues for years (from KPMG’s Global PropTech Survey), so you need to understand how the tech you’re considering delivers returns.
You might seek efficiency and cost saving, but you might also consider a solution driven by the new ways people consider real estate and physical space. How can you create loyalty amongst you customers and tenants? How can you support their businesses and add value to a lease? You also need to look at how you measure value. It may be revenue but also something less measurable but equally valuable such as experience and connection to, and a feeling about a place.
#3: Align product-market fit
We are no longer in the own-to-consume era, customers want what they want, when they want to use it. This is an era of high frequency change, the pace is gathering momentum, and real estate needs to keep up.
The mindset change is understanding real estate as a service rather than product, a much more customer-centric approach than we’re used to. As Steve Jobs said, “Put the customer first and then move onto tech.”
Your proptech solution needs to work for your new business strategy by delivering return on investment whilst creating an experience for your customer/tenant in ways that are changing all the time. So if the smart and sexy tech does this then you have that perfect product fit, but if not - then don’t waste your time and money.
#4: The data opportunity
Data as a commodity is our biggest challenge and our greatest business opportunity, we need it in volume, variety and velocity. Your proptech should provide this.
The right solution can deliver an understanding of our customer behaviours, needs and wants. This data can be used to design the customer experience, personalise space and service, leading to increased tenant retention and enhanced asset performance.
It’s all about optimize, optimize, optimize rather than location, location, location.
#5: Tech + human approach
There’s a saying - it’s better to have loved and lost than not loved at all. Tech failure is acceptable as it proves you’re taking part and testing what’s right for your business.
However tech itself doesn’t fail, it’s the human element that is likely to cause the failure. There are many negative connotations of implementing proptech: “It will take my job”, “I don’t want to change the way I do things.” However, proptech and humans create that symbiotic relationship that delivers. Tech and human together deliver greater value and efficiencies.
Human + tech is the smart way to think about your future.
#6 Deliver the WIFIM
WIFIM, or “What’s in it for me” leads to buy-in. Everyone in the organisation needs to understand the benefits technology will deliver to them. Buy-in is paramount to success so it’s important to get all the stakeholders involved from the start.
Allocate the correct resources to the project to ensure success. Identify the benefit to those who need to deliver the change, and how the company will benefit. Sell them the dream.
Proptech should deliver a better all round experience for the worker AND the customer. Technology is shaping the way we live our lives and the spaces that we occupy, both at work and at home.
There are technologies that are proven solutions not just cool CREtech. One of these is Mallcomm.
Maintaining high tenant satisfaction is top priority for 97% of facility and real estate managers and that’s how our technology Mallcomm was born. Through our work of marketing real estate we knew that tenants needed to be engaged but we had no effective way of doing that. We couldn’t get them involved, understand their needs, make their interaction with property management teams seamless and efficient.
We needed to maximise their satisfaction. So we invented a technology that would solve these problems. Across the 250 locations using Mallcomm, tenant satisfaction has been improved by 60% for owners such as Unibail-Rodamco-Westfield and Brookfield.
Mallcomm also features operational and social solutions such as workflow management, smart building integration, access to key resources, concierge and social chat.
This is a technology that delivers immediate return, enhancing effectiveness and efficiency through streamlined operations and delivering value through vast amounts of data. The value comes from the way it is a platform that solves many pain points for all users because it was created in real estate, for real estate by real estate.
This Week’s Sponsor
Altus Group Limited is a leading global provider of independent advisory services and technology for the commercial real estate industry, including ARGUS® software solutions. For over 25 years, ARGUS® products have been the industry standard for creating cash flows and valuations helping thousands of commercial real estate professionals gain transparency into their property assets, manage risk and optimize their portfolios. Real estate investors, asset and portfolio managers, lenders, brokers, appraisers and other commercial real estate professionals use ARGUS to facilitate transactions and communicate value. For more info, visit www.altusgroup.com.
UPCOMING REALCOMM WEBINARS
CORPORATE REAL ESTATE & Technology – The Importance of Developing a STRATEGY - 10/24/2019
The Corporate Real Estate industry has quickly gone from constantly resizing the corporate real estate portfolio based on the everchanging business needs of the corporation, to having to understand and deal with a myriad of issues relating to technology, automation and innovation. Not only do CRE professionals need to understand things such as IWMS, intelligent buildings, the smart workplace, AI, VR/AR and other emerging technologies, they also need to understand the fundamental shift on how we use space. Technology which is enabling mobility has shifted the landscape. This webinar will feature some of the most innovative professionals discussing the importance of developing a comprehensive Corporate Real Estate portfolio strategy around the concept of Digital Transformation.
Founder of Realcomm Conference Group, an education organization that produces Realcomm, IBcon and CoRE Tech, the world's leading conferences on technology, automated business solutions, intelligent buildings and energy efficiency for the commercial and corporate real estate industry. As CEO, Jim interacts with some of the largest companies globally pertaining to some of the most advanced and progressive next generation real estate projects under development.
Chuck Niswonger has over 30 years of successful leadership experience in technology-related roles that range from operating his own consulting company (www.nicenets.com) to directing the IT strategy of a real estate investment management firm to manufacturing and technology-enabled education. Chuck has also been the chair of the Realcomm Investment Management (IM) Advisory Council for the last ten years, managing content selection for the conference educational sessions, IM forums, workshops and webinars.
Emmanuel Daniel is responsible for building and delivering the Digital Transformation strategy for campuses across Microsoft and leads a global multidisciplinary team of architects and experience designers. He builds experiences that merge technology with the built environment, leading to the formation of spaces that respond to the needs of its users. He is also accountable for identifying, building and implementing the next generation of products that will make smarter and sustainable buildings.
Paul Maximuk is the Product Owner as well as a technical SME at Ford Land, leading all BMS and controls integrations globally. He has over 30 years of experience in the industry managing multiple types of energy systems and specializing in strategic smart building implementation and management. Paul’s expertise in the built environment spans real estate assets from large industrial facilities to Class A office buildings.
Ronna Davis has been in the networking and telecommunication industry for 23 years. She has been with CommScope for over 13 years and has held positions in sales, channel and product line management. She is currently on CommScope’s Strategy and Technology Team for Buildings and Campuses. Previous to CommScope she worked in the design and construction of telecommunications networks for eight years and in wholesale distribution for two years. She studied marketing and is a LEED Green Associate.
Ron Victor is a Silicon Valley based technology entrepreneur with 20 years of experience and expertise launching new ventures at start-ups and fortune 1000 technology companies. To-date he has enabled raising more than $30Million in start-up capital for multiple start-ups in silicon-valley. Ron has founded and led three companies to-date with successful exits. His latest venture is IoTium Inc. – a Silicon Valley start-up that provides a secure, cloud-managed, easy-to-deploy software defined network infrastructure for all IoT verticals.
Marc is a pioneer in leading the Intelligent/Smart Buildings and M2M movements pushing the industry forward and has contributed to transforming and changing the Intelligent Buildings and M2M (now IoT) industries. As Chief Marketing and Communications Officer for Lynxspring Marc leads corporate and product marketing, strategy, brand management, public relations and communications that support the company’s strategic and growth initiatives.
Brent Boekestein is the CEO of Vintra, Inc., a leading video analytics company from Silicon Valley that uses artificial intelligence to transform any video surveillance into actionable and tailored intelligence. Forward-thinking enterprises and public safety organizations like Sacramento City, NYC DOI, Sacramento County, and more use Vintra’s solutions to organize, analyze, and derive critical insights from overwhelming amounts of stored and live video.