Posted by Anne Cosgrove
An independent study released earlier this year—conducted by Forrester Consulting and commissioned by JLL—says that 75% of firms see corporate real estate information as a core part of a wider corporate data and analytics strategy. This new focus is coming from the top, with nearly seven out of 10 CEOs setting the overall data and analytics vision.
The study, “Mind the data gap: aspiration vs. reality in corporate real estate”, is based on a Forrester Research survey of 392 corporate real executives across 11 countries and 10 industries. The responses show that corporate real estate (CRE) is rapidly becoming one of the most data-driven corporate functions. Twenty-eight percent of corporate real estate leaders see themselves as “data-centric” today, and this number is set to double to 56% over the next three years.
“CEOs have traditionally focused on data and analytics on product marketing and product design—but they also see the power to improve their own operations,” said David Kollmorgen, International Director at JLL and head of JLL’s Business Intelligence group. “Our research illustrates that the C-suite is beginning to recognize the value of bringing analytical sophistication to their CRE teams.”
JLL recommends three ways CRE teams can become leaders in data and analytics:
Partner with other departments to drive the data and analytics agenda. Individual business groups drive day-to-day data and analytics activities at more than 60% of companies. Only 9% of CRE team leaders constantly gather and exchange information across departments to manage key business resources, such as functional workspaces. Many are missing the opportunity to seize a role in eliminating data fragmentation and using analytics to support overall organizational goals.
Build or buy deeper data and analytics in-house capabilities. Only 34% of CRE teams have a data and analytics specialist on staff, and a third say their teams need more training. Only 29% say that their strongest capabilities lie with their in-house talent, and 58% are unsure whether they have the relevant internal skills to drive a data and analytics strategy.
Review and revise supplier relationships. Given their concerns about internal talent, CRE leaders must review their supplier relationships and ensure their service providers can fill in the gaps. Many firms are increasing their spending on third parties to help improve their data capabilities, including data strategy.
“Recruiting data and analytics experts means competing with many other fields for the talent—and that’s created a significant recruitment challenge,” said Kollmorgen. “As a result, some companies are looking to their suppliers and partnering with firms that already have the deep data and analytics talent and technology.”