Xempla

Tag: Digital transformation

  • State of Facilities Management in the UK

    State of Facilities Management in the UK

    In today’s world of global competition, facilities management in the UK is under growing pressure from clients to maintain facility portfolios with uncompromising targets for value, energy savings and environmental impact.

    During cop26 last year, sustainability in Facilities Management as an approach gained a lot of attention, with very clear goals established for energy efficiency, resource usage, and carbon emissions. Since most of these objectives are within the traditional scope of FM services, shifting from a cost-centric to a people-centric approach is not as challenging, and the UK market is positive of transformation. 

    There is only one action left to take. Acting on these trends is something that FM leaders in the UK should focus on, particularly common trends and major sectors which would see massive movements.

    Umesh Bhutoria, the founder and CEO of Xempla, seized the chance to delve deep into the movements that will take place over the next 24 months. He walks you through the current situation of facilities management in the UK in a 10-minute podcast, starting with the context of digital transformation, data movements, and asset performance management. 

    For a more detailed explanation listen to the podcast at the end of this blog to keep up on all the action.

    Let’s get started!

    The facility management market in the United Kingdom is extremely diversified due to the existence of multiple competitors of all sizes in a fiercely competitive environment. In addition, this market in the UK has three major talking points in terms of what is going on in the FM space, digital transformation, and hard services.

    Common Trends in the UK
    1. Reliability 

    Predictive technology or analytics are not only the sole topics of conversation. FM companies are also considering reliability-centred maintenance as a highly focused end result. This distinguishes the end job that must be completed from the technology that the company wishes to invest in. 

    2. Energy

    Energy has been a subject of growing interest. Businesses in the UK experienced a cost increase of 54% since April, and they can anticipate seeing another one later in the year. Therefore, FM firms are putting a lot of emphasis on how their clients may cut costs, and there is a strong connection between operations, maintenance, and energy.

    3. Sustainability

    The majority of commercial real estate has made sustainability a top priority, but in industries like data centres and healthcare, sustainability and net zero was not the primary objective of using a lot of technology.

    Key Discussion Points

    Performance Based Contracts

    Contractually, FM agreements haven’t progressed to the point where they might consider performance-based contracts, but there’s a lot of discussion going on about being proactive versus reactive, which is mostly linked to risk or reputation management.

    It would be wise for FM companies to start preparing now so they can be ready for performance-based contracts over the following 12 to 24 months. This is a good time for businesses to start planning. Additionally, FM businesses are thinking about focusing on two aspects.

    1. Winning Rebids
    2. Avoid getting Market Tested
    Beyond Discovery, the UK

    There are very few FM companies still in the discovery stage in the UK market. Most of the FM companies in the UK have an approximate 40–50% understanding of what their end state will entail and have a long term-focus, which is a great spot to be in. One great difference between the UAE and UK is that UAE is still looking at the discovery phase.

    Build Vs Buy

    Most facility management companies, aside from the usual larger ones that operate on decentralised facilities like retail, are more inclined to build their own suite of application platforms, but those that manage huge facilities like hospitals, data centres, or airports clearly have a roadmap. They are focused on building the data lake and then selecting a suite of applications that are best in the market.

    They are therefore using a combination build plus buy, however the buy is really strategic as they are basically partnering rather than taking over a vendor-driven approach.

    Sectors that will experience massive movement

    Healthcare, data centres, and infrastructure facilities are the sectors that will experience massive movements. In these sectors, the shift from a reactive to a proactive approach is essential since maintenance aspects and cost factors are significantly more critical. The commercial real estate market will undoubtedly experience tremendous movements, but the above sectors will outgrow them.

    What is going to happen over the next 24 months?

    Everyone has likely heard the word ‘R’, Recession. Even if the world had to enter a recession, there would still be a huge opportunity since use of technology in the FM space would only experience a 10X boost in macroeconomic levels.

    FM companies in the UK will be prepared with a parallel business model far earlier than in some other regions. Therefore, there is a strong anticipation of a parallel business model versus a business usual scenario. 

    As far as asset performance management, operations, and maintenance are concerned, the UK will be more than prepared to transition into a data-first environment.

    Which sectors, in your opinion, would see significant changes? If you’ve been paying close attention to the markets and you have a slightly different perspective, do share it with us.

  • What Digital Twin Means for the Facility Management Space

    What Digital Twin Means for the Facility Management Space

    Facility management companies have so many things to handle at the same time when it comes to maintaining workspaces with ever-changing challenges and rising expectations. Digital twin is the next step in building information modelling (BIM) in terms of data-gathering and service-enhancement functionality. 

    However, the question is, how does it play an important role, and how will it boost the FM and real estate sector which needs to shift towards digital twin? Facilities management and sustainability also depends on it and needs attention.

    Concept of Digital Twin 

    In this conversation Umesh Bhutoria and Balazs Szappanyos talks about the digital twin backbone of one of the leading providers of real-time building data in building and industrial operations. Here the concept of operational BIM, arose from the realisation that the real estate industry is falling behind. 

    The company is Orthograph operational BIM having a strong foundation for the digital world. As a technology provider, they are in the PropTech and FM tech fields. During the deployment phase of CAFM solutions, it was discovered that, while providing building owners and operators with reliable software to track all operations, people still lacked real-world building data.

    The original concept behind OrthoGraph was to forge ahead and provide tools for building owners and operators to truly view up-to-date 3D graphical and inventory data both on-site and in the office.

    To whom do these leading companies provide digital twin solutions?

    The focus is mostly on FM companies, FM service providers, and building operators since FM spend the most time in buildings, acquire data, and visit the site every day, whereas other stakeholders operate from their offices. Someone must physically visit the buildings in order to maintain any form of building documentation. As a result, selecting people who can simultaneously manage the physical structure and the digital twin.

    An ideal way for FM firms to address the entire digital twin terminology!

    First and foremost, a well-functioning digital twin should be reliable, simple to use and integrate. For instance, When analysing the twin analogy, the twin evolves in the same way that the building does through time. Updating building models is a vital part that people must incorporate. The approach is to implement building information modelling (BIM), but the question of who will manage BIM and at what cost, whether building surveyors or external stakeholders, is a challenging one.

    Addressing the Christmas Tree Analogy with use cases relevant to FM companies! 

    We’re going to approach the Digital Twin as if it is a Christmas tree without decoration. It enables users to digitise their building and have an always-up-to-date model, which they can then customise with other software solutions they want to add, but the backbone which is the tree, will never become obsolete.  If people look after the twin data the same way they maintain the building. So, people get to choose to put whatever they want on their Christmas tree.

    Facility management companies benefit from having this model that gives them the inside structure of the facility and allows them to rearrange their daily flows using digital twins. 

    Check out our most recent episode to learn about the digital twin concept and much more.

    Do the blue-collar or white collar workforce use visual representation and data integration?

    According to Balazs, the initial reaction is a sigh of satisfaction for real-world data they can see rather than old paperwork. Since digital twin generate calculated reports not just representation, the workforce can engage with the data more efficiently. They can obtain reports on the cleaning department, the rental department, and other areas. As a result, the building owners and engineers have a clear perspective of their structures, which is an impressive achievement itself. 

    Advantages of Selecting a Reliable Digital Twin

    FM Markets or buildings with zero documentation can benefit from a great solution that allows them to move from zero to digital twin backbone in a matter of weeks. As a result, anyone who wishes to begin their digital journey can do so.

    When considering whether or not to invest in a digital twin solution, consider how quickly a digital twin solution can be adjusted to the way buildings change over time.

    Listen to our podcast episode to discover more about the Christmas tree analogy and zero documentation!

    Let us know what you think are some more benefits of having a solid digital twin backbone.

  • 5 Things Every Facility Management Company in India Should Do in 2022

    5 Things Every Facility Management Company in India Should Do in 2022

    No longer than a few weeks into 2022 and media platforms were thronged with updates surrounding the current state and future of facility management in India. These were senior leadership folks and progressive thinkers at facilities management companies talking about change and leveraging the power of digitalisation. All of this coverage signaled a positive outlook towards the use of data and digital technology to make facilities management in India more proactive and streamlined. 

    So the sentiment is there, and the business environment is favourable, to say the least. Only one thing remains to be done. Acting upon these trends, that people in the Indian facility management industry are talking about, especially trends at the intersection of facilities management and digital transformation.

    Umesh Bhutoria, founder & CEO, Xempla took this opportunity to get right to the bottom of this much awaited development. In a 5 minute micro podcast, he takes you through a step-by-step process to get your digital and business transformation roadmap up and running. You can scroll down and catch all the action by listening to the podcast at the end of this article, or you can read along here.

    Either way, let’s get you started.

    Facilities management in India is ripe for technological disruption, with data center, pharma, healthcare, and manufacturing being top priority sectors. Although India lags behind other established facility management markets like the US, UK and UAE in terms of organized players and degree of automation, it only means there’s scope for incredible growth. 

    Facility management

    Sure, there will be challenges along the way, but that’s what we’re here to help you out with. Digital transformation and automation in facilities management requires smart investment, careful planning and adoption of new technology. More than this, empowering the people – the end users and consumers of these technologies – is what matters most.

    And to undertake this inclusive transformation, we put together a list of 5 key things that every facilities management company in India should in 2022, and continue to work upon over the coming years.

    5 key things every facility management company in India should do in 2022

    #1

    First, companies have to set a timeline for 100% digitization. Most facility management companies in India, perhaps almost all, still record and plan maintenance activities on paper. Using paper-based maintenance systems implies little or no sharing of information. So the move to complete digitization is absolutely critical in improving communication and efficiency across the organization. 

    A timeline between 1 and 2 years could be an ideal one to follow. But longer than 2 years could mean your company will be falling behind the curve.

    #2

    The next step is to map the smartphone skills of the workforce. India has a great degree of smartphone penetration, thanks to the large user base and increasing demand for mobile internet. Availability of mobile devices is widespread, manpower is also abundant, but there are still underlying problems faced by facility management companies in India. Some of the devices are not very favourable for the use of voice, text, and camera features, which are essential to the accessibility of asset data and convenience of the blue collar workforce. 

    The other problem that the industry faces deserves much higher attention. In the digital transformation process, the importance of empowering the blue collar workforce cannot be stressed enough. Training the operations and maintenance staff, and other ground level workers to adapt to the evolving technology is going to be critical, especially for a market like India. Their observations and the kind of data they bring in are key to preserving the ‘human’ aspect of facilities management.

    #3

    Most facility management companies in India, apart from the usual bigger ones, do not have a tech stack or a data stack. Naturally, they cannot be expected to invest heavily in building or buying the required technology and get ready in a short period of time. A great starting point is to connect with a group of 2 to 3 technology partners, ideally startups that work well with your in-house team. As you expand upon your portfolio, you can narrow down to the one company that you would like to work with over the longer term. Collaboration and complementing your business knowledge is essential. 

    Listen to our latest podcast on the importance of digital collaboration. 

    #4

    Next, dedicate a team to track the entire digital transformation journey. Preferably, get people from Human Resources, Operations, IT and Business Development. Any function that you think will hold a key should have a representation in this team. Core responsibilities of the team will be tracking the implementation of strategies and making any course corrections as needed.  

    #5

    And finally, take care of risk management right away. You lose out on future bids when you’re in the middle of your current contract, not at the time of the rebid, because performance-based contracts are fast replacing time-based ones. Very few facility management companies in India consider risks associated with the current portfolio, largely from the innovation or rebid perspective. Commercial property owners, users, tenants and clients expect high performance from facility management teams and minimised risks. It’s very important that whatever initiatives you take, you factor the risks within existing projects, especially the ones that have higher risks. 

    Let’s do a quick recap of all the action items we discussed above. 

    Digital Transformation

    Digital transformation has become essential for every business, even if it is a traditional business which is based on people relationships like facility management. Companies that fail to follow will be pushed out of the industry in the coming years.

    Make 2022 the year of change you were talking about. What are some of the important things that FM companies in India should be working on from this year onwards? We would love to know your thoughts!

  • Key Barriers and Outcomes of State of Facilities Management in South East Asia

    Key Barriers and Outcomes of State of Facilities Management in South East Asia

    Facility management firms are striving to adjust to changing technological usage and economic trends and they have now realised how short a time span is left to handle these developments. Current unanticipated advancements, for which we had no way of preparing, have increased the importance of adaptability and innovation. 

    The urge to transform increases the risk factor but adds significantly to the improvement of your firm. If you are locked in a traditional company, you will find it more difficult to adjust to a data first environment. Transformation, once again, do not wait for your next planned implementation period. If your company does not make the necessary changes in a timely manner, it may be too late, and your company will be lagging behind the rest of the world. 

    We don’t want you to struggle so we’ve identified four major barriers and outcomes that Southeast Asia Facility management companies can avoid.

    Southeast Asia FM firms compared to rest of the world

    Countries have evolved and changed. Technology has become so intricate and developed that there aren’t many companies who understand it any longer. It takes time for them to recognise the change but then they struggle in the road of transformation.

    South East Asia markets account for about 3% of the global market when considering the integrated facilities management. FM enterprises are being encouraged by the government to focus on innovation and technology. But, when the government evaluates organisations, they must have a certain number of headcounts. So the government wants organisations to not only have these efficiencies, but also a minimum headcount.

    Innovation through the incorporation of technology-supported propositions or enabling technologies is key to the future of FM.” said Janice Wung, Program Manager, Industrial Practice, Frost & Sullivan.

    If you look up to the Southeast Asian FM firms, you’ll see IoT is absolutely getting a lot more airtime than what it used to. The real issue, though, is how to get value from the data. It’s not good enough for an organisation to say tick the box, IoT is installed, we’re getting data. But it really does actually have to add some form of real value in the chain.

    Is FM markets prepared to take calculated risks?

    Digital transformation was once a key focus, but it has now become a requirement. For nearly a decade, it was in the forefront of people’s minds, yet it was also simple to neglect but now you can’t do that.

    Inefficiency lies in the traditional companies which are unable to start with the transformational move. Inefficiency suggests that the FM industry is missing out on the advantage of making operations more efficient through technology. As a result, the organization struggles to adopt the new technologies coming by. When your company refuses to invest in upgrading facilities and providing a better workplace experience, it will miss out on attracting the best talent and with that if it becomes too comfortable with the continued business-as-usual scenario, the economical growth rate will drop.

    Calculated Risk

    Although coming up with a solution is easy, implementing it is a quite totally different thing. The reality is that you must be able to demonstrate to your customers, as well as your own employees, that this is the correct thing to do and that you can accomplish it.

     As a result, it’s essentially a risk-reward situation. Taking a calculated risk by stating that our company will be slightly more proactive than its competitors, with the condition that there may be downside.

    Internal roadblocks, impeding transformational change

    Change is not an intention to eliminate traditional companies, rather, it is an effort to keep FM firms moving with the transformation.

    The main difficulty, though, is that cost is tied with culture and comfort. You can’t simply add technology and expect the headcount to stay the same. The goal is to find efficiencies and cut down on costs. Facilities management and sustainability is another goal that needs to be kept in mind.

    At Xempla, we believe that you should start by examining the problem you are attempting to address.

    Even if the customer is unaware of the process, we are the ones who can, to some extent, change their focus from labour to technology. Of course, when it concerns the cost of tech innovation. Overall FM cost now must be lower in comparison to future costs.

    Frameworks to get going on their transformational journey

    In our Podcast Series, Umesh and James cover the four Cs: Culture, Comfort, Contracts, and Costs, which is a fundamental framework for properly addressing the underlying need for change.

    Culture

    Culture in this context refers to preparing your organisation or a portion of it for change. Culture has the capacity to alter, and it does so. It just needs to have the right leadership and vision.

    “When organizations undertake digital transformation and focus only on technology at the expense of culture, that can hinder progress in many areas,” says Carey Oven, a partner with Deloitte Risk and Financial Advisory at Deloitte & Touche LLP.

    Comfort

    Working on an existing contract and running a parallel process with the team, assuring them that this is the site and you are not committed in any way, is what comfort entails.

    As a result, you’ve pushed yourself, seen things from a fresh angle, and begun to identify the holes in the process. So that could be a technique to put yourself at comfort.

    Contract

    If the customer looks at you as an absolute promoter, has genuine love for technology, ready for the change and you have mutual trust. then this is the client with whom you can have an open and honest conversation about what you’re planning to do and what you believe the outcome will be.

    Costs

    If an FM company has been using traditional strategies, it should set aside savings. Considering Double digit savings is a must.

    Of course, you can’t expect it to happen on its own, you must work at it, and there are some really simple things you can do to save money, such as integrating services and using cross-service synergies.

    Our blogs cover all the major insights and frameworks briefly. You can check our Ebook or Podcast Series to know more!

    Let us know what you think about these insights and frameworks. What, in your opinion, is an actionable framework or plan that will assist a traditional organisation in beginning their transformation journey?

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