Technology transformation describes translating emerging technology into real-world business solutions. Companies that manage this process already enjoy a competitive advantage that will only grow stronger in the future. On the other hand, some businesses have concerns because their tenants and customers have adopted new trends in technology before they did. Because of this, management may find that their company policies and even their building automation systems have quickly grown outdated.
3 Key Trends in Business Real Estate Tech Transformation
Can new technology have a dramatic impact on building management costs? To understand how technology transformation can impact a company's real estate holdings, consider some existing and predicted trends:
By 2020, the Internet of Things, or IOT, is expected to reach a population of 50 billion devices. Even now, many buildings rely upon smart thermostats that can help conserve energy and keep buildings more comfortable. In the future, interconnected smart appliances and security systems may run buildings like operating systems run computers now.
As these systems track and record information, companies may also need to invest in AI platforms to analyze data in order to ensure that the way everything runs supports business goals and objectives.
Mobile devices have already overtaken traditional computers as a way to access the internet. In this age of BYOD, or Bring Your Own Devices, tenants expect to use their tablets and cell phones to offer them more control over where they can do their jobs. Add in an increase in the number of freelance workers, and it's easy to predict that corporate space will grow leaner as co-working spaces and remote offices grow more popular.
In addition, building residents may expect to access building services with their mobile devices. Companies will need mobile-friendly buildings and applications in order to satisfy both tenants and employees.
Increasingly, building tenants require advanced connectivity solutions as much as they require electricity, heat, air conditioning, and water. In other words, connectivity has turned into a basic utility. While connectivity may drive real estate purchase and lease choices, companies like Green Mountain Communications also help renovate and improve communications within older buildings, as they did for Huggins Hospital.
In any case, the need for access to the internet both for connected devices and computer systems will turn connectivity into a competitive edge. Alternatively, some companies won't recover from a lack of connectivity that they did not remedy.
Can Companies Prepare Real Estate for Tech Transformation?
Companies need to watch the tech space and their competitors to see how innovation causes disruption in their industry. Since many businesses cannot do it on their own, they may have to rely increasingly upon third party consultants and technical companies to help them navigate and plan for changes.
Existing and emerging tech have already changed the business processes and property selection of many companies. Really, it's past time to ensure that real estate professionals understand how the technology of the present and the future could impact them and what they can do to keep up.