Facilities Optimization Management (FOM) Software Forges the Missing Link Between Facility Operations and Real Estate Strategy
A new category of software is rapidly coalescing as vendors from multiple segments launch propositions to enhance the financial and operational performance of building portfolios. The prime objective is to link data about facility-level performance on multiple dimensions with financial optimization across the entire building portfolio. At Verdantix, we call this facilities optimization management (FOM). In launching FOM propositions, software and services suppliers such as Dude Solutions, Envizi, IBM, Maintenance Connection, Schneider Electric, Siemens, Urjanet and Verisae respond to the requirements of real estate investors, real estate portfolio management firms, owner occupiers and facilities managers.
These customers who own or manage large building portfolios have struggled to get sufficient value from facility-level solutions that tackle just one part of the problem. Energy software as a standalone is complex to implement, problematic to use without specialist energy analysts and the ROI is increasingly questionable due to the falling cost of electricity. What’s more, the building energy software market will be worth just $353 million in 2016. This is not large enough to drive significant venture capital investment. Facilities management software and computerized maintenance and management systems (CMMS) run into similar challenges. That’s why there is an increasing trend to deliver these facility-level solutions as a managed service with experts at firms like Carbon Credentials delivering value by analyzing operational data and identifying cost savings. It’s also why customers seek out integrated facilities management software platforms from vendors like Verisae which include fault detection and mobile workforce management.
Ultimately the big challenge is linking data on the performance of a facility – critical equipment uptime, space usage, energy consumption, running costs, sustainability metrics – to decision-making on where to invest across a large portfolio of buildings. Whilst real estate portfolio optimization delivers the big bucks in terms of savings, it is facility-level data that is required to inform these decisions and track performance over time. We’re also seeing additional factors such as GRESB reporting come into play which touch on a much broader array of building performance issues. We see a major role for services firms to advise on FOM strategies both from a real estate strategy perspective as well as human capital and systems integration. The partnership between Siemens Building Technologies and IBM’s TRIRIGA and Watson software teams is a great example of new initiatives to forge a link between facilities performance and real estate analytics.
To find out more about Facilities Optimization management, register to attend our upcoming webinar, Facilities Optimization Management: Connecting Facility Performance Data With Real Estate Investment Strategy.