Harnessing DT for FM

DIGITAL MASTERS combine a transformative vision, careful governance and engagement with sufficient investment in new opportunities. They combine these elements into a repeatable process, applying technologies to move their organizations in new directions. They spend money, but they generate value from their investments. On average, digital masters generate 9% more revenue through their assets and 26% more profit than their peers.[17] In the FM industry, where profit margins typically hover around 4%, digital masters would generate 5%.

CONSERVATIVES favor prudence over innovation; they avoid risk but also the reward. Conservatives understand the need for a robust unifying vision, strong governance and corporate culture to manage investments well.[18] Their overly cautious approach causes them to miss opportunities others are keen to seize. On average, conservatives generate 10% less revenue through their assets and 9% greater profits than their peers.

FASHIONISTAS are companies that have implemented or experimented with many digital applications. Some create value, but many do not. While applications may look good, fashionistas do not deploy them in ways that unleash synergies. For example, organizations may have one building operating on one FMS or IWFM system while a facility in another location runs on a different platform. While they may be generating interesting site-specific insights, they are not harvesting the full potential an integrated unified solution and view may offer them. Fashionistas spend money but derive suboptimal performance from their investments. Fashionistas generate 6% more revenue through their assets but 11% lower EBIT profits than their peers.

BEGINNERS are firms that do very little with advanced digital capabilities, although they may be mature with more traditional applications. They often lack opportunities or start with small investments without effective transformation management. Digital beginners generate less revenue and have lower margins than their peers. On average, beginners generate 4% less revenue per employee or fixed asset and 24% lower EBIT and net profit margins. While being in this position in 2010 may have been acceptable, this position is no longer tenable in the 2020s. FM leaders in organizations still in the beginner quadrant must help move their organizations into the digital master quadrant to remain relevant.

The language of business is money. Understanding what makes the company work and drives profitability and how FM can help with this agenda will help make you, the facility manager, more successful. IFMA Research hopes that this white paper will inspire companies at the beginning and help those well into their DT journey to take a temperature check and navigate the challenges associated with digital transformation.

There are four areas where you can find opportunities to kickstart your transformation journey (see figure below). Opportunities exist in customer experience, operations, employee experience and the business model. Each of these opportunities rides on the quality of your digital platform, which are preceded by systems and processes. Transforming on inadequate platforms will make the digital transformation journey more difficult. The following section will present these opportunities, starting with customer experience and followed by operations, employee experience and the business model. (Links to in-depth explanations in box titles.)