Two types of Energy

It’s funny what you remember from school and only the other day I recalled that Potential Energy was when an object was in a position to deliver energy and Kinetic Energy was when energy was in motion.


It’s not so different in real estate!

 

In a simpler era, companies and institutions viewed their real estate as assets to support operations.

 

Only those organisations focused on the property business actively tried to generate value and risk- appropriate returns from buildings and similar assets.

 

Fast forward to today. An accelerated and volatile operating environment requires organisations to manage real estate for strategic advantage, even if property does not constitute their raison d’être.

 

 

Yet real estate, more than virtually any other domain of organisational activity, is vulnerable to information failure. The concept of information failure comes from economics and describes when inaccurate, incomplete, uncertain or misunderstood data can lead to suboptimal decisions and  incorrect assessment of risk.

 

As pressures mount, organisations are realising more than ever before that information failure in real estate creates significant and often hidden costs.

 

So far solutions have been elusive, but advances in technology offer new potential.

 

While the London Underground famously warns us to “mind the gap,” organisations now have tools to mine the gaps in data, gaining a full view and overcoming information failure. 

 

By integrating financial and operating information for fixed assets, organisations can make smarter decisions, minimise risk, optimise capital deployment and improve performance.

 

Attached is a link to a white paper that explores the changing environment for real estate decision-making, the causes of information failure, evolution of solutions to this problem and the hallmarks of organisations that are leaders in “mining the gap.”


It is a study by ARCHIBUS that covers:

 

  • How value creation has become a driving focus for chief financial officers and requires an understanding of both strategic and operational performance.
  • How information failure is a vulnerability of traditional approaches to real estate assets. Financial managers are handicapped by ledger-driven systems that provide information on real estate costs without a complete context of operational or strategic information.
  • Overcoming information failure requires flexible technology capable of:
        a) Aggregating diverse information including operational data and data derived from plans, maps, drawings, spatial and                  geographic sources

        b) Placing them within the context of related disciplines such as asset lifecycle, lease management and compliance and

        c) Extracting insights in a form and language familiar to stakeholders in different disciplines within an organisation.

 

Nimble organisations need agile workplaces


These forces also make it necessary for organisations to adopt an agile approach to change management, and facilities are part of an organisations’ response to a drive for greater innovation and engagement.

 

Facilities managers do this against a backdrop of other technology disruptions including the cloud, Internet of Things, mobility and big data.

 

Many organisations are pursuing what Gartner has labelled the bimodal business approach, managing areas that are well understood with one mode that is optimised for predictability and managing areas of risk and uncertainty with a second mode that is optimised for exploration and problem solving.

 

In real estate and facilities, mode one covers the traditional areas of responsibility such as repairs and lease decisions. Mode two covers the emerging areas of delivering facilities that support the evolution to more collaborative and innovative workplaces.

 

This is driving closer collaboration by the real estate team with IT and HR to yield a “more effective, agile digital workplace, which can in turn improve employee engagement, experience and ultimately productivity.”

 

Please call Mass today on: 0118 977 8560 or email us at: news@mass-plc.com to discover how ARCHIBUS can integrate your real estate information to provide a dynamic approach to property.

 

A PDF download of the ARCHIBUS white paper can be found here:  "WhitePaper"

 



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