Every wave of innovation tends to generate opportunity for numerous new startup point technology solutions, often followed by a natural cycle of consolidation to integrate data and processes. Without this natural cycle, we risk the rebuilding of silo’d data and processes and a loss of data governance and integrity. One of the recent innovation waves in CRE is in space utilization, which has generated dozens of point applications and sensor solutions. While the focus application is fantastic for small scale experiments and pilots, deployment at scale will demand consolidation and integration with core CRE systems, such as an IWMS. You might be thinking a stand-alone approach is exactly what I need, which is fine, but pause for a moment and read the following 6 exciting benefits you can look forward to in the inclusion of your Space Utilization Solution in an integrated suite for CRE.
1. Leverage true space management capabilities
Having an integrated space management system allows companies to use true space management solutions which rely on accurate standards based measurements, provide the basis for chargebacks, leverage industry standard technology not relying on proprietary systems where you need to rely on the software provider to make updates to floorplans, etc..
2. Utilize the same floor plan and information
One of the desired results of a utilization system is to drive greater density in your portfolio. The most common byproduct of higher density is a greater dependency on conference rooms or phone booth type space for those conscious of their neighbors or needing space for confidential discussions. By choosing an integrated suite your reservation system is a module utilizing the same floor plan and information as the utilization system - no need for them to be separate nor the data to be duplicated.
3. Increase operational efficiency
With greater density comes a higher demand on the space for facility management and with that an increase in workorders. As one executive recently shared with us - "our helpdesk tickets have increased 32% in the offices where they have managed to increase density by over 50%"
4. Data driven decision making
With the looming FASB/IASB (ASC 842 IFRS 16) lease accounting changes having all of your real estate portfolio data managed through reliable data governance in a single system has the benefits of high data integrity and auditability, with the bonus of a global view of an organization’s lease obligations paired up with space data such as capacity, occupancy, and utilization information to identify opportunities for predictive analytics to highlight active opportunities to consolidate properties.
5. Fewer systems and databases to maintain
By leveraging the pricing structure of an integrated solution which provides breadth and scalability you do not need to pay hundreds of thousands of dollars per year for what at the end of the day is the functionality of a single module. Plus you have the added benefit of sourcing and supporting one technology - not multiple with all the integration required to maintain various point solutions. By choosing an integrated solution you do not need to be a "system integrator" instead you can focus on running your business and serving your employees a better workplace. Leave the integration to the experts who have worked through the integration of common data and processes across RE, FM, Construction, Finance, and IT for years.
6. Determine total cost of occupancy
The number one driver in our industry remains controlling the total cost of occupancy. Per a recent Johnson Control Study the single biggest driver of real estate costs, up to 50%, of the total cost of occupancy comes from rent and depreciation. As real estate departments look for opportunities to strategically drive down cost having a integrated solution which strong financial that can highlight the worst offenders, planning tools to model out scenarios to consolidate, and a project management module to help drive an initiative from start to finish with financial controls.