As the world becomes increasingly digital, businesses in all sectors are facing the need to adapt to, and incorporate, digital technology into their operations. The property industry is no exception. From property management to leasing and sales, digital transformation is becoming a crucial component of success in the industry. But what exactly does "digital transformation" mean, and how can real estate businesses navigate this changing landscape?
At Remit Consulting, we have been researching and studying the impact of digitalization on the property sector for the past five years. In 2017, we wrote a report for the RICS titled "The Impact of Emerging Technologies on the Surveying Profession" that outlined how digitalization would transform the property sector.
First and foremost, it's important to understand that digital transformation is not a one-size-fits-all concept. It can be planned (proactive), reactive, or organic in nature. Proactive digital transformations often involve a long-term, strategic approach to incorporating technology in order to ensure long-term growth or even survival. Reactive digital transformations, on the other hand, are more of a knee-jerk reaction to changes in market conditions or technology itself. Organic digital transformations are characterised by small and frequent changes to a business, often driven by the widespread adoption of technology by individuals.
There are different types of digital transformations that can occur within a business. Business model transformations, for example, look at how technology can improve conventional business processes. In the real estate industry, we've seen a shift from traditional office leasing to membership-style contracts, particularly aimed at small businesses and start-ups, often combined with enhancing regional and local facilities. This is a significant business model transformation that continues to evolve.
A culture transformation is a change in an organisation's mindset, allowing it to adapt and change with the times, and a process transformation uses data, analytics, and AI to improve efficiency and reduce costs.
An example of this within the property sector is the rapid growth of home-based and hybrid working that has led to shifts in culture, affecting both employers and providers of property-based services. This shift in culture has led to a demand for unique office spaces and designs from tenants and customers, with architects and designers being challenged to come up with creative solutions.
At Remit Consulting, we have helped many real estate organisations with their digital transformations, from small to large, private and public sectors, including charities and housing associations. Follow the link to read more about our views on Digital Transformation.
If you're interested in learning more about our approach and sharing your own experiences of digital transformation, please contact Andrew or Sue.