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SEP 2017

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CAFM CIFM CMMS CAM IWMS Corporate real estate technology: by Phil Wales CIFM CMMS CAM IWMS Predictive analytics driving change C orporate real estate (CRE) organizations have selected and implemented operational technologies for decades under various acronyms like CAFM, CIFM, CMMS, CAM and IWMS. Various classifications of point solutions for lease/ transaction management, maintenance management, space management, project management and energy management have also been employed. The result is nothing less than profound, with the marketplace maturing so effectively that most products work and work well. So, CRE technology's emerging direction is shifting from focusing on technology to optimizing information, with the driver being that "technology is the enabler, not the actual solution." Although incremental improvements in CRE technology will continue, with possibly a true breakthrough one day, the clear technology play in CRE is decision- enablement with real-time data; predictive analytics is the future. Optimizing portfolio performance Lots of software is being implemented this year in CRE, making it easy to misinterpret this fact as a trend. However, the uptick is actually due to the Financial Accounting Standards Board (FASB) fundamentally changing how lease accounting must be performed, thus forcing a shift heavily toward new, compliant lease-accounting and lease-administration technology implementations. Realistically, though, these changes prompted by FASB are more of a technology blip with everybody having to catch up, not the "big picture" future of CRE technology. Instead, CRE's future will be less focused on new operational technology ("We just need a new tool") and more looking for technology-enabled solutions to their unique business-reporting problems. Note: Some CRE organizations operate without the fundamental dataset necessary to implement business analytics. Consequently, those organizations still need basic tools such as an integrated workplace management system (IWMS). Yet, the big push will be more focused on CRE organizations optimizing their portfolio's performance and the technology focus will be analytical engines driving trustworthy decision-making across all services spanning an enterprise as diverse as CRE. The C-Suite has become quite specifi c about optimization. Executives are not as interested in standard facilities-performance metrics but more specifi cally focused on true asset performance that has a direct impact on corporate goals and measures. Essentially, they want more visibility into the portfolio showing how their real estate investments are, e.g., enabling them to manufacture more, sell more, increase market share. In short, they want to know how CRE is enabling their core business. The assumption today is that the better CRE organizations have their act together, including knowing the pulse of day-to-day operations. This embodies a paradigm shift in both C-Suite and CRE thinking, with analytics becoming a key initiative for technology to enable. The playing fi eld has moved from asking, "How many people do we move and how many work orders do we close?" to asking, "How do we get the right metrics and right performance indicators?" While people movement and work orders remain important, their priority has slid to second place as the CFO or CEO asks, "What's the ROI on the new building we constructed?" Smarter buildings The other fundamental shift is in smarter buildings. With the explosion of BUILDING Internet of Things (BIoT) ™ technologies, CRE can now manage individual building components to optimize facility use as well as asset performance. The future trend is focused on integrating these "smart" devices with the underlying management technologies so that a micro-control capability will provide more predictive capabilities and optimized asset impact. Futurism transition ramps up As management is aware, the speed of business is multiplying the CRE decisions that must be made, such as changes in work habits. Flexible working and open space are a major trend, but how does management know if implementation helps or hurts the company's F E A T U R E A R T I C L E 64 SEPTEMBER 2017 ThE lEadER

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