Transformation that Reduces the Total Cost of Occupancy
Today’s organizations are navigating through a rapidly changing-and always challenging-business environment by deploying their capital with discipline, developing frameworks to maximize ROI, and aligning the real estate portfolio with overall strategy and infrastructure priorities.
This makes it imperative that everyone in the organization-from the boardroom to the equipment room-makes decisions informed by the right information. This can be unlocked by solutions that are more powerful than ever before.
With real estate, construction, infrastructure, and facility costs being the second-highest expense category for most organizations, managers must drive down the total cost of ownership with data-driven strategies that include:
- Simplifying strategic space planning and forecasting from the portfolio to the room level with what-if scenarios reflecting various time horizons.
- Closely monitoring performance with key metrics that reveal portfolio health and ensure alignment with organizational strategy. This drives more cost-effective space management and improved return on assets.
- Analyzing real estate assets through a unified framework of both capital and operating data to optimize total and lifecycle costs. Bridge gaps with other enterprise intelligence platforms so that all stakeholders benefit.
- Creating and supporting new space management and service paradigms such as alternative workplace policies and hoteling for remote/mobile workers.
- Managing space occupancy costs while still enabling workforce collaboration.
- Improving environmental compliance and risk mitigation that protect individuals and communities while avoiding regulatory fines and shut-downs.
A Fully Integrated Approach with ARCHIBUS
Attaining these goals requires information technology tools that centralize data and make it accessible to those who need it—wherever they are. Tools that are costeffective, empower individuals, deploy quickly for immediate results, and integrate with their existing ERP infrastructure. Most importantly, these tools should provide clear visualization of the physical asset cost structure and clarity on how to better align them to the organizational mission. Professionals need the most comprehensive, intelligent—and cost-effective—real estate, infrastructure and facilities management software solution in the industry to lower their total cost of occupancy.
Create New Workplace Paradigms and Improve Profitability
Agile work strategies such as telecommuting, flexible team spaces and “hoteling” are also reshaping the workplace paradigm. Global Workplace Analytics estimates each full-time telework employee saves companies $10,000 a year in real estate costs. For larger organizations those savings result in millions of dollars annually.
In the public sector, cash-strapped government departments at all levels are also required to eliminate real-estate waste and plan their space needs strategically. U.S. federal government telework initiatives have cut office-space costs by 35 percent. Moreover, a widely distributed government workforce is better positioned for continuity during disasters, pandemics or security threats. According to surveys telecommuting also offers major benefits in terms of recruitment, worklife balance and productivity.
Within facilities, web-based applications are making possible another workplace paradigm shift: more self-service capabilities for requesting moves, meeting room reservations, maintenance work orders, and a host of other services. These online requests are prioritized, assigned, tracked, and can be surveyed upon completion—automatically, using advanced workflow practices. Such capabilities have freed up facilities managers from routine paperwork, eliminated lost work orders, provided accelerated service delivery, and improved customer satisfaction.
The average annualized cost to a business of just one work station
of office space is underutilized according to industry research
Out of every 5 sit empty at any given time
Managing Occupancy Costs, Enabling Collaboration
By capturing the full range of real estate, infrastructure and facility costs: leases, utilities, maintenance, moves, security, and amenities, an organization can gain a panoramic window on the true total cost of their occupancy.
Moreover, by mapping costs against location, division, department, and time, managers can achieve insight into what this spend means to the organization, and how to evaluate the bottom line impact of various alternative scenarios. Or they can compare cost and space resources in the portfolio against forecasted future requirements and identify gaps between the vision and the existing situation.
No matter what the size of the organization or its geographic distribution, the right software solution enables collaboration among remote sites, co-workers, telecommuters, review committees, contractors, service providers, and a wide variety of other users. These capabilities combine to provide a platform that allows organizations to transform their operations and significantly reduce overall costs.
Environmental & Risk Management: 10-20% Operational Savings
An analysis by consultants McKinsey & Co found that 36 percent of CEOs ranked environmental sustainability as a top three priority while a separate study by Harvard University concluded that higher-performance sustainability companies had stronger financial performance.
As the drive for sustainability matures, business and higher education organizations are in leadership roles. Companies are finding sustainability supports greater innovation and alignment with consumers and other important constituents. Avoidance of risk—from supply chain disruption to resource depletion and damage to reputation —is also accelerating the sustainability trend.
In real estate, green buildings have lower operating costs. LEED buildings report almost 20 percent lower maintenance costs than typical buildings, and retrofitting projects generally decreases operating costs by 10 percent in one year, according to research.
An industry-leading environmental and risk management application suite can provide the informational framework needed to successfully manage sustainability programs as well as mitigate risk among an organization’s varied stakeholders, including employees, customers, regulatory agencies, non-governmental organizations, or investors.
But, in addition to the immediate operational savings, promoting environmental stewardship while mitigating risk can help improve an organization’s brand equity and increase overall stakeholder value.
An Integrated Solution to Support Business Transformation
Your real property assets, infrastructure and facilities are crucial to the overall performance of your organization. By effectively managing them, you can better respond to organizational and market shifts while optimizing your overall cost structure and improving asset utilization.
Using just one integrated software solution, you can leverage data, reduce inconsistent information, and ease the burden of supporting multiple software platforms.
Whether you lease, own, or outsource your facility operations, you can create intelligent buildings and transform your organization’s effectiveness, productivity, and profitability by lowering your total cost of occupancy-with ARCHIBUS®.