Many real estate organizations are preparing their capital budgets at this time of year. Still, the divide between groups that leverage their data and those who don’t keeps growing. Some organizations keep relying on fragmented data points for their properties and building components. As a result, unforeseen risks and capital inefficiencies emerge due to a lack of information. Meanwhile, there are others who break down the information silos across assets and departments. They take a data-centric approach to enhancing and optimizing building capital, which results in more impactful and cost-efficient investment decisions. This is where asset lifecycle management software makes a critical difference.
Asset Lifecycle Management Software—an Emerging Core System in Real Estate
Whether public or private, organizations face growing scrutiny over their capital spending. Most, if not all, of them also need to operate with limited financial resources. For these reasons, asset lifecycle management software is becoming core to their business. It uses data and analytics to optimize their capital investment strategy. This is especially important for managing large-scale regional or national portfolios.
Core capabilities of this software include:
- Determining total capital needs by system and by priority
- Streamlining capital allocation across regional and national portfolios
- Tracking the FCI at the component, building and portfolio levels
- Measuring Key Performance Indicators (KPIs) within the portfolio
These provide the foundation for fact-based decisions based on standardized data. If you want to optimize bottom line results, this is where to start.
A Two-Pronged Approach to Enhancing Performance
When we created the 4tell™ Platform, we looked at key drivers of effective decision-making for real estate managers:
An asset-centric data repository
Whatever the source, capturing and organizing data is critical for developing a capital investment strategy. There is no shortage of data in this industry, but a standardized data model is critical for asset managers. Teams should not still be working in silos, nor should they be manually processing data from contractors and assessors. Accumulating this data in one dashboard tells everyone the same story. In other words, everyone sees the same projections, the same KPIs and the same results. This helps all parties agree on mutual performance indicators and investment strategies.
Read more: Developing your organization’s “Data DNA”
Analytics and visualizations
Software systems today should also allow users to view and flexibly use data in real time. The best way to do that is by visualizing it. Our ALP allows you to easily track building and capital performance. This applies to sharing the information with other stakeholders as well. You can segregate asset data in various ways and run scenarios to forecast the impact on your budget, giving you defensible, actionable data in a digestible format. Our ALP also functions as a single system of engagement for all stakeholders involved in an asset—both internally and externally.
The real estate industry has traditionally been fractured when it comes to asset management. Legacy systems are siloed and prone to error. Asset lifecycle management software puts the asset at the center of a common knowledge set that fosters collaboration. This is the new standard for managing your portfolio effectively.
Looking to transition from legacy systems to new software? Read our change management tips for successful implementation.
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