We provide a facility management course in Slovakia, and this year we decided with our partners to include education dedicated to digital transformation in facility management that goes a bit farther than just a facility management software. We included an overview of more PropTech solutions from around the world and our country which can be implemented in our buildings. We introduced the newest integrated space-as-a-service solutions, mobile digital twins, successful blockchain use cases, anti-COVID digital hardware and software, solutions for increasing energy efficiency in buildings, and last but not least, cybersecurity. Our students were surprised at how many solutions are available in the real estate world. Even if for the majority it was not the cup of coffee that they normally order in a café, it was stimulating and enriching for all as they could see new possibilities where they have not spotted them before.
We believe in digital transformation as an enabler to enhance the skills and abilities of people to be better professionals.
What led us to it? We had been seeking digital solutions that make the work of property and facility managers easier, more precise and reliable for a long time. We believe that if digital transformation is adopted successfully in our businesses, we will perform better and gain more room for awakening and attracting more talent and innovation. It is simply because people relieved from tasks that can be automated can focus much longer on tasks that are creative and innovative. Also, they can communicate, collaborate and stimulate each other much more. Thus, we view the digital transformation in real estate with a vision that goes beyond more than just digital technologies. We believe in digital transformation as an enabler to enhance the skills and abilities of people to be better professionals.
…real estate people often do not understand, or are afraid of technologies, and/or that they are afraid of making bad choices.
But another thing that we encountered is that real estate people often do not understand, or are afraid of technologies, and/or that they are afraid of making bad choices. There are too many examples where digital transformation did not lead to expected performance expectations. Fortunately, there are guides, following which can safeguard that digital transformation will meet expected goals.
For example, couple of months ago, McKinsey published one interesting survey, in which they discovered practices of executives that maximise the chances of extraordinary results of digital transformation. What is even more relevant, none of the surveyed companies that adopted these practices has failed to meet their increased performance expectations. 20 % of them have actually exceeded them. These practices include the following:
1. Laying out clear priorities and defining measurable goals of digital transformation increased the likelihood of exceeding performance expectations 1.7 times.
2. Investing in talent – especially at the top and hiring Chief Innovation Officer increased the likelihood 1.3 times or even better Chief Analytics Officer 1.7 times.
3. Committing time and money – setting digital transformation as a top priority the likelihood increased 1.5 times and allocating operating expenditures increases chance 1.3 times.
4. Embracing agility and frequent updating their digital strategies increased the likelihood almost twice.
5. Empowering people at all ranks with clear roles and responsibilities and putting an “owner” in charge of each transformation initiative increased the likelihood nearly three times. This includes balancing the expectations set for individuals with expectations for larger groups and for the organization as a whole.
In relation to increasing likelihood of success in digital transformation, I also want to mention one of more amazing things that I could learnt during the Real Innovation Academy. I participated in its cohort of May 2020. The course, designed, organised and lead by Antony Slumbers and Dror Poleg, is primarily focused on the future of office spaces, but I am sure that it can be very beneficial for any real estate profession, business or segment. Thanks to this course you can get to, learn, and understand a number of important things connected with innovations in real estate. Another benefit is the possibility to discuss them with both authors of the course and participants from the best real estate brands and professionals from nearly all continents.
What is a problem, is the fact that “can” does not necessarily mean “have to”.
Although the course goes in a bit more extensive innovation direction than just digital transformation, it highlights the tremendous potential of connecting real estate people and businesses with some of the most promising digital technologies. With no doubt, this connection can lead to a better-built environment, better relations with customers and delivering better results. What is a problem, is the fact that “can” does not necessarily mean “have to”.
In order to make the selection and adoption of innovation in real estate successful, we need to follow a structured process.
What was recommended in order to make the connection between real estate and technologies successful? Following a structured process. Like Antony Slumbers writes on his webpage: No process = no innovation. In order to make the selection and adoption of innovation in real estate successful, we need to follow a structured process. One could say that it is more granular form of the golden software development rule of the never-ending Build-Measure-Learn process. I offer here just the first step of the five-step process (for the next four steps I highly recommend to apply for the course:)
Innovation is not a single event. It is a process.
Innovation is not a single event. It is a process. And the process starts with a quite critical point. We should start with learning and understanding what is the contemplated digital technology good at and just as importantly what it is not. Antony said: “Computers are great at optimising complex systems because that plays entirely to their strengths but ask a computer to create something completely new that turns out to be complex and it will fail.”
1. Handling tedium, repetitive activities.
2. Extreme sensing like spotting a hidden leak, detecting harmful air quality, etc.
3. Strength and speed: Robots are “force multipliers”, dramatically transforming (and saving) the construction and manufacturing industries.
4. Unwavering focus in conditions where humans can be easily distracted.
5. Perfect, objective recall.
Where do humans outdo robots?
1. Empathy. As long as robots lack true empathy, complex human interactions will continue to require actual humans.
2. Flexibility: Robots are still far from being able to respond to unexpected situations with the same resourcefulness as a person.
3. Acceptability and trust.
And, of course, more.
I would add creativity, innovations, emotions, but more important than naming them all is that we do not need to decide between the two lists in favour of technology or in favour of people as long as we can add both our best elements and use the best combinations of both of us. Antony said: “We need each other, to be the best we can be, at what we are good at.“ The best combinations should induce the best of our talents and innovations.
