The Drawbacks of Homegrown Space Utilization Solutions

finalimage

When the need for new software arises, companies are sometimes tempted to try to get results quickly by building their own solution. Most such homegrown efforts start life as spreadsheets, which are not scalable, lack robust analytics, and provide limited visualization of results. Without adequate IT development resources (even in the most well-resourced companies), very few progress to building rudimentary business intelligence (BI) tools. Should any company succeed, they find that these homegrown platforms are subject to the same kinds of limitations.

In a recent report, 47% of corporate real estate executives cited “improving real estate utilization” as a top priority. [1] Some may now be persuaded to spend a couple of years trying to build their own solution rather than focusing on strategic tasks to optimize their real estate portfolios. The opportunity cost of such a decision is huge, and almost never acknowledged. For example, a company with 10 million square feet of office space worldwide, which costs an average of $35/sf/yr in rent, could increase its effective utilization by at least 3% every year with the right platform. In addition to the staff costs and distraction, delaying purchase and implementation of software by one year represents over $10 million in lost savings.

Smart CRE leaders recognize this and look to procure specialized workplace optimization solutions from day one. This approach enables them to gain insights and monetize the findings within weeks. The return on investment from a specialized solution such as Rifiniti Optimo X can be anywhere from 500% to 1,500% in the first year alone.

Developing and maintaining a robust enterprise platform that can scale to hundreds of buildings worldwide to meet changing business needs is a complex undertaking that is best left to a specialized software provider. Companies that accept this and act quickly will be well positioned to quickly identify optimization opportunities before it is too late.

Contact us today to see what your company’s ROI from using Optimo X, our office space optimization software will be.

[1] IBM and CFO Research, October 2014

Share this Article

Categories:

Blog