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Navigating The Procurement Process: How to Create Efficiencies with a CRE Operating System

Posted By Reid Snyder | Dec 23, 2020 9:00 AM
Navigating The Procurement Process: How to Create Efficiencies with a CRE Operating System

As we’ve seen in other large industries and enterprises, commercial real estate (CRE) owners are now experiencing fundamental shifts in their businesses. Landlords and operators are adopting technology at a faster rate than ever before — Deloitte’s CRE Outlook tells us that 92% of owners plan to maintain or increase their tenant experience-related technology investments over the next year, and an additional 72% of CRE executives plan to maintain or increase their overall technology investments even if an economic slowdown occurs — to find new ways to engage with their building communities, as well as to execute a safe return to the physical workplace.

The emergence of proptech, including the more than 8,000 proptech companies in the market, has created immense quality and optionality for CRE buyers. However, with so many products and providers to choose from, this opportunity can be understandably challenging. The risks include expensive procurement activity, fragmented implementation (as opposed to interoperability), inefficient switching costs, and buyers’ remorse. So, how do you effectively separate the signal from the noise, and ensure that all these investments work together seamlessly to provide end-to-end solutions?

Building a Tech Roadmap

“The commercial real estate industry is very relationship-centric. A lot of companies that we’ve worked with are looking for people they’re familiar with to help them build a technology ecosystem they can leverage. This can be tricky, because they’re trying out and piloting different systems at the same time. Therefore, they need to find systems that fit together well to provide a comprehensive solution. From a technology partner perspective, doing these integrations in the right way means you are able to present clients with a cohesive stack or an ecosystem that they can lean into — the right mix of established players and new solutions will insulate them from making the wrong choices. What matters most are deep integrations, creating ecosystems, demonstrating that those things work, and providing practical examples.”
— Jeff Thompson, VP of Solutions Architecture at Building Engines

The first step towards seamless, end-to-end solutions is identifying the unique problem set that you need to address for your portfolio. This includes everything from pinpointing your existing technology systems, to understanding how they work alongside each other, to knowing where you can create efficiencies. Once you’re well-versed on your existing tech stack, you can then shift focus to searching for new technology partners that can seamlessly integrate into your assets and improve functionalities.

When looking for these new partners, it’s important to adopt an open, holistic mindset and focus on interoperability. Some initial questions you might ask yourself are, “How can these new technologies conform and interact with the existing commitments I’ve made in my building so I don’t need to replace other systems?” and “Are these third party partners going to work together well and at scale?”

Selecting well-suited partners eliminates long development timelines as well as misalignment on the end product, and helps create an overall frictionless journey throughout your portfolio. To help further streamline these processes, CRE owners can choose a full tenant experience operating system — such as HqOS™ — to provide standard and enhanced methods of the user experience. Not only can an OS improve upon workplace environments and make them more desirable for building occupants, but it can also resolve the issue of fragmentation while quickly addressing changing needs in an ever-complex technology landscape.

Growing Your Technology Ecosystem

As you embark on your technology partner search, how can you trust the quality of the partners you find while ensuring that they can work alongside your existing systems? The solution resides in a marketplace of pre-vetted systems and amenity providers. By leveraging our HqOS Marketplace to procure new partners, commercial office owners can shop for technologies they know will be interoperable with the overall platform, and whose business relationships and deal structures are already in place. Additionally, they can even take advantage of technology partner profiles to access product demos and images — helping them determine if certain pre-vetted partners are a good fit for their business.

We empower CRE leaders to quickly identify partners of interest, while our team of experts helps consult across tech stack implementation and interoperability; third party assessment, procurement, and management; evolving compliance frameworks; data capture and transparency; and building access and facility management systems. They can also take advantage of our budgeting calculator to give them a general price parameter for their building and its systems. 

Solutions at Scale

As an added benefit, growing your technology ecosystem will also give you meaningful, actionable data that feeds into and drives all aspects of your building’s operating system. The more activations that your building features have, the more data points you can combine to paint a more holistic picture of how your building is actually being used by tenants. 

Being able to analyze multiple human behaviors throughout any asset enables CRE leaders to tune directly into their tenants’ needs: having such significant intelligence on building occupants helps create a better tenant experience, which in turn increases customer engagement and consistently provides teams with more useful data. This real-time feedback ensures the longevity of any portfolio by eliminating the guesswork and allowing teams to make strategic, informed decisions.

As you continue to deploy technology at scale, keep in mind that your procurement strategies should ultimately save you time, money, and harmonize with the existing systems in your buildings. Having an OS at your disposal will not only help establish sought-after seamless customer experiences, but also create efficiencies, unify otherwise fragmented technology systems in your buildings, and save you money in the process. With the right strategy, you can give your portfolio the competitive edge it needs to thrive in an ever-evolving market.

Learn more about how we can deliver effective solutions in a rapidly changing landscape. Book your HqOS demo today.

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