Real Estate players have not always been early adopters when it comes to technology according to Oxford University (PDF | 3.4Mb). The trust in a well-established operating model, the lack of industry best practices and knowledge in the digital space have all been major factors for late technology adoption.
However, the pandemic was a catalyst toward transformation. Recent trends in big data, cloud and automation bring opportunities for change that cannot be overlooked. Technology offers a competitive advantage, enabling resilience, better risk management, improved governance and operational and cost-efficiencies.
“The Real Estate fund industry is at the infancy of a culture shift where technology is becoming a critical element of transformation.”
Today, we’ll focus on five key areas where we observe technology as a differentiator that facilitates growth – and where you can make changes now to drive your business forward.
Automation to replace manual
The Real Estate sector is characterized by a low level of automation. Most organizations preserve a manual, excel-focused approach to performing day-to-day operations.
Spot the most repetitive and high-volume tasks to automate and enhance your operational efficiency. This will allow your personnel to focus on topics that matter.
Manage your regulatory and operating risks
Managing large structures’ risks requires experienced personnel and enhanced coordination to handle complexity. The costs of compliance and risk management increase nearly in proportion to a company’s growth.
As we see in other sectors and industries, governance, risk and compliance (GRC) technology offers the Real Estate sector the capacity to manage and monitor the regulatory and operating risks reducing cost.
Plan for technology integration
The shift from manual and excel-based operations to more automation is a truism of the digital era. Nevertheless, adopting disparate digital solutions and providers to support different business lines or functions may dilute the value-proposition of technology.
Prudent planning should target integration. In other words, the selected technologies should be interoperable to seamlessly serve large business segments of an organization.
Build on platforms to achieve data integration
Data silos and the lack of consistency in data generation are roots cause of inefficiencies, lack of proper oversight and reporting quality.
Build on modern data platforms and opt for cloud technologies to capitalize on your data. Unlock data-driven decisions to answer the what and why and enable your organization to go to the next level of predictive analytics. Invest in your data management and data governance processes to ensure data quality and apply security by design.
Define your technology and data roadmap
There is no one-size-fits-all model for IT operations and digital strategy. The correct approach to digital transformation depends on a company’s specific history, competition, financial position and degree of automation.
Ensure that you receive expert consultation and hire the appropriate profiles to design and implement your digital strategy. Set your priorities and KPIs and safely make a difference to surf the digital wave.
MIPIM is back in Cannes – and our leading experts from KPMG Luxembourg will be there!
Join Bruno Stockemer (Senior Manager), Antoine Badot (Partner), Christina Mueller (Associate Partner), Pierre Kreemer (Partner) and other real estate network colleagues to solve your challenges in deals, valuation, tax & regulatory, technology and operations.
And if you miss the event, contact us to discuss the implementation of technology across your real estate business.
This post is coauthored by Dimitrios Kampas, KPMG’s Head of Data & Analytics.