David Kollmorgen: No Longer a ‘Virtual’ Reality: Data Science Illuminates Dark CRE Data
- Jul 29, 2015
Cost, people and space data that integrates seamlessly with business and market data? Productivity measured and supported? Now it’s all possible.
Real estate data integration has long been an enterprise ambition; now, it’s a reality. The integration platforms to achieve that goal have been missing, with siloed, function specific service providers running the technology development show—until now.
Whether planning post-merger consolidations or developing realistic expansion scenarios, richer data, analytics and CRE-specific predictive tools inform stronger decisions at every juncture. Bold new big data and insights technology presents a major opportunity for real estate executives looking to transform the way they use diverse data, and ultimately, to fuel a more productive business future.
Goodbye standalone apps, hello seamless integration
Valuable data pours in 24-7 from all corners of portfolio performance. The inherent challenge has been to comprehensively compile it.
Many firms already analyze complex data: from cost, density and utilization rates, to corporate social responsibility, labor costs and quality of life. Many examine energy usage trends across multiple properties, or use a special platform to analyze lease terms. Some have used productivity gauges to determine which corporate locations are most productive.
Across the hall, these same firms track other department intelligence, from sales and workforce to finance data applications and analytics features.
Imagine all this data available in a single system, pulled together to offer predictive insights.
The magic lies in removing the walls between the data silos. A CFO may know, for example, direct costs associated with absentee rates thanks to building automation features such as utilization sensors. However, greater value can come from cross-referencing that information with HR data, scenario modeling under new design scenarios.
By automating management of large volumes of data from diverse sources, property decision-makers can bring it all together to reach a maximum impact. Now they can nail the “how-to” with JLL’s new advanced software-as-a-service. An open, scalable analytics platform, RED, unites disparate corporate data to help answer even the most complex questions in a simplified, integrated view. With more extensive real-time insights, organizations become better equipped to respond swiftly and knowledgably to tough questions and better informed to guide strategic decisions. The advanced technology is fully integrated with proprietary business methodologies and industry research, as well.
Fast-moving industry, faster-moving analysis
Though uniting information is central to promoting business productivity, that’s not the only crucial ingredient. The trick is to bring real estate expertise to the table.
Referring to real estate data analytics in a recent video, Ashish Gupta, COO at Evalueserve commented, “It’s really a complex field, where not only do you need knowledge of analytics but you also need a deep domain knowledge of the industry.”
A core way this domain knowledge plays out comes not only in the architecture of the platform, but also in its built-in capacity for benchmarking. For example, is your energy usage on par with your market peers? When the data shows that a peer business is enjoying greater efficiency in operations, the C-suite can use market insights to improve its own specific sustainability measures.
Open architecture coupled with strong data governance ensures accuracy, as CRE, sales, workforce, finance, and other business data are united to paint a distinct picture of corporate business.
Also key to making smarter decisions is having access to the right information when and where it’s needed. The ability to access real-time data on a mobile device or at a desk keeps real estate executives at the top of their game. With the ability to access data from almost any source and quickly visualize results through interactive, customizable dashboards and detailed analytics models, corporate real estate leaders gain greater insight into every decision.
Illuminating dark data, and beyond
Dark, or proprietary corporate, data needs a spotlight—but even the data you already faithfully analyze could be more potent when cross-pollinated with a diverse pool of sources. With seamless analytics that uncover new insights, and predictive models based on data and market insight, even the most data-driven real estate leaders can achieve deeper enlightenment.
Welcome to the exciting new science of real estate.
By David Kollmorgen, International Director, Business Intelligence, JLL