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What makes you hesitant to invest in PropTech?

PropTech sounds like a new finance/tech jargon word that means a lot but explains little. But PropTech has actually been around for a while in different forms, and has practical applications that boost daily operations. Every new device deployed from aircon, solar, generators etc, has an app, and contributes to the drive to efficiency and your green building status.


Can you afford to not have a solid centralised dashboard of the performance of these investments?


So what makes people hesitant to dive into PropTech?


·         Cost.

The perception that PropTech costs the earth is a common misconception. PropTech doesn’t have to be shiny solar infrastructure and advanced BMS systems. PropTech can be as simple as integrating sensor alarms and visitor management systems into a platform. From our perspective, issues are going to happen on your site whether you have the technology to report on it or not.  Investing in necessary PropTech can save you money in the long run through system efficiencies, and timely maintenance notifications. Knowledge is worth more than gold!


·         Management of the technology, and complexity.

Steep learning curves, staffing requirements, infrastructure necessities, Facilities Managers’ time. Trying to manage everything on-site can be a nightmare, but through outsourcing to a specialised off-site managed services company, you can cut through these issues. Once a system is up and going it’s easy to keep the momentum going, and if set up and managed correctly it should run seamlessly in the background.


·         ROI.

How do you define return on investment? What are you trying to return? The money invested? Or impact! We propose ROI of PropTech should be thought of as Return of Impact. PropTech can impact all aspects of your facility, and can return more than strictly the cost invested. Some PropTech has a direct cost reduction function through HVAC and solar etc, but other forms of PropTech have an indirect return based on the way your facility feels.

Is it inviting, modern, smooth and efficient? Do you have preventative security measures that make your staff and clients feel safe, and ensure your goods are protected? PropTech, run and managed well, can provide more benefits than the sum of the costs, and can generate novel insights to keep your site ahead of the curve.


·         How new it is.

PropTech sounds like a bubble set to burst. But it couldn’t be further from the truth. How new it is shouldn’t be seen as an uncertainty, it’s only because of new software and companies that PropTech can be managed efficiently. Just because a car has been running for fifty years doesn’t mean it will continue to run, or run better than a new model for the next fifty years. Utilising PropTech in your facilities management arsenal is a game changer. Full stop. It’s a completely different approach to management, it’s proactive and data based. You can’t manage something you can’t measure.


Ultimately, we have found that people are hesitant to invest in PropTech because of a combination of these factors. But beyond monetary cost, it’s the mental cost of switching over to new systems, training staff, and learning systems that hold back already overloaded Facilities Managers from taking advantage of the opportunities presented by PropTech. It’s a hurdle, a catch 22.


How do you establish these systems that can actually alleviate some of the mental bandwidth needed to effectively run a facility, when FMs are feeling burnt out? Ask for help! Get a third party to help ease you through the transition to the PropTech revolution!

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