Xempla

Tag: Technology

  • State of Asset Management in Australia

    State of Asset Management in Australia

    A lot of significant focus has been going around Asset Management. Similar to any other component, technology is playing a vital role in the transformation of asset management enterprises in Australia which are required to control portfolio risk, perform ESG practices, reduce operational costs, and meet net-zero targets on time.

    The widespread technology’s influence on the reduction of maintenance costs and added value for the customer is rapidly gaining traction. The Cost savings factor is a no-brainer – all organisations had to leverage technologies to decrease their operational cost with digital transformation, driving the customer experience.

    Setting up and maintaining short to medium-term goals may appear to be a daunting challenge for new businesses, but it is not entirely impossible. In this article, I’ve outlined the key trends and drivers around enterprise asset management and the built environment from the podcast episode with Umesh Bhutoria and Jeff Sharp.

    Emerging Trends In Asset Management Industry In Australia Compared To Those Worldwide.

    #1 Ageing Workforce 

    In the next seven to eight years, 60% of O&M workers will retire. Without a doubt, the ageing workforce is a major challenge, and there will be a need to replace them with the institutional knowledge.

    The realities of the future of the workforce cannot be avoided, but there are several ways to prepare, among which is through upskilling and leveraging data, and many asset management organisations in Australia have already begun to use more and more data to enable them to make better decisions.

    #2 Use of Technology

    If you’ve ever wondered, “How can you use asset data to make a difference in this industry?” or “Can asset management companies leverage this data to deliver better solutions?” Then, Keep on scrolling!

    During the Podcast session, Jeff Sharp of EY shared how he is working with his team in Australia and they’re integrating data to make real change. 

    Organisations now collect an incredible amount of data sets from multiple sources and have access to more data than ever before. In Australia, it is becoming more common to combine multiple data sources to create a single source of truth while layering one data source over another to generate better solutions.

    Key Drivers Influencing Change In The Enterprise Asset Management Markets In Australia

    #1 Cost Savings

    Asset management companies often underestimate the amount of cost reduction measures which are available. Identifying the highest expenditures related to operations & maintenance is the easiest way to uncover cost-saving options. Determining what and where are you spending the most on and considering these expenditures from both costs and a value perspective.

    The possibilities of reduction in operational costs, the introduction of newer technologies, and leveraging data into this industry have made room to extend asset life – span.

    #2 Sustainability

    When it comes to the environment, the decisions we take now have a long-term impact later. Sustainability and Net Zero is no longer a “trending topic,” but rather, there is an immediate need to reduce the pace of the changing climate. 

    Various sectors have started ESG practices and taking steps towards transitioning to a net-zero emissions future because of the impact it has on tenants and the entire contract. And in that sector, asset performance management has a significant role to play.

    Watch the video to discover more about how we assist O&M teams in being cost-effective and meeting customers’ ESG goals —>

    The Real Estate Or Built Environment’s Playbook To View Enterprise Asset Management In A New Light.

    There is a real divide between design and construction versus operations and maintenance which must be bridged. Organisations must have a pipeline in place so that data from the design and construction phase can move to the operational phase. 

    In order to maximise value and avoid losing information during the process, it is, therefore, necessary to utilise existing data from the development stage from which sensitive information, such as pictures, etc., can reach the operations & maintenance side.

    Despite the fact that some players are ahead in the market. Other organisations can take their time and focus on finding one solution at a time. Then can begin to work on data structures for the entire facility, allowing them to leverage existing data and do away with data silos. A data foundation should be built gradually, so try not to rush.

    Our blog provides succinct summaries of the key trends, and drivers influencing Asset Management Industry in Australia. To learn more, listen to our podcast episode!

    According to us, the sectors with the most potential for transformation are mining, utilities, and real estate. Which sectors, in your opinion, have begun their transformation journey? 

    To share your thoughts, Get in touch with Umesh Bhutoria or Jeff Sharp via LinkedIn. 

  • Takeaways from Deloitte’s commercial real estate outlook for 2021 and beyond

    Takeaways from Deloitte’s commercial real estate outlook for 2021 and beyond

    Stepping into the last quarter of 2021, the global economy appears to be picking up pace and faring better than many expected. The commercial real estate industry, which has undergone huge changes during the pandemic, became witness to trends such as remote work, digitalization and cloud applications.

    In its CRE Outlook for the year, Deloitte investigated the effects of COVID-19 on some of the fundamental functions impacting the CRE industry, and underlined how overcoming these challenges could lead the way for new opportunities to build back stronger. 

    We bring you our key takeaways from these functional challenges facing the commercial real estate industry – technology, operations, and talent – and how CRE companies can position themselves for growth in the coming years. Let’s get straight into it!

    Technology

    COVID-19 accelerated and necessitated the use of technology in the CRE industry. Digital transformation and tenant experience are coming to the fore as main objectives amid the pandemic. 

    Challenge: 

    Even though digital technology has helped improve tenant experience, fast-track important tasks and ensure business continuity, CRE companies still struggle with defining digital workflows and digitizing key business processes. According to the report, 56% of the respondents believe the pandemic exposed frailties in their company’s digital capabilities and impeded their plans to transform. 

    So what can CRE companies do to address their digital transformation hiccups? 

    Opportunities:

    By making digital transformation a priority, CRE companies can tap into a sea of benefits – like happier tenants and advanced business performance. Industry leaders suggest that developing a structured plan with a more proactive approach, including the uptake of various technologies and data analytics, would likely bear substantial results.

    • Using IoT-enabled smart devices 

    Companies can significantly improve tenant experience by optimizing real-time updates about facilities and developing a sense of community using IoT-enabled smart devices and mobile applications. 

    • Leveraging Cloud Tech

    Cloud technology could be the cornerstone for a wide range of functionalities as it offers scalability, data storage, and universal access. Some CRE companies have already ramped up their use of cloud-based collaboration and productivity tools like Realstax and Bixby to lower in-house technology costs and increase flexibility.

    • Building Partnerships with Tech providers or Proptechs 

    REIT (Real Estate Investment Trust) respondents have put a foot forward in this direction, showing more willingness to collaborate with proptechs. On an average, 58% of REIT respondents showed increased intent to partner, compared to 45% of respondents who are developers.

    Operations

    Cost management and redefining the value proposition of properties became primary goals for the CRE industry during the pandemic. Optimizing the operations function is considered to be essential for companies to build resilience against the volatile business environment. 

    Challenge: 

    As demand for leased space reduced significantly, CRE companies faced rising pressures to contain costs. Companies are also incurring higher operating costs because of the additional health and safety measures they need to implement across their portfolio of properties.

    Opportunities:

    To position themselves for longer-term success, companies should consider the following actions. These are crucial to enhancing business resilience and cutting down costs.  

    • Streamlining and Restructuring Operations 

    This involves an in-depth analysis of business processes, identifying opportunities to restructure and reduce inefficiencies which will allow work to get done faster and more cost-effectively.

    • Automating or Outsourcing Non-core Operations 

    For CRE firms, non-core operations may be data collection & processing, maintenance, security, supply chain management, and so on. These should be automated and/or outsourced to gain operational efficiency. The pertinent dilemma – to build or to buy, must be taken care of. 

    • Deploying Smart building Design and Asset Management Systems 

    Companies could increase the value of their properties by deploying smart building design and modernizing asset performance management capabilities to render more relevant services to tenants and end users. This may involve using sensor technologies and predictive analytics to monitor facilities remotely and offer reliability-centered maintenance, implement more rigorous cleaning procedures, monitor HVAC systems, and enable data-driven decision making. 

    Talent

    The shift to remote working was unprecedented for the CRE industry. Companies had to provide the infrastructure for employees to work effectively from home, or anywhere for that matter, while prioritizing health and safety. 

    Challenge:

    The pandemic escalated many organizations’ need to reimagine job roles, leadership strategy, talent systems and processes, and culture to attract and retain a skilled and dynamic workforce. 

    Opportunities: 

    Some key avenues for CRE companies to improve upon and champion positive change in their workforce ecosystem

    • Creating an enabling culture

    Companies should adopt an enabling work culture and use the workplace to make employees feel valued, build strong relations, facilitate collaboration, and create more human experiences.

    • Talent Transformation 

    Planning and implementing a talent transformation to adapt to the future of work, and prioritizing diversity and inclusion will provide a competitive edge.

    • Three Approaches to the Way People Work 

    CRE companies could consider three approaches to the way work is done in the future.

    Based on these approaches, companies could be progressives, visionaries, or simply traditionalists. The nature of work in the three types of companies is summed up well by the image that follows!

    Conclusion

    To state the obvious, the pandemic has altered the way we live and work, and it’s been no different for the CRE industry. It has pushed leaders across the globe to rethink their business strategies and goals, forced companies to prioritize cost containment, and amplified the scope of rewards from digital transformation. At the same time, human connection is becoming more relevant than ever, as in-person interactions have reduced significantly in the last year and a half.  

    From here on out, CRE companies are expected to master a balancing act – ensure business recovery, seize new opportunities, cultivate a cohesive workforce and improve tenant experience. This will require proactive leadership and organizational agility, and increased levels of collaboration among various stakeholders, to be able to adapt and thrive in the future of commercial real estate. 

    What strategies have you applied to sustain and thrive in the CRE industry this year? Let us know your experience with technology, operations, and talent, and how you are preparing to overcome the challenges posed by the current commercial real estate scenario.