Big Data in commercial real estate
Data are simply facts or figures. They are bits of information. They are not information itself. When data is processed, interpreted, organised, structured or presented so as to make them meaningful or useful, they are then called information. Information provides context for data and has always been key for companies to be able to operate and compete.
Nowadays, the fast growing evolution of new technology has created tremendous amounts of data. The big data was born to fundamentally change the way businesses are operating and competing for greater opportunities. In 2016, initiatives have expanded dramatically with growing data volumes and a greater demand for faster analysis and prediction (a lot thanks to the cloud and the “Internet of Things”, IoT). For profitability, all industries are disrupting their business models and organisation to remain part of the competitive game… like in the commercial real estate sector where all board members and top managers talk about DATA strategy. Even if companies can make DATA become gold, how much of it can they share with their partners? How close can shopping malls get to their preferred partners or the retailers, when it comes to sharing?
We all know that DATA is creating business value for any competitive market. The clue is how effective your strategy will be so that your customer experience (B2B and/or B2C) becomes a success and your profits increase on structural growth.
Success comes first with a comprehensive reference database with evolving big data tools and platforms that are appropriated to your organisation. This is a base in being able to provide historical and forward-looking views.
Success comes also with an organisation that embraces the digital culture, the community spirit (where it’s good to be able to share with no silos and interact with the right appropriated tools), new experts (coming from the pure players industry for example) and experienced consultants to help the organisation in the process (to accelerate it and avoid internal political issues for example).
Then, success comes with your partners. Those leading the change are including DATA from both within and outside companies. In the commercial real estate industry, when we talk DATA, two main actors are coming to mind: retailers and shopping malls. Both have platforms with consumer insight for a tailored shopping experience. Don’t you think it is a powerful couple? Inside and outside the shopping center, they both collect tremendous DATA. Their success could certainly rise through their ability to become a new relationship broker sharing the best information to become more competitive.
Above all, time goes on and new technologies are growing at an unprecedented rate to enhance the customer journey. Because we talk about big data and data sharing, other new digital solutions keeping appearing on the market and companies need to increase data volumes, complete new partners agreements, and use the right tools for real-time analysis. They must be ready for artificial intelligence and machine learning, be able to manage risks and decision making, safely protect sensitive data (with the right cybersecurity solutions and processes regarding individual rights), aggregate more data sources (also thanks to the internet of things), and hire new experts (with consultants). They must adapt their organisation to the changing and ever-evolving environments.
That’s why, when it comes to adoption, the key to a successful strategy is the definition of steps that a company will follow to implement it. Those steps will help an organisation evaluate their capabilities and ensure efficient ROI-driven delivery throughout the different stages of implementation. One of the steps could be the definition of how much data a company can share with its partners. There is no “off the shelf” solution, as each company is different and will evolve over time.
Key players of the international commercial real estate industry will shed their expertise on this topic “DATA – Shopping malls & retailers, the new power couple?” on November 16th at the retail real estate event MAPIC in Cannes.
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