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Optimizing Real Estate Portfolios using Integrated Project Management Technology
By Susan Watkins, Meridian Systems
With over $3.5 trillion in infrastructure projects under way globally, the pressure is mounting for organizations and their real estate and facilities teams to increase efficiency, reduce schedules, mitigate project risks and deliver results to the bottom line. To bring about these changes, large enterprises are increasingly turning to modern technology including Service-Oriented Architecture (SOA), Web Services, and XML.
 These technologies go beyond traditional hype and market buzz. They allow building owners and real estate developers to successfully optimize capital project lifecycles by integrating mission critical project and program management (PPM) technology together with other key business applications, including business process management (BPM), business intelligence (BI) and facilities management (FM). This concept is called Infrastructure Lifecycle Management (ILM), which incorporates managing all phases of the capital asset lifecycle – from plan, to build, to operate -- in a single enterprise system of record.
The reality of ILM as a project management methodology is not only being driven by today’s available technologies, but also by key economic and business drivers. Many of today’s global 2000 companies share a common reliance on physical infrastructure assets to deliver their core business – whether it’s manufacturing facilities, retail outlets, office buildings, or transportation systems. Another commonality these firms share is a desire to improve collaboration across the “plan-build-operate” project lifecycle. Without a way to combine project scope, budget, and scheduling data from these three project phases, it is a significant challenge to determine performance across an organization’s real estate portfolio.
In addition to business inefficiency, the economic impact is significant. The lack of integration among technology systems, project teams, facilities management departments, and outside suppliers has created huge cost impacts for owners/operators, construction firms, architects, engineers, and so on. A study commissioned by the U.S. Department of Commerce and conducted by the National Institute of Standards and Technology (NIST) reported that this interoperability problem costs $15.8 billion annually in the U.S. alone, with two-thirds of this cost being borne by the owner/operator. Technology systems that do not integrate the plan-build-operate asset lifecycle lead to costly communication breakdowns that result in:
- New projects and programs significantly over budget
- Delayed time to market for new and remodeled facilities
- Escalating maintenance and operations costs
- Growing backlog of deferred maintenance
- Increased total cost of ownership
- Reduced insight on construction and facility performance
To address these compelling issues, ILM software solutions use Web Services and XML technologies to consolidate all vital areas of capital project management and facilities management, then add layers of business process management and business analytics. This combination enables multiple project team members, supply-chain providers, and executive stakeholders to come together on one enterprise technology platform to collaborate more effectively. Here are some of the benefits of this method:
- Organizations can improve how they operate and manage physical assets, reducing costs for new construction and existing facility renovations.
- Senior executives and managers gain valuable insight into their entire portfolio of new and existing facilities.
- Best practices can be implemented consistently throughout the organization, increasing efficiencies and streamlining routine processes.
According to IDC, this new breed of ILM software applications is changing how organizations manage complex infrastructure assets by streamlining and automating critical business processes. ILM is on its way to becoming the engine that enables project owners, management teams, and external vendors to share information, track and monitor progress to enhance collaboration, and break down communication barriers that often result in cost overruns and maintenance delays.
In the face of mounting pressures created by today’s complex capital projects, the integration of project management, facilities management and business performance technologies can finally provide today’s real estate movers and shakers with the single system they need to optimize real estate portfolios -- from inception to completion.
This Week's Sponsor...Meridian Systems®
Are we on budget? Who approved this? Is this project on time? How is this project performing compared to others? Where are the drawings? Without one system to manage complex construction projects and programs, finding answers to your questions is nearly impossible. IDC analysts say companies that use one tool to automate the plan-build-operate project lifecycle have an advantage. Meridian Systems® solves this problem with Proliance® − an Infrastructure Lifecycle Management solution specifically designed to optimize the Plan, Build and Operate phases of capital construction and facility projects in one enterprise system of record. www.meridiansystems.com
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Realcomm 2007 Conference
IN PARTNERSHIP WITH:
National Associations:
Appraisal Institute, AIA, BOMA, CABA, CCIM, CoreNet Global, CRE, CREW Network,
IFMA, IREM, FIABCI-USA, MBA, NAR, NAREIT, OSCRE, RECS, RLI, SIOR, WTA
Regional Affiliates:
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