If you are reading this, it’s probably because you are deep into our little CRE world, trying to better understand CRE technology generally, or you have gotten very, very lost on the internet. Welcome, no matter who you are. One thing we all have in common, no matter how you got here, is that we all have the joys of dealing with technology systems.
It is common knowledge at this point that new technology fails at a high rate. I tried to switch to iOS from Android a couple of years ago, absolute failure. I’ve tried many new personal apps to improve my processes with most ending in no more use. It’s just the way of the world.
Often, CRE technology failures occur for the same reasons as other systems. But there can be areas that we need to focus on more than others. When you deploy a system within an IT group, you likely don’t need to worry about having someone on the team who at least understands what a relational database is. In the CRE world, that’s a big concern.
So with that, here are my top 3 reasons why technology fails specifically within the CRE space:
1. Delivery team does not understand how technology works
CRE is not a landing place for people with technology backgrounds. It’s not uncommon for a corporate RE team to have no one who has an understanding of what goes into a typical software platform, let alone how it all works together.
One of the biggest causes of failure for any technology system is that the people with the requirements don’t know how to communicate those requirements to the implementation team. In the CRE space, ramp this risk up to 11 because it’s the number 1 cause of technology failure. It doesn’t matter whether the product is on-prem, SaaS or other.
2. Business refuses to work within required processes
Many real estate systems require either input or support from other groups. No space management system can work without buy-in from the team that controls HR data. No facilities work order system can work if colleagues don’t enter their tickets. Lease administration systems fail if the business can sign leases without telling real estate about them.
Real estate is a support function. It’s an important one, but it’s often at the mercy of other groups. If they don’t buy-in, there’s not much the real estate team can do to force the issue if leadership isn’t going to require it.
3. Real estate business as usual processes not defined
This one is kind of related to the second but falls more squarely into things the real estate group can control. Technology systems require known and defined processes. No technology is going to work if the process it supports can change any given day of the week. No software will be effective if every office is allowed to do things differently.
While many people believe there is a standard way of delivering our projects, I have yet to find any real consistency from organization to organization. Lack of process means no technology.