Tech Comes Second, Organization and Preparation are First

JLL released its global real estate survey for 2023. But skip over the data for now and look at something fundamental about using technology.

People in CRE often hear that the industry is backwards when it comes to technology — unlike other sectors that happily and readily embrace what computers, networking, and telecommunications can provide.

Which is true on a surface level, but more complicated because of one point that JLL made as follows: “Priorities for technology adoption are shifting in order to support flexibility, enhance decision-making, promote sustainability and increase revenues; but 80% of organizations don’t currently have an actionable strategy in place. The technology strategy should identify how real estate supports your business objectives, outline your future state ambitions, and lay out a clear, achievable roadmap to reaching your vision.”

These two simple sentences explain a lot about how badly many companies use technology. Software and hardware, no matter how relatively simplistic or sophisticated, are tools, nothing but. Bringing them into a business means nothing on its own.

If you had an open room and brought in a supply of mahogany lumber, some power tools like a full table saw and lathe, and advanced systems like a computer numerical controlled, or CNC, multi-angle water jet cutting system that could in theory make almost anything, nothing would happen. You’d have a bunch of expensive equipment and materials and no finished goods — unless you understood the processes, had a design, created working drawings with measurements, and learned out to use the tools.

Unfortunately, this is the state of many companies. Not just the 80% in CRE that JLL estimates lack an actionable strategy, but something widely spread across industries. Many studies have shown that IT projects typically are completed late, over budget, and far from effective. They tend to lack good planning, communication, and project management. They may also lack a strategic view of how the system is supposed to work to further the company’s goals. Tech can become an expected bit of magic that is supposed to solve all the problems, but which doesn’t.

For CRE firms that may not have jumped into the deep end of the poor, this is actually excellent news. If you haven’t signed the contracts and issued the purchase order, stop and work through what the company most needs. Where in the processes are there issues? Do you have the data to provide the information the software might need? How does the business work now, and where can improvements be made?

If you don’t know specifically how a software system is going to help your company — how it will save time, money, effort, provide additional insight, or some other practical implication — then you’re not ready to buy it. The minute you know what you need is when you start looking.