by Michael Pereira — Think about the technology around you today — your smartphone, tablet, 3D television, etc. What will it look like 10 years from now? Perhaps like a science fiction movie? The CoreNet Global 2020 panel was asked to predict what corporate real estate (CRE) will look like in the year 2020, specifically in the areas of Enterprise Leadership, Service Delivery & Outsourcing, Sustainability, Location Strategy & the Role of Place, Technology Tools, Partnering with Key Support Functions, Workplace and Portfolio Optimization & Asset Management. I participated in the technology group, where we had lots of ideas, brainstorming sessions and discussions that covered a variety of potential changes to the industry and summarized the content into six bold statements.
Instead of rewriting the published work, I wanted to share my views on two of the statements that resonated with me. The first statement deals with a technology that has changed the way I work, while the second deals with technology tools about which I am passionate. Predicting the future may be impossible, but it would be great if my views on this industry could perhaps stir up ideas and improve its tools, usage and adoption.
Statement 1: Always networked wireless devices with seemingly infinite memory have converged voice, data and video communications in support of immediate and time-shifted smart access to business conversations, meetings and presentations.
It is easy to get overwhelmed by this statement, but move beyond the verbiage and focus on the topic of communication. Years ago, corporate email was sent during business hours from machines directly connected to the network. We emailed documents and stored files on hard drives or internal shared directories. Today presentations are virtual, documents are hosted in the cloud, and corporate communications are sent at all hours — from any device, on any network. The ability to access the cloud and have your files accessible at any time, from any device and to anyone you grant access, was unimaginable 10 years ago. Oscar Wilde once quoted, “Life imitates art far more than art imitates life.” I believe Hollywood has inspired many of the technology devices we use today. Without getting caught up in the world of science fiction, I can think of a 1960s TV show that used face-to-face video as a main source of communication. Perhaps it was just good television, but telephone conversations just don’t convey the same drama as two arguing space ship captains over video.
Improved Communication
Today, college students use Facetime or Skype to visit with parents, and business travelers are able to say goodnight to their kids over video. Face-to-face technology is only a small portion of video communication. Enterprise platforms have the capability of showing presentations, collaborating on projects and include many other tools that combine voice, video and data. Years ago, I had not bought into the idea of video conferencing simply because I worked for a company that only had a couple of conference rooms with video capabilities. However, I now work for a company that utilizes such technology in every space, mobile device and laptop. Being able to see body language, facial expressions and who’s actually talking is a huge benefit of video conferencing. I completely see the productivity gain. Video enables you to see your colleagues smiling back at you from all over the world, building the relationships you just can’t over email, IM and voice. I would argue that productivity is similar to meeting in person.
The Future of Communication Convergence
The future of this technology will allow video applications to be limitless and ubiquitous. Companies like Polycom and others are enabling video conferencing from any device, including laptops, tablets, smartphones and basically anything with a web browser and camera. It gives doctors the ability to collaborate during surgery with consultants in other parts of the world. Real estate brokers can tour properties with potential clients from a smartphone or tablet. This interactive collaboration goes well beyond taking a picture with your smartphone and sending it to someone. Utilizing wireless devices to communicate with voice, video and data is the future. Instead of video being an option, it will just be the way we communicate. It might as well be the holographic image of a princess asking for help, but science fiction has inspired us before, and we can let it drive innovation again.
Statement 2: Interoperability standardssuch as OSCRE International have driven applications such as integrated workplace management systems to become the enterprise research planning systems of CRE.
If you not familiar with the technology of integrated workplace management systems (IWMS), you’re not alone. Ask 10 CRE professionals about IWMS, and you’ll get 10 different answers. Today, IWMS is an enterprise platform that normally spans five main areas — real estate, space management, project management, facilities management and environmental sustainability. The goal is to get away from having separate systems for leases, projects, space planning, etc. Point solutions work very well for specific areas, however, they may not integrate well with other CRE tools. The challenge becomes the time and money spent on collecting, combining and reporting the data from multiple solutions. The IMWS database is designed to be a single source of truth for the real estate portfolio, without the need to transfer data between separate systems.
Standards and Ubiquity
The idea of having a single source of truth is great in theory, but it’s not always that simple. There are many CRE technology competitors, and each has a different vision and approach on how to accomplish this enormous task. Getting these systems to talk or pass information is the difficult task. The real challenge is not just within CRE tools, but connecting to other organizations such as IT, finance and HR. The Open Standards Consortium for Real Estate (OSCRE) is a not-for-profit organization that is trying to maintain specific protocols and formats to allow ubiquitous interoperability. In a nutshell, OSCRE is trying to standardize the real estate industry with the ability to seamlessly exchange information, not just within real estate, but other organizations as well. Unfortunately, not all CRE tools use OSCRE.
Breadth of Product
Although IWMS covers lease, space, projects, facilities and sustainability, most CRE organizations have responsibilities that exceed these five facets, including transactions, business continuity, conference room reservations, physical security, building maintenance, etc. IWMS is also quite powerful from a laptop, however, it’s still unclear as to when it will utilize the strength of mobile devices for all its capabilities. Currently, mobile devices only provide a small range of specific IWMS functions: Field technicians can work facilities requests, space planners can perform utilization studies, employees can reserve conference rooms, etc. I look forward to IWMS on mobile devices, which have all of the functionality of a laptop.
Product/Implementation Costs
Purchasing and implementing IWMS is currently a substantial investment. If you were to ask a Fortune 500 CFO about corporate responsibility management, enterprise research planning (ERP) or HR systems, they might discuss products such as Oracle or SAP. The conversation may surround implementation, scope, schedule and budget. Ask the same executives about IWMS, and the conversation would probably include an education of IWMS tools and associated cost, instead of just implementation. The cost of the IWMS tool and the time/cost of the implementation can be a hard pill to swallow. Obtaining that investment from the CFO can be an uphill battle.
The Challenge of the Future
My team is currently going through the process of evaluating our real estate technology tools and perhaps purchasing an IWMS platform. I love the technology, but I am still frustrated by the process and limitations of the solutions. My disappointment even led me to help form a CRE technology committee where several companies can share stories, knowledge and best practices. It is very possible that companies will have the same pain points 10 years from now, without the evolution of standards, breadth of product and product/implementation costs. If data is the building block of information, the future of IWMS will just be information flow without the need for individual tools or data. Imagine a single source of truth for all lease, space, project, sustainability, facilities, transactions, security, building, business continuity and all other CRE systems. I look forward to a time where a technology tool starts with a real estate transaction and ends with a decommissioned building, with a seamless flow of information in one system.
Imagine an affordable and open standards CRE tool, which is easy to implement, connects to other departments and is accessible from any mobile device. The year 2020 may not bring knowledge of CRE tools to CFOs, but it is very possible that IWMS tools will be as widely used as ERP systems are today.
About the Author
Michael Pereira, MS & MCR, Senior Manager of Global Programs in Workplace Solutions for Polycom, is in charge of the lease administration, space planning, technology and the Americas
Portfolio. He is a CoreNet Global Young Leader and co-chairs the Technology Committee for the Northern California Chapter of the organization.