July 22, 2020 | Tyler Staton
According to a 2017 KPMG poll of real estate executives, over half had identified big data and analytics as the emerging technological innovation their business was most likely to adopt in the next 3 years. The ability to gather large amounts of data and quickly generate actionable insights is becoming necessary to compete in the modern real estate market. Whether it's knowing what price you can get for a space or tracking how effective your leasing activities are - the more informed you and your team are, the better business decisions you will be able to make and the more you will win. However, many companies are not yet able to use their data to help support their decisions, and it isn't always obvious how they can get there.
To understand why some real estate companies are struggling, it is best to first understand the challenge and importance of structured data. In brief, structured data is information that has been organized in a way that useful insights can be extracted from it. Data structure can be very simple or very complex depending on its intended use. When complex information is properly collected and organized it is possible to generate valuable, deep and real-time insights that will help you win more.
The following matrix is a quick gauge of the maturity level a company is in with respect to its data structuring and use. Where do you fit in?
While this matrix describes a simple example of data collection and utilization, you can probably imagine many other scenarios where collecting, structuring and using real-time data can lead to improved outcomes for your business.
While leveraging data to win is a better approach in general, many companies are still not utilizing their leasing and asset management data or only doing so to a minimal degree. In part, this is because there has been no easy approach or solution and legacy or in-house software platforms have not kept pace with newer data collection and analysis requirements. It is also difficult to know what data will be useful or needed in the future, how to get dispersed teams to follow data collection standards, and what is the right data structure to enable actionable insights. This can cause companies to default to manual backwards looking reporting, using ad hoc spreadsheets to collect data, or only structuring data that is easily available.
As real estate undergoes a shift towards digitalization, the companies who are best able to use their data will gain an immediate and lasting advantage and stand to outperform those who don't. How does your company’s data practice stack up?
Co - Founder | Talox