The Business Case For Integrated Workplace Management Systems
Susan Clarke
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Executive Summary
The Verdantix 2018 global survey of corporate real estate and facilities executives shows that 34% of firms are evaluating the purchase of software to improve real estate and building management, of which 20% are considering an IWMS solution. This report provides real estate and facilities executives a framework to develop a powerful numbers-driven business case to support an IWMS investment pitch. The analysis shows that firms moving from a hybrid of real estate IT systems can achieve a positive return from an IWMS implementation based on IT rationalization and reducing time on administrative tasks. Firms can significantly boost the scale of savings by including a space utilization or smart maintenance strategy as part of an IWMS investment proposal, where savings can reach the millions. Other topics covered include: the most frequent reasons for IWMS purchases; the challenges that real estate teams face in making a convincing pitch; the software costs to expect during the purchase; and how to create a five-year financial analysis for an IWMS implementation.Real Estate Execs Buy Into An IWMS As A Platform To Centralize Data And Drive Strategic And Operational Improvements
Current Drivers Include Lease Compliance And Creating More User-Centricity In Buildings
The Failure To Show Near-Term Savings Is A Common Deal Breaker For An IWMS Investment Pitch
The IWMS Business Case Should Bring Together The Financial And Strategic Upside
1. Present A Numbers-Driven Business Case To Keep The CFO Engaged
2. Turbocharge The Business Case By Including A Space Utilization Strategy
3. Raise The Scale Of Savings By Including A Smart Maintenance And Energy Strategy
4. Highlight Compliance And IT Risks To Create Urgency Drivers For The IWMS Implementation
5. Demonstrate Alignment With Broader Corporate Programmes To Help IWMS Get Discussed At The Top Table
How To Structure The Business Case For IWMS
Map Out A Phased Implementation Plan That Reflects Business Priorities, Internal Resources And Critical Implementation Choices
IWMS Investment Costs Reflect Scale And Complexity Of Deployment
Calculate The Net Cost Difference In IT Expenditure When Moving To An IWMS
Estimate Labour Productivity Savings Around The IWMS Modules Implemented
Raise The Appetite For An IWMS By Showing Extended Operational Savings
Show How An IWMS Can Support Better Space Utilization
Apply The Business Case Framework To Quantify IWMS Financial Benefits
Business Case Framework Applied To An Insurance Services Firm With 45 Sites Internationally
Financial Analysis Shows A Strong Investment Case For IWMS
Figure 2. Seven Steps To Create A Numbers-Driven Business Case For IWMS
Figure 3. The Financial Benefits Of An IWMS Cut Through IT Systems, Staff Time And Operating Costs
Figure 4. IWMS Implementation Plan For A $2 Billion Global Insurance Firm
Figure 5. Financial Summary Of IWMS Business Case — $2 Billion Insurance Firm
About the Author
Susan Clarke
Research Director
Susan leads the Verdantix Smart Buildings practice. Her current research agenda focuses on software solutions for real estate management including integrated workplace managem...
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