EMERGING FACILITY MANAGEMENT (FM) TRENDS FOR 2014

As FM organizations continue to evolve and reposition themselves to gain a competitive advantage, the focus remains on increasing customer satisfaction and uncovering new ways to boost the bottom line.

The year ahead should bring an increasing trend in customers exploring how FM can help their business achieve competitive advantage, with companies taking a more strategic approach to FM resources and contracts. There will be more focus on aligning FM services with operational performance, to result in tangible cost savings, enhanced productivity and workforce efficiencies. The focus is rapidly shifting away from service-oriented discussion to value driven dialogue, meaning FM high achievers are thinking more strategically when responding to new opportunities by articulating a clear and measurable value proposition.

Cloud Computing

This year will see two main forms of cloud based building automation – hosted building management software (BMS) and active management analytics. Businesses that offer this combined package via the cloud will be well positioned for 2014.

Building Information Modeling (BIM) for HVAC

The use of BIM software application integrated with CAD systems will help architects, construction engineers and HVAC companies maintain greener and more sustainable buildings. The use of 3D, 4D and 5D modeling technology helps HVAC engineers in design, without needing to engage architects in decisions about duct sizes, electrical co-ordination or airflow specifications. It delivers significant energy savings by enabling engineers to focus on optimizing an entire building or system instead of its individual components, a compelling reason for the use of BIM in the FM world.

Data & Infrastructure Security

Biometric systems identification software is being used across a range of industries. The FM and commercial sector will see an increased use of Biometric systems over the next five years, delivering a more precise and environmentally friendly technology that provides a range of options – from access control to identity documentation.

The increased co-existence of motion detection devices and video surveillance being used in conjunction with HVAC systems is evident within the FM space. There lies huge benefit for FM managers where this technology aids the identification of maintenance issues, such as the detection of water leaks. Ultimately, motion detection allows businesses to be more functionally sound and proficient in day-to-day operations.

Software & Mobile Applications

Anytime, anywhere access to people and information via a mobile device is an integral component to businesses today making mobile technologies a critical element in the workplace. The year of 2014 will see the increased use of HTML5, fast becoming the mainstream method for deploying enterprise software on mobile devices. This is mostly because web apps provide native-like functionality and are cheaper to develop. They also offer almost the same level of interoperability with smartphone features as a native app, and accessible via a browser.

BYOD (bring you own device) technology and mobility integration will facilitate all facets of the workplace allowing for a doubling or even tripling of the mobile workforce. In response to this trend, we are seeing the introduction of enterprises policies on employee-owned hardware that outline clear objectives around employee access to company networks via personal devices. In 2014, organization should aim to create mobile policies that balance flexibility with confidentiality and privacy requirements of the business.

Total FM (TFM) contracts and workforce integration

Growth in FM will be driven by the proliferation of ‘Total FM’ style contracts, whereby opportunities in FM outsourcing will also include the needs of niche sectors, such as energy management and workplace planning. Margin pressures and the rationalization of internal processes has led companies to re-evaluating their maintenance contracts in order to gain value and reduce risks. Companies successful in FM over the coming years will be those that offer ‘end-to-end’ contract that cover multiple services, continuing the escalating trend of Business Process Outsourcing arrangements.

Outsourcing will be a strong trend continuing in 2014, meaning future leaders in the FM arena will need to be workforce integrators. FM managers will need to become strategic partners, as well as information providers with an emphasis on corporate and social responsibility practices and new technologies will be a key focus for FM integrators looking to remain competitive this year.

PROPERTY & ASSET MANAGEMENT IN INDIA

Property & Asset Management (PAM) practices, even globally, have taken time to evolve into a sophisticated business and delivery model. In India, its benefits are now available in the form of comprehensive real estate management.

Property Management is a discipline that integrates people, place, processes and technology to ensure the day-to-day operational functionality of a real estate asset. It involves handling of the routine operational functions on behalf of developers (engineering, security, soft services, landscaping, etc.) Further, Property Management involves planning and implementing strategic management plans such as coordination and procurement of service agreements, vendor management, risk management, operational health and safety and effective human resources management. Asset Management, on the other hand, is a long-term function. It involves creating and implementing strategies to optimize financial returns from a real estate asset and includes augmenting income streams, lease management, risk mitigation and enhancement of the utilization of the real estate asset in terms of benefits and financial returns.

Importance of Property & Asset Management

Property & Asset Management plays an important role in the real estate lifecycle. The adoption of professional management practices from the pre-occupancy stage optimizes a real estate asset’s performance and reduces its operating costs. This beneficial confluence of process efficiencies and cost savings is possible because PAM can assemble various resources, capabilities and technologies across the lifecycle of a real estate project to achieve the best possible delivery outcomes.

Pre-Occupancy Management: Involves coordinating the physical plan and design with the management plan and benchmarking equipment and other operational costs.

Post-Occupancy Management: At this stage, continuous upkeep of both built environment and equipment is required and minimizing of operational risks.

Renovation Management: Needs reassessing of the on-going services and infrastructure to optimize physical conditions.

The Indian PAM Scenario Today

With the growth of the Indian real estate market over the past decade and the increased focus on the quality of buildings by buyers and sellers, Property & Asset Management will play a vastly amplified role in the immediate and long-term future. Developers as well as companies have understood and accepted that professional management of a property results in very significant cost savings, increased customer satisfaction via improved environment and better safety levels.

Outsourcing PAM services enables developers to concentrate on their core business and leverage the expertise of specialized service providers. Developers now engage the services of International Property Consultants (IPCs) to deliver their requirements for PAM which is no longer viewed as a luxury expenses but as an effective tool for property maintenance, management and optimization. This change in mind-set is very evident in the increasing number of housing societies that now use professional property management services by IPCs as a matter of course.

While the PAM industry in India is doubtlessly still at a nascent stage, it is evolving rapidly as a result of the fast pace of growth in the construction sector. With a massive supply of real estate projects coming in the near future, the availability of high-quality property maintenance and management will be a distinguishing factor for the consumers of these projects.