Page 6 - REALCOMM EDGE-Fall 2017-FINAL

FROMthe PUBLISHER

CRE Tech 5.0 – How Does It Impact Corporate

Real Estate and Facilities?

here is currently tremendous investment and activity in new’ technology solutions become easier and less risky to do.
the CRE Tech marketplace. For younger professionals or When vetting solutions, choosing partners wisely is critical.
T those new to CRE Tech, it may seem like this is the first Will these startups be around for the long haul? Collaboration
epic attempt to transform the Corporate Real Estate and Facilities with companies with staying power saves headaches down the
industry through technology, automation and road and ensures the investment will be worthwhile long-term.
innovation. To make some sense of this move- Building assets are investments that last decades, while the ‘shiny
ment, we decided to review the technology new’ software solution may be gone in two years.
timeline to create the following infographic.
Phase 1 was the beginning of automation “Having a firm understanding of business
in our industry and began the journey of objectives, a comprehensive technology
trying to improve business processes and road map in place and understanding the
Jim Young introduce building automation. Phase 2, the challenges of integration and cybersecurity
Co-Founder & CEO dotcom era, was the next time we saw major
Realcomm interest in automating commercial and cor- – these are all fundamental pillars of a
porate real estate. Phase 3 occurred in the aftermath of dot com, strategic technology plan.”
where the strongest companies survived and thrived. Phase 4
began after the ‘great recession’ where we saw $7-10 billion in- The very idea of what constitutes a smart building has also
vested in new technologies, and lasted until 2016. That same year changed. We have moved from single process automation to
introduced Phase 5, and included new technology platforms buildings that now have fully converged awareness capabili-
such as AI, machine learning, autonomous vehicles, immersive ties. This aspect will increasingly use machine learning for spe-
reality, Blockchain and others. cific occupancy recognition, improving access and comfort.
Given the pace new technology is being introduced, many In addition, solutions have evolved from simple reporting to a
of us must assess just how fast the traditional Corporate Real more proactive approach. This expectation of using buildings
Estate and Facilities organizations can absorb all this change. to their fullest efficiency will require ongoing training across
We’ve barely begun to realize the benefits from Phase 4 and are disciplines.
now expected to consider all the new concepts and solutions of Newer technologies such as machine learning, wellness
Phase 5. Change of this magnitude is hard, especially when you initiatives, autonomous cars, and cryptocurrencies may have no
consider the complexity of the real estate and facilities role and traditional training path, but they must be explored and utilized
the traditional slower moving, long term view of the real estate while still staying focused on brand, business needs, customer
industry. In other words: can we really go from spreadsheets to access and retention and, of course, security concerns.
artificial intelligence in one easy step? Corporate Real Estate and Facilities professionals face daunt-
One important aspect that these organizations must manage ing challenges for implementing technology, and for choosing
with respect to technology, automation and innovation is the wisely among the many choices out there. After all, this is not
‘shiny new thing’ syndrome. This occurs when new types of tech- a skill they have developed throughout their career as they
nology are introduced and offer exciting opportunities but then focused on real estate. They are now expected to understand
fall short when considering a strategic approach. Having a firm and utilize all these new ideas and concepts based around
understanding of business objectives, a comprehensive tech- technology, and the race to proficiency is not an easy one.
nology road map in place and understanding the challenges of Becoming involved with policy decisions and strategy requires
integration and cybersecurity—these are all fundamental pillars evaluation of all areas and choosing to prioritize which pro-
of a strategic technology plan. Only after all of these are in place cess improvements will have the most impact and long-term
can the process of identifying, vetting and implementing ‘shiny value. Additionally, IT departments have not traditionally been

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