In an economy energized by the web of Thing (IoT) device energizing Smart Buildings and Smart Cities, today’s land CIO is spearheading digital transformation on a worldwide scale. With new found inclusion within the C-Suite, CIOs are being tasked with discovering innovative solutions capable of automating archaic manual processes, along side developing a strategic vision capable of making a competitive advantage and new business opportunities.
Notwithstanding being a trillion-dollar industry, the land has been a laggard in technology spend, counting on the adage “If you build it, they're going to come.” PropTech, an acronym describing the intersection of technology and land, is looking to vary that mindset. From 2015 through 2018, $30 billion has been invested within the PropTech industry worldwide. Intoxicated by visions of fortune and glory, vendors try to maximize the funding frenzy, pitching concepts and solutions with limited or no substance. As a result, quantitative and qualitative success has been elusive when measured by adoption and profitability.
These dynamics are like the dot-com boom and subsequent bust of the late nineties. Industry leaders try to balance their enthusiasm embracing “failing fast”, and “if you’re not failing you’re not innovating” philosophies. For this approach to be meaningful, and stop major financial losses, each failure must accompany a lesson learned.
For innovators, adopters, and investors to survive and beat the chances, a series of sound business fundamentals must align. First and foremost, PropTech solutions must be architected to deal with an existing problem or pain point.