Harness critical trends to value in digital transformation
DT is the next phase in a centuries-long growth journey that started in the 1600s with the agricultural and later industrial revolutions (see figure 6, left). Each step in this 400-year growth journey has had tremendous impacts on societies, economies, the environment, institutions and facilities (see figure 6, right). These transitional moments create opportunities to develop new solutions and innovations in politics, social structures, institutions and the facilities we design and maintain. As McKinsey notes, “The foundations of future growth are often laid as societies respond to the weaknesses crises expose. History shows that resilience depends on adaptability and decisiveness in times of disruption.” [41] To find growth opportunities, facility managers, with IFMA’s help, should ask themselves what is likely to come next to find opportunities to pivot.
Crises are currently exposing weaknesses in societies around the world. People in many countries struggle with repeated shocks, including most recently the COVID-19 pandemic, geopolitical tensions wrought by Russia's invasion of Ukraine, the ongoing climate emergency and the aftereffects of the 2008 financial crisis, including limited construction activity in the 2010s and lower levels of labor market participation. Many people contend with massive debt loads and the inability to afford necessities (food, shelter and housing). For example, a survey by the Lincoln Institute of Land Policy (LILP) in 2019 found that 90 percent of the 200 global cities polled are unaffordable for the average person.[42] Solutions to these problems will create pathways to growth for the FM industry.
“The foundations of future growth are often laid as societies respond to the weaknesses crises expose.”
— McKinsey, 2022[40]
Figure 6 Incredible growth for 400+ years (right) has had tremendous societal impact (left)
(Source: Edward Wilson-Smythe, NTT Data, 2022)
Figure 6 Incredible growth for 400+ years (right) comes at a cost (left)
(Source: Edward Wilson-Smythe, NTT Data, 2022)
DT has unleashed four key trends that could help facility managers pivot if harnessed correctly. These are repatriating economies, increasingly integrated lives, reclaiming control over information and trust, and redefining value.[43]
[41] Klaus Schwab and Bob Sternfels (2022). “Three keys to a resilient post pandemic recovery” McKinsey. https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/three-keys-to-a-resilient-postpandemic-recovery
[42] Victoria Matterson (2022). What has caused the global housing crisis - and how can we fix it?” The World Economic Forum. https://www.weforum.org/agenda/2022/06/how-to-fix-global-housing-crisis/
[43] Edward Wilson Smythe (2022). ”Four megatrends that will disrupt facilities management and how we can pivot to create value,” IFMA’s Executive Summit (29-30 June 2022)