In an economy energized by Internet of Thing (IoT) device energizing Smart Buildings and Smart Cities, today’s Real Estate CIO is spearheading digital transformation on a global scale. With new found inclusion in the C-Suite, CIOs are being tasked with discovering innovative solutions capable of automating archaic manual processes, along with developing a strategic vision capable of creating a competitive advantage and new business opportunities.
Not withstanding being a trillion-dollar industry, Real Estate has been a laggard in technology spend,relying on the adage “If you build it, they will come.” PropTech, an acronym describing the intersection of technology and real estate, is looking to change that mindset. From 2015 through 2018, $30 billion has been invested in the PropTech industry worldwide. Intoxicated by visions of fortune and glory, vendors are trying to capitalize on 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 reminiscent of the dot-com boom and subsequent bust of the late nineties. Industry leaders are trying 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 prevent major financial losses, each failure must come with a lesson learned.
For innovators, adopters, and investors to survive and beat the odds, a series of sound business fundamentals must align. First and foremost, PropTech solutions must be architected to address an existing problem or pain point.