As a result,visibility into real-time trends will emerge, fostering an accelerated pace of change, disruption, and a true competitive advantage to adopter.Īs PropTech solutions provide insight into our business, adding to the ocean of information, they must also be engineered to exchange data in a secure bi-directional fashion. With billions Internet of Things (IoT) devices connecting our properties, and countless transactions generated from digital marketing channels, the global data sphere’s growth rate dwarfs Moore’s Law.Agile PropTech firms will unlock these bits and bytes of data leveraging Machine Learning (ML) and Artificial Intelligence (AI). We live in a digital age consumed with instantaneous access to information, where data is the new oilpowering success. Simply developing or implementing wow factor technology, without achieving these goals will greatly reduce the likelihood of success.
First and foremost, PropTech solutionsmust be architected to address an existing problem or pain point. When done properly thiswill either enhance revenue, reduce expenses, improve operating efficiencies, or provide an add-value amenity to owners, tenants or residents.Īchieving these lofty business objectives,while championing adoption,implies 1) startup firms and innovators must have in-depth industry knowledge translating into a holistic understanding of their target audience’s business model 2) real estate companies mustensure internal resources have appropriate technology and subject matter expertise to evaluate PropTech solutions and 3) all parties must transparently collaborate to develop a strategic vision incorporating today’s comprehensive digital ecosystem.
For this approach to be meaningful, and prevent major financial losses, each failure must come with a lesson learned.įor innovators, adopters, and investors to survive and beat the odds, a series of sound business fundamentals must align. Industry leaders are trying to balance their enthusiasm embracing “failing fast”, and “if you’re not failing you’re not innovating”philosophies. These dynamics are reminiscent of the dot-com boom and subsequent bust of the late nineties.
As a result, quantitative and qualitative success has been elusive when measured by adoption and profitability. Intoxicated by visions of fortune and glory, vendors are trying to capitalize on the funding frenzy, pitching concepts and solutions with limited or no substance. From 2015 through 2018, $30 billion has been invested in the PropTech industry worldwide. Not withstanding being a trillion-dollar industry, Real Estate has been a laggard in technology spend,relying on the adage “If you build it, they will come.” PropTech, an acronym describing the intersection of technology and real estate, is looking to change that mindset.
With new found inclusion in the C-Suite, CIOs are being tasked with discovering innovative solutions capable of automating archaic manual processes, along with developing a strategic vision capable of creating a competitive advantage and new business opportunities. In an economy energized by Internet of Thing (IoT) device energizing Smart Buildings and Smart Cities, today’s Real Estate CIO is spearheadingdigital transformation on a global scale. Sandy Jacolow, CIO, Meridian Capital Group