RSMUS.comThis chart comes from a recent PwC survey of over 1,000 real estate professionals. Respondents were asked whether different technologies widely considered “disruptive” are having much impact on the real estate industry. The results are revealing.
As the data shows, respondents consider almost all emerging technologies to be at least somewhat important – even promising but still fringe technologies like autonomous vehicles. And for some innovations – particularly construction technology that digitizes, integrates, and optimizes more of what construction companies do – the importance borders on essential. Real estate has never been averse to technology, of course. But in an industry where people, places, and relationships are so important, technology is now a primary driver – if not the most important element of all.
Digital transformation is well underway in real estate as with so many other industries. Some firms are farther along than others, but few if any are not incorporating technology into everything they do and looking for additional opportunities to integrate new technology in new ways. The exciting features and capabilities of the technologies listed above (and dozens more) are propelling digital transformation in real estate and driving countless use cases. They slot into three categories:
Operations Excellence
From lowering IT costs to shortening the sales cycle, digital transformation in the form of ERP implementation helps real estate companies spend less in some cases and earn more in others. When quantified, these benefits help push the ROI of digital transformation as high as possible. However, many of the benefits of operational excellence are unquantifiable yet undeniable, such as extending collaboration or improving data accuracy.
Employee Excellence
Employee morale and productivity are closely correlated with the quality of tech tools at their disposal. Research shows that better technology makes the majority of employees happier in their work, and most also believe better tools would make them more productive. Alternatively, turnover rates are higher at places with frustrating or underwhelming tech. The data clearly shows that employees work harder and stay longer at companies embracing (not resisting) digital transformation.
Customer Excellence
In real estate, where the customer experience is a major differentiator, companies can use technology to improve upon everything from scheduling showings to sharing documents. Technology also helps companies deliver a consistently high quality experience while scaling upwards by streamlining and automating various touch-points. When 71% of all customers expect companies to deliver a personalized digital experience, those real estate companies that manage to do so will build extensive goodwill.
Asking the Right Questions
The challenge facing real estate companies who see the need to embrace technology is deciding which ones to invest in, which to avoid or wait on, and how to use those new tools successfully. None of these questions has easy answers. And while the use cases for disruptive technology in real estate are many, they are unique to each firm. Complicating matters even further, a misguided digital transformation can pour lots of money into the wrong technologies—and the margin for error is high.
To make faster progress and move confidently in the correct direction, digital transformation in real estate should start here:
- Current State: What are the software, hardware, and systems already in place, what are their strengths and weaknesses, and what are the priorities for improvement?
- Goal Setting – What is the goal of digital transformation, and what metrics and benchmarks define that goal?
- Team Building – Which cross-functional stakeholders will be responsible for pushing digital transformation forward, and what will their roles be individually and collectively?
- Roadmap Formation – What specific steps will the digital transformation entail, and what are the timelines, budgets, and expectations at each step?
- Solution Selection – Which technologies can support the goals and roadmap identified earlier, and what order should they be implemented?
- Training & Support – How much training and support do users need, especially in regards to change management, and when/where/how will the company provide it?
- Review & Revise – What methods will be used to evaluate the progress of digital transformation, and how will the company decide when to course correct?
How do you expedite this process without compromising the results? By partnering with RSM. Our experts in real estate and digital transformation can help any firm plan, execute, and optimize technology initiatives on any scale. With our insights and input, the most important technologies are well within reach, and digital transformation fulfills its complete potential.
Make the right moves from here forward. Contact RSM.
