Remember when you had to walk into a realtors office and sift through physical marketing materials to find a suitable property of your choice? The Millennials and Generation X will know what we are talking about, but Generation Z works differently. This generation relies largely on digital mediums to make all major and minor decisions of their lives, including those pertaining to real estate investments.
Today, the digital transformation in Real Estate industry is mainly driven because of 2 factors: the change in the customers’ behavior and the technology advancements. With the help of new technology like AI, IoT, Augmented Reality or even Virtual Reality, realtors are running neck to neck to woo clients in a very cut throat competitive industry. Instead of relying on pictures and written descriptions, customers expect to see tours using photo-realistic images and virtual reality experiences. Mind you, customers today are not easily impressed or fooled, so, if realtors don’t keep up, they just lose out.
Digital Transformation in Real Estate and The Role of ERP
In Real Estate, there is a lot to be wary of: project planning, regulatory approvals, site selection, budget planning, construction etc. Enterprise Resource Planning (ERP) systems can provide lucrative opportunities and deep insights into each of these processes. As businesses begin to grow, there is an increase in the number of employees, the activities and all this inevitably gives rise to more complex workflows. Real Estate businesses with a global presence especially need an ERP system that can streamline processes which naturally increases productivity and profitability.
Let’s delve a little deeper into how an ERP system helps in the Real Estate Industry specifically.
Access to Real-Time Information
One of the core capabilities of an ERP system is in maintaining data. The system not only allows for multiple data points but also updates information in real-time which brings every stakeholder in the loop immediately. This saves data redundancy and crucially syncs different parts of the business, aiding in important business decisions.
Provides Meaningful Insights
Most softwares can manage data, but what makes an ERP system more valuable is its capability of providing dynamic, custom and real-time reports. These reports provide deep insights into industry trends and customer behavior, and support the decision making process.
A Consolidated System
Depending on multiple tools in order to manage different aspects of the business can be okay when the business is still in its nascent stages. As it grows, there is an increasing need to consolidate the process under one single large umbrella that can cope with the challenges and processes of a growing business. A good Real Estate ERP system is a single software that comes with the main modules in-built as well as the option to customize it to include add-ons specific to the business.
A good ERP system integrates all various aspects of the real estate business, such as financials, sales, leads, rents, projects, and engineering. What was earlier done manually over hours can now be completed with a click of a button. Saving time and resources inevitably increases profitability – the ultimate goal for every business.
Embracing Manufacturing 4.0 in Real Estate
Businesses are naturally here for the long haul and for that, they will need to embrace new technologies that are driving the digital transformation in Real Estate industry.
Consolidate Property details with Internet of things (IoT) Devices
The rise of internet-connected smart devices has been significant, especially in the real estate industry. These devices come handy while managing commercial property where they provide powerful automation features that go a long way in cutting operational costs. Building managers now rely on the data generated by these devices to carry out proactive maintenance on properties. The information from these devices are increasingly helpful in devising utility and energy optimization strategies.
Improve Customer Experiences with Rich Multimedia
Multimedia is rapidly changing the way realtors market properties to clients. Virtual reality and augmented reality videos are fast becoming the norm. This works very well for their customers too, who can get a near real experience of the property without leaving the comforts of their home. This is now especially relevant and useful during the COVID-19 pandemic and soon after it.
Use AI-Powered Data Analytics
While data forms the foundation of decision making in the real estate business, leveraging artificial intelligence (AI) algorithms lend valuable insights into market trends and help seek out lucrative business opportunities. Additionally, AI aids property management, deal-matching as well as identifying loan defaulters. With AI gaining momentum within the real estate industry, we can confidently predict that Machine Learning (ML) will play a huge role in this industry going forward. Whether it is risk management, property management or even controlling finances, real estate businesses will increasingly turn to technology to manage critical business processes.
Engage Digital Image Classification
For a large real estate business managing hundreds of properties, for rent and sale, sifting through images manually is a herculean task. It is time intensive, labor intensive and needless to say, extremely cost intensive as well. Digital Imaging helps automate image selection with the help of machine learning. It can categorize images in a few seconds and tag them according to specific classifications. With the help of image recognition, realtors can generate traffic to their websites and find innovative ways of engaging with their audience.
Act While There’s Still Time
Like every other industry, the real estate industry has witnessed a churn due to the COVID-19 pandemic. It is widely evident that commercial occupancy has dropped drastically. As most of the workforce across the globe moved to working remotely, the real estate prices across commercial properties crashed putting a massive strain on realtors who depended largely on commercial leases for revenue. However, with an increase in remote workspaces, there is an increasing demand for digital workspaces and data-driven workforce management, in terms of office scheduling and daily occupancy.
The emergence of new technology in real estate, also known as ‘PropTech’ will help real estate businesses meet the requirements of the post pandemic workforce, that is focused towards improved security, improved efficiency in the management of utilities, visibility in building usage patterns and accurate building occupancy reports. While COVID-19 did put the brakes on the traditional means of the real estate business, new innovative technology is reinventing ways to increase profitability and efficiency even when the going is tough.
Embarking on a digital transformation in real estate industry is a challenging journey. It is an expensive, time consuming and labor intensive process. However, once you make the transition to a modern, robust, flexible and efficient ERP system, you will realize the benefits are far higher than the ones provided by age-old manual processes. The transition helps organizations achieve operational efficiency and enhances their financial performance enabled by a strong enterprise level ERP system at the core, like the one offered by VIENNA Advantage.